Western Copper and Gold Announces Significant Resource Increase at Casino

Rhea-AI Summary

Western Copper and Gold Corporation (WRN) announced a significant increase in the resource estimate for its Casino Copper-Gold Project, with Measured and Indicated Mill Resource rising 106% to 2.2 billion tonnes and gold content increasing to 14.5 million ounces. The updated estimate incorporates previous drilling results and an enhanced geologic model. The Heap Leach Resource also saw gains, reaching 217 million tonnes with 1.8 million ounces of gold. The resource report will support future feasibility studies.

Positive

• Measured and Indicated Mill Resource increased by 106% to 2.2 billion tonnes.
• Gold content in the Mill Resource increased to 14.5 million ounces.
• Copper content rose to 7.6 billion pounds in Measured and Indicated estimates.
• Heap Leach Resource increased to 217 million tonnes, containing 1.8 million ounces of gold.

Negative

• None.

Measured & Indicated Mill Resource Increased 106% to 2.2 Billion Tonnes
Gold increased to 14.5 Million Ounces Measured & Indicated + 6.6 Million Ounces Inferred
Copper increased to 7.6 Billion Pounds Measured & Indicated + 3.3 Billion Pounds Inferred

VANCOUVER, BC, July 14, 2020 /PRNewswire/ - Western Copper and Gold Corporation ("Western" or the "Company") (TSX: WRN) (NYSE American: WRN) announces an updated resource estimate for its wholly owned Casino Copper-Gold Project ("Casino") in Yukon, Canada.

This new resource estimate is the first estimate since 2010 and includes results from the 2019 drilling campaign, and drilling performed from 2010 through 2012 that was not available when the 2010 model was developed.  It also incorporates an updated geologic model.

The Mill Resource, consisting of the supergene oxide, supergene sulfide, and hypogene zones, increased significantly from the December 2010 estimate (see Table 1).  Measured and indicated Mill Resource tonnes increased 106% from the prior estimate to 2.2 billion tonnes, primarily due to the upgrade of inferred resource to indicated.  Copper and gold contained in the new measured and indicated estimate also increased significantly to 7.4 billion pounds of copper and 12.7 million ounces of gold.

Table 1: Mill Resource in 2020 and 2010

July 2020 Mill Resource at $5.70 NSR Cut-Off

Class	Tonnes	Copper	Gold	Moly	Silver	CuEq	Copper	Gold	Moly	Silver
M	(%)	(g/t)	(%)	(g/t)	(%)	(M lb)	(M oz)	(M lb)	(M oz)
Measured	145.3	0.31	0.40	0.025	2.1	0.74	986	1.9	80.6	9.8
Indicated	2,028.0	0.14	0.17	0.016	1.4	0.33	6,448	10.9	731.0	90.4
M+I	2,173.3	0.16	0.18	0.017	1.4	0.36	7,434	12.7	811.6	100.2
Inferred	1,430.2	0.10	0.14	0.010	1.2	0.24	3,240	6.4	322.8	53.5

December 2010 Combined Supergene Oxide, Supergene Sulfide, and Hypogene Zones at 0.25% CuEQ Cut-Off

Class	Tonnes	Copper	Gold	Moly	Silver	CuEq	Copper	Gold	Moly	Silver
M	(%)	(g/t)	(%)	(g/t)	(%)	(M lb)	(M oz)	(M lb)	(M oz)
Measured	94	0.34	0.43	0.027	2.21	0.81	695	1.3	56	6.7
Indicated	963	0.19	0.21	0.022	1.66	0.43	3,991	6.6	466	51.3
M+I	1,057	0.20	0.23	0.022	1.71	0.42	4,686	7.9	522	58.0
Inferred	1,696	0.15	0.16	0.019	1.37	0.34	5,440	8.8	720	74.7

Please see notes at the end of this news release.

The heap leach resource also increased from the 2010 estimate and is now 217 million tonnes at a gold grade of 0.27 g/t AuEq (see Table 2), containing 1.8 million ounces of gold, 13.3 million ounces of silver, and 167 million pounds of copper.

Table 2: Heap Leach Resource at $5.46 NSR Cut-Off

Class	Tonnes	Copper	Gold	Silver	AuEq	Copper	Gold	Silver
M	(%)	(g/t)	(g/t)	(g/t)	(M lb)	(M oz)	(M oz)
Measured	37.2	0.05	0.45	2.8	0.48	39.3	0.5	3.3
Indicated	180.2	0.03	0.21	1.7	0.23	127.2	1.2	10.0
M+I	217.4	0.03	0.25	1.9	0.27	166.5	1.8	13.3
Inferred	31.1	0.03	0.17	1.7	0.18	17.2	0.2	1.7

Please see notes at the end of this news release.

Increasing the Mill Resource NSR cut-off by 40% to $8/t has only a modest effect on the total tonnage, decreasing the total tonnes by 6% and the contained copper and gold by 1.6% and 2.6% respectively (see Table 3).  Similarly, increasing the NSR of the Heap Leach to $8/t only drops the contained gold by 20% (see Table 4).

