DEVELOPING CANADA'S PREMIER COPPER-GOLD MINE - JANUARY 2020 TSX : WRN I NYSE AMERICAN : WRN - Western ...
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DEVELOPING CANADA’S PREMIER COPPER-GOLD MINE JANUARY 2020 TSX : WRN I NYSE AMERICAN : WRN
FORWARD LOOKING STATEMENTS The information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning Western Copper and Gold Corporation and its subsidiaries (collectively, the “Company”). This document should be read in conjunction with all other disclosure documents of the Company. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented herein. Statements contained in this presentation that are not historical fact are “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” as that term is defined in National Instrument 51-102 of the Canadian Securities Administrators (collectively, “forward-looking statements”). Forward-looking statements in this presentation include, without limitation, statements regarding mineral reserve and resource estimates, planned exploration and development activities, corporate objectives, the economic prospects of the Company’s projects, the Company’s future plans or future revenues, and timing of development, or potential expansion or improvements. Such forward-looking statements are based on certain assumptions that the Company believes are reasonable, including, without limitation, with respect to any mineral reserve or resource estimate, the key assumptions and parameters on which such estimates are based, prevailing and projected market prices and foreign exchange rates, projected capital and operating costs, continued availability of capital and financing, availability of equipment and personnel required for construction and operations, the Company not experiencing unforeseen delays, unexpected geological or other effects, equipment failures, permitting delays, and general economic, market or business conditions. Forward-looking statements are subject to known and unknown 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; uncertainties relating to interpretation of drill results and the geological continuity and grade of mineral deposits; that mineral resources and reserves are not as estimated; risks related to cooperation of government agencies and First Nations in the exploration and development of the property; litigation; legislative, environmental and other judicial, regulatory, political and competitive developments in Canada; technological and operational 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 applicable regulatory agencies. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable securities legislation. Cautionary Note to U.S. Readers/Investors: The United States Securities and Exchange Commission (the “SEC”) 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 in 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. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and their economic and legal feasibility. It cannot be assumed that all or part of an inferred mineral resource will ever be upgraded to a higher category. Readers are cautioned not to assume that all or any part of an inferred mineral resource exists or is economically or legally mineable. U.S. investors are urged to consider closely the disclosure in the Company’s Form 40-F, which may be obtained from the Company or from the SEC’s website at www.sec.gov/edgar.shtml. TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 2
CLEAN AND TIGHTLY-HELD OWNERSHIP STRUCTURE
TRADING Toronto Stock Exchange TSX: WRN
NYSE American Stock Exchange NYSE American: WRN
CASH POSITION Cash & Short Term Investments C$ 2.5 million
Sept 30, 2019
Short/Long Term Debt $Nil
SHARE STRUCTURE Share Price C$ 1.10
Market Cap C$ 119M
Jan 10, 2020
Common Shares 107,636,001
Options 6,150,001
Warrants 1,452,533
Fully Diluted 115,238,535
COMMON SHARES Management & Board 8%
Oct, 2019 (*estimate) Private HNW Investors* 48%
Institutional Investors 10%
Other 34%
ROYALTY (OSISKO GOLD ROYALTIES) Net Smelter Return (NSR) 2.75%
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 3
KEY MANAGEMENT TEAM WITH SUCCESSFUL TRACK RECORD
Dale Corman, B.Sc., P.Eng Paul West-Sells, PhD Cameron Brown, P.Eng
Executive Chairman President & CEO VP Engineering
Extensive experience in Metallurgical Engineer with Formerly Project Manager for
mineral development, significant management and Bechtel Engineering and
financing, property metallurgical experience in Western Silver Corporation.
acquisition and evaluation. increasingly senior roles with
Formerly Chairman & CEO of BHP, Placer Dome and Barrick.
Western Silver Corporation.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 4
BOARD OF DIRECTORS
Dale Corman, 40 years experience as a senior corporate officer of publicly listed companies.
B.Sc, P.Eng. Extensive expertise in mineral exploration & development, financing, property
Executive Chairman evaluation and acquisition. Formerly Chairman & CEO of Western Silver Corporation.
Archie Lang, Former two term elected member of the Yukon Legislative Assembly appointed as
Director Minister of Energy Mines and Resources (2002-2008), Minister of Highway and Public
Works (2008-2011) and Minister of Community Services (2008-2011).
