True North Copper – September 2023 Quarterly Report

True North Copper Limited (ASX:TNC) (True North, TNC or the Company) is pleased to announce its September Quarterly Report (Q3 2023).

HIGHLIGHTS

Vero Resource, Mt Oxide

• TNC’s diamond drilling program continued (completed October 2023, 3,955m drilled). The first five holes demonstrated tremendous copper mineralisation and further extension of Vero’s high-grade ore body. Assay results included:
  • MOXD217 (first drillhole) returned phenomenal results, intersecting 66.5m at 4.95% Cu (announced August 2023)1.
  • MOXD218, MOXD219 and MOXD221 (further three holes) returned assay results (announced September 2023) confirming the Vero Resource hosts large-scale, high-grade copper-cobalt-silver mineralisation, including an intersection of 7.65% Cu over 4m.²
• Remaining Vero Resource drill program assay results will be delivered Q4 2023.

Copper sulphate production, Cloncurry Project

• Copper sulphate production commenced post completion of SX Crystal Plant refurbishment and commissioning works.
  
• TNC successfully sold 25.6t of copper for AUD $350k. The operation continues to ramp-up, following 35 days of crusher downtime and repairs, and is approaching commercial production levels.
• Forecast production for Q4 2023 is 160t to 300t of copper metal with increased material under leach, and as the processing consistency and operational capacity improvements continue.

Great Australia Mine: Mining restart studies, exploration and development highlights

• Completion of Great Australia Mine Resource exploration program - resulting in extension of structurally controlled down- dip feeder to mineralisation located beneath the Great Australia Mine Pit (notable intersections of copper mineralisation).³
  
• IP Survey over Greater Australian Target identified four high-order chargeability anomalies and compelling targets for future drill testing.³
• Mining restart studies will be finalised Q4 2023.

Wallace North: resource infill, extension and advanced grade control drilling program

• Wallace North exploration program completed - focusing on resource infill and extension and advanced grade control.
  
• More than 7,565m drilled across 142 holes.
• Multiple high-grade zones with significant high-grade copper and gold mineralisation including intercepts of 6m @ 12.99g/t Au and 10m @ 2.22% Cu (announced October 2023).⁴
  
• Wallace North Resource upgraded (announced October 2023) with drilling returning a 14% increase in tonnage and a 7% increase in contained Cu and 18% increase in contained Au.⁵

Working capital secured

• As of 30 September 2023, TNC cash and undrawn working capital facility totalled $4.8M.
• TNC has received funding proposals from financiers in relation to a facility expected to incorporate TNC’s environmental bonds and the working capital requirement associated with the mining restart. Due diligence is underway with preferred partners and the company expects to be able to announce further details during the next quarter, upon execution of binding documentation.

COMMENT

True North Copper’s Managing Director, Marty Costello said:

We are investing in growth and are increasingly confident in our business plan and development strategy. This confidence is grounded in the exciting results from our exploration and advanced grade control drilling programs.

The Vero Resource and Wallace North drilling programs delivered exciting results that confirm exceptional mineralisation. These results, combined with the outcomes from our advanced grade control drilling at our fully permitted Great Australia and Wallace North Project, underpin the profitability of our business plan going forward.

We look forward to announcing the remaining assay results from a number of drillholes at both the Vero Resource and the Wallace North project, which are expected Q4 2023.

Our copper sulphate production is approaching commercial production levels after the resolution of crusher down-time. We are now seeing copper sulphate production increasing in line with company expectations. We received an average price of AUD $13,597.34 per ton of copper metal. We expect production rates to ramp up over the coming quarter.

We've now completed a phase of high expenditure that encompassed SX plant refurbishment, extensive drilling and exploration, which have all adhered to the business strategy outlined in our prospectus. We believe this investment will deliver significant value over the coming months as we achieve core priorities, including completing our Great Australia mining restart studies and delivering a re-estimation of the Vero Resource and further Mt Oxide Project development updates. We are also focused on accelerating revenue growth from our Cloncurry operations and achieving cost reductions.

Additionally, we've received funding proposals from financiers in relation to a facility expected to incorporate TNC’s environmental bonds and the working capital requirement associated with the mining restart. Due diligence is underway with preferred partners and the company expects to be able to announce further details during the next quarter, upon execution of binding documentation.

It is going to be an intensive and exciting end to 2023 as we also plan to announce our offtake and tolling agreements and present our comprehensive mining restart plan.

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