Northisle Copper & Gold (TSXV:NCX) - Long-Life, High-Margin Canadian Project

Feb 24, 2025

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Interview with Sam Lee, President & CEO of NorthIsle Copper & Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/northisle-copper-gold-tsxvncx-restructures-project-development-to-optimize-capital-efficiency-6438

Recording date: 20th February 2025

Northisle Copper & Gold has announced impressive results from its preliminary economic assessment (PEA) for the North Island copper-gold project in British Columbia, Canada. The study reveals an after-tax net present value of US$2 billion with a 29% internal rate of return, positioning it as one of the most capital-efficient projects in the copper-gold sector.

The project's innovative phased development approach significantly reduces initial capital requirements. Phase 1 will operate at 40,000 tonnes per day, focusing on gold-rich mineralization that provides 70% margins. This initial phase, requiring US$850 million in capital, helps fund the Phase 2 expansion to 80,000 tonnes per day, which will incorporate more copper production. The project achieves a rapid payback period of 1.9 years and features a favorable NPV to capex ratio of 1.7, substantially higher than typical copper projects that range from 0.5 to 1.0.

Over its 29-year mine life, North Island is projected to produce an average of 157 million pounds of copper equivalent or 300,000 ounces of gold equivalent annually. The life-of-mine production maintains an approximately equal split between copper and gold.

The project's exploration potential is particularly noteworthy, with Northisle controlling a 35-kilometer porphyry district. The company's 2025 drill campaign, which is fully funded, will focus on the high-grade northern corridor area, with approximately 85% of the drilling budget allocated to expanding resources around the 2021 Goodspeed discovery.

A significant exploration target includes the Pemberton Hills area, located 5-7 kilometers from North Island, featuring a 6.5 x 1.5km lithocap that has already seen over $5 million in historical exploration. The company is advancing this target alongside the main North Island project.

Northisle's President & CEO Sam Lee emphasizes the project's strategic value, noting that major mining companies are particularly interested in district-scale opportunities rather than single-asset projects. While the company remains open to strategic partnerships for exploring Pemberton Hills, management has clearly stated they won't divest any ownership in the core North Island project.

With a market capitalization of approximately C$160 million, Northisle offers investors exposure to both copper and gold in a stable jurisdiction, with significant exploration upside potential. The project's economics are particularly robust, benefiting from existing infrastructure and strong local community support. The company's focus on reducing capital intensity while maintaining high margins positions it well in the current market environment, where few new copper projects combine scale, favorable economics, and low jurisdictional risk.

View NorthIsle Copper & Gold's company profile: https://www.cruxinvestor.com/companies/northisle-copper-gold