October 2011
A New Direction October 2011 TSX.v:COL FORWARD LOOKING STATEMENTS - - PowerPoint PPT Presentation
A New Direction October 2011 TSX.v:COL FORWARD LOOKING STATEMENTS - - PowerPoint PPT Presentation
A New Direction October 2011 TSX.v:COL FORWARD LOOKING STATEMENTS Statements contained in this presentation that are not historical fact, such as statements regarding the economic prospects of the Companys projects, the Companys future
TSX.v: COL
| 2
Copper North Mining
FORWARD LOOKING STATEMENTS
Statements contained in this presentation that are not historical fact, such as statements regarding the economic prospects of the Company’s projects, the Company’s future plans or future revenues, timing of development or potential expansion or improvements, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated
- results. Such risks and uncertainties include, but are not limited to, the Company’s ability to raise sufficient capital to fund development,
changes in general economic conditions or financial markets, changes in prices for the Company’s mineral products or increases in input costs, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments in Canada, technological and
- perational difficulties or inability to obtain permits encountered in connection with exploration and development activities, labor relations
matters, and changing foreign exchange rates, all of which are described more fully in the Company’s filings with the Securities and Exchange Commission. Cautionary Note to U.S. Investors: The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on this presentation, such as “measured,” “indicated,” and “inferred” “resources,” that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in the Company’s Form 20-F, File No. 000-52231, which may be secured from the Company, or from the SEC’s website at www.sec.gov/edgar.shtml
TSX.v: COL
| 3
Copper North Mining
KEY FINANCIAL INFORMATION
Cash on Hand C$ 2.0 M Short/Long Term Debt 0.0
Share Price $0.34 Market Cap $1.6 M Common Shares 46,501,252 Options 2,156,834 Warrants 3,466,875
Fully Diluted 52,124,961
Management & Board 9% Private Investors 44% Institutional Investors 30% Other 17%
Common Shares 100%
» CASH POSITION
October 2011
» SHARE STRUCTURE
October 24, 2011
» COMMON SHARES
October 2011
TSX.v: COL
| 4
» Carmacks
– 100% owned – High grade (1.04% Cu) copper oxide deposit – Permitted for construction
» Redstone
– 100% owned – High grade stratiform copper deposit – Drilling program planned
Carmacks
PROPERTIES
TSX.v: COL
| 5
Carmacks
CARMACKS DEPOSIT
TSX.v: COL
| 6
Carmacks
HIGH GRADE COPPER OXIDE DEPOSIT
» Open pit mine
– Heap leach, solvent extraction / electrowinning – 6+ year mine life
» Prime Location
– 220 km north of Whitehorse, Yukon – 400 km from year-round port of Skagway, AK – Existing road into site – 11 km from Yukon power grid
» Advancing towards production
– Feasibility Study completed May 2007 – Permitted for construction – 20 months from construction to production
TSX.v: COL
| 7
Carmacks
CARMACKS – RESERVE & RESOURCE ESTIMATE
Tonnes Total Copper Oxide Copper G
- ld
Silver Cu Eq Copper G
- ld
Silver M % % g/ t g/ t % M lb k oz k oz
Measured 4.0 1.10 0.90 0.59 5.7 1.52 98 76 739 Indicated 7.9 1.04 0.83 0.39 4.0 1.32 182 100 1,022
M + I 12.0 1.06 0.85 0.46 4.57 1.39 280 176 1,761 Inferred 0.1 0.73 0.53 0.13 1.8
0.83
1.4 0.4 5
Measured 0.7 0.80 0.02 0.26 2.5 0.99 12 6 56 Indicated 3.6 0.74 0.03 0.21 2.3 0.89 59 25 270
