NCX.V · 2020-09-01 12:00:00

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

Metallurgy & Processing

Northisle Announces Significant Improvement

in Gold and Copper Recoveries

TSX Venture Exchange Symbol: NCX

Highlights

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

at the Hushamu Deposit by an average of 17% and 24% 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

Similar metallurgical tests are underway for the nearby Red Dog Deposit

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,

Sept. 1, 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 Hushamu 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 two mineralization types in the Hushamu Deposit. The results

demonstrate that the average copper and gold recovery rates improved by 17% and 24%

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 66.1% and 29.3% into the low pyrite mineralization concentrate

("CMG") and the high pyrite mineralization concentrate ("SCP) respectively, and silver content in the

low pyrite mineralization concentrate of 29.3 g/t and 18.0 g/t in the high pyrite mineralization

concentrate ("SCP").

Following the successful metallurgical results obtained for the Hushamu Deposit, a similar program is

underway for the nearby Red Dog Deposit. Once these studies are completed, 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, and 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

excited about currently underway metallurgical testing on the nearby Red Dog Deposit. Once these

studies are completed, 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 two approximately 100kg composites samples of core;

one of the SCP and the other of CMG mineralization. The CMG composite came from drill holesH08-

08, H12-03, H12-10, H12-12, H14-05 and H17-01 while the SCP sample came from drill holes H17-

01 and H-08-08. The samples comprising the composites represent a range of high and lower grade

mineralization. The results of the lock cycle tests for the two mineralization types are presented in

the table below. For comparison, the results of the lock cycle 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, QEMSCAN analysis, sample characterization,

batch rougher batch cleaner and lock cycle test work. Modifications to the original flotation

conditions of the 2016 work included, finer primary grind, a single stage regrind of the rougher

concentrate, new reagent scheme and a three stage cleaner circuit.

The results of the metallurgical tests demonstrated that the copper recoveries of low pyrite

mineralization improved to 86.6% from 74.5% and to 87.9% from 75.0% in the high pyrite

mineralization. Gold recoveries in the low pyrite mineralization improved to 50.6% from 43.7% and to

46.4% from 34.4% in the high pyrite mineralization.

Table 1: SGS Labs Results Lockcycle Tests

Calculated

Feed

grade

(% or gpt)

(um)

Concentrate grade (% or gpt)

Recovery %

SCP

0.33

0.38

0.01

0.56

0.38

22.9

13.6

0.18

18.0

8.7

87.9

46.4

26.8

40.9

29.3

CMG

0.31

0.33

0.01

0.77

0.4

23.8

14.9

0.48

29.3

23.5

86.6

50.8

69.4

43.1

66.1

Table 2: 2016 Base Met Lockcycle Tests

Calculated Feed grade

(% or gpt)

PG (um)

Concentrate grade (% or gpt)

Recovery %

100

SCP

0.31

0.36

.014

100

19.0

10.1

0.78

75.0

34.4

69.8

CMG

0.25

0.28

0.009

100

22.0

14.4

0.41

74.5

43.7

37.6

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 3: North Island Project Resources as at

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

Au 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 4: North Island Project PEA Summary

LIFE OF MINE PHYSICALS

Mine life, years

22 years

Strip ratio, w:o

0.72

Throughput

27.4Mtpa

Resource inventory tonnes

460Mt

140Mt