TNC Copper Sulphate Production Update: August 2023

True North Copper Limited (ASX:TNC) (True North, TNC or the Company) is pleased to provide an operational update for the month of August 2023 regarding its copper sulphate production at its Cloncurry Project (Queensland, Australia).

TNC has consistently increased copper sulphate production throughout August 2023, in tandem with the rise in soluble metal concentrations within the SX Plant production circuit.

The Company anticipates metal concentrations to continue rising throughout September 2023 (as consistent with testwork), until the plant achieves its projected production capacity (projected to be by the end of September 2023).

TNC has an exclusive offtake agreement with Kanins International for its copper sulphate production in Queensland.1

SUMMARY

• Heap Leach operation is consistent with both metallurgical testwork and company projections.
• Daily production will increase throughout September until plant capacity is achieved. The targeted capacity is 25 bags per day (bag weight averages between 900kg and up to 1.25t).
• As of 29 August 2023, there was 70kt of crushed ore under leach, with an additional 50kt in Run-of-Mine stockpiles awaiting crushing.
• Full payment for 20-bag shipments (approximately 20t) typically occurs within 5 days of production. Prices are set at the LME rate plus a premium. Average attributable price received for the month of August 2023 was US$8445 per metal tonne plus surcharge.
• All-In Sustaining Costs (AISC) for this copper sulphate product are expected to be low and based on August 2023 production, AISC at steady-state is expected to be in the range of $0.8 - 1.40 per/lb AUD.
• Mining restart studies at the Cloncurry Project for copper sulphide production will be finalised and announced during Q4 2023.

COMMENT

True North Copper’s Managing Director Marty Costello said:

“Commissioning of our SX Plant commenced in late June following refurbishment works. Despite a delay of approximately three weeks to our initial commissioning schedule, our sulphate production levels are now progressing as anticipated.

Production of copper sulphate is low cost, and its market value ensures we receive timely revenue, typically within 5 days post-production. Our decision to initiate production with existing oxide ore stockpiles was strategic, allowing us to solidify our operational foundation as exploration progresses at our Mt Oxide and Cloncurry Projects and we finalise mining restart studies.

With the planned commencement of mining at our Cloncurry Project, copper sulphate production is projected to constitute 20-25% of our annual metal output.

We're nearing the final stages of studies supporting the pending decision to resume mining operations at Cloncurry, which will allow us to commence copper concentrate production, and we expect to update the market in the December quarter.”

About TNC’s copper sulphate product

• Contains greater than 24% copper content (generally between 24-26%), crystallised form and free flowing.
• Copper sulphate is a mineral salt widely used in various industries, including agriculture, mining, water treatment, and chemical manufacturing. Its applications range from agricultural fungicides, animal feed supplements, and soil sterilisation to electroplating and laboratory reagents.
• TNC is paid (100% LME price + premium) for the copper content of each bag. Each bag carries up to 1.25 tonnes of product (see Figures 1 & 2 below of bags of copper sulphate at the Cloncurry Project ready for shipment).
• TNC has an offtake agreement which requires all copper sulphate produced by the Company at its Queensland sites for the life of copper sulphate production from those sites to be purchased by Kanins International.

Figure 1. Bags of copper sulphate stored at the Cloncurry Project ready for shipment

Figure 2. Bags of copper sulphate stored at the Cloncurry Project ready for shipment

About TNC’s copper sulphate production

• Since commencement of copper sulphate production2, copper concentrations in solutions have continued to increase. The current PLS grade is 1.2g/L and flows from heap are 39.1m3/hr. TNC expects this to increase as per testwork and operational metallurgical balance, until process and plant capacity is reached. Refer to Figures 3 and 4 below with respect to current plant production for August 2023 and monthly production forecast for the next 3 months.
• TNC's operational team has delivered significant advancements in recent weeks as its operational knowledge and experience increases. Additionally, maintenance crews have transitioned from reactive measures, which were part of the initial plant commissioning, to now executing planned and scheduled programs.
• As of 29 August 2023, current Run-of-Mine uncrushed oxide ores stocks are circular 50kt of ore transported from TNC’s Mt Norma mine site. This oxide ore is uncrushed (sizing 100mm- 800mm) and unleached grading approximately 2% (refer to TNC’s Prospectus Annexure A - page 2043).
• All-In Sustaining Costs for this copper sulphate product are expected to be in the range of $0.8 - 1.40 per/lb AUD. August 2023 production is within this guidance.

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