NCX.V · 2024-03-13 12:00:00

Northisle Announces an Initial Indicated Resource Estimate of 1.0 Million Ounce Au Eq. and 0.7 Million Ounce Au Eq. Inferred Resource Estimate at Northwest Expo

Resource Estimates Marketing Announcement

Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3

www.northisle.ca | [email protected]

March 13, 2024

TSX Venture Exchange Symbol: NCX

Northisle Announces an Initial Indicated Resource Estimate of 1.0 Million Ounce Au Eq.

and 0.7 Million Ounce Au Eq. Inferred Resource Estimate at Northwest Expo

Highlights:

• Sizable gold-rich initial resource delineated for the Northwest Expo target

o Indicated Resource of 1.0Moz Au Eq. grading 0.80g/t Au Eq., which includes a higher-grade subset of

0.9Moz Au Eq. grading 0.96 g/t Au Eq.

o Inferred Resource of 0.7Moz Au Eq. grading 0.68g/t Au Eq., which includes a higher-grade subset of

0.5Moz Au Eq. grading 0.92g/t Au Eq

o Low strip ratio of 2.52:1 waste to mineralized material

o Weighted average recovery rates of 88% and 76% for gold and copper, respectively

o 2024 drill program anticipated to further improve Indicated resource grade by targeting near-surface

higher grade areas to achieve a +80% ratio of Indicated to Inferred Resources

• Low Indicated resource discovery cost for Northwest Expo of less than $10/oz Au Eq.

• Attractive Net Smelter Revenue (“NSR”) value of $55/t for the Indicated resource as a whole and $67/t for the

higher grade zone which represents 2-3 times the NSR value of the current North Island Project PEA

• Total combined Indicated Resource at the North Island Project increases to approximately 2.5 bn lbs Cu and

4.9Moz Au plus Inferred Resource of approximately 1.4 bn lbs Cu and 3.0Moz Au

• Significant exploration potential with step out to the south of Zone 1 and at West Goodspeed discovery to be

advanced in H1 through fully funded 2024 drill program

• Trade-off studies have commenced for a lower capex staged approach, utilizing the higher-grade Northwest

Expo deposit within the context of the North Island Project

Vancouver, B.C. – Northisle Copper and Gold Inc. (TSX-V: NCX) (“Northisle” or the “Company”) is pleased to announce

an initial mineral resource estimate (the “Resource Estimate”) for the Northwest Expo deposit at its 100% owned North

Island Project, located on Vancouver Island in BC, Canada.

Sam Lee, President & CEO of Northisle stated “Today’s new resource estimate at Northwest Expo has exceeded our

expectations of defining a 40 to 50 million tonne resource within the gold enriched Zone 1. Including the impact of the

88% gold and 76% copper recoveries, the average NSR value per tonne is nearly triple the NSR value in the North Island

Project PEA and approximately $80/tonne at spot prices. With a relatively low strip ratio, this sets a strong basis for the

rapid advancement of a potential high margin, near surface deposit that could be sequenced at the beginning of our large,

long life North Island Copper and Gold project. We will be aggressively advancing development and exploration under our

fully funded 2024 program.”

The initial Northwest Expo Indicated Resource contains 40.3 million tonnes grading 0.80g/t Au Eq. for 1.0 million ounces

Au Eq. plus an additional 30.6 million tonnes grading 0.68g/t Au Eq. for 0.7 million ounces Au Eq. in Inferred Resources, at

a 0.18g/t Au Eq. cut -off grade. Based on exploration costs by Northisle at Northwest Expo to date, this represents a

discovery cost of well below $10/oz Au Eq.

As shown in Table 1 below, following the addition of the Northwest Expo deposit, the total resource for the North Island

Project now comprises an Indicated Resource of approximately 2.4 bn lbs Cu and 4.9Moz Au plus Inferred Resource of

approximately 1.4 bn lbs Cu and 3.0Moz Au. The Northwest Expo deposit boasts an attractive NSR value of $55/t for the

Indicated resource as a whole and $67/t for the higher grade zone which represents 2-3 times the NSR value of Hushamu

Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3

www.northisle.ca | [email protected]

and Red Dog, due to higher gold grade and higher recovery rates. At spot prices NSR values are approximately $80/tonne

at a 0.5 g/t Au Eq. cut off.