M + I 4.3 0.75 0.03 0.22 2.33 0.91 72 30 325 Inferred 4.0 0.71 0.01 0.18 1.9
0.84
63 23 246 CONTAINED METAL Category Oxide Sulphide RESOURCE G RADE Class Tonnes Total Copper Oxide Copper G
- ld
Silver Cu Eq Copper G
- ld
Silver M % % g/ t g/ t % M lb k oz k oz
Proven 3.2 1.23 1.028 0.659 6.20 1.70 86 68 636 Probable 7.4 0.97 0.822 0.408 3.94 1.26 158 97 940
Proven + Probable 10.6 1.04 0.88 0.483 4.62 1.39 244 165 1576 RESERVE G RADE CONTAINED METAL
RESOURCE2 RESERVE1
See notes 1,2 in Appendix
TSX.v: COL
| 8
Carmacks
PROPERTY GEOLOGY
» Carmacks deposit open at depth & oxidised to ~230m » All Resources and Reserves based on zones 1,4, 7 & 7A » Upside potential in zones 12, 13 & 14
TSX.v: COL
| 9
PRODUCTION PROFILE & AFTER-TAX CASH FLOW*
Title of Presentation Goes Here
*Cash flow includes operating costs (mining, processing, G&A, shipping & property tax), sustaining capex and royalties. Excludes
capex ~C$151M. Spot price $3.85 (US/lb) and exchange rate 1.00 (US$:C$) - Feasibility Study $2.32 (US/lb) and exchange rate 0.85 (US$:C$). Assumes tax rate of 30% (combined Federal and Provincial)
TSX.v: COL
| 10
Carmacks
FEASIBILITY STUDY (MAY 2007)
MI NE CAPI TAL
(C$ M) 134
ACI D PLANT CAPI TAL
(C$ M) 18
TOTAL CAPEX
(C$ M) 151
COPPER
(US$/lb) 3.85 2.50 2.32
FOREI GN EXCHANGE (US$:C$)
1.00 0.90 0.85
NPV @ 8%
(C$ M) 248 92 85
I RR (100% equity)
(% ) 42.5 22.1 21.1
CASH FLOW
(C$ M/y) 81 49 48
NPV @ 8%
(C$ M) 150 49 39
I RR (100% equity)
(% ) 31.6 16.4 15.7
PAYBACK
(y) 2.2 3.8 3.9
Pre- Tax After- Tax LONG TERM SPOT
SEPT 2011
PRE-FEAS
MAY 2007
ORE THROUGHPUT
(t/d) 5,000
COPPER PRODUCTI ON
(M lb/y) 32
STRI P RATI O
5.4:1
CASH COSTS
(US$/lb Cu) 0.84
» CAPITAL COSTS » ECONOMICS » OPERATING DATA
See note 3 in Appendix
TSX.v: COL
| 11
Carmacks
CARMACKS | PROGRESS HISTORY
1993
Basic engineering study initiated
1997
Definitive capital cost estimate completed
1998
Project suspended due to low copper prices
2005
Permitting process commences
2007
Extensive exploration at Carmacks (~25,000m); Feasibility Study (NI43-101 compliant) completed in May 2007
2008
YESAB recommends the Carmacks Project proceeds Yukon Government agrees with YESAB’s recommendation
2009
Quartz Mining License obtained; Carmacks permitted for construction. Yukon Water Board completes adequacy review of Water Use License (WUL) application
2010
Public hearing for WUL completed in March 2010. Company notified in May 2010 that WUL denied. Western Copper appealed decision in June 2010 (appeal favoured Water Board)
2011
Western Copper filed Notice of Appeal with Yukon Court of Appeal in March 2011 Carmacks project spun out to Copper North in October 2011
TSX.v: COL
| 12
Carmacks
WATER USE LICENSE
» Key issues identified by Water Board
– Heap leaching technology – Closure and reclamation of heap – Discharge management plan
» Actions
– Considering engineering modifications – Seeking independent engineering review – Working with Yukon Government to determine alternative ways forward
TSX.v: COL
| 13
Carmacks
NEXT STEPS
» Obtain Water Use License (WUL)
– Anticipate WUL will be issued in 2012
» Get Project Ready for Production
– Arrange financing
» Explore Opportunities
– Further exploration of additional ore zones 12, 13 & 14 – Assess economics of mining and processing sulphide ore
TSX.v: COL
| 14
Redstone
REDSTONE PROJECT
TSX.v: COL
| 15
Redstone
REDSTONE
» Underground Mine
– Sediment-hosted stratiform deposit
» A Mining District of the Future
– Redstone Copper belt Nahanni Mining District, NWT – 300km north of Watson Lake, YT
