NorthWest Copper Unveils Positive Kwanika-Stardust Copper-Gold Project PEA

NorthWest Copper Corp. (TSXV: NWST) has released the results of the preliminary economic assessment (2023 PEA) on its 100% owned Kwanika-Stardust Project comprising the Kwanika and Stardust deposits in British Columbia.

The study was conducted by Ausenco Engineering Canada Inc. and Mining Plus Canada Consulting Ltd and represents the first technical and economic evaluation of the combined deposits outlining a robust project with manageable initial capital cost and multiple opportunities for project growth.

NorthWest plans to continue to evaluate the possibility of further synergies with nearby deposits and the proposed Project infrastructure, with a particular focus on the nearby 100% owned Lorraine Project.

The 2023 PEA outlines a project that proposes mining approximately 96 million tonnes (Mt) of material in a combination of open pit and underground operations from the company’s 100% owned Kwanika and Stardust deposits.

The 2023 PEA contemplates a 22,000 tonnes per day (tpd) process plant, producing high-quality copper concentrate with significant gold and silver by-product credits.

Highlights

The 2023 PEA describes Kwanika-Stardust as a unique project combining manageable initial capital with a significant Cu-Au production profile:
Peak copper equivalent (CuEq) production of 152.1 million pounds of copper (Mlbs) per year (year 6) and life of mine (LOM) CuEq average production of 90.6 Mlbs per year over 11.9 years;
Total LOM production of 694 Mlbs Cu, 803 koz Au, and 3,204 koz Ag (1,078 Mlbs CuEq)
Average cash operating costs3 of US$1.58/lb CuEq (US$0.44/lb Cu on a by-product4 basis);
Average all-in sustaining cost (“AISC”)5 of US$2.01/lb CuEq (US$1.12/lb Cu on a by-product6 basis);
Initial capital of C$567.9 M (US$438.5 M7), with a construction period of two years;
Attractive economics with NPV (7%) of C$440.1 M (US$339.8 M) and IRR of 17.1% pre-tax and NPV (7%) of C$215.0 M (US$166.0 M) and IRR of 12.7% after tax8; and
At spot prices economics improve, with NPV (7%) of C$665.6 M (US$513.9 M) and IRR of 21.7% pre-tax and NPV (7%) of C$363.3 M (US$280.6 M) and IRR of 16.4% after tax9;
The 2023 PEA is preliminary in nature. It includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves and there is no certainty that the 2023 PEA will be realized.
Mineral Resources include mineralized material from four sources:
Kwanika Central open pit:
30.7 Mt of Measured Resources (0.31% Cu, 0.31 g/t Au, 1.05 g/t Ag);
35.9 Mt Indicated Resources (0.22% Cu, 0.19 g/t Au, 0.80 g/t Ag); and
4.1 Mt Inferred Resources (0.15% Cu, 0.15 g/t Au, 0.58 g/t Ag);
Kwanika Central underground block cave:
25.6 Mt Measured Resources (0.50% Cu, 0.61 g/t Au, 1.62 g/t Ag); and
11.3 Mt Indicated Resources (0.51 Cu%, 0.65 g/t Au, 1.56 g/t Ag);
Kwanika South open pit:
25.4 Mt Inferred Resources (0.28 % Cu, 0.06 g/t Au, 1.68 g/t Ag);
Stardust underground:
1.6 Mt Indicated Resources (1.49% Cu, 1.63 g/t Au, 30.1 g/t Ag); and
4.1 Mt Inferred Resources (1.00% Cu, 1.38 g/t Au, 22.8 g/t Ag);
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
NorthWest is committed to working collaboratively with First Nations to ensure that sound cultural and environmental practices based on sustainability and shared value are incorporated into any mine development plans:
NorthWest will continue to engage based on open communication and collaboration to create benefits for First Nations;
The Project will look to minimise the development impact by using existing infrastructure and processing mineralized material from multiple sources in one central facility;
The Project plans to connect to the BC Hydro electrical grid and will thereby use primarily renewable electricity, reducing the Project’s carbon footprint; and
The Project could contribute to British Columbia’s and Canada’s critical mineral supply by providing copper, a much-needed element for the green energy transition.