NorthIsle engaged Ausenco to update its 2021 PEA, incorporating a newly identified gold-rich copper deposit - Northwest Expo - separated from the main deposits by challenging terrain. Ausenco proposed a two-phase production plan beginning with the high-return satellite site, enabling fast CAPEX payback and setting the foundation for over 20 years of copper-focused production.
The Challenge
NorthIsle’s 2021 Preliminary Economic Assessment (PEA), for the Hushamu and Red Dog copper deposits on Vancouver Island in British Columbia showed moderate potential. A subsequent discovery - Northwest Expo - a high-grade gold copper deposit northwest of Hushamu, prompted a revised PEA. The new deposit also required different processing than the copper-dominant ore at Hushamu and Red Dog. However, the remote location, separated by rugged terrain, posed logistical and design challenges. Transporting varying proportions of gold doré and copper concentrate added complexity. Ausenco had to develop a solution that addressed ore variability, minimized CAPEX, and navigated the terrain between the deposits efficiently.
The Better Way
Ausenco proposed a two-phases development strategy focused on early returns, and staged capital investment. In Phase 1, the high-grade gold copper deposit at Northwest Expo will be mined first. Ore would be conveyed 13 km to a central processing plant built at Hushamu. Gold doré and copper concentrate would be transported by truck along a new access road, improved forestry roads and existing highways from the site through Port Hardy to Nanaimo on the east side of the island.
After 5 years, Phase 2 would begin with operations shifting to Hushamu and Red Dog. The process plant would be converted - transitioning from leaching to floatation - enabling efficient copper concentrate production using much of the same infrastructure. The higher volumes of copper concentrate would be shipped via a new port to be constructed on the west side of the island.
Ausenco’s team conducted over 18 trade-off studies over an intensive three-month period, exploring processing locations, ore transport options and four potential port sites, with input from our transportation and logistics experts.
The Outcome
Ausenco’s optimized and value-oriented design created significant value for the North Island Project by reducing CAPEX costs and minimizing environmental impact. The 2025 PEA now shows a 29% after-tax IRR, up from 19%, and a NPV of $2 billion CAD (at US$2150/oz gold and US$4.2/lb copper). Payback is reduced from 3.9 to 1.9 years. The proximity of the operation to Port Hardy eliminates the need for a remote camp, supporting the local economy and offering an attractive lifestyle for employees and their families. The new port facility near Coal Harbour would create opportunities for the local Indigenous community through land use payments and local employment. Ausenco’s staged approach supports rapid payback and fully funds Phase 2 expansion CAPEX.