» Mineral Resource
Tonnes Copper Silver Cu Eq Copper Silver M % g/ t % B lb M oz
* Inferred 34 3.92 9.0 4.0 2.9 9.8
*See note 4 in appendix
TSX.v: COL
| 16
Redstone
REDSTONE
» Redstone Project consists of 13 claims (blue) and 5 leases (red) extending NW-SE over 160 km
TSX.v: COL
| 17
Redstone
REDSTONE | PROGRESS HISTORY
1960 - 1980
The Redstone property underwent extensive drilling by Redstone Mines Ltd., Cerro Mining Company of Canada and Shell Canada Resources
1990
Redstone Mines Ltd. carried out a complete data review
2005
Lumina Resources Corp. completed a regional geological evaluation of the Redstone Copper belt
2006
Western Copper acquired Lumina Resources in November 2006, taking control of Redstone
2007
Research project to better understand regional geology commenced by University of British Columbia (UBC), funded by Western Copper
2008 - 2009
UBC Research project continues
2010
2010 field program commences, focusing on Coates Lake area
2011
Project spun out into Copper North, October 2011
TSX.v: COL
| 18
Redstone
REDSTONE
» Work Plan
– Develop drilling program for 2012 – Submit application for exploration permit – Continue regional geological study of the Redstone Copper belt
TSX.v: COL
| 19
SUMMARY » Copper North owns a 100% interest in two high grade copper deposits in northern Canada
– Carmacks: permitted for construction (Proven & Probable Reserves of 10.6Mt @1.04% Cu) – Redstone: significant upside potential (Inferred Resource of 34Mt @3.92% Cu & 9.0g/t Ag)
» Resolve issues identified by Yukon Water Board
– Seek independent engineering review
» Consider financing options for Carmacks development (~C$150M) » Submit application for exploration permit at Redstone
– Develop drill program
» Build executive management team
Copper North Mining Corp.
TSX.v: COL
| 20
Management & Board
MANAGEMENT & BOARD
Dale Corman, P. Eng. – Non - Executive Chairman
– Over 40 years’ experience as a senior corporate officer of publicly listed companies. Extensive expertise in mineral exploration & development, financing, property evaluation and
- acquisition. Formerly Chairman & CEO of Western Silver Corporation and currently Chairman
& CEO of Western Copper & Gold.
Sally Eyre, Ph.D., DIC – President & Chief Executive Officer
– 19 years’ experience in the global resource sector. Previously CEO of Etruscan Resources
- Inc. (now Endeavour Mining Corp.), a gold company with assets in West Africa. Dr. Eyre has
a Ph.D. in Economic Geology from the Royal School of Mines, Imperial College, London and is a member of the Society of Economic Geologists.
Julien François, CA – Chief Financial Officer
– 5 years experience at PricewaterhouseCoopers concentrated in mining and high tech sectors and on internal control design & assessment projects. Formerly Controller of Western Silver Corporation and currently serves as CFO for Western Copper & Gold.
Robert Gayton, Ph.D. – Director
– Formerly Partner of Peat Marwick Mitchell. Directed the accounting and financial matters of public companies in the resource and non-resource fields since 1987. Director of several public companies including Nevsun and B2Gold.
David Street, MA (Hons) Cantab. – Director
– Managing Director, Debt Finance of Endeavour Financial Ltd. Previously Director & Head of Mining & Metals for NM Rothschild. Holds extensive experience in structuring, arranging and advising on financings for mining projects and companies around the world.
