Northisle Announces Plan to Define Initial Resource at Northwest Expo
Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3
www.northisle.ca | [email protected]
March 31, 2022
TSX Venture Exchange Symbol: NCX
Northisle Announces Plan to Define Initial Resource at Northwest Expo
Highlights:
• Program targeting definition of an initial resource for the gold-rich mineralized porphyry zone at NW Expo
• Up to 3,300 m drilling planned with a target of defining a 40 – 50 million tonne resource
• Preliminary gold deportment and metallurgical program to be initiated immediately
• Wireless IP program anticipated to commence during Q2, to aid in drill targeting for resource definition
• Trade-off studies to be completed to evaluate the impact on the North Island Project preliminary economics
Vancouver, B.C. – Northisle Copper and Gold Inc. (TSX-V: NCX) (“Northisle” or the “Company”) is pleased to announce
that it has finalized its 2022 work plans for the highly prospective new gold-rich zone at Northwest Expo. The 2022 plan
is to define a resource around the gold-rich mineralized porphyry zone measuring 480 by 360 metres with an average
true width of 86 metres and a true width-weighted average grade of 0.98 g/t Au or 1.23g/t Au Eq. Initial metallurgical
testing will commence immediately and will be incorporated in updated trade off studies that will consider the impact of
Northwest Expo on the current ly defined North Island Project , where a PEA completed during 2021 indicated a
preliminary after-tax NPV (8%) of C$1.1 billion based on a US$3.25/lb copper price and a US$1,650/oz gold price.
Sam Lee, President & CEO of Northisle stated “The gold-rich zone at Northwest Expo is very exciting as it opens up the
possibilities for improving the economics on an already large and robust project. The fact that it is only 3.5 km away from
the Red Dog deposit and that the gold-rich mineralization is open at depth and along strike makes Northwest Expo our
top exploration priority for 2022. The goal for this year is to be able to include the gold-rich zone at Northwest Expo in
the project’s mineral inventory at an exploration cost below $5 per ounce gold equivalent. In parallel, we will advance
metallurgical and trade-off studies to assess the potential advantages that this higher grade gold zone may bring to our
project.”
Northwest Expo Catalysts
Key activities at Northwest Expo for 2022 are detailed in Table 1:
Table 1: Key Catalysts at Northwest Expo
Timing Category Details
Q2 2022 Surface
Exploration Wireless IP north of Zones 1 - 3
Q3 2022 Preliminary Met.
Results
Results from preliminary gold deportment
studies and met testing at Northwest Expo
Q3 2022 Preliminary Site
Investigation
Preliminary environmental investigations and
identification of key factors for Northwest
Expo target area
H2 2022 Drilling of Zone
1
Methodical drilling of Zone 1 in order to
generate initial resource estimate
Q4 2022 Resource
Estimate
Initial resource estimate for NW Expo gold-rich
zone
Q4 2022 / Q1
2023
Trade-off
Studies
Preliminary trade-off studies to evaluate
impact of NW Expo gold-rich zone on North
Island Project
Surface Exploration
The surface exploration program at Northwest Expo will include mapping and surface sampling, as well as a wireless
surface geophysical survey. Surface sampling will be conducted by Northisle with the objective of outlining and sampling
surface exposures of the gold-rich zone, and obtaining a better understanding of structure in the area. The geophysical
program will focus on the areas to the north of IP surveys completed in 2012. The program consists of a total of 11 line-
Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3
www.northisle.ca | [email protected]
kilometres of IP and magnetometer surveys, testing to a depth of up to 800 metres, and is anticipated to provide further
understanding of structure and locus of mineralization to ensure efficient use of drilling of this large target area. Figure
1 shows the location of the proposed surveys relative to recent drilling. This program is anticipated to
commence in Q2 2022.
Figure 1: Proposed 2022 IP / Mag Survey
Drilling of Gold Rich Zone 1
Northisle anticipates drilling the gold-rich Zone 1 at Northwest Expo during the second half of 2022, following the IP/Mag
survey, with the objective of augmenting the currently drilled significant gold intercepts (Table 2) with a target of defining
an initial mineral inventory of 40 -50 million tonnes. The program will include drilling of up to 11 diamond drill holes
totalling 3,300 metres along approximately 100 metre spaced north-south sections extending from the eastern boundary
of Zone 1 to the western extent of the geophysical lines shown in Figure 1. New drilling assays will be combined with
previous drilling assays, as summarized in Table 2, in order to define a resource by the end of 2022.
Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3
www.northisle.ca | [email protected]
Table 2: Zone 1 Significant Intercepts
Hole ID From
(m)
To (m) Interval
(m)
True
Width (m)
Au Grade
(g/t)
Cu Grade
(%)
Mo Grade
(%)
Re Grade
(g/t)
Au Eq.
Grade (g/t)
NW21-03 280.25 365.05 84.8 84.0 0.92 0.19 0.005 0.17 1.20
Including 280.3 305.0 24.8 24.8 1.30 0.10 0.007 0.30 1.46
EC-218 323.8 438 114.2 114.0 0.53 0.11 0.004 * 0.70
EC-228 151.85 221.9 70.1 70.0 1.15 0.22 0.018 * 1.52
EC-233 329.2 423.7 94.5 94.0 0.86 0.13 0.002 * 1.04
EC-234 286.5 384.0 97.5 97.5 0.94 0.16 0.003 * 1.18
EC-245 148.0 264.9 116.9 110.0 1.18 0.15 0.001 * 1.80
Including 234.7 264.9 30.2 28.4 2.03 0.25 0.001 * 2.37
EC08-254 270.00 386.00 116.0 95.0 1.00 0.17 0.005 0.37 1.26
Including 322.0 352.0 30.0 24.6 1.50 0.21 0.008 0.24 1.82
* Not analyzed in historical drilling.
Bolded holes are from 2021 drilling
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 31.103See news release on January 25, 2022 for additional details of the drill holes noted above.
Metallurgical Testing
Northisle will initiate metallurgical testing at Northwest Expo during Q2 2022, which will assess gold deportment as well
as copper and gold recoverability. The initial gold deportment study will be carried out at SGS Natural Resources,
Metallurgy and Consulting and will be completed in 8 to 12 weeks. The objective of this gold deportment study and
metallurgical work , starting at Northwest Expo , where the gold grade is over 6 times higher than Hushamu, is to
determine the approach to optimizing gold recovery at this target in anticipation of the completion of a mineral resource
estimate.
Environmental Screening
Northisle is keenly focused on sustainable development of mineral resources and will conduct preliminary environmental
investigations in the Northwest Expo area concurrently with mineral exploration. The focus of this program will be to
continue engagement with First Nations, identify potential development constraints and opportunities, and prepare for
integration of the target area into the wider environmental and socio-economic baseline study program being advanced
on the project.
Share-based Compensation
Northisle’s Board of Directors has approved the issuance of 496,000 restricted share units (the “RSU s”), pursuant to
the Company’s Share Unit Plan. The RSUs will vest one third per year commencing on March 29, 202 3.
Further terms of the RSUs can be found in the Company’s Share Unit Plans a s filed on SEDAR.
Logging, Sampling and Assaying Procedures
The diamond drill core logging and sampling program is being carried out under a rigorous quality assurance/quality
control program using industry best practices. Drill intersections are typically HQ to 100 m and NQ thereafter to the end
of holes. After drilling, core will be logged for lithology, alteration, including clay mineralogy utilizing a TerraSpec© Halo
Mineral Analyzer, structure, and geotechnical characteristics utilizing Geospark© core logging software, then marked for
sampling and photographed on site. The cores for analyses are marked for sampling based on geological intervals with
individual samples 3 m or less in length. Drill core is cut lengthwise in half with a core saw. Half-core is sent for assays at
SGS Laboratories (previously Bureau Veritas). Prior to cutting core for assay , bulk density is also determined on site by
taking 20 to 25 cm lengths of whole core of each lithology at 10 m intervals. The ends of these are 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 is measured at each end with digital calipers to 3 decimal places and recorded. The
Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3
www.northisle.ca | [email protected]
length of the core is measured on four sides at 90 degrees to each other, to 2 decimal places and recorded. The software
averages the lengths and diameters. The mass of the dry core is measured twice on an Ohaus© balance to 2 decimal
places. If no discrepancy occurs, the measurement is recorded. If there is a discrepancy the measuring is repeated until
there is no discrepancy between 2 measurements. The density is calculated using the formula Bulk Density = mass (g)
divided by π times r² times h cm³ (where r is radius of core and h is length of core). Certified standard masses are used
to calibrate the scale bala nce used for bulk density determinations. The balance in the core logging area is placed on a
large concrete block to avoid vibration, is leveled, and surrounded by a wooden partition to avoid wind affecting the
balance. The measurements are recorded in Ge ospark© logging software and Bulk Density (g/cm³) is calculated to 2
decimal places. This number can be used directly as tonnes/m³ in resource estimates.
