Disclosure: White Cliff Minerals Limited has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Risks
Price and Volume (1-year)
* White Cliff Minerals Limited has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions. All figures in A$ unless otherwise specified.
Two polymetallic projects in the Canadian Arctic
Fully focused on the Rae project following agreement to sell the Great Bear Project to Hydrocarbon Dynamics Ltd. (ASX: HCD/ MCAP: $4M) for $5.8M ($1.2M cash + $4.6M shares)
Portfolio Overview
Source: FRC
Upon closing, $3.3M in HCD shares will be distributed to WCN investors as dividends
The Rae project is located near mines/assets held by majors including Agnico Eagle Mines Limited (NYSE: AEM), B2Gold Corp. (TSX: BTO), Burgundy Diamond Mines (ASX: BDM) and Rio Tinto (NYSE: RIO); proximity to major operators enhances potential acquisition appeal if a discovery is made
Rae Copper-Silver Project (100% interest)
Ownership and Location
The Rae project covers 2,180 km 2 in Nunavut within the Coppermine River Group, an area known for very high-grade copper mineralization.
WCN gained control of the project in 2023
All Weather Air-Strip on Site
Source: Company
75 km from Kugluktuk and the coast, near a deep-water port
All-weather airstrip on site; rare in the Arctic; improves access, and lowers logistical costs, which are typically higher for remote projects
History and Mineralization
Copper was first discovered in the region in the 1700s. The property hosts multiple high-grade copper prospects, including both epithermal/volcanic-hosted, and sediment-hosted deposits. These deposit types often support lower-cost operations because they are close to the surface, rich in copper (high-grade), and easy to process using standard methods
Source: FRC / Various
High-grade epithermal copper deposits are often rich in copper but generally small in scale
In contrast, sediment-hosted copper deposits usually contain large volumes of copper, as seen in notable examples such as the Kupferscheifer in Poland and Germany, and the Central African Copperbelt in the DRC and Zambia
The table below lists all targets identified to date.
Main Targets
Several targets have been identified, though no independently verified resources (NI 43-101 – Canadian / JORC – Australian) have been defined to date
Targets highlighted in orange represent near-term priorities
Source: FRC / Company
Danvers is the most advanced prospect, with most past work focused on this target
The other focus areas are Hulk and Stark
The following section outlines the key targets in detail.
Danvers
Two mineralized zones (targets) have been identified to date: Danvers 1 and Danvers 2. Based on older records (not independently verified), Danvers 1 hosts a historical resource of 270 Mlbs of copper, at an exceptionally high average grade of 2.96%, within an area measuring 375 m long by 200 m deep.
Prospective areas for high-grade epithermal, and volcanic-hosted copper deposits
Recent drilling by WCN (21 holes, 3,535 m) confirmed high-grade copper at Danvers 1, and expanded the area where copper is known to occur, both along its length and at depth. The drilling also discovered Danvers 2, a new zone located 4 km southwest of Danvers 1. Mineralization at Danvers 1 now stretches 950 m, compared with the historical resource that covered only 375 m, suggesting a potential 150% increase in resources.
2025 Drill Highlights - Danvers
Source: Company
The 2025 drill campaign returned multiple high-grade intercepts over long intervals, demonstrating the continuity of copper-rich material across Danvers 1
Danvers 1: 175 m at 2.5% Cu, 58 m at 3.08%, 63 m at 2.23%, and 18 m at 6.5% Cu
Danvers 2: 15 m at 4.8% Cu, within a broader 30.5 m zone averaging 2.5% Cu
For context, most operating copper mines operate at 0.5–1.0% Cu
Danvers 1: 3D Model
Danvers 1 measures 950 m in length and over 400 m in depth, and remains open both along strike (length), and at depth
The historical resource covered only 375 m of strike
Preliminary Magnetic Data
Source: Company
The recently discovered Danvers 2, located 4 km southwest of Danvers 1, is a largely untested area
As shown on the map, approximately 10 km of the total project length remains untested
Danvers 1, at 950 m in the middle of the project, highlights the significant potential, showing significant opportunities for future exploration, and expansion
A geophysical survey completed last year identified several areas of interest along 10 km of untested ground, highlighting potential for new discoveries.
Resource Upside - Danvers
The red and yellow zones on the right show where the geophysical survey detected metal-like conductivity underground.
Source: Company
Multiple promising targets
Other Key Targets: Hulk – Stark
At the Hulk target, copper extends across 20 km, and is concentrated in three fault-controlled basins (areas where underground fractures have created pockets that trap copper), with the main mineral layer located 200–300 m below the surface.
