14:04:18 EDT Thu 16 May 2024
Enter Symbol
or Name
USA
CA



NorthIsle Copper and Gold Inc
Symbol NCX
Shares Issued 228,254,487
Close 2024-03-13 C$ 0.44
Market Cap C$ 100,431,974
Recent Sedar Documents

NorthIsle pegs NW Expo at 40.31Mt at 0.799g/t AuEq ind.

2024-03-13 10:28 ET - News Release

Mr. Sam Lee reports

NORTHISLE ANNOUNCES AN INITIAL INDICATED RESOURCE ESTIMATE OF 1.0 MILLION OUNCE AU EQ. AND 0.7 MILLION OUNCE AU EQ. INFERRED RESOURCE ESTIMATE AT NORTHWEST EXPO

NorthIsle Copper and Gold Inc. has released an initial mineral resource estimate (MRE) for the Northwest Expo deposit at its 100-per-cent-owned North Island project, located on Vancouver Island in British Columbia, Canada.

Sam Lee, president and chief executive officer of NorthIsle, stated: "Today's new resource estimate at Northwest Expo has exceeded our expectations of defining a 40 [-million]-to-50-million-tonne resource within the gold-enriched Zone 1. Including the impact of the 88-per-cent-gold and 76-per-cent-copper recoveries, the average NSR [net smelter return] value per tonne is nearly triple the NSR value in the North Island project PEA [preliminary economic assessment] and approximately $80/tonne at spot prices. With a relatively low strip ratio, this sets a strong basis for the rapid advancement of a potential high-margin, near-surface deposit that could be sequenced at the beginning of our large, long-life North Island copper and gold project. We will be aggressively advancing development and exploration under our fully funded 2024 program."

The initial Northwest Expo indicated resource contains 40.3 million tonnes (Mt) grading 0.80 gram per tonne (g/t) gold equivalent (AuEq) for 1.0 million ounces (Moz) AuEq plus an additional 30.6 million tonnes grading 0.68 g/t AuEq for 700,000 ounces AuEq in inferred resources, at a 0.18 g/t AuEq cut-off grade. Based on exploration costs by NorthIsle at Northwest Expo to date, this represents a discovery cost of well below $10/ounce AuEq.

As shown in the table entitled "Combined North Island project resource estimate," following the addition of the Northwest Expo deposit, the total resource for the North Island project now comprises an indicated resource of approximately 2.4 billion pounds copper (Cu) and 4.9 Moz gold (Au) plus an inferred resource of approximately 1.4 billion lb Cu and 3.0 Moz Au. The Northwest Expo deposit boasts an attractive NSR (net smelter return) value of $55/tonne for the indicated resource as a whole and $67/tonne for the higher-grade zone, which represents two to three times the NSR value of Hushamu and Red Dog, due to higher gold grade and higher recovery rates. At spot prices, NSR values are approximately $80/tonne at a 0.5 g/t AuEq cut-off.

The near-surface sizeable initial resource delineated within the gold-enriched Zone 1 at Northwest Expo provides the opportunity to optimize the development plan of the North Island project. Trade-off studies have been launched to study the possibility for a lower capex (capital expenditure) staged approach, prioritizing the higher-grade Northwest Expo deposit with potential to concurrently focus on the higher-grade areas of the Red Dog and Hushamu deposits. These trade-off studies are expected to be completed in Q2 2024, and will form the basis for advanced economic and technical studies.

Details of Northwest Expo resource estimate

The Northwest Expo resource estimate includes a total of 32 diamond drill holes totalling 14,333 metres drilled by NorthIsle and previous operators from 2005 through the end of 2023, of which 20 holes totalling 9,367 metres were completed by NorthIsle between 2021 and 2023.

The table entitled "Northwest Expo mineral resource estimate" summarizes the Northwest Expo resource estimate and shows the robustness of the deposit based on the sensitivity of the resource estimate to cut-off grade. The base case cut-off grade of 0.18 g/t AuEq covers the estimated processing and G&A (general and administrative) costs.

The resource estimate was prepared by Sue Bird, PEng, of Moose Mountain Technical Services (MMTS), who is independent of NorthIsle. The company has determined that a technical report update is not required for the North Island project as a result of the Northwest Expo mineral resource. Should the company complete an updated technical report on the North Island project in the future, the mineral resource will be included.

Key catalysts

The company has a number of important catalysts over the next several months, which it believes will continue to establish the North Island project as one of the best new mining camps in the world. These include the following:

  • Completed -- final 2023 Northwest Expo drill results;
  • Completed -- inaugural Northwest Expo Zone 1 resource estimate, including phase 3 drilling;
  • Completed -- metallurgical testing results from Northwest Expo Zone 1;
  • Q2 2024 -- preliminary project trade-offs;
  • Q2 2024 -- geophysics results from Northwest Expo and West Goodspeed;
  • Q2 2024 -- final 2023 Pemberton Hills drill results;
  • Q2 2024 -- target commencement of 2024 drilling program;
  • Q3 2024 -- target commencement of advanced economic and technical studies;
  • H2 2024 -- initial results from 2024 drill programs;
  • Continuing -- continued engagement with indigenous rightsholders and local stakeholders.

