NorthIsle Copper & Gold (TSXV:NCX) - Funded Fast-Tracked Copper-Gold Project

04/03/24 • 38 min

Interview with Sam Lee, President & CEO of NorthIsle Copper & Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/northisle-copper-gold-ncx-exciting-copper-gold-porphyry-in-british-columbia-3223-8180e

Recording date: 2nd April 2024

NorthIsle Copper & Gold (TSXV:NCX) is advancing the North Island Project, a district-scale copper-gold porphyry discovery located on Vancouver Island, British Columbia. With a large established resource, extensive existing infrastructure, and strong government and First Nations support, NorthIsle offers investors an attractive opportunity to gain exposure to rising copper and gold prices.

The company's flagship North Island Project covers over 34,000 hectares of mineral claims prospective ground and hosts several porphyry copper-gold deposits, including the advanced-stage Hushamu and Red Dog deposits. These deposits host combined Indicated resources of 5 million ounces of gold and 3 billion pounds of copper, positioning North Island among the largest undeveloped copper-gold projects in Canada.

Importantly, the project benefits from extensive existing infrastructure, including paved road access, a deep-water port, and an ample supply of low-cost hydroelectric power. This infrastructure advantage significantly reduces the capex and development timeline compared to more remote projects. NorthIsle has also established strong relationships with the local First Nations, signing consent agreements that provide a clear framework for consultation and economic participation.

While the 2021 PEA demonstrated robust economics for a large-scale, 22-year mine at North Island, NorthIsle has recently pivoted to a phased development approach to fast-track the project to production. The company plans to first develop a smaller, higher-grade starter pit operation focused on the Red Dog and Northwest Expo zones, with the larger Hushamu deposit serving as a longer-term growth opportunity.

Recent drilling at Northwest Expo has intercepted multiple zones of near-surface, high-grade copper-gold mineralization, including 96 m grading 1.42 g/t gold eq. and 87m grading 1.46g/t gold eq. These results underscore the potential for NorthIsle to develop a low-cost, high-margin initial mining operation with a small footprint and low strip ratio. By starting small, the company can significantly reduce upfront capital costs and accelerate the timeline to first production and cash flow.

Importantly, NorthIsle is fully funded to execute on this strategy after raising $6.4 million in an oversubscribed private placement in December 2023. The financing was anchored by several prominent resource-focused funds and positions the company to aggressively advance the project through drilling, economic studies, and permitting in 2024.

Looking ahead, NorthIsle offers investors multiple paths to value creation. In the near-term, the company is focused on expanding and upgrading the resource at Northwest Expo and Red Dog to support the development of the starter pit operation. Continued exploration success and the completion of engineering studies and permitting milestones should help to re-rate the stock as the project advances towards a construction decision.

Longer-term, NorthIsle has significant optionality to expand the operation to incorporate the larger Hushamu resource as market conditions warrant. The company also controls a large prospective land package with several untested exploration targets that could deliver new discoveries to further enhance the project. With a proven management team, a world-class copper-gold asset, and a clear path forward, NorthIsle is well-positioned to capitalize on the strong long-term fundamentals for critical metals.

View NorthIsle Copper & Gold's company profile: https://www.cruxinvestor.com/companies/northisle-copper-gold

Interview with Sam Lee, President & CEO of NorthIsle Copper & Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/northisle-copper-gold-ncx-exciting-copper-gold-porphyry-in-british-columbia-3223-8180e

Recording date: 2nd April 2024

View NorthIsle Copper & Gold's company profile: https://www.cruxinvestor.com/companies/northisle-copper-gold

Previous Episode

Chesapeake Gold (TSXV:CKG) - Innovative Technology & New Gold Ounces

Interview with Jean-Paul Tsotsos, Interim CEO of Chesapeake Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/chesapeake-gold-tsxvckg-world-class-leverage-to-precious-metals-resurgence-5006

Recording date: 27th March 2024

Chesapeake Gold (TSXV:CKG) presents a compelling investment opportunity for those seeking exposure to a large, high-quality gold and silver resource with significant exploration upside. The company's flagship Metates project in Mexico boasts one of the world's largest undeveloped gold and silver deposits, with over 18 million ounces of gold, 500 million ounces of silver, and 4 billion pounds of zinc in the Measured and Indicated category.

