Northisle Launches a Second Exploration Program at Its Pemberton Hills Target
Northisle Launches a Second Exploration Program at Its Pemberton Hills
Target
HIGHLIGHTS
• Northisle and its farm-out party, Freeport-McMoRan Mineral Properties Canada Inc., are launching a second exploration
campaign on the Pemberton Hills target
• The Pemberton Hills target is a 3.5km by 1.5km area of advanced argillic alteration similar to that observed at
Northisle’s 100%-owned Hushamu and Red Dog copper-gold deposits
• In 2018, the exploration first program consisted of approximately 13km of Induced Polarization (IP) geophysical survey
which was then followed by 3,400m of drilling consisting in 7 holes
• For 2019, the initial exploration program will consist of approximately 24km of IP surveying as well as geological,
geochemical and clay studies designed to define drill targets for a second phase of drilling later in the year
VANCOUVER, British Columbia, April 03, 2019 -- Northisle Copper and Gold Inc. (TSX-V:NCX) (“Northisle” or the
“Company”) is pleased to announce the launch of its second exploration campaign at its Pemberton Hills Property, located in
British Columbia, subject to a farm-out agreement with Freeport-McMoRan Mineral Properties Canada Inc. (“Freeport”).
John McClintock, President and CEO of Northisle stated: “We are very pleased with the progress made on our Pemberton
Hills Property following the 2018 commencement of its venture with Freeport in early 2018 and with the technical support they
have provided. We believe that Freeport’s decision to continue with a second exploration campaign in 2019 demonstrates
Freeport’s continued interest in our tenements. Pemberton Hills is one of several early-stage exploration targets on our
extensive property holdings in this extensive copper-gold district.”
Figure 1 is available at http://www.globenewswire.com/NewsRoom/AttachmentNg/f79be5a4-a53a-44c6-8655-9914fa9afda6
As shown in the figure above, the geophysical program will test the northern and eastern extensions of advanced argillic
alteration located within the same geological terrain that extends west-northwest from BHP Billiton’s past producing Island
Copper Mine. The alteration at Pemberton is very similar to that at the nearby Hushamu and Red Dog deposits and in porphyry
copper systems found elsewhere in the world.
The initial 2019 exploration program will consist of approximately 24 kilometres of Induced Polarization surveying as well as
geological mapping, geochemical and clay studies designed to identify drill targets for a second phase of drilling later in the
year.
ABOUT THE PEMBERTON HILLS PROPERTY FARM-OUT AGREEMENT
A farm-out agreement was entered into with Freeport in early 2018, dividing the initial property held by Northisle as illustrated
in the figure above. Under the terms of the agreement, as announced on February 26, 2018, Freeport may, at its election, earn
up to a 65% interest in the Pemberton Hills Property by funding a total of $23.9 million in exploration expenditures, while
Northisle retains a 100% interest in its Hushamu and Red Dog copper-gold deposits and surrounding areas, for which a
Preliminary Economic Assessment was published on September 13, 2017. As at December 31, 2018, Freeport spent $1.5
million on the portion of the property subject to its earn-in agreement.
ABOUT THE 100%-OWNED HUSHAMU PROJECT
The 100%-owned Hushamu Project consists of the Hushamu and nearby Red Dog deposits, with Mineral Resources
summarized in the below table.
Table 1: Hushamu 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 66 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 66 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$9.00/lb Mo and is
not adjusted for mining and metallurgical recoveries as these remain uncertain. The formula used is as follows: CuEQ =
(Cu% x 22.0462 x 3.10) + (Au g/t x 1300.00/ 31.1035) + (Mo% x 22.0462 x 9.00)/22.046x3.1. AuEQ =(Cu% x 22.0462 x 3.10)
+ (Au g/t x 1300.00/ 31.1035) + (Mo% x 22.0462 x 9.00)/(1300/31.1035). Rhenium values have not been used in the cut-off
grade or Cu or gold Equivalent calculations.
In September 2017, Northisle published the results of a PEA which demonstrated the potential technical and economic
viability of the project constructed as an open-pit mine, with a concentrator processing nominally 75,000 tonnes/day (27Mtpa)
with the results summarized in the below table.
Table 2: Hushamu Project PEA Summary
LIFE OF MINE PHYSICALS
Mine life, years 22 years
Strip ratio, w:o 0.72
Throughput 27.4Mtpa
Mining inventory 600Mtpa
Copper grade 0.18%
Gold grade 0.24g/t
Molybdenum grade 0.01%
Pyrite grade 9%
LOM production
Copper 1.9B lb
Gold 1.8Moz
Molybdenum 55M lb
Pyrite 17B lb
Copper equivalent, M lb pa 3.1B lb
Gold equivalent, koz 7.4Moz
AVERAGE ANNUAL PRODUCTION
Copper, M lb 82M lb
Gold, koz 79koz
Molybdenum, M lb 3M lb
Pyrite, kt 0.64Kt
Copper equivalent, M lb 141M lb
Gold equivalent, koz 335koz
AVERAGE ANNUAL PRODUCTION COSTS
Copper C1 Cash Costs net of by-products, US$/lb $0.88/lb
Copper AISC net of by-products, US$/lb $1.22/lb
Copper equivalent AISC, US$/lb Cu eq $2.00/lb
Gold equivalent AISC, US$/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”
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.
Northisle Copper and Gold Inc. | 15th Floor, 1040 West Georgia Street | Vancouver, BC | V6E 4H1
www.northisle.ca | [email protected]