Overview
True North Copper (ASX:TNC) is entering a transformative phase on our path to become Australia’s next copper producer. Mining activities have commenced at our Cloncurry Copper Project – a low-cost, low-risk, fully funded and permitted project.
The company’s next mine development is the high-grade Vero resource at the Mt Oxide Project. True North Copper is committed to developing and strengthening our understanding of this phenomenally mineralised project, which boasts an updated copper-silver mineral resource estimate of 15.03 Mt at 1.46 percent copper and 10.59 g/t silver for a contained 220 kt copper and 5.13 Moz silver.
Copper demand is rising in a global market of diminishing supply. The global surge in artificial intelligence, electric vehicles, decarbonisation initiatives, and broader macro trends is intensifying the demand for copper.
Company Highlights
True North Copper is preparing to become Australia’s next copper producer.
True North Copper’s two principal assets are located in northwest Queensland, Australia – a Tier 1 mining jurisdiction:
Cloncurry Copper Project (CCP) – IOCG and ISCG copper-gold deposits proposed for open pit mining operations, with extensive surrounding exploration tenure. Mining activities have commenced at the Wallace North deposit, part of CCP.Mt Oxide Project (Mt Oxide) – IOCG high-grade, globally significant, copper-cobalt-silver deposit subject to re-optimisation studies, and exploration in surrounding tenure.
Cloncurry Copper Project (CCP)
Wallace North Mine preparation and mobilisation. Wallace North is scheduled as the first open pit (one of four – Wallace North, Great Australia Mine [GAM], Taipan and Orphan Shear) to be mined as part of the mining restart at the CCP. CCP’s total reserves increased. TNC’s Cloncurry Copper Project (CCP) total reserves currently include 4.7Mt probable ore reserves grading 0.80 percent copper and 0.13g/t gold, containing 37.5 kiloton of copper and 20.0koz of gold.
Figure: Cloncurry copper project and Cloncurry operations hub
Mt Oxide Project
Highly prospective and underexplored. Phenomenally mineralised system.Exploration results from True North Copper’s maiden diamond drill program across Mt Oxide’s Vero Resource not only returned globally significant grades, but also showcased the expanding nature of the Vero high-grade ore body including:66.50 metres @ 4.95 percent copper, 32.7g/t silver and 685 ppm cobalt from 234.00 metres[inc.] 20.60 metres @ 10.51 percent copper, 63 g/t silver and 1,149 ppm cobalt from234.60 metres and[inc.] 8.55 metres @ 6.03 percent copper, 51.6 g/t silver and 98 ppm cobalt from290.15 metresMultiple exciting future exploration programs and high-priority potential targets along the 10 kilometre-long mineralised trend that hosts Vero.
Figure: Cross-section of MOXD217 (10 metres clipping window) showing the location of geological and grade composites as well as the updated interpretation of copper grade domains based on the results from MOXD217
Funding and Strategic Partnerships
AU$42 million (US$28 million) USD-denominated senior secured loan facility (loan facility) with Nebari Natural Resources Credit Fund II LP (Nebari)1. The Loan Facility is provided in two tranches. Drawdown of Tranche 1 – US$18 million (approximately AU$25.5 million) on 9 February 2024.Binding offtake and toll-milling agreements with Glencore International AG (Glencore) for 100 percent of copper concentrate from TNC’s CCP and toll-milling services of up to 1Mt of ore per year for the CCP’s Life of Mine (LoM).
Figure: Visual representation of Vero Resource within surrounding Mt Isa Inlier.
