New World intends building the vast majority of the Project infrastructure on private land. This will help streamline the mine permit approval process.

New World currently owns, or has acquisition options over, 40 acres of patented (private) land within which the Antler Deposit outcrops, 838.9 acres of private surface rights in close proximity to the Antler Deposit and 40 acres of private land approximately 12km west of the Antler Deposit, where it intends to source 100% of the water required for its operations, together with an additional 19.6 acres of private land located 6km to the west of the Antler Deposit, where an intermediate water pumping station could be installed (see Figure 2).

The primary mining method will be underground sub-level open stoping with paste backfill.

Pastefill will be generated in a facility located adjacent to the processing plant. Tailings from the processing plant will be mixed with a binder before being reticulated to the stoped areas as pastefill.

Access to the mine will be by way of a boxcut and portal that will be mined in the hillside at the southwestern end of the orebody.

A single, 5.5m(W) x 5.8m(H) decline (1 in 7) will be developed in the footwall of the deposit. Access drives from the decline, on 20m sublevel intervals, have been designed to crosscut the ore near the mid-point of the strike of the deposit. Subsequent ore development will measure 4.5m x 4.5m.

The final mine design is illustrated in Figure 3 and Figure 4, with stopes coloured by NSR value.

Over the life of mine (“LOM”), production is forecast to total 13.6Mt at an average head grade of 1.6% Cu, 3.7% Zn, 0.6% Pb, 25g/t Ag and 0.3 g/t Au (3.0% Cu-Equiv.) .

Following a 1.5-year development period, steady state production of 1.2Mtpa will be achieved in Year 2. The PFS considers an initial mine life of 12.2 years, which excludes any upside based on exploration success.

The 13.6Mt mining inventory includes both Indicated (83%) and Inferred (17%) Mineral Resources.

The breakdown of the Mineral Resource classification for the tonnes mined each year is illustrated in Figure 5.

New World notes that there is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources, or that the production target itself will be realised.

A schematic of the LOM schedule, on an annual basis, is illustrated in Figure 6.

Based on the Indicated Resources included in the mine plan, the Company has determined a maiden Probable Ore Reserve estimate for the Project that comprises:

Figure 3. Cross section of Mine Design (Looking Southwest)

Figure 4. Long Section of Mine Design (Looking West)

Figure 5. Annual Production by Resource Category

Figure 6. LOM Schedule

Table 1. Expected Metallurgical Recoveries and Concentrate Specifications

A conventional process flow sheet will be employed, as illustrated in Figure 7. The major components comprise:

Concentrates will be loaded into either sea containers or rotainers at the processing plant for transport to a port or smelter(s).

Figure 7. Simplified Process Flow Sheet

Over the life of mine, 186,700 tonnes of copper, 387,600 tonnes of zinc and 41,100 tonnes of lead, 6.0Moz of silver and 67.5koz of gold will be payable in three separate concentrates. This equates to 341,000 tonnes on a copper-equivalent basis (Table 2).

Once steady state-production is achieved (processing 1.2Mt per annum; years 2-11), average annual payable production will comprise 16,400 tonnes of copper, 34,500 tonnes of zinc, 3,600 tonnes of lead, 533,300 ounces of silver and 6,000 ounces of gold, or 30,100 tonnes on a copper-equivalent basis (see Figure 9).

Table 2. Payable Metal Production (LOM and Annual Average)

Figure 9. Payable Base Metal and CuEq Metal by Year

The pre-production capital cost to develop the Project is estimated to total US$297.6 million. This includes US$31.4M for contingencies. A breakdown of this estimate is provided in Table 3.

Table 3. Pre-Production Capital Cost Estimate

Total C1 operating costs are projected to average US$77.43 per tonne of ore milled, as set out in Table 4.

Because of the considerable revenue generated from the sale of metal products other than copper, the C1 cost for copper production is forecast to be US$0.12/lb, with an AISC of US$0.51/lb. This equates to a C1 operating cost of US$1.97/lb, and an AISC of US$2.18/lb for copper-equivalent metal in concentrate.

^*C1 Cash costs include mining costs, processing costs, mine-level G&A, transport, treatment and refining charges and royalties
^**AISC include cash costs plus sustaining capital and closure costs

Table 4. Operating Cost Estimates

Long-term metal price forecasts have been used to model the economic potential of the Project (see Table 4). With 13.6Mt delivered to the mill for processing, gross revenue over the LOM would be US$3.16 billion (A$4.61 billion).

With total operating costs of US$1.48 billion and total capital expenditure over the LOM of US$457.1 million (including pre-production and sustaining capital and closure costs), net free cash flow is projected to be US$1.22 billion (A$1.8 billion; undiscounted; pre-tax). Tax payable is estimated to total US$244m, so post-tax net cash flow will be US$978 million (A$1.4 billion).

The pre-tax NPV₇ of the Project is US$636m (A$929m); and post-tax NPV₇ is US$498M (A$726m). The pre- and post-tax internal rates of return are 34.3% and 30.3% respectively.

The post-tax payback period is forecast to be 3.3 years from commencement of production.

During steady-state production (Years 2-11), annual post tax free cash flow averages US$115m (A$168m) per year.

A summary of key economic metrics is included in Table 5 and Table 6.

55% of revenue will be generated from sales of copper, 33% from zinc, with lead, silver and gold contributing 3%, 5% and 4% of total revenue.

Table 5. Commodity Price Assumptions

Table 6. Key Economic Metrics for the Life of Mine