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Outcome Visualization Project as of Oct 22, 2021: Cons Woodjam - Southeast Zone Basic
Project:WoodjamLocation:CanadaStage:4-Infill Drilling
Net Interest:100% WIUncapped NSR:1.5%Target Metals:Copper Gold Molybdenum
OV Project ID:1000029OVP Posted:4/21/2021OVP Retired:
Current OV ID:1000080Current OV Confirmed:4/21/2021Visualizer:JK
Cons Woodjam Copper Corp (WCC-V)
ProfileSearchWeb SiteTreeForumSEDARQuoteIPV
Issued
121,203,665
Price
$0.115
Working Capital
$1,521,598
Key People: J. William Morton (CEO), David M. Douglas (CFO)
Diluted
145,855,129
Insiders
31.7%
As of
5/31/2021
Visualized Outcome: Cons Woodjam - Southeast Zone Basic
Cons Woodjam Copper Corp is the 100% owner of the Woodjam project on which $30 million has been spent since 1998, with Gold Fields spending $25 million in 2009-2013 to deliver inferred resource estimated for 3 deposits: the Southeast Zone, the Deerhorn and the Takom zones. This OV is focused on the Southeast Zone alone for which Gold Fields estimated an inferred resource of 227,500,000 tonnes at 0.31% copper. Molybdenum and gold is present but GF excluded them. A 30,000 tpd open-pit scenario has been chosen for this OV because it delivers a 20 year mine life. Gold Fields pulled out of Canada in 2013 and returned its interest to WCC in 2015 in exchange for an equity stake. This Southeast Zone Basic OV has been created as a baseline to see what copper price the deposit as it stands becomes viable to develop. The Basic OV will in turn be used to generate alternative speculative scenarios that include expanding the resource if the Megaton IP anomaly to the northeast generates tonnage with similar grade, though to add value this may require a higher operating rate. There is also the potential to add gold and molybdenum credits which GF excluded because it lacked sufficient metallurgy. The gold grade was estimated to run 0.05 g/t with 54%-80% recoverability, but deemed too low to include. There is potential for the gold grade to improve with a drilling strategy designed to cross-cut the gold mineralization fabric.
Source Note: This OV has been constructed from assumptions Gold Fields used in its resource estimate and economic studies published for similar scale open pit operations in North America.
Visualized Outcome Summary: Cons Woodjam - Southeast Zone Basic
Deposit Scenario: 227,500,000 t @ 0.31% Copper
Mining Scenario: Open Pit 30,000 tpd 20.8 yrs, CapEx $350.0 million, SustCapEx $150.0 million, OpEx $10.38/t (USD)
LOM Payable: 1.3 billion lb copper
Economic Outcome (USD): Revenue Model at OV designated Metal Prices

Annual AverageLife of Mine (LOM)LOM Stats
Recoverable Revenue:$288,152,734$5,986,734,875$26/t ore Recoverable Value:
   Smelter/Transport Costs:($38,452,012)($798,888,827)13.3% of Recoverable Revenue
Gross Payable Revenue:$249,700,722$5,187,846,04886.7% of Recoverable Revenue
   Royalties:($3,745,511)($77,817,691)1.5% of Gross Payable Revenue
Net Payable Revenue:$245,955,211$5,110,028,35785.4% of Recoverable Revenue
   Mining Cost:($57,816,000)($1,201,200,000)48% of OpEx - $5.28/t ore
   Processing Cost:($50,370,000)($1,046,500,000)42% of OpEx - $4.60/t ore
   Other Cost:($5,475,000)($113,750,000)5% of OpEx - $0.50/t ore
   Sustaining Cost:($7,142,857)($150,000,000)6% of OpEx - $0.66/t ore
Total Operating Cost:($120,803,857)($2,511,450,000)49% of Net Payable Revenue - OpEx - $11.04/t ore
Pre-Tax Cash Flow:$125,151,354$2,598,578,35751% of Net Payable Revenue - $11.42/t ore
   Taxes:($37,677,974)($787,002,425)30% of Pre-Tax Cash Flow - $3.46/t ore
After-Tax Cash Flow:$87,473,380$1,811,575,93235% of Net Payable Revenue - $7.96/t ore
Note: Concentrate transport costs, smelter treatment costs and retention are subtracted from recoverable revenue to get gross payable revenue to which the uncapped royalty rate for the project is applied. The annual average of LOM sustaining cost is expensed as an annual operating cost. Annual average figures reflect full production years.
Economic Outcome (USD): Royalty Model for 1% NSR at OV designated Metal Prices
Mine Life:21 yearsStartupNPV 5%NPV 10%NPV 15%
Annual Avg NSR:$2,459,552Now$29,844,537$19,270,500$13,475,297
LOM NSR:$51,100,2842021$29,844,537$19,270,500$13,475,297
Economic Outcome - Discount Rate: 8.0% - CAD AT NPV: $609.0 million - Good Speculative Value
Gross Rock Value (USD/t):$31Recoverable Rock Value:$26Payable Rock Value:$23
LOM Net Payable Revenue (USD):$5,110,028,357LOM PT Cash Flow (USD):$2,598,578,357LOM AT Cash Flow (USD):$1,811,575,932
USD Pre-Tax NPV:$831,237,270Pre-Tax IRR:35.7%Pre-Tax Payback:2.8
USD After-Tax NPV:$492,716,222After-Tax IRR:25.5%After-Tax Payback:3.8
CAD Fair Spec Value Low:$30,442,472CAD Fair Spec Value High:$60,884,944CAD Implied Project Value:$16,773,340
Price Target if Visualized Outcome delivered by Expl-Dev Cycle without dilution: CAD $4.17
Fair Speculative Value Stock Price Range: CAD $0.21 - $0.42
MSV (Market Cycle S Curve): Market Speculative Value represents the typical market pricing pattern of a new discovery as it moves through its exploration-development cycle. The irrational pricing behavior of the yellow channel contrasts with the fair speculative value of the blue channel as defined by the rational speculation model because during the pre-economic study stages there is great uncertainty about how big the discovery will turn out.
Fair Speculative Value Ladder
USD OV NPVCAD OV NPVExch RateDilutedNet Interest
$492,716,222$608,849,4361.2357145,855,129100.00%
Project StageUncertainty RangeCAD FSV RangeCAD FSV per Share RangeCAD MSV per Share Range
Grassroots 0.5% - 1.0% $3,044,247 - $6,088,494 $0.02 - $0.04 $0.04 - $0.10
Target Drilling 1.0% - 2.5% $6,088,494 - $15,221,236 $0.04 - $0.10 $0.10 - $0.21
Discovery Delineation 2.5% - 5.0% $15,221,236 - $30,442,472 $0.10 - $0.21 $0.21 - $3.13
Infill & Metallurgy 5% - 10% $30,442,472 - $60,884,944 $0.21 - $0.42 $2.09 - $4.17
PEA 10% - 25% $60,884,944 - $152,212,359 $0.42 - $1.04 $1.04 - $3.13
Prefeasibility 25% - 50% $152,212,359 - $304,424,718 $1.04 - $2.09 $1.04 - $2.09
Permitting & Feasibility 50% - 75% $304,424,718 - $456,637,077 $2.09 - $3.13 $1.04 - $2.09
Construction 75% - 100% $456,637,077 - $608,849,436 $3.13 - $4.17 $2.09 - $3.13
Production 100% $608,849,436 $4.17 $4.17 - $5.22
Market Speculative Value Stock Price Range: CAD $2.09 - $4.17
Warning: while the market spec value (S-Curve) and fair spec value channels presented in project value terms track the evolving expected ultimate outcome value, when presented in stock price terms the expected stock prices are subject to dilution through future equity financings or project interest farmouts.
Alternative Metal Price Scenarios

