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NorthIsle Copper and Gold (TSXV:NCX) is developing the 100-percent owned North Island copper-gold project in northern Vancouver Island, an area with a long history of resource development and mining. The brownfields project includes two defined deposits, Hushamu and Red Dog, along with a number of other potential targets.
The Hushamu deposit is a porphyry copper-gold-molybdenum system with a current NI 43-101 resource estimate. Northisle just completed a drill program aimed at verifying the historical resource at Red Dog and an NI 43-101- compliant resource is expected by the end of 2016. Both the resource estimates for Hushamu and Red Dog will form the basis of a Preliminary Economic Assessment (PEA) presently underway at North Island. The company expects to release the PEA in early 2017.
“We are building value for shareholders by defining resources at Hushamu and Red Dog, working to complete the PEA which will establish the economic value for this project,” said Jack McClintock, Northisle President and CEO. “Red Dog will allow us to feed much higher grade material to the mill in the first 2 years, which we expect to have a big impact on payback of capital and increasing the value of the project. There’s also lots of exploration upside not only at Hushamu and Red Dog but also at additional mineralized zones including Pemberton Hills and NW Expo.”
NorthIsle Copper and Gold is led by a strong management team with decades of success in the in the mining industry, including Chairman Dale Corman who is also currently Executive Chairman of Western Copper and Gold Corporation, and President and CEO Jack McClintock who was formerly Exploration Manager for BHP Billiton.
- Control of an entire porphyry district with two known deposits and numerous additional porphyry targets.
- NI 43-101 resource estimate at Hushamu includes Indicated Resources of 1.4 billion pounds copper, 2.8 million ounces of gold and 65.7 million pounds of molybdenum at .45 percent copper equivalent; and Inferred Resources of 0.8 billion pounds copper, 1.7 million ounces gold and 34.9 million pounds molybdenum at .39 percent copper equivalent.
- Red Dog deposit offers potential positive impact to Hushamu economics; NI 43-101 resource to be completed prior to end of 2016.
- PEA expected for completion in early 2017.
- Blue Sky potential on large land package.
- Tight share structure; Chairman Dale Corman holds 17 percent and senior management more than 23 percent.
Flagship Asset: North Island Project
The North Island Project covers 38,238 hectares of an entire porphyry copper belt located on northern Vancouver Island to the northwest of BHP Billiton’s reclaimed Island Copper Mine.
The project is accessible from the nearby town of Port Hardy via a network of logging roads and within 30 kilometres of tidewater, lowering transportation costs for potential operations. A deeps sea loading facility and a hydro power line exist at Island Copper. Further power infrastructure is potentially available from one of the province’s largest wind farms which lies directly adjacent to the northwest end of the project with the main power line to the grid passing immediately to the north.
The project hosts several porphyry copper and gold occurrences including the advanced stage Hushamu and Red Dog deposits as well as the early-stage Pemberton Hills and NW Expo mineralized zones.
The Hushamu deposit is a porphyry copper-gold-molybdenum system with a current NI 43-101 resource estimate of
- Indicated 1.4 billion pounds copper, 2.8 million ounces of gold and 65.7 million pounds of molybdenum at .45 percent copper equivalent; and
- Inferred 0.8 billion pounds copper, 1.7 million ounces gold and 34.9 million pounds molybdenum at .39 percent copper equivalent.
The resource at Humashu remains open to the southeast, offering plenty of upside potential for the North Island Project.
NorthIsle is currently working on preliminary engineering and metallurgical studies for the completion of a PEA due out in early 2017.
Red Dog Deposit
The Red Dog deposit is 8 kilometres from the Hushamu and has a historical resource of 20 million tonnes with copper grades at 0.3 percent, gold at 0.5 grams per tonne (gpt) as well as 0.012 percent molybdenum.
Northisle Copper has the option to earn a 100-percent interest in the Red Dog property subject to a 3 percent NSR; however, 2 percent of the NSR can be purchased for $1 million per 1 percent.
Shallow drill work in the central part of a 1.5 kilometer by 0.8 kilometer high-level of alteration at Red Dog has shown increasing copper and gold grades with depth, indicating the potential for a porphyry copper-gold system at depth.
The company recently finished a drill program to verify the historical resource and complete a NI 43-101 resource estimate at Red Dog which will be added to the mine plan for the PEA.
Pemberton Hills and NW Expo
The Pemberton Hills target is a 3.5 kilometer by 1.5 kilometre area geologically similar to both Hushamu and Red Dog.
Drilling at the NW Expo Zone between 2006 and 2008 identified a 600 metre by 400 metre area of high-level porphyry-type mineralization with gold values in the 0.1 to 0.3 gpt range and molybdenum in the 0.01 to 0.016 range over distances of 100 metres or more. Results from partial testing of an IP anomaly to the northeast of this gold-molybdenum mineralization included 0.12 percent copper and 0.09 gpt gold over 176 metre and 0.16 percent copper and 0.14 gpt gold over 61 metre. Soil and rock sampling indicates the Red Dog deposit zone continues to this IP anomaly.
Dale Corman, B.Sc, P.Eng—Chairman
Dale Corman has more than 40 years’ experience as a senior corporate officer of publicly listed companies. He has extensive expertise in mineral exploration and development, financing, property evaluation and acquisition. He is currently Chairman and CEO of Western Copper Corp.
Jack McClintock, MBA, P.Eng—President, CEO and Director
Jack McClintock has more than 30 years’ experience in all facets of the mineral exploration business and was formerly Exploration Manager for BHP Billiton.
David Douglas, CA— Director and CFO
David Douglas is a Chartered Accountant with over 30 years of experience in the accounting, corporate finance and mining industries. He has participated in the sale or financing of over 30 private and public enterprises with a combined value of over $300 million.
Brandon Macdonald, B.Sc., MBA—Director
Brandon Macdonald is a principal with Jing Capital Corp., a firm specializing in marketing Western Companies in Asia. He previously worked in investment banking with Macquarie – London Office. Macdonald completed his MBA at Oxford University in 2007 where he graduated with Distinction. He also holds a BSc in Geology from UBC.
Larry Yau has 20 years of financial and business experience, gained primarily in the mining and resources sectors. Most recently, he was Chief Financial Officer for two junior mining companies where he was heavily involved in raising capital and the successful construction of mines in North America. Previously, Yau was Manager, Corporate Development, at Placer Dome Inc. until its acquisition by Barrick Gold Corp. and participated in several high-profile, international acquisitions. He is a Canadian Chartered Accountant.