2025 Drill Highlights - Hulk
Source: Company
While Danvers targets high-grade epithermal/volcanic-hosted copper (smaller but very rich deposits), the Hulk and Stark targets focus on sediment-hosted copper (typically lower grade but potentially much larger and deeper deposits)
Geophysical Anomaly – Stark
*Red and yellow areas show where the survey detected metals
Source: Company
The Stark target is along the Herb Dixon fault, a big underground fracture that stretches over 25 km
Management Plans
The company is pursuing a dual strategy to advance the project:
Management Plans
Source: Company
Follow up drilling planned for all key targets
We anticipate a maiden resource estimate for Danvers by year-end
Management and Board
Share Ownership
Source: Company
Management, board, and advisors own 19%
Three out of five directors are independent
We believe management and the board bring a strong mix of technical expertise, and capital markets experience
Brief biographies of the management team and board members, as provided by the company, follow:
Gavin Rezos – Non- Executive Chairperson
Mr. Rezos has held Chairman, Board and CEO positions of companies in the resources, materials and technology sectors in Australia, Europe, the UK, the US and Singapore and was formerly Chairman of Vulcan Energy Resources Limited, an Investment Banking Director at HSBC Group PLS and a non-executive director of Iluka Resources Limited, and of Rowing Australia.
Troy Whittaker – Managing Director
Mr. Whittakers an executive with more than 20 years of experience, spanning successful international project evaluation, development, and the operation of multi-billion-dollar assets globally across a broad range of commodities, including iron ore. He has a proven track record of leadership. He has held senior roles with major global mining companies Fortescue Metals Group Ltd and Anglo American UK and who’s post graduate qualifications include Mineral & Energy Economics and Logistics & Supply Chain Management.
Eric Sondergaard – Executive Director
Mr. Sondergaard is a registered Professional Geoscientist and a graduate of the University of Calgary in Canada. He brings over 20 years of operational experience in the mining industry, including significant expertise in frontier exploration and project management.
John Hancock – Non-Executive Director
Mr. Hancock has over 25 years experience in financial markets, commodities, public relations, crisis management, fund raising and philanthropy and is currently Chair of his family office Astrotricha Capital SEZC. He has assisted global funds raising and deploying over $1B in investments, throughout Australia and Canada. Academic qualifications include a Master of Business Administration, International Directors Course at Australian Institute of Company Directors, and a Graduate Certificate of Applied Finance and Investment from the Financial Services Institute of Australia.
Sara Kelly – Non-Executive Director
Ms. Kelly has over 20 years’ experience as a corporate lawyer, with deep expertise in corporate governance, compliance and risk management. She has advised on a wide range of domestic and cross border transactions, including capital raisings, asset acquisitions and disposals, joint ventures and corporate restructures. Ms. Kelly has been a Partner at Edwards Mac Scovell, a boutique litigation, insolvency and corporate firm based in Perth, Western Australia. She currently serves as Non Executive Chair of Midas Minerals Limited and as Executive Director of Energy Transition Minerals.
Nicholas Ong – Company Secretary
Mr. Ong brings over 20 years of experience in listing rules compliance and corporate governance. He is a non-executive director and company secretary of several ASX listed companies, and has extensive experience in mining project financing as well as mining and offtake contract negotiations. He is a fellow member of the Governance Institute of Australia and holds a Bachelor of Commerce and a Master of Business Administration from the University of Western Australia.
Financials
Source: FRC / Company
Strong balance sheet with $5.85M in cash as of December 2025, plus an additional $1.20M expected from the sale of the Great Bear project
Source: FRC / Company
Can raise up to $7.28M from in-the-money options
FRC Projections and Valuation
Source: FRC / S&P Capital IQ / Various
Recent exploration shows mineralization at Danvers 1 now extends 950 m × 400 m vs the historical 375 m × 200 m (270 M lbs), a potential 400% increase
The discovery of Danvers 2, and other promising untested targets, indicate further upside
We are using twice the historical resource for valuation, a conservative assumption at this stage
Based on the above assumption, WCN is trading at $0.07/lb, vs a sector average of $0.22/lb for high-grade copper juniors, a 71% discount
Applying the sector average to WCN’s resources, we arrived at a fair value estimate of $0.048/share
We are initiating coverage with a BUY rating, and a fair value estimate of $0.048/share. WCN provides exposure to high-grade copper through its district-scale Rae project, with upside potential from expanding mineralization at Danvers 1, the discovery of Danvers 2, and several untested regional targets. Supported by high management ownership, a strategic location near majors, and a 71% discount to peers, we expect the stock will gradually align with our fair value as the market becomes more aware of Rae’s potential.
Risks
We believe the company is exposed to the following key risks (not exhaustive):
We are assigning a risk rating of 5 (Highly Speculative)
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