TSX.v: COL
| 21
Appendix
APPENDIX
TSX.v: COL
| 22
Appendix
HISTORY OF COPPER NORTH
– In October of 2011, Western Copper Corporation (WRN) spun-off by plan of arrangement Copper North Mining Corp (COL). and NorthIsle Copper & Gold Inc. (NCX) – Western Copper issued 46,487,785 common shares to Copper North, representing 0.5 Copper North share for each Western Copper share issued and outstanding – Copper North holds a 100% interest in the Carmacks Copper Project and the Redstone Project and C$2M in working capital – NorthIsle holds a 100% interest in the Island Copper Project and C$2.5M in working capital – Copper North expected to commence trading on the TSX.V: COL, on or about October 17, 2011
TSX.v: COL
| 23
REDSTONE
TSX.v: COL
| 24
Appendix
WATER USE LICENSE – REASONS FOR DECISION
» Summary from Decision Document related to Carmacks’ Water Use Application – Yukon Water Board, May 2010
In its deliberations for the Water Use Application, Yukon Water Board focused on following key issues: – Use of unproven technology – Likelihood of Successful Leaching – Likelihood of Successful Detoxification – Adequacy of the Proposed Discharge Management Plan – Adequacy of Water Quality Standards for W12 – Adequacy of Proposed Effluent Discharge Standards – Adequacy of Heap Facility Preliminary Design and Liner System – Adequacy of Water Quality Model – Adequacy of Sludge Management Proposal
TSX.v: COL
| 25
ASSESSMENT STAGE
Identifies environmental and socio-economic effects, their significance, and makes recommendations for mitigation measures
REGULATORY STAGE
Regulators issue their respective permits, licenses
- r other authorizations
1) YUKON ENVIRONMENTAL & SOCIO- ECONOMIC ASSESSMENT
- Conducted by Yukon Socio-economic Assessment Board (YESAB)
- YESAB is an independent Yukon Agency comprised of Federal,
Territorial and First Nation Governments (One window process)
- Makes recommendations to governments with licensing authority
(“Decision Bodies”)
2) DECISION DOCUMENT
- Issued by “Decision Bodies” – governments (Federal, Territorial and First
Nation) that have licensing authority for a project
- Accepts, varies or rejects assessment recommendations
- Allows project to proceed to regulatory stage
3) QUARTZ MINING LICENSE
- Issued by Yukon Government Department of Energy, Mines and
Resources (EMR)
- Allows construction to commence
4) WATER USE LICENCE
- Issued by Yukon Water Board
- Allows production to commence (covers use of water and deposit of
waste)
YUKON PERMITTING PROCESS
Appendix
TSX.v: COL
| 26
Preparation and submission of project description
Feasibility and environmental baseline studies
Preliminary screening and referral for assessment
Conducted by the Mackenzie Valley Environmental Impact & Review Board
Environmental Impact Assessment Type “A” Water License issued
License signed by Minister of AANDC
NORTHWEST TERRITORIES PERMITTING PROCESS
Appendix
» Board-style governance
– Independent boards and agencies
» Initiatives underway to improve processes and timelines
– Actions under Federal Northern Strategy and Regulatory Improvement Initiative
TSX.v: COL
| 27
Copper North Mining
NOTES
1. CARMACKS RESERVE ESTIMATE
– Technical Report: May 2007 – Qualified Person: M.Hester, FAusIMM – Cu Eq Metal prices: US$2.00/lb copper, US$875.00/oz gold, US$11.25/oz silver – Includes mining dilution
2. CARMACKS RESOURCE ESTIMATE
– Technical Report: Wardrop, December 2007 – Qualified Person: G. Arsenau, Ph.D., P.Geo & Scott Casselman, P.Geo – Total Copper cut-off: 0.25% – Oxide resource estimate for Zones 1,4 and 7. Sulphide resource estimate for Zone 1 – Cu Eq metal prices: US$2.00/lb copper, US$875.00/oz gold, US$11.25/oz silver – No discount for metallurgical recovery in contained metal figures
3. CARMACKS FEASIBILITY STUDY
– Technical Report: M3 Engineering & Technology Corporation, May 2007 – Qualified Person: Timothy S. Oliver, P.Eng. – Metal Prices (LME 3-year historical, 2-year future metal prices rolling average as of March 07): US$2.32/lb copper – Foreign Exchange: C$1.00 = US$0.85
4. REDSTONE RESOURCE ESTIMATE
– Technical Report: August 2005 – Qualified Person: A.W. Gourlay, P.Geo – 3.0% copper minimum assay intercept – Cu Eq Metal prices: US$2.00/lb copper, US$11.25/oz silver – No discount for metallurgical recovery in contained metal figures
October 2011