Western Copper and Gold

Overview

Governments worldwide have ambitious goals to reach net-zero emissions, putting renewable energy in the spotlight. Every emerging clean technology has one material in common: copper. Thanks to its highly conductive properties, the base metal has been a standard component in existing electronics, and global electrification will increase demand drastically. As a result, copper consumption is forecasted to reach 36.6 million metric tons by 2031.

The Yukon is known for its rich mineral deposits, including copper, gold, iron, silver and lead. It has attracted the attention of numerous major mining companies over the last few years, and recent infrastructure funding from the regional and federal governments has spurred additional investment in the territory. Miners in the Yukon, including Western Copper and Gold, are poised to benefit from this spate of new investments. The Carmacks Bypass, for example, is currently being constructed and will play an integral role in the Casino project.

In June 2022, Western Copper and Gold released the results of its feasibility study, which incorporated an updated mineral resource. The updated estimate includes 14.8 million ounces (Moz) of gold in the measured and indicated category, and 6.3 Moz of gold in the inferred category, in addition to 7.6 billion lbs of copper in the measured and indicated category, and 3.1 billion lbs of copper in the inferred category.

Western Copper and Gold’s positive feasibility study on the Casino project indicates a 27-year mine life and cash flow over the first four years of C$951 million per year at base case prices. In addition, the company has provided estimates for potential economic changes in copper prices and indicated the project will remain profitable even if the spot price decreases.

“Casino is a rare asset in that it is sizable, economic, well-advanced and located in a great jurisdiction. Casino is the key asset in the emerging Yukon gold district,” said Paul West-Sells, Western Copper and Gold’s president.

Western Copper and Gold’s 2023 diamond drilling program involvedapproximately 2,244 meters of drilling in seven drill holes, ranging from 130 meters to 556 meters in depth located inside the current pit boundaries. Results from the program showed relatively higher grades encountered from DDH23-05, which intersected 158.5 meters of supergene mineralization, in part oxidized, with 0.82 percent copper equivalent. Fifteen composite samples that represent supergene and hypogene mineralization at various grades will be tested and results will be used to develop a more detailed geometallurgical model of the deposit.

Rio Tinto (NYSE:RIO) made a strategic C$25.6-million investment in 2021 to advance the Casino project. The placement, which was completed in 2024, allowed Rio Tinto to acquire 239,528 common shares of the company for C$1.35 per share for a total of C$323,363, resulting in approximately 9.7 percent ownership.

Additionally, the company announced the completion of a C$21.3 million strategic equity investment by Mitsubishi Materials Corporation to further advance the company's copper-gold Casino project in the Yukon. Mitsubishi Materials acquired 8,091,390 common shares of the company for C$2.63 per share, resulting in Mitsubishi Materials owning approximately 5 percent of Western's issued and outstanding shares.

Western Copper and Gold has entered into an amended agreement with Eight Capital, in which Eight Capital will buy 21,055,000 common shares for $1.90 per common share for gross proceeds of C$40 million. Net proceeds from the sale will be used to advance permitting and engineering activity at the Casino project.

A highly knowledgeable management team with a proven record of success leads Western Copper and Gold and is supported by a highly qualified team of engineers dedicated to bringing Casino into production.