Upcoming investor events

During 2024, the company will continue to be active in investor outreach. NorthIsle will be attending several external investor events, including the following events during Q2/Q3 2024:

  • March 20, 2024, at 7 p.m. Eastern Time/4 p.m. Pacific Time: townhall webinar with FTMIG;
  • April 8 to April 10, 2024: Gold Forum Europe, Zurich, CH;
  • Sept. 10 to Sept. 13, 2024: Precious Metals Summit, Beaver Creek, Colo.;
  • Sept. 15 to Sept. 18, 2024: Gold Forum Americas, Colorado Springs, Colo.

Additional technical details

Details of resource estimation methodology

A confining shape for the interpolations has been made using the alteration type modelling shapes provided by NorthIsle, the logged alteration/lithologies and the metal grades.

Capping of assays has been implemented at 10 g/t for Au and 1 per cent for Cu. Outlier restriction of composites during interpolation was also implemented with values above two g/t Au and above 0.40 per cent Cu, essentially capped beyond a 10 m distance from the composite.

Compositing has been done by three-metre intervals honouring the domain boundary for each element. Three metres was selected because it is the length of the longest assays. Values less than 1.5 m have been added to the composite above to avoid small composite lengths.

Ordinary kriging interpolations have been used for both Au and Cu interpolations. Search distances and orientations for each metal are based on the variography.

Resource classification is based on the distance between drill holes with criteria based on the variography using the following process:

  • All interpolated blocks are initially classified as inferred.
  • Blocks are upgraded to indicated if the average distance to the two nearest drill holes is less than 65 metres.
  • Blocks were then examined and those near surface were downgraded to inferred due to lack of near-surface drilling and extrapolation in this area. A small number of blocks of isolated indicated were downgraded to inferred, and of isolated inferred upgraded to indicated to ensure continuity of classification.

Summary of phase 3 final drill results

The table entitled "Newly released Northwest Expo significant 2023 intercepts" summarizes key highlights released today from the final portion of the Northwest Expo 2023 drill program, including significant intercepts from NW23-23, NW23-24, NW23-25 and NW23-26, which continue to demonstrate continuity of mineralization, particularly to the northwest of the Northwest Expo deposit footprint.

NW23-22 was drilled approximately 125 metres to the northeast of NW23-19. Together, these holes provide important vectoring information indicating movement from the advanced argillic alteration characteristic of the lithocap domain of this porphyry system into the quartz-sericite-pyrite alteration characteristic of the periphery of the causative porphyry centre, but do not contain economically significant copper or gold grades.

Phase 3 of the 2023 Northwest Expo drilling program is composed of eight drill holes. Three of these drill holes were released previously, and the final five holes of the 2023 program are discussed in detail herein.

The co-ordinates of all drill holes were reported in the NorthIsle news release dated Jan. 17, 2024, detailing the first portion of phase 3 drill results.

NW23-23 to NW23-26 were drilled to aid in the resource modelling described above. The drilling extended mineralization northwest to NW23-26, which exhibited anomalous gold values but which are marginal given the resource modelling assumptions detailed above. There is a significant gap of 200 metres with limited drilling between this intercept and NW23-25, which contained two significant intercepts as detailed above. Additional drilling is planned in 2024 to infill this area of the resource estimate.

NorthIsle has relogged the core from the previous programs at Northwest Expo. Check assays have not been carried out on this core, however the mineralized lithologies observed and relogged, as well as related assays results, are consistent with adjacent holes drilled, logged and assayed by NorthIsle. Results of the previous programs at Northwest Expo were first disclosed in the following reports:

  • D. Baker (2005): "Geological, geochemical, geophysical and diamond drilling report on the Hushamu property," volumes A, B and C;
  • J. Lehtinen, and H. Awmack (2007): "Diamond drilling report on the Hushamu property";
  • C. Baldys, A. Burgert, and J. Houle (2008): "Technical report on the Island copper property."