The near surface sizeable initial resource delineated within the gold -enriched Zone 1 at Northwest Expo provides the

opportunity to optimize the development plan of the North Island Project. Trade-off studies have been launched to study

the possibility for a lower capex staged approach, prioritizing the higher -grade Northwest Expo deposit with potential to

concurrently focus on the higher-grade areas of the Red Dog and Hushamu deposits. These trade-off studies are expected

to be completed in Q2-2024 and will form the basis for advanced economic and technical studies.

Table 1: Combined North Island Project Resource Estimate

Grade Contained Metal

Tonnes Cu Au Mo Re Cu Au Mo Re

000s % g/t % g/t mm lbs 000s oz mm lbs 000s kg

Indicated

Northwest Expo 40,310 0.11 0.67 - - 100.2 871.0 - -

Red Dog 54,490 0.22 0.31 0.004 - 264.3 543.3 4.8 -

Hushamu 472,854 0.20 0.23 0.008 0.35 2,084.9 3,496.7 83.4 165.5

Total Indicated 567,654 0.20 0.27 0.007 0.35 2,449.4 4,911.0 88.2 165.5

Inferred

Northwest Expo 30,612 0.09 0.57 - - 62.8 558.0 - -

Red Dog 2,979 0.17 0.25 0.002 - 11.2 23.9 0.1 -

Hushamu 414,293 0.15 0.18 0.006 0.29 1,370.0 2,397.6 54.8 120.1

Total Inferred 447,884 0.15 0.21 0.006 0.29 1,444.0 2,979.5 54.9 120.1

Notes to the Combined Resource Table:

1. Classifications are compliant with CIM Resource Definition Standards, 2014

2. The effective date of the Red Dog Resource Estimate is March 14, 2017. The effective date of the Hushamu Resource Estimate is November 29, 2020. See

the Company’s Preliminary Economic Assessment issued May 22, 2022 with an effective date of February 4, 2021 (the “2021 PEA”).

3. Resources at Hushamu and Red Dog are based on a 0.1% Cu cut-off grade. Northwest Expo is based on a 0.18gpt AuEq cut-off grade.

4. The Hushamu and Red Dog Resources are based on the mining and processing cost assumptions detailed in Sections 21 and 22 of the 2021 PEA including

metal prices of US$3.25/lb Cu, US$1,650/oz Au, US$10/lb Mo with recoveries of 86%, 47% and 74%, respectively.

5. Amounts may not total due to rounding.

6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There are no Mineral Reserves.

7. The estimate of Mineral Resources may be materially affected by geology, environment, permitting, legal, title, taxation, soc iopolitical, marketing or other

relevant factors.

8. Additional notes including metal price and modelling assumptions relating to the Northwest Expo 2024 Resource Estimate may be found in Table 2 below.

Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3

www.northisle.ca | [email protected]

Figure 1 shows the location of the deposits within the North Island Project in the context of regional infrastructure.

Figure 1: North Island Project Showing 2024 Areas of Focus

Details of Northwest Expo Resource Estimate

The Northwest Expo Resource Estimate includes a total of 32 diamond drill holes totalling 14,333 meters drilled by

Northisle and previous operators from 2005 through the end of 2023, of which 20 holes totalling 9,367 meters were

completed by Northisle between 2021 and 2023.

Table 2 below summarizes the Northwest Expo Resource Estimate and shows the robustness of the deposit based on the

sensitivity of the Resource Estimate to cut -off grade. The base case cut-off grade of 0.18g/t Au Eq. covers the estimated

processing and G&A costs.

Table 2: Northwest Expo Mineral Resource Estimate

AuEq

Cutoff Class

In Situ Tonnage and Grade AuEq

Metal Au Metal Cu Metal S/R Tonnage AuEq Au Cu NSR

(gpt) (ktonnes) (gpt) (gpt) (%) (C$/t) (kOz) (kOz) (kOz) Waste /

Mineral

0.18 Indicated

Inferred

40,310 0.799 0.672 0.113 55.44 1,035 871 100,154 2.52 30,612 0.676 0.567 0.093 46.75 665 558 62,764

0.3 Indicated

Inferred

37,450 0.841 0.708 0.119 58.40 1,013 852 98,085 2.99 25,113 0.771 0.649 0.105 53.38 622 524 58,077

0.4 Indicated

Inferred

33,960 0.892 0.750 0.126 61.90 973 819 94,110 3.50 21,534 0.841 0.711 0.113 58.27 582 492 53,741

0.5 Indicated

Inferred

29,595 0.957 0.806 0.134 66.43 910 767 87,560 4.25 18,000 0.918 0.778 0.122 63.64 531 450 48,572

0.6 Indicated

Inferred

25,318 1.026 0.866 0.143 71.25 835 705 79,874 5.26 14,576 1.005 0.855 0.132 69.73 471 401 42,514

0.7 Indicated

Inferred

21,283 1.097 0.927 0.152 76.22 750 635 71,414 6.51 11,990 1.082 0.922 0.142 75.13 417 355 37,588

Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3

www.northisle.ca | [email protected]

Notes to the 2024 Resource Table:

1. Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines, as required by NI43-101.