Metal 1Metal 2Metal 3Metal 4

Copper


Spot:$4.53 /lb


OV Assigned:$4.53 /lb


Pessimistic:$2.50 /lb


Optimistic:$5.00 /lb


Fantasy:$7.00 /lb


Note: for Metal 1 pessimistic, optimistic and fantasy price scenarios, OV assigned prices are used for Metals 2-4
Economic Outcomes with Alternative Metal Price Scenarios

USD PT NPVUSD PT IRRUSD AT NPVUSD AT IRRAT Payback yrs
Spot:$831,237,27035.7%$492,716,22225.5%3.8
OV Assigned:$831,237,27035.7%$492,716,22225.5%3.8
Pessimistic:($284,480,611)-10.4%($285,254,965)-11.1%21.0
Optimistic:$1,089,556,18843.7%$660,623,51930.9%3.2
Fantasy:$2,188,785,62777.8%$1,375,122,65453.4%1.9
Fair Speculative Value for Alternative Metal Price Scenarios
Stage: Infill & Metallurgy - 5.0% - 10.0%

CAD AT NPVCAD Target PriceCAD FSV RangeCAD FSV per Share RangeCAD MSV per Share Range
Spot:$608,849,436$4.17$30,442,472 - $60,884,944$0.21 - $0.42$2.09 - $4.17
OV Assigned:$608,849,436$4.17$30,442,472 - $60,884,944$0.21 - $0.42$2.09 - $4.17
Pessimistic:($352,489,560)($2.42)($17,624,478) - ($35,248,956)($0.12) - ($0.24)($1.21) - ($2.42)
Optimistic:$816,332,482$5.60$40,816,624 - $81,633,248$0.28 - $0.56$2.80 - $5.60
Fantasy:$1,699,239,064$11.65$84,961,953 - $169,923,906$0.58 - $1.17$5.83 - $11.65
View Detailed Visualized Outcome (KRO Members Only)
Disclaimer: A visualized outcome is one of many possible outcomes for an exploration project as it moves through the 9 stages of the exploration-development cycle from grassroots to a producing mine with failure as an outcome at any point along the way. The range of possible outcomes for the physical nature of a deposit shrinks after delivery of an initial 43-101 resource estimate. While the nature of the deposit constrains the range of mining scenarios, the cost assumptions will vary as the project moves through the feasibility demonstration stages of the cycle, which affects the economic value of the final outcome. This economic value will also vary according to the prices of the metals targeted for extraction which may change during the years it takes for a project to become a mine. An outcome visualization is thus a compilation of best guess assumptions for the key variables that drive the discounted cash flow model, the basis for assigning an economic value to a mine. An OV is not intended as a prediction, but rather as a framework that allows the incorporation of new information generated by the exploration-development cycle for the project into a valuation model on an ongoing, dynamic basis.
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