The key to unlocking the value of this massive resource lies in Chesapeake's innovative oxidative leach technology, which has the potential to significantly reduce capital costs and improve the overall project economics at Metates. Chesapeake CEO Jean-Paul Tsotsos stated, "With the technology at Metates, we've shown that we're able to reduce the actual capital to build it – it's actually at a level of $360 million right now which is an executable level internally."

The company has demonstrated the effectiveness of its oxidation process on Metates ore in extensive lab-scale test work, achieving gold recoveries with a target of 70% in the current phase of testing.

In addition to the Metates project, Chesapeake's Lucy project has shown promising initial drill results, with multiple intercepts of high-grade gold mineralization starting from surface. The company is taking a systematic approach to drilling at Lucy, focusing on areas with existing trench data and geochemical anomalies to better understand the controls on mineralization and the extent of the resource.

Chesapeake is well-funded to advance both the Metates and Lucy projects in 2024, with a cash balance of $22 million. The company's strong financial position provides a competitive advantage in the junior mining space, enabling it to systematically de-risk and build value across its portfolio of Mexican gold assets.

The macro environment for gold is also favorable, with the precious metal surging to multi-year highs in recent weeks due to cooling inflation data and expectations of a Fed pivot in monetary policy. Many analysts are forecasting a bull market for gold in 2024 as real interest rates move lower and recessionary concerns mount.

Mexico has a long history of mining and remains one of the world's top producers of precious and base metals. While the current administration has taken a more nationalistic approach to resource development, the upcoming presidential election in June 2024 could usher in a more business-friendly regime. Regardless of the election outcome, Chesapeake is well-positioned to work with state and federal governments to advance its projects while delivering benefits to local communities and stakeholders.

With a large resource base, innovative processing technology, promising exploration results, and a favorable macro backdrop for gold, Chesapeake Gold offers investors a unique opportunity to gain exposure to a potentially significant re-rating as the company advances its Mexican gold projects in 2024.

View Chesapeake's Gold company profile: https://www.cruxinvestor.com/companies/chesapeake-gold

Next Episode

Global Atomic (TSX:GLO) On-Track for 2026 Production in Niger Uranium Asset as Nuclear Demand Soars

Interview with Stephen G. Roman, President & CEO of Global Atomic Corp.

Our previous interview: https://www.cruxinvestor.com/posts/global-atomic-tsxvglo-ramping-up-operations-in-uranium-bull-market-4945

Recording date: 3rd April 2024

Global Atomic Corporation (TSX: GLO) is a uranium development company well-positioned to benefit from the improving fundamentals of the nuclear fuel market. Its flagship asset is the Dasa uranium project in Niger, which is fully permitted and on track to commence production in 2026, ahead of most peer projects.

The company recently released an updated feasibility study for Dasa featuring significantly enhanced economics. The study incorporated a higher long-term uranium price of $75/lb (up from $65/lb) to reflect strengthening market dynamics. Key improvements include a longer 23.75-year mine life (from 12 years) and increased resources of over 50 million pounds U3O8 in the inferred category at an impressive average grade of 5,000ppm. The after-tax IRR now stands at 57% using current spot prices around $50/lb or 75% using a $90/lb price deck. Importantly, ongoing drilling continues to grow the already large, high-grade resource, with further upside potential to project economics.

Despite recent political uncertainty in Niger, Global Atomic reports that on-the-ground operations remain on track. The company is mobilizing equipment and ramping up employment to over 500 workers in coming months. Notably, Niger's government and local communities are fully supportive of the Dasa project.

Crucially, Global Atomic has already signed uranium supply contracts with western utilities, providing revenue visibility and limiting spot market exposure. The first deliveries under these contracts are scheduled for Q1 2026, aligning with the expected production start-up.

The company is now focused on securing a comprehensive funding package to advance Dasa to production. Potential near-term catalysts include credit approval from its banking syndicate as early as this month followed by possible final board approval in June. While the company is confident in finalizing the debt component, it noted other financing alternatives are also available, including several interested joint venture partners.

In the context of a looming structural uranium supply deficit, Dasa is strategically significant as one of the few advanced, high-grade projects in a geopolitically stable jurisdiction. Significantly de-risked and on track for first production in 2026, Global Atomic offers investors compelling exposure to rising uranium prices. The company appears well-positioned to help address the growing supply gap as global nuclear power expands in the coming years. Investors should monitor upcoming financing catalysts closely as securing the funding package could drive a significant re-rating of the stock from current levels.

View Global Atomic's company profile: https://www.cruxinvestor.com/companies/global-atomic-corp