The estimate has an effective date of March 1, 2024.

2. The base case Mineral Resource has been confined by a "reasonable prospects of eventual economic extraction" shape using the following assumptions:

• Metal prices of US$1800/oz Gold, US$3.50/lb Copper, exchange rate of 0.75 USD:CAD

• Metallurgical recovery of 91% Gold, 73% Copper in the Chlorite-Magnetite-Silica (CMG) and 89% gold, 88% Cu in Silica-clay-Pyrite (SCP) and all

other material. Weighted average recoveries of 88% Au and 76% Cu.

• Payable metal of 99.9% Gold and 99% Cu

• Offsite costs (transport, smelter treatment and refining) of C$10/oz gold, and C$0.07/lb copper

• Processing Cost of C$10.00 and General, and Administrative (G&A) costs of C$2.50/t milled

• Mining cost of C$3.00/t mined and 48 degree pit slopes

• The 100% price case pit shell is used for the confining shape

3. The resulting NSR = (Au*US$76.765/g*Recovery + 22.0462*(Cu*US$4.617/lb*Recovery))/0.75

4. The resulting AuEq in CMG is: AuEq = Au + 1.064Cu% and for SCP is: AuEq = Au + 1.311Cu%

5. The specific gravity of the resource is variable by lithology between 2.61 and 2.77.

6. Numbers may not add due to rounding.

7. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There are no Mineral Reserves.

8. The estimate of Mineral Resources may be materially affected by geology, environment, permitting, legal, title, taxation, sociopolitical, marketing or other

relevant factors.

The Resource Estimate was prepared by Sue Bird , P.Eng. of Moose Mountain Technical Services ( “MMTS”) who is

independent of Northisle. The Company has determined that a Technical Report update is not required for the North

Island Project as a result of the Northwest Expo Mineral Resource. Should the company complete an updated Technical

Report on the North Island Project in the future, the Mineral Resource will be included.

Figure 2 below shows the resource pit shell and modelled block grades above 0.50g/t Au Eq. The estimation methodology

is detailed further below, in “Details of Resource Estimation Methodology”.

Figure 2: Northwest Expo Resource Shell and Block Model Showing Grades

Key Catalysts

The Company has a number of important catalysts over the next several months which it believes will continue to establish

the North Island Project as one of the best new mining camps in the world. These include the following:

Northwest Expo

View to Northwest Moly Quarry

North

NW23-26

NW23-22

NW23-19

NW23-16

AuEq g/t

1.5

1.0

0.8

0.5

0.4

9 100 200 300

Metres

Plunge 30° Azimuth 300°

Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3

www.northisle.ca | [email protected]

• COMPLETED - Final 2023 Northwest Expo Drill Results

• COMPLETED - Inaugural Northwest Expo Zone 1 resource estimate including Phase 3 Drilling

• COMPLETED - Metallurgical testing results from Northwest Expo Zone 1

• Q2 2024 - Preliminary Project Trade-offs

• Q2 2024 - Geophysics results from Northwest Expo and West Goodspeed

• Q2 2024 - Final 2023 Pemberton Hills Drill Results

• Q2 2024 - Target commencement of 2024 drilling program

• Q3 2024 - Target commencement of advanced economic and technical studies

• H2 2024 - Initial Results from 2024 drill programs

• Ongoing - Continued engagement with indigenous rightsholders and local stakeholders

Upcoming Investor Events

During 2024, the Company will continue to be active in investor outreach. Northisle will be attending several external

investor events including the following events during Q2/Q3 2024:

• March 20, 2024 at 7PM ET / 4PM PT: Townhall Webinar with FTMIG

• April 8 – 10, 2024: Gold Forum Europe, Zurich, CH

• September 10 – 13, 2024: Precious Metals Summit, Beaver Creek, CO

• September 15 – 18, 2024: Gold Forum Americas, Colorado Springs, CO

Additional Technical Details

Details of Resource Estimation Methodology

A confining shape for the interpolations has been made using the alteration type modeling shapes provided by North Isle,

the logged alteration / lithologies and the metal grades.

