BORNITE PROPERTY

Bornite is a high-grade copper deposit with significant exploration potential, located in a safe, mining-friendly jurisdiction.

The Bornite deposit (“Bornite”) is a carbonate hosted copper-cobalt deposit located approximately 25 kilometers southwest of the Company’s Arctic Project. Current activities are focused on exploration, with mineralization remaining open to the north, northeast and south.

KEY FACTS

Location

Alaska, USA

Deposit Type

Carbonate-Hosted Copper-Cobalt

Unit

Bornite Carbonate Sequence

Age

Lower Devonian to Upper Silurian

Approximate Thickness

200 – 1,000 meters

Main Economic Elements

Copper and Cobalt

The Bornite deposit located near Kobuk, Alaska, is approximately 25 kilometers southwest of the Company’s Arctic deposit. The project has the potential to further enhance the long-term economics of the Ambler mining district. A National Instrument 43-101 Technical Report outlining Indicated Resources of 900 million pounds of copper and Inferred Resources of 5.5 billion pounds of copper and 77 million pounds of cobalt was released in 2018 and includes results of the 2014 assaying of previously un-sampled or partially sampled historical Kennecott drill core, as well as updates to the geological model completed in 2015. Current activities are focused on exploration for high-grade, carbonate-hosted copper mineralization north and northeast of drill holes RC13-224, RC13-231 and RC13-220. In addition, copper mineralization is observed in outcrop over 16 kilometers of the Cosmos Hills, specifically mineralization that has been encountered in drill core at the Aurora and Pardner Hill prospects.

BORNITE HIGHLIGHTS

• Located approximately 26 kilometers to the southwest of the Arctic Project.
• Mineralization is hosted within the Devonian aged Bornite carbonate sequence.
• Widespread hydrothermal dolomitization is a characteristic of the belt and locally hosts the associated copper and cobalt mineralization.
• Bornite has characteristics similar to a series of districts and deposits including the Mount Isa district in Australia, the Tynagh deposit in Ireland, the Kipushi deposit in the DRC and the Tsumeb deposit in Namibia.
• All of these deposits show synergenic to early epigenetic characteristics; emplacement in carbonate stratigraphy; and early pyrite-dolomite alteration followed by copper-dominant sulphide mineralization.
• Copper mineralization at Bornite is comprised of chalcopyrite, bornite, and chalcocite as stringers, veinlets, and breccia fillings distributed or stacked, roughly stratiform zones exploiting favourable stratigraphy within the dolomitized limestone package.
• Mineralization occurs, in order of increasing grade, as disseminations, irregular and discontinuous stringer-style veining, breccia matrix replacement, and stratiform massive sulphides.
• Since 1957, when copper mineralization was discovered at Bornite, there has been approximately 164,652 meters drilled at the UKMP of which 103,796 meters were drilled at Bornite.
• The option agreement with South32 resulted in approximately $31 million being expended at Bornite which was comprised of 35 drill holes to in-fill and expand the current resources.
• The most current resources estimate, which has an effective date of June 5, 2018, estimated Indicated Resources of 913 million pounds of copper and Inferred Resources of 5,451 million pounds of copper plus Inferred Resources of 77 million pounds of cobalt.