TNC Exploration Program
Exploration strategy targeting transformative discoveries across TNC’s more than 850 sq km of tenure package within the Mt Isa Inlier.Significant potential for transformative discoveries of copper-gold cobalt-silver in three districts.Numerous high-quality copper-gold-cobalt-silver targets located with mineralised structural corridors within the eastern & western fold belts such as:Cloncurry Fault Corridor 🡪 Host to the GAM and Mt Norma ResourcesErnest Henry Corridor 🡪 Ernest Henry, E1 Camp and MonakoffMt Gordon Corridor 🡪 Capricorn Copper and VeroMt Roseby Corridor 🡪 Little Eva and Blackard.12.55 Mt @ 0.82 percent copper (indicated and inferred resources) and multiple prospects located within a 30-kilometre radius of the company’s CCP represent near-term production opportunities. Recent JV over highly prospective tenements with CMG deal increases TNC’s land position at the core of its CCP.TNC awarded the Queensland Government Collaborative Exploration Initiative (CEI) Grant. The CEI grant has been used towards delivery of leading edge MIMDAS induced polarisation, resistivity and magnetotellurics geophysical surveys at the Mt Oxide. The exploration has targeted massive and disseminated sulphide mineralisation and delivered an improved understanding of the large-scale structural architecture that controls mineralisation throughout the Mt Oxide exploration leases.
Figure: Summary of exploration and development pipeline across all TNC projects.
Projects
Cloncurry Copper Project
Our Cloncurry copper project (CCP) hosts iron oxide copper-gold (IOCG) and iron-sulphide-copper-gold (ISCG) deposits with extensive surrounding exploration tenure. It is built on a strong economic basis and low-risk cost structure.
The CCP currently incorporates two reserves where mining will commence including – the Wallace North maiden resource and the Great Australia mine reserve (GAM):
GAM includes GAM, Orphan Shear and Taipan deposits) totalling 4.7Mt grading 0.80 percent copper and 0.13g/t gold containing 37.5kt of copper and 20 koz of gold – upgrade to be announced mid-2024.Wallace North ore reserve totals 0.7Mt (probable) grading 1.01 percent copper and 0.46g/t gold for 6.8kt copper and 10 koz gold.
TNC’s CCP expansion is ongoing with exploration progressing and advanced projects in strategic locations surrounding the existing CCP operation, promising long-term growth prospects.
Our strategic partnerships, including a binding offtake and toll-milling agreements with Glencore International AG, supported by debt funding secured with Nebari, underscore our operational readiness and position TNC to capitalise on an extremely favourable copper market.
Mining operations will kick off at the Wallace North open cut pit, targeting higher-grade ores (~1 percent copper) from surface mining. Ore will undergo primary crushing at the Cloncurry operations hub and the toll treatment facility, located within a 40-kilometre radius, with a predominant focus on sulphide ores.
All necessary permits for mining are secured across the CCP, bolstered by an established environmental monitoring network with a robust historical database.
TNC’s operational strategy involves a phased approach to mine development, with mining activities commencing in 2024 and a planned ramp-up of production throughout 2025.
Cloncurry Operations Hub
The Cloncurry operations hub is strategically located to the CCP’s four open pit deposits including: Great Australia, Orphan Shear, Taipan and Wallace North.
The COH is 2 kilometres from the township of Cloncurry and provides essential infrastructure, technical systems and support to all of TNC’s project operations. An active oxide heap leach and solvent extraction (SX) processing plant, mine buildings, site administration facilities, workshops, open pit mine facilities, onsite explosive magazines, site storage, water management systems and existing site power supply are located at the COH.
Cloncurry Copper Project – Project Economics
Mining 4.8Mt of ore over an initial 4.6-year mine life, at a low strip ratio of 4.2, delivering 35kt copper and 29 koz gold contained metal (based on existing JORC reserves)Anticipated mine revenue of AU$367 million with free cash flow of AU$111 million, and a pre-tax NPV10 of AU$88 million, demonstrating strong operating economics at US$8,500/t copper price and US$1,850/oz gold price (0.7 AU$:USD exchange rate).Payback expected within six months post mining restart, driven by favourable commodity prices and low all-in sustaining cost (AISC) of US$2.65/lb copper.Low up front capex of AU$1.5 million leverages existing infrastructure, while peak operating expenditure is estimated at AU$2.2 million.Sulphide and oxide ore production – two copper products. copper sulphide (LoM approx. 90 percent) + copper sulphate (LoM approx. 10 percent).Mineral concentrate grade 22-26 percent copper (with gold/silver credits).Sulphide Ores more than88 percent expected recovery.Transitional Ores more than 77 percent expected recovery.Very low deleterious elements in mineral concentrate.