Robert J. Gayton, Formerly Partner of Peat Marwick Mitchell. Directed the accounting and financial matters
B.Comm., Ph.D., FCA of public companies in the resource and non-resource fields since 1987. Currently
Director Mr. Gayton sits on the Board of Directors of Amerigo Resources Corp. and B2 Gold Corp.
Klaus Zeitler, Formerly Senior VP of Teck Cominco and founder and CEO of Inmet Mining Corporation.
Ph.D. Currently Executive Chairman of Amerigo Resources Corp., Chairman and Director of Los
Director Andes Copper Ltd., Chairman of Rio2Limited
Tara Christie, President and CEO of Banyan Gold Corp. Ms. Christie serves on the boards of
B.A.Sc., M.A.Sc., P.Eng Constantine Metal Resources Ltd and Klondike Gold Corp. and was the President of one
Director the Yukon's largest placer mining operations. Founding board member of YESAB.
Ken WIlliamson, Former investment banker. Mr. Williamson has served on the boards of Eicon Technology
B.A.Sc., MBA, P.Eng Corporation, Glamis Gold Ltd., BioteQ Environmental Technologies Inc., Uranium One Inc.,
Director BlackRock Ventures Inc., Quadra FNX Mining Ltd., Tahoe Resources Inc. and Goldcorp Inc.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 5
SIGNIFICANT COPPER-GOLD DEPOSIT
ALASKA YUKON
CASINO
PROJECT
Whitehorse
GOLD COPPER
Skagway
8.9 M 4.5 B
oz Reserves lbs Reserves
+ +
9.0 M 5.4 B
oz Inferred Resources lbs Inferred Resources
B.C
Vancouver
Note: see Appendix for detailed Casino mineral
resource & reserve. Based on 2013 Feasibility Study.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 6
AN ATTRACTIVE COPPER OR GOLD MINE
Moly Silver
9% 2%
Copper
46%
Gold
43%
*ESTIMATED REVENUE DISTRIBUTION
(FIRST 4 YEARS AT SPOT PRICES)
Note: US$1,550 Au, US$2.75 Cu, Mo US$9.50, Ag US$80.00, FX: US$:C$ 1:0.76. Source: 2013 Feasibility Study. See “Notes” in Appendix.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 7
TSX/V JUNIOR CONTROLLED COPPER PROJECTS – ONLY 15
UKMP
Pebble CASINO
Kutcho KSM
Morisson
Northisle
Harper Creek
Northmet
King King
Cascabel Tampakan
Canariaco Norte
Cotabambas
Mina Justa
Project Constellation MANY OF THESE PROJECTS:
• are too small to have an impact on copper supply
Productora
• are not economic at current prices
• are located in unfavorable jurisdictions
• have environmental and/or technical challenges
Source: public records.
Copyright © Free Vector Maps.com
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 8
TOP 10 LARGEST TSX/V JUNIOR CONTROLLED GOLD PROJECTS
Pebble CASINO
KSM
Donlin
Livengood Rosia Montana
New Prosperity
Metates
Tampakan
Freida River
Los Helados
MANY OF THESE PROJECTS:
• are not economic at current prices
• are located in unfavorable jurisdictions
• have environmental and/or technical challenges
Source: public records.
