NCX.V · 2020-10-02 12:00:00

Northisle Announces Significant Improvement in Gold and Copper Recoveries at Red Dog TSX Venture Exchange Symbol: NCX

Metallurgy & Processing

Northisle Announces Significant Improvement

in Gold and Copper Recoveries at Red Dog

TSX Venture Exchange Symbol: NCX

HIGHLIGHTS

The recently completed metallurgical tests improved the copper and gold recovery rates

at the Red Dog Deposit by an average of 5% and 65% respectively, compared to the

tests forming the bases for estimates used in the previously published PEA

Metallurgical tests also demonstrate potential to recover silver and rhenium metal

content, which was previously excluded from the PEA economics

The previously published PEA is being updated to include upside potential related to

higher gold and copper recovery rates, higher metal prices, and the inclusion of silver

and rhenium metal recovery

VANCOUVER, BC, Oct. 2, 2020 /CNW/ -

Northisle Copper and Gold Inc

. (TSXV: NCX)

("Northisle" or the "Company") is pleased to report that preliminary metallurgical test results

demonstrate a significant improvement in recoveries of copper and gold for the Red Dog Deposit at

its 100%-owned North Island Project located in

British Columbia, Canada

The test work was designed to investigate alternative flotation parameters to improve the recovery

rates of copper and gold in the Red Dog Deposit mineralization. The results demonstrate that the

average copper and gold recovery rates improved by 5% and 65% respectively, compared to tests

used for the Preliminary Economic Assessment ("PEA") published in

September 2017

In addition, the metallurgical test work included assaying and evaluating the recoveries of rhenium

and silver which were not included in earlier test work and in the PEA economics. Results

demonstrate rhenium recoveries of 69.4% and silver content in the concentrate of 15.1 g/t.

Following the previously announced successful metallurgical results obtained for the Hushamu

Deposit, Northisle expects to update the PEA to incorporate upside potential related to the expected

higher gold and copper recovery rates, inclusion of silver and rhenium metal recovery at Red Dog

and Hushamu deposits as well as the higher metal prices.

John McClintock

, President and CEO stated: "These results are very positive as they are expected

to significantly improve the economics of our North Island Project. Given this success, we are eager

to update our PEA to reflect the upside potential of higher copper and gold recovery rates, inclusion

of silver and rhenium metal recovery, and higher metal prices."

TEST PROGRAM DETAILS

The metallurgical test program was completed by SGS Canada Inc. (SGS) at their laboratory facility

Burnaby, BC

. The test work was done on an approximately 50 kg composite sample of core from

drill holes RD16-01, RD16-02 and RD16-06. The samples comprising the composite represent a

range of high and lower grade mineralization. The results of the lock cycle test are presented in the

table below. For comparison, the results of the cleaner tests used for the PEA are presented in

Table 2. The composites for the earlier metallurgical work were prepared from core samples from

H14-05.

Detailed test work included: sample preparation, sample characterization, batch rougher batch

cleaner and lock cycle test work. Modifications to the original flotation conditions of the 2016 work

included, a regrind of the rougher concentrate to 20um, new reagent scheme and a three stage

cleaner circuit.

The results of the metallurgical tests demonstrated that the copper recoveries improved to 89.8%

from 85.7%. Gold recoveries improved to 53.0% from 33%.

Table

1: SGS

Labs

Results

Lockcycle

Tests

Calculated

Feed

grade

(% or gpt)

(um)

Concentrate

grade

(% or gpt)

Recovery

Red Dog

0.33

0.51

0.005

0.47

0.32

26.5

24.5

0.30

15.1

20.2

89.8

53.0

73.5

35.5

69.4

Table

2016

Base

Met

Cleaner

Tes

Calculated

Feed grade

(% or gpt)

(um)

Concentrate

grade

(% or gpt)

Recovery

Red Dog

0.34

0.53

.007

100

24.2

14.3

85.7

32.2

ABOUT THE NORTH ISLAND PROJECT

The 100%-owned North Island Project consists of the Hushamu and nearby Red Dog deposits, with

Mineral Resources summarized in the below table.

Table

North

Island

Project

Resources

December

31,

2018

Tonnes,

'000

Grade

Contained

Metal

Cu,

Au,

g/t

Mo,

Re,

ppm

Cu Eq, %

Cu,

B lb

Au,

Moz

Mo,

M lb

Re,

Kg x 1000

Cu eq, B lb

eq,

Moz

Red

Dog

Indicated

36,568

0.27

0.38

0.005

0.52

0.22

0.45

4.0

0.42

0.99

Inferred

1,774

0.20

0.30

0.003

0.39

0.01

0.02

0.1

0.02

0.04

Hushamu

Indicated

305,180

0.24

0.28

0.008

0.54

0.43

1.62

2.75

53.8

165

2.92

6.97

Inferred

189,640

0.19

0.24

0.007

0.35

0.36

0.79

1.46

29.3

1.49

3.56

Total

Indicated

341,743

0.24

0.29

0.008

0.48

0.44

1.83

3.2

57.8

165

3.34

7.96

Inferred

190,788

0.19

0.24

0.007

0.35

0.36

0.80

1.48

29.4

1.51

3.60

Mineral Resource estimates follow the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") definitions standards for Mineral Resources and Reserves and have been

completed in accordance with the Standards of Disclosure for Mineral Projects as defined by National Instrument 43-101. The NI 43-101 reports co-authored by P Burt PGeo and B