Cloncurry Copper Project – Exploration
CCP expansion and exploration focused on rapid copper-gold-ore source growth.With more than 80 prospects located within a 30-kilometre radius of the CCP, TNC is focused on expansion and the exploration potential for additional copper-gold-cobalt-silver mineralisation to be brought into the production fold, including large-scale transformative discoveries.Our successful 2023 Exploration Program identified the following targets:Cloncurry Copper Project – eight new drill targets at Greater Australian and Copperhead.Salebury and Rocklands South – Compelling untested geophysical anomalies in historic data.Mt Norma – untested surface anomalies and down plunge resource extension targets on mining lease within 30 kilometres of the Cloncurry operations hub.Wynberg, Notlor, Marimo Trend and Tanbah limited historic exploration significant copper-gold in surface sampling and drilling, limited testing.
Figure: High priority exploration targets at the CCP
Figures above: Anomalies generated from TNCs 2023 induced polarisation program and structural analysis of the GAM Project.
Mt Oxide Project
The Mt Oxide project hosts the Vero resource of 15.98 Mt @ 1.43 percent copper (measured, indicated and inferred) a Mt Isa style sediment-hosted copper-silver-cobalt system. Analogues include Capricorn copper and Mt Isa copper.
The Vero resource at our Mt Oxide project is our next mine. We are focused on understanding this phenomenally mineralised system.
Mt Oxide’s Vero Resource 2023 exploration program returned outstanding and globally significant grades. The results of our 2023 maiden drilling program at the Vero resource showcased the expanding nature of the Vero high-grade ore body.
Vero Resource maiden drilling program
2023 Vero resource drilling highlights included (* = Estimated True Width):
MOXD217 returned phenomenal results that placed the drill hole in the top globally ranked copper drill holes of 2023 including :
66.50 metres (48.00 metres*) @ 4.95 percent copper, 32.7 g/t silver and 685 ppm cobaltfrom 234 metres.11 metres (8.19 metres*) @ 3.06 percent copper, 34.2 g/t silver and 682 ppm cobalt from 357.50 metres.8.55 metres (8.55 metres*) @ 6.16 percent copper, 45.9 g/t silver and 140 ppm cobalt from 172.50 metres.
MOXD221 intercepted a wide interval of high-grade shallow dipping mineralisation as well as a second deeper intercept, providing indications of rapidly increasing grade and widths of mineralisation to the south including:
42.10 metres (41 metres*) @ 1.66 percent copper, 13.5 g/t silver and 1,083 ppm cobalt from 154.90 metres.[including] 4 metres (2.24 metres*) @ 7.65 percent copper, 57.3 g/t silver and 1,164 ppm cobalt from 191.20 metres.
MOXD226A returned three key zones of strong mineralisation including a broad interval of 69.95 metres and further intervals of up to 11.19 percent copper.
Highlights include:
69.95 metres (42.85 metres*) @ 1.91percent copper, 17.7g/t silver and 675 ppm cobalt from 224.55 metres[including] 9.65 metres (5.89 metres*) @ 2.74 percent copper, 24.1g/t silver and 993 ppm cobalt from 239.50 metres[including] 18.15 metres (11.07 metres*) @ 3.23 percent copper, 26.8g/t silver and 585 ppm cobalt from 276.35 metres16.75 metres (16.75 metres*) @ 5.30 percent copper, 44- g/t silver and 120 ppm cobalt from 165.25 metres[including] 4.65 metres (4.65 metres*) @ 11.19 percent copper, 93.9g/t silver and 136 ppm cobalt from 172.55 metres
Figure: Location of geological and grade composites as well as the updated interpretation of copper grade domains based on the results from MOXD226A
Mt Oxide Discovery Strategy
TNC is committed to unlocking Mt Oxide’s underexplored targets.