Capping of assays has been implemented at 10gpt for Au and 1% for Cu. Outlier restriction of composites during

interpolation was also implemented with values above 2gpt Au and above 0.40% Cu essentially capped beyond a 10m

distance from the composite.

Compositing has been done by three meter intervals honoring the domain boundary for each element. Three meters was

selected because it is the length of the longest assays. Values less than 1.5m have been added to the composite above to

avoid small composite lengths.

Ordinary Kriging interpolations have been used for both Au and Cu interpolations. Search distances and orientations for

each metal are based on the variography.

Resource classification is based on the distance between drillholes with criteria based on the variography using the

following process.

• All interpolated blocks are initially classified as Inferred.

• Blocks are upgraded to Indicated if the average distance to the two nearest drillholes is less than 65 meters.

• Blocks were then examined and those near surface were downgraded to Inferred due to lack of near -surface

drilling and extrapolation in this area. A small number of blocks of isolated Indicated were downgraded to Inferred

and of isolated Inferred upgraded to Indicated to ensure continuity of classification.

Summary of Phase 3 Final Drill Results

Table 3 below summarizes key highlights released today from the final portion of the Northwest Expo 2023 drill program,

including significant intercepts from NW23 -23, NW23 -24, NW23 -25 and NW23 -26, which continue to demonstrate

continuity of mineralization particularly to the northwest of the Northwest Expo deposit footprint.

Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3

www.northisle.ca | [email protected]

Table 3: Newly Released Northwest Expo Significant 2023 Intercepts

Hole ID From

(m)

To (m) Interval

(m)

True

Width (m)

Au Grade

(g/t)

Cu Grade

(%)

Mo Grade

(%)

Re Grade

(g/t)

NW23-23 385 453 68 56 0.242 0.06 0.018 0.567

NW23-24 192 402 210 126 0.553 0.09 0.014 0.443

Including 258 402 144 86.4 0.715 0.12 0.007 0.293

NW23-25 266 324.2 58.2 58.2 0.790 0.14 0.001 0.002

including 293 324.2 31.2 31.2 1.100 0.21 - -

NW23-26 348 381 33 33 0.293 0.04 - -

Copper and gold equivalent calculations based on the following metal prices which were used in the Company’s 2021 PEA on the North Island Project:

Cu = US$3.25/lb, Au = US$1,650/oz, Mo = US$10/lb, Re = $1,256/kg. Calculations assume 100% recovery; totals may not add due to rounding.

Note on equivalent calculation:

Copper equivalent is determined by calculating total contained metal value/ tonne, dividing by the copper price, and then dividing the resultant number of pounds of

copper by 2204.6. Gold equivalent is determined by calculating total contained metal value/tonne, dividing by the gold price, and then multiplying the resultant number

of troy ounces of gold by 31.103. Analyzed metal equivalent calculations are reported for illustrative purposes only. The met al chosen for reporting on an equivalent

basis is the one that contributes the most dollar value after accounting for assumed recoveries, which is expected to be gold for Northwes t Expo and copper for the

overall North Island project.

NW23-22 was drilled approximately 125 meters to the northeast of NW23-19. Together, these holes provide important

vectoring information indicating movement from the advanced argillic alteration characteristic of the lithocap domain of

this porphyry system into the quartz -sericite-pyrite alteration characteristic of the periphery o f the causative porphyry

centre, but do not contain economically significant copper or gold grades.

Phase 3 of the 2023 Northwest Expo drilling program is comprised of eight drill holes as shown highlighted in yellow in

Table 2 and is also shown in Figure 3. Three of these drill holes were released previously, and the final five holes of the

2023 program are discussed in detail below.

Figure 3: Northwest Expo Surface Alteration and Drill Holes

The coordinates of all drill holes were reported in Table 2 of the Northisle January 17, 2024 press release detailing the first

portion of Phase 3 drill results: https://bit.ly/nwexpophase3part1

Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3

www.northisle.ca | [email protected]

The image shown in Figure 4 displays the topography and faulting as viewed to the northwest. Figure 3 is a detailed plan

of all drill holes in Zone 1.