Logging, sampling and assaying procedures, and quality assurance/quality control (QA/QC)

The diamond drill core logging and sampling program was carried out under a rigorous quality assurance/quality control program using industry best practices. Drill intersections in this release are typically HQ to 100 m and NQ thereafter to the end of holes. After drilling, core was logged for geology, structure and geotechnical characteristics utilizing Geospark core logging software, then marked for sampling and photographed on site. The cores for analyses were marked for sampling based on geological intervals with individual samples three m or less in length. Drill core was cut lengthwise in half with a core saw. Half-core was sent for assays reported in this news release. Prior to cutting core for assay, bulk density was also determined on site by taking 15-centimetre to 20 cm lengths of whole core of each lithology at 10 m intervals. The ends of these were 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 was measured at each end with digital calipers to three decimal places and recorded. The length of the core was measured on four sides at 90 degrees to each other, to two decimal places, and recorded. The software averaged the lengths and diameters. The mass of the dry core was measured twice on an Ohaus balance to two decimal places. If no discrepancy occurred, the measurement was recorded. If there was a discrepancy, the measuring was repeated until no discrepancy between two measurements occurred. The density was calculated using the formula: bulk density equals pi times r-squared times h (where r is radius of core and h is length of core). Certified standard masses are used to calibrate the scale balance used for bulk density determinations. The balance in the core logging area was levelled on a large concrete block to avoid vibration, was levelled, and surrounded by a wooden partition to avoid wind affecting the balance. The measurements were recorded in Geospark logging software and bulk density calculated to two decimal places.

A total of 5 per cent assay standards or blanks and 5 per cent core duplicates are included in the sample stream as a quality control measure, and are reviewed after analyses are received. Standards were obtained from WCM Minerals, Vancouver, CDN Minerals, Langley, and Oreas, Canada. Blanks were obtained from unmineralized coarse bagged limestone landscaping rock. Standards and blanks in 2023 drill results to date have been approved as acceptable. Duplicate data add to the long-term estimates of precision for assay data on the project and precision for drill results reported is deemed to be within acceptable levels. Samples were sent to the MSALabs in Langley, B.C., where the samples were dried, then crushed and split, and a 250-gram split was pulverized to 85 per cent passing minus-200 mesh (minus-75 micrometres) size pulps. Clean crush material was passed through the crusher and clean silica was pulverized between each sample. The pulps were analyzed for gold by fire assay fusion of 50 g of the 250 g split. Total gold content was determined by digesting the silver dore bead from the fusion and then analyzing by AA (atomic absorption) (MSA code FAS-121). All samples were also analyzed for multiple elements by taking 0.25 g of the 250 g split which was heated in HNO3 (nitric acid), HClO4 (perchloric acid) and HF (hydrofluoric acid) to fuming, and taken to dryness. The residue was dissolved in HCl (hydrochloric acid) and then analyzed utilizing ICP-MS (inductively coupled plasma mass spectrometry) (MSA code IMS-230). Any sulphur analysis from this latter analysis with a value greater than 10 per cent was reanalyzed utilizing a Leco sulphur analyzer. Iron and tungsten accelerators are added to the sample and a stream of oxygen is passed over the sample in the induction furnace. As the sample is heated, sulphur dioxide released from the sample is measured by an IR (infrared) detection system and the total sulphur content is determined (MSA code SPM-210). MSALabs (Langley) is an independent, international ISO/IEC 17025:2005 accredited laboratory.

Pulps and rejects of holes with significant assay intervals are stored at Western Mineral Storage. The remaining split core is indexed and stored at NorthIsle's logging and office facility in Port Hardy, B.C.

Drill results in this news release are length-weighted averages.

Qualified persons and data verification

Robin Tolbert, PGeo, vice-president of exploration of NorthIsle, and a qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure contained in this news release, including the sampling, analytical and test data, the summary of the combined resource estimates for the Northwest Expo, Red Dog and Hushamu, and the logging, sampling and assaying procedures, and QA/QC.

Ms. Bird, PEng, vice-president of MMTS, and a qualified person as defined by National Instrument 43-101, has reviewed and approved the scientific and technical disclosure contained in this news release relating to the Northwest Expo resource estimate. Ms. Bird has verified the data incorporated in the resource estimate by certificate checks, standards, blank and duplicate plots. There is no historic drilling on the deposit. Ms. Bird experienced no limitations with respect to data verification activities related to the Northwest Expo deposit or the North Island project.

About NorthIsle Copper and Gold Inc.

NorthIsle Copper and Gold is a Vancouver-based company whose mission is to become Canada's leading sustainable mineral resource company for the future. NorthIsle, through its 100 per cent owned subsidiary, North Island Mining Corp., owns the North Island project, which is one of the most promising copper and gold porphyry projects in Canada. The North Island project is located near Port Hardy, B.C., on a more than 34,000-hectare block of mineral titles 100 per cent owned by NorthIsle, stretching 50 kilometres northwest from the now-closed Island copper mine operated by BHP Billiton. NorthIsle completed an updated preliminary economic assessment for the North Island project in 2021 and is now focused on advancement of the project through a prefeasibility study, while continuing exploration within this highly prospective land package.

We seek Safe Harbor.

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