Game PGeo documenting the resource estimate available on the company's website and filed on SEDAR. Reported tonnage and grade figures have been rounded from raw

estimates to reflect the relative accuracy of the estimate. Minor variations may occur during the addition of rounded numbers. Mineral Resources that are not Mineral Reserves do

not have demonstrated economic viability. Copper and gold equivalent calculated using US$3.10/lb Cu, US$1300/oz Au and US$9.00/lb Mo and is not adjusted for mining and

metallurgical recoveries as these remain uncertain. The formula used is as follows: CuEQ =

(Cu% x 22.0462 x 3.10)

+ (Au g/t x 1300.00/ 31.1035) + (Mo% x 22.0462 x

9.00)/22.046x3.1. AuEQ =(Cu% x 22.0462 x 3.10) + (Au g/t x 1300.00/ 31.1035) + (Mo% x 22.0462 x 9.00)/(1300/31.1035).

Rhenium values have not been used in the cut-off

grade or Cu or gold Equivalent calculations.

September 2017

, Northisle published the results of a PEA which demonstrated the potential

technical and economic viability of the project constructed as an open-pit mine, with a concentrator

processing nominally 75,000 tonnes/day (27Mtpa) with the results summarized in the below table.

This PEA is expected to be updated to reflect the results from the metallurgical tests described in

the sections above.

Table

North

Island

Project

PEA

Summary

LIFE

OF MINE PHYSICALS

Mine life, years

22 years

Strip ratio, w:o

0.72

Throughput

27.4Mtpa

Mineralization inventory

600Mt

Copper grade

0.18%

Gold grade

0.24g/t

Molybdenum grade

0.01%

Pyrite grade

LOM production

Copper

1.9B lb

Gold

1.8Moz

Molybdenum

55M lb

Pyrite

17B lb

Copper

equivalent,

M lb pa

3.1B lb

Gold equivalent, koz

7.4Moz

AVERAGE

ANNUAL

PRODUCTION

Copper, M lb

82M lb

Gold, koz

79koz

Molybdenum, M lb

3M lb

Pyrite, kt

0.64Kt

Copper

equivalent,

M lb

141M lb

Gold equivalent, koz

335koz

AVERAGE

ANNUAL

PRODUCTION

COSTS

Copper C1 Cash Costs net of by-products, US$/lb

$0.88/lb

Copper AISC net of by-products, US$/lb

$1.22/lb

Copper equivalent AISC, US$/lb Cu eq

$2.00/lb

ld equivalent AISC, US$/oz Au eq

$840/oz

ECONOMICS

After-tax NPV5%, US$m

$757m

After-tax NPV8%, US$m

$413m

After-tax IRR, %

14%

The commodity prices used are as follows: US$ 3.10/lb Cu, US$ 1,300/oz Au, US$ 9.00/lb Mo, US$ 9/t Py with a CAD/USD of 0.75. For more information, please consult the 2017

PEA available on SEDAR under the Company's profile or on Northisle's website.

For more information on Northisle please visit the Company's website at

www.Northisle.ca

John McClintock

, P. Eng is the Qualified Person who reviewed and approved the scientific and

technical disclosure in this news release.

On behalf of Northisle Copper and Gold Inc.

John McClintock, P. Eng

President, CEO and Director

www.northisle.ca

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in

the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of

this news release.

This news release contains forward-looking statements. These forward-looking statements are

based upon the reasonable beliefs of Northisle and its management as of the date of this news

release; however, forward-looking statements involve risks and uncertainties and are based upon

factors that may change and assumptions that may prove, with the passage of time, to be incorrect

as a result of exploration and other risk factors associated with mineral exploration and development

that are beyond the control of Northisle. Accordingly, undue reliance should not be placed upon such

statements. If factors materially change or assumptions are materially incorrect, the actual results,

performance or achievements of Northisle may be materially different from any future results,

performances or achievements expressed or implied by such forward-looking statements. Northisle

does not undertake any obligation to update or revise any forward-looking statements to reflect new

information, future events or otherwise, except as required by applicable law.

SOURCE

NorthIsle Copper and Gold Inc.

View original content to download multimedia:

http://www.newswire.ca/en/releases/archive/October2020/02/c9569.html

%SEDAR: 00032328E

For further information:

John McClintock, P. Eng, President, CEO and Director, www.northisle.ca

CO: NorthIsle Copper and Gold Inc.

CNW 16:15e 02-OCT-20

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