Copyright © Free Vector Maps.com
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 9
TAKE A NEW LOOK AT THE CASINO PROJECT
RESOURCE & RESERVE
RESERVE (P&P)
Leached cap: 157 Mt @ 0.29 g/t Au
8.9 million oz Gold
Initial 4 years: 172 Mt @ 0.70% CuEq
4.5 billion lbs Copper
22 Year Mine Life: 965 Mt @ 0.50% CuEq
>0.25% CuEqUNPARALLELED IRR AND PAYBACK FOR A LARGE PROJECT
NPV IRR PAYBACK
@8% (C$) (years)
$2.9 B 26.0 % 2.3
Project Economics at $2.75 Cu and $1,550 Au (after-tax)
Note: US$1,550 Au, US$2.75 Cu, Mo US$9.50, Ag US$18.00, FX: US$:C$ 1:0.76. Source: 2013 Feasibility Study. See “Notes” in Appendix.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 12ECONOMIC THROUGHOUT THE COMMODITY CYCLE
40% $6.0
Gold Price $ 4.5B NPV at top Gold Price
$1700/oz of last cycle $1700/oz
35% $1500/oz $5.0 $1500/oz
$1300/oz $1300/oz
NPV, Billions (after-tax)
$1100/oz $1100/oz
30% $4.0
IRR (after-tax)
25% $3.0
20% $2.0
IRR above 15% through
entire recent downturn
15% $1.0
10% $-
2.0 2.5 3.0 3.5 4.0 4.5 2 2.5 3 3.5 4 4.5
Copper Price ($US/lb) Copper Price ($US/lb)
Note: See Appendix. Based on 2013 Feasibility Study. Trends: Mo: $US12.00/lb, Ag: $US18.00/oz, USD = 0.75 CAD.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 13PRODUCTION
Y1 to Y4 22 YRS
Grade % CuEq 0.70 0.50
Copper production (M lb/y) 245 171
500
(ktpa) 111 78
450
Copper (million lbs), Gold (thousand ozs)
Gold Production (k oz/y) 399 266
400 Silver Production (k oz/y) 1,777 1,425
350 Moly Production (M lb/y) 15.3 15.5
300 Strip Ratio 0.49 0.59
250
200
150
100
50
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
. Production Year
Copper Gold Note: based on 2013 Feasibility Study. See “Notes” in Appendix.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 14Unit Capex (US$/t CuEq/y)
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Florence Copper ($0.2 B)
Los Helados ($1.2 B)
Agua Rica ($2.2 B)
Carrapateena ($0.7 B)
Mantoverde ($0.8 B)
Pumpkin Hollow ($1.1 B)
Josemaria ($2 B)
COMPARABLE CAPEX
TSX : WRN I NYSE AMERICAN : WRN
Resolution ($6 B)
Ann Mason ($1.4 B)
Ajax ($0.9 B)
Pebble ($4.7 B)
Canariaco Norte ($1.6 B)
New Prosperity ($0.8 B)
Source: Goldman Sachs Global Investment Research (October 2018) & Company Records
Oyu Tolgoi Block Cave ($5.1 B)
Rosemont ($1.9 B)
Galeno ($2.5 B)
Los Azules ($2.6 B)
Casino ($2.5 B)
Taca Taca ($3.4 B)
Casino Capex ($2.45 Billion) comparable to
emerging greenfield and brownfield projects
Haquira ($2.1 B)
El Abra mill ($5.1 B)
El Pachón ($4.1 B)
Nueva Union ($3.5 B)
Radomiro Tomic ($5.4 B)
Harper Creek ($0.8 B)
Quebrada Blanca II ($4.7 B)
Cotabambas ($1.5 B)
Olympic Dam BFX ($2.9 B)
Santo Domingo ($1.8 B)
Frieda River ($3.6 B)
Kerr-Sulphurets-Mitchell ($5.5 B)
Cobre Panama ($6.3 B)
Quellaveco ($5.2 B)
Grasberg BC ($6.4 B)
Developing Canada’s Premier Copper-Gold Mine
King King ($2 B)
Schaft Creek ($3.3 B)
Cerro Casale ($6 B)
15
Galore Creek ($5.2 B)SOCIAL LICENSE
Accepting award for Outstanding
Environmental stewardship
COMMUNITY
✓ Ongoing Engagement
with Local Communities
✓ 13+ Years of Operating
Responsibly in the Yukon
SUPPORTING
FIRST NATIONS ✓ Selkirk Spirit Dancers ✓ Biennial Moosehide
✓ Significant and Continuing ✓ Tantalus Hot Lunch Program Gathering
Consultation with First Nations ✓ Make-A-Wish Yukon ✓ Pacific Salmon
✓ Co-operation Agreements ✓ Yukon Imagination Library Association
Signed with Key First Nations ✓ Tr’ondëk Hwëch’in First ✓ More…
Fish Camp
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 16ACCESS ROAD FUNDING ✓ $130 million funding committed from Governments for the Casino Access Road Canadian Prime Minister Justin Trudeau and Yukon Premier ❖ Canadian Prime Minister Justin Trudeau and Yukon Premier Sandy Silver Sandy Silver TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 17