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 are obtained from WCM Minerals, Vancouver and CDN
Minerals, Langley. Blanks are obtained from unmineralized course bagged limestone landscaping rock. Standards and
blanks in 2021 drill results to date have been approved as acceptable. Samples will be sent to SGS Natural Resources in
Burnaby, BC for analyses. Each sample will be wei ghed, then dried at 105° C, then crushed to 75% passing 2mm, split
250g, then pulverized to 85% passing 75 microns (WGH10, DRY10, CRU11, SPL10, PUL10). Clean crushed material will be
passed through the crusher and clean silica is pulverized between each sample. The pulps will be analyzed for gold by fire
assay fusion of 50 g of the 250 g split , which is digested in HNO3/HCl then analysed using ICP -AES (GE_FA151V5). 49
element multielement determination will be carried out by four acid digestion (HClO4, HNO3, HF then taken to dryness
then dissolved in HCl) followed by combination of ICP -AES/ICP-MS analyses (GE -ICM40Q12 plus Re). Any significantly
anomalous Re will be reanalysed by sodium per Na2O2 fusion with ICP-MS finish (GE_IMS90A50-C).
Pulps and rejects of holes with significant assay intervals will be stored at West Coast Mineral Storage. The remaining
split core will be indexed and stored at the Northisle logging and office facility in Port Hardy, BC.
Qualified Person
Robin Tolbert, P.Geo., Vice President Exploration of Northisle and a Qualified Person as defined by National Instrument
43-101, has approved the scientific and technical disclosure contained in this news release.
About Northisle
Northisle Copper and Gold Inc. is a Vancouv er-based company whose mission is to become a leading and sustainable
mineral resource company for the future . Northisle owns the North Island Project, which is one of the most promising
copper and gold porphyry deposits in Canada. The North Island Project is located near Port Hardy, British Columbia on a
more than 33,000-hectare block of mineral titles 100% owned by Northisle stretching 50 kilometres northwest from the
now closed Island Copper Mine operated by BHP Billiton. Northisle recently completed an updated preliminary economic
assessment for the North Island Project and is now focused on advancement of the project through a prefeasibility study
while continuing exploration within this highly prospective land package.
For more information on Northisle please visit the Company’s website at www.northisle.ca.
On behalf of Northisle Copper and Gold Inc.
Nicholas Van Dyk, CFA
Chief Financial Officer
Tel: (778) 655-9582
Email: [email protected]
www.northisle.ca
Cautionary Statements regarding Forward-Looking Information
Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained
in this news release that are not statements of historical fact may be deemed to be forward -looking statements. Forward-looking statements are
often identified by terms such as “may”, “should”, “anticipate”, “expect”, “intend” and similar expressions. Forward-looking statements in this news
Northisle Copper and Gold Inc. | 1200 – 1166 Alberni St. | Vancouver, BC | V6E 3Z3
www.northisle.ca | [email protected]
release include, but are not limited to, statements relating to the 2021 PEA results, anticipated 2021 or 2022 activities, the Company’s plans for
advancement of the North Island Project, including the potential use of existing infrastructure, expectations regarding the 2 021 exploration
program; the Company’s plans for engageme nt with Indigenous nations , communities and key stakeholders, and the Company’s anticipated
exploration activities. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, Northisle’s ability to
implement its business strategies; risks associated with mineral exploration and production; risks associated with general economic conditi ons;
adverse industry events; stakeholder engagement; marketing and transportation costs; loss of markets; volatility of commodity prices; inability to
access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable ter ms; industry and
government regulation; changes in legislation, income tax and regulatory matters; competition ; currency and interest rate fluctuations; and other
risks. Readers are cautioned that the foregoing list is not exhaustive.
Readers are further cautioned not to place undue reliance on forward -looking statements as there can be no assurance that the plans , intentions,
or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of
preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forwa rd-looking statements contained in
this news release are expressly qualified by this cautionary statement.
The forward-looking statements contained in this news release represent the expectations of management of Northisle as of the date of this news
release, and, accordingly, are subject to change after such date. Northisle does not undertake any obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities law.
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.