Figure 4: Northwest Expo Showing Faults, Zone 4 Drill Holes near “Moly” Quarry and Selected Zone 1 Drill Holes

Figure 5: Northwest Expo Zone 1 Drill Holes with Topography and Alteration

NW23-23 to NW23-26 were drilled to aid in the resource modeling described above. The drilling extended mineralization

northwest to NW23 -26, which exhibited anomalous gold values but which are marginal given the resource modelling

Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3

www.northisle.ca | [email protected]

assumptions detailed above. There is a significant gap of 200 meters with limited drilling between this intercept and NW23-

25 which contained two significant intercepts as detailed above. Additional drilling is planned in 2024 to in-fill this area of

the Resource Estimate.

Northisle has re-logged the core from the previous programs at Northwest Expo. Check assays have not been carried out

on this core, however the mineralized lithologies observed and relogged, as well as related assays results, are consistent

with adjacent holes drilled, logged and assayed by Northisle. Results of the previous programs at Northwest Expo were

first disclosed in the following reports:

• Baker, D. (2005). Geological, Geochemical, Geophysical and Diamond Drilling Report on the Hushamu Property,

Volumes A, B, C

• Lehtinen, J., and Awmack, H. (2007). Diamond Drilling Report on the Hushamu Property

• Baldys, C., Burgert, A. and Houle, J. (2008). Technical Report on the Island Copper Property

Logging, Sampling and Assaying Procedures and QA/QC

The diamond drill core logging and sampling program was carried out under a rigorous quality assurance / quality control

program using industry best practices. Drill intersections in this release are typically HQ to 100 m and NQ thereafter to the

end of holes. After drilling, core was logged for geology, structure, and geotechnical characteristics utilizing Geospark©

core logging software, then marked for sampling and photographed on site. The cores for analyses were marked for

sampling based on geological intervals with individual samples 3 m or less in length. Drill core was cut lengthwise in half

with a core saw. Half -core was sent for assays reported in this news release. Prior to cutting core for assay bulk density

was also determined on site by taking 15 to 20 cm lengths of whole core of each lithology at 10 m intervals. The ends of

these were then cut at right angle to the core axis, retaining all pieces to be returned to the core box for later sample

cutting and analysis. The diameter of each core sampled for bulk density was measured at each end with digital calipers

to 3 decimal places and recorded. The length of the core was measured on four sides at 90 degrees to each other, to 2

decimal places and recorded. The software averaged the lengths and diameters. The mass of the dry core was measured

a discrepancy the measuring was repeated until no discrepancy between 2 measurements occu rred. The density was

calculated using the formula Bulk Density = π times r² times h (where r is radius of core and h is length of core). Certified

standard masses are used to calibrate the scale balance used for bulk density determinations. The balance i n the core

logging area was levelled on a large concrete block to avoid vibration, was leveled, and surrounded by a wooden partition

calculated to 2 decimal places.

A total of 5% assay standards or blanks and 5% core duplicates are included in the sample stream as a quality control

measure and are reviewed after analyses are received. Standards were obtained from WCM Minerals, Vancouver , CDN

Minerals, Langley and OREAS, Canada. Blanks were obtained from unmineralized course bagged limestone landscaping

rock. Standards and blanks in 2023 drill results to date have been approved as acceptable. Duplicate data add to the long-

term estimates of precision for assay data on the project and precision for drill results reported is deemed to be within

acceptable levels. Samples were sent to the MSALABS in Langley, BC where the samples were dried, then crushed, split

and a 250 g split was pulverized to 85% passing -200 mesh (-75µm) size pulps. Clean crush material was passed through

the crusher and clean silica was pulverized between each sample. The pulps were analyzed for gold by fire assay fusion of

50 g of the 250 g split. Total gold content was determined by digesting the silve r doré bead from the fusion and then

analysing by AA (MSA Code FAS-121). All samples were also analyzed for multiple elements by taking a 0.25 g of the 250g

split which was heated in HNO3, HClO4 and HF to fuming and taken to dryness. The residue was dissolved in HCl and then

analyzed utilizing ICP-MS (MSA Code IMS-230). Any sulphur analysis from this latter analysis with a value greater than 10%

was reanalyzed utilizing a Leco sulfur analyzer. Iron and Tungsten accelerators are added to the sample and a stream of

oxygen is passed over the sample in the induction furnace. As the sample is heated, sulfur dioxide released from the

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