"The 2019 infill drilling program significantly exceeded expectations." said Paul West-Sells, President and CEO, "By more than doubling the measured and indicated mill resource, the Casino project is clearly one of the largest copper-gold projects in the world.  The deposit is still open at depth.  This resource and the results of this year's drilling program will be incorporated in an updated Feasibility Study in the future.  We expect that, in addition to the significantly higher number of tonnes, that the strip ratio should decrease significantly due to the conversion of inferred material to measured and indicated in the pit."

The 2020 resource estimate was developed by Independent Mining Consultants, Inc. of Tucson, Arizona ("IMC") and are based on a block model developed by IMC during June 2020.  The Measured, Indicated, and Inferred Mineral Resources reported herein are contained within a floating cone pit shell to demonstrate "reasonable prospects for eventual economic extraction" to meet the definition of Mineral Resources in NI 43-101.

The resources are constrained by a $5.70/t NSR cut-off for the Mill Resource, and $5.46/t NSR cut-off for the Heap Leach Resource.  These values are based on operating costs reported in the January 25, 2013 Casino Project Feasibility Study (the "Feasibility Study"), adjusted for 2020 labour rates, and material and services costs. Metal prices for the Mineral Resource estimate are US$ 2.75 per pound copper, US$ 1500 per ounce gold, US$ 18 per ounce silver and US$ 11 per pound moly.  A conversion of $US 0.75 = C$ 1.00 was used to convert the commodity prices to C$.  Offsite transportation, smelting, and refining charges are also based on those published in the Feasibility Study.

Note that there has been no change to the Mineral Reserves reported in the Feasibility Study.

Michael G. Hester, FAusIMM is the independent qualified person responsible for the preparation of the 2020 updated Mineral Resource estimate described in this news release.

John McClintock, P.Eng. is the qualified person responsible for the execution of the Casino Project exploration program.

QA/QC including assurance of chain of custody has been implemented. Split core samples are prepared and analyzed by ALS Chemex. Prepared samples are initially run using a four acid digestion process and conventional multi-element ICP-AES analysis. Additional assaying for total copper and molybdenum is run using a 4 acid digestion – AES or AAS method to a 0.001% detection limit.  Gold assays are run using 30 gram sample fire assay with an AA finish to a 0.005 ppm detection limit, with samples greater than 10 ppm finished gravimetrically. The QA/QC procedure involves regular submission of Certified Analytical Standards and property specific duplicates.

Table 3: Mineral Resource - Mill Material by NSR Cutoffs (C$)

NSR Cog	Class		Copper	Gold	Moly	Silver	CuEq	Copper	Gold	Moly	Silver
($/t)	Mt	(%)	(g/t)	(%)	(g/t)	(%)	( M lb)	( M oz)	( M lb)	( M oz)
	Measured	145.3	0.31	0.40	0.025	2.1	0.74	986.5	1.86	80.7	9.76
	Indicated	2,028.0	0.14	0.17	0.016	1.4	0.33	6,438.2	10.82	733.2	90.63
5.70	M+I	2,173.3	0.15	0.18	0.017	1.4	0.36	7,424.7	12.68	813.9	100.39
	Inferred	1,430.2	0.10	0.14	0.010	1.2	0.24	3,247.6	6.39	324.8	53.34
	Measured	144.6	0.31	0.40	0.025	2.1	0.74	985.2	1.86	80.7	9.72
	Indicated	1,898.4	0.15	0.17	0.017	1.4	0.34	6,319.6	10.50	724.0	87.28
8	M+I	2,043.0	0.16	0.19	0.018	1.5	0.37	7,304.8	12.35	804.7	97.00
	Inferred	1,181.0	0.12	0.15	0.012	1.2	0.27	3,020.3	5.73	309.8	47.08
	Measured	139.3	0.32	0.41	0.026	2.1	0.76	973.4	1.84	80.1	9.54
	Indicated	1,182.3	0.19	0.21	0.022	1.7	0.42	4,900.0	7.79	583.8	64.24
16	M+I	1,321.5	0.20	0.23	0.023	1.7	0.46	5,873.4	9.63	664.0	73.78
	Inferred	390.0	0.19	0.21	0.021	1.6	0.42	1,625.0	2.58	180.6	20.56
	Measured	101.3	0.36	0.47	0.030	2.3	0.87	799.4	1.53	67.2	7.59
	Indicated	229.6	0.28	0.31	0.032	2.3	0.62	1,402.1	2.25	163.0	16.90
30	M+I	330.9	0.30	0.36	0.032	2.3	0.70	2,201.5	3.79	230.2	24.49
	Inferred	74.4	0.32	0.32	0.029	2.4	0.65	521.3	0.77	47.0	5.64

Please see notes at the end of this news release.

Table 4: Mineral Resource – Heap Leach Material by NSR Cutoffs (C$)

NSR Cog <

FAQ

What is the latest resource estimate for Western Copper and Gold Corporation (WRN)?

The latest estimate shows a Measured and Indicated Mill Resource of 2.2 billion tonnes, with 14.5 million ounces of gold.

How much did the Mill Resource change since the last estimate for WRN?

The Mill Resource increased by 106% from the previous estimate.

What are the new copper and gold figures for the Casino Project under WRN?

The new figures indicate 7.6 billion pounds of copper and 14.5 million ounces of gold.

When was the last resource estimate made before the current one for WRN?

The last resource estimate was made in 2010.

What is the significance of the updated resource for WRN's Casino Project?

The updated resource significantly enhances the project's potential and will inform future feasibility studies.