Mt Oxide lies adjacent to a large crustal scale structure – the Mt Gordon Fault Zone. Splays off this structure (Dorman Fault) host Vero.Mt Oxide has evidence of large-scale fluid flow, big mineral system potential.Copper-silver-cobalt mineralisation interpreted to have been formed near surface and upper parts are preserved.Excellent depth potential of mineralisation in the Mt Oxide project.Limited systematic modern exploration outside of the Vero resource.Significant opportunity to apply leading-edge mineral exploration to build a larger copper inventory in a well-endowed mineral system.More than 10 kilometres trend along Dorman fault zone of intermittently outcropping gossanous / silica breccias, virtually no drilling, surface sampling or effective geophysics.Multiple untested targets with significant alteration-mineralisation footprints.No application of tried and tested geophysics or systematic surface rock chip geochemistry and mapping.Low cost highly effective exploration techniques to filter and prioritise drill targets.
Multiple exciting future exploration programs and high-priority potential targets along 10-kilometre long mineralised trend that hosts Vero including:
Aquila & Mt GordonIvena NorthCamp GossansCave CreekBig Oxide
Figure: Multiple exciting future exploration programs and high-priority potential targets along the 10-kilometre long mineralised trend that hosts Vero resource’s Mt Oxide project.
A systematic rock chip sampling campaign at the Aquila and Ivena North prospects indicated strongly anomalous copper and pathfinder elements.
Sampling at Aquila highlighted six zones of anomalous copper, cobalt and arsenic associated with multiple gossanous breccia structures up to 30 metres wide.Aquila B Trend: +180 metres long and +30 metres wide copper +/- cobalt-arsenic-silver within a 440 metres long fault breccia with visible copper oxide mineralisation. The trend includes rock chip channels returning 3.6 metres @ 0.49 percent copper with a peak assay of 0.94 percent copper.Aquila A Trend: +20 metres long and up to 12 metres wide copper-arsenic-antimony anomalous zone within +210 metres strike of hematite altered hydrothermal breccias, returning up to 0.05 percent copper and 12.7g/t silver and anomalous pathfinders.Aquila D Trend: +100 metres long and up to 4 metres wide copper-cobalt trend associated with a historical prospecting pit with strong copper oxide mineralisation, and a peak assay of 0.87 percent copper.At Ivena North, sampling has identified copper, cobalt & arsenic trends within two geochemically anomalous zones from multiple gossanous breccia structures that are up to 25 metres wide.Ivena North A Trend – +130 metres long and up to 15 metres wide copper-cobalt-aresenic trend within a +580 metres strike of hydrothermal breccia and gossans that returned assays up to 1.38 percent copper and anomalous arsenic +/- silver-antimony-bismuth-molybdenum.TNC’s next steps include prioritisation of these targets, designing and planning upcoming drill programs, and securing the necessary permits for on-ground access.
Management Team
Bevan Jones – Managing Director
Bevan Jones is a seasoned operations officer offering nearly 30 years of experience in mine management across a diverse range of commodities and has a proven track record in directing business improvement initiatives and operational transformation. Jones’ previous roles include chief operating officer at Karora Resources (TSX:KRR), as well as general manager of Gold Fields Limited’s (JSE:GFI) St Ives Gold Mine in WA, where he executed transformative growth strategies and delivered exceptional operational results. Most recently, Jones was the managing director at Brisbane-based Extra Mining Solutions, where he played a leading role in establishing the company focusing on business transformation and operational excellence. Jones gained international operational experience as chief operating officer of BCM Group International in West Africa, general manager of the Wetar Copper Mine in Indonesia and general manager of the Hidden Valley Mine in Papua New Guinea, as well as mining manager of Barrick Gold’s Lumwana Copper Mine in Zambia.