ADDING VALUE Casino Project: ✓ Feasibility Study indicating strong Project with great economics ✓ Strong community and government support ✓ Key Permitting hurdles removed 2019 Accomplishments: ✓ Successful infill drilling in pit to improve project economics ✓ New zones to the north and west identified ✓ High-grade gold results within the southern portion of the pit suggest new high grade gold zone ✓ Acquisition of Canadian Creek project to west providing a number of key drilling targets Next Steps: ✓ Updated Resource ✓ Additional Drilling ✓ Updated Feasibility TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 18
CANADIAN CREEK ACQUISITION
• Secures ground adjacent to the Casino, where there is likelihood that the deposit extends
• Several new drilling targets
• Strategically positioned between the Casino and Newmont’s Coffee Project
Coffee - Newmont
Ana zone
Canadian Creek - New WRN Acquisition
WRN
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 19RESOURCE CONVERSION OPPORTUNITY
✓ Still significant tonnes of inferred resource inside pit
✓ Infill drill results as expected
22 year Pit
Inferred Resource
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 202019 DRILL RESULTS – HIGH GRADE GOLD
73.6 g/t Au over 53.5 g/t Au over
1.85 m @ 69.16 m 2.45 m @ 343.55 m
55.1 g/t Au over
2.97 m @ 147.98 m
Note: See News Release dated December 19, 2019 for details on drilling program.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 212019 DRILL RESULTS
0.38% CuEq* over Northern step-out
107.83 m @ 40 m • 9/10 holes with significant widths
of mineralization
• 7/10 holes ended in mineralization
Note: See News Release dated December 19, 2019 for details on drilling program. *See Appendix for CuEq calculation.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 222019 DRILL RESULTS
Western step-out
• All holes intercepted
mineralization
• 3/6 holes ended in
mineralization
3.6 g/t Au over
2.00 m @ 183.4 m
Note: See News Release dated December 19, 2019 for details on drilling program.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 232020 PLAN
TSX : WRN I NYSE AMERICAN : WRN2020 DRILL TARGETS – HIGH GRADE GOLD ZONE
55.1 g/t Au over
73.6 g/t Au over 2.97 m @ 147.98 m
1.85 m @ 69.16 m
53.5 g/t Au over
2.45 m @ 343.55 m
Intercepts >
2 g/t gold
Trend of very high
gold values
High Bismuth
Zones
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 252020 DRILL TARGETS – NEW PORPHYRY ZONE
New Porphyry Zone
New Porphyry
Zone
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 262020 DRILL TARGETS – CANADIAN CREEK
• Ana – new
porphyry target
• Casino B – higher
grade gold
targets
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 27KEY ASSET IN AN EMERGING NEW GOLD DISTRICT
✓ Significant players – Newmont/Goldcorp,
Agnico-Eagle, Kinross, + others
✓ 25 million+ ounces of gold*
WHITE GOLD ✓ Significant exploration upside
✓ Gov’t commitment to fund access to area
✓ 2 Projects in permitting
✓ Community and First Nation support
COFFEE
Companies in Teck
CASINO the District:
WRN
Agnico Eagle / Newmont Newmont
TRIUMPH Kinross Goldcorp Goldcorp
*Based on Company records. Coffee, Casino, Golden Saddle and Arc and Freegold Mountain deposits.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 28TICKING ALL THE BOXES
HIGHLIGHTS:
✓ Significant Copper and Gold deposit
✓ Strong Feasibility study with great economics
✓ Located in the emerging Yukon Gold District and in Canada
with significant government support
✓ Long mine life – 22 years reserve represents less than 50%
of overall resource
✓ Multiple key milestones in the short and medium terms
*Source: 2013 Feasibility Study. See “Notes” in Appendix.
TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 29ANALYST COVERAGE CORMARK SECURITIES ROTH CAPITAL PARTNERS H.C. WAINWRIGHT & CO. Stefan Ioannou Jake Sekelsky Heiko F. Ihle, CFA Tel: (416) 943-4222 Tel: (646) 616-2786 Tel: (212) 356 - 0510 TSX : WRN I NYSE AMERICAN : WRN Developing Canada’s Premier Copper-Gold Mine 30
WWW.WESTERNCOPPERANDGOLD.COM INFO@WESTERNCOPPERANDGOLD.COM 604 684 9497
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