NorthWest Copper's High-Grade Discovery Poised to Reshape Kwanika Project Economics

TORONTO, ON – December 18, 2025 – NorthWest Copper Corp. (TSX-V: NWST) has announced exceptional drill results from its Kwanika project in British Columbia, revealing significant high-grade copper and gold intercepts that could fundamentally enhance the project's economic potential. The findings, highlighted by an impressive intercept of 43 metres grading 3.01% copper equivalent (CuEq), provide strong validation for the company's targeted exploration strategy and arrive amidst a surging global demand for both copper and gold.

Drill results from two holes in the 2025 program have exceeded expectations. Hole K-25-283, drilled in the project's Central Zone, returned the standout result of 43 metres grading 1.83% copper and 1.28 g/t gold. Meanwhile, hole K-25-273 uncovered a substantial near-surface intercept of 123 metres grading 1.31% copper and 0.83 g/t gold (2.09% CuEq). These results are expected to be a cornerstone for a revised economic study, potentially outlining a more profitable and capital-efficient path to development.

A Potential Economic Game-Changer

The latest discoveries are poised to significantly improve upon the project's 2023 Preliminary Economic Assessment (PEA). That study, which evaluated a combined development of the Kwanika and Stardust deposits, already outlined a robust project with a pre-tax Net Present Value (NPV) of C$440.1 million and an Internal Rate of Return (IRR) of 17.1%, based on more conservative metal prices than today's market.

However, the 2023 PEA was based on a larger, bulk-tonnage model. The high-grade nature of the new intercepts supports a more focused approach. Paul Olmsted, CEO of NorthWest, stated that the results are a key part of this refined strategy. “These results continue to exceed our expectations and further demonstrate the merits of our strategy of prioritizing higher-grade zones within the existing mineral resource at Kwanika,” he said. “Our 2025 drilling has consistently intersected higher-grade mineralization over significant widths, highlighting the quality of the system.”

Olmsted confirmed that these results, combined with ongoing metallurgical work, are “expected to support a more capital-efficient and economically robust open pit and underground development plan in an updated preliminary economic assessment.” For investors, this signals the potential for a project with lower initial capital costs, a faster payback period, and improved overall profitability, making it a more attractive development proposition.

Precision Exploration Delivers Results

The success is not accidental but the result of a deliberate strategic shift. In April 2025, NorthWest announced a refined geological model for Kwanika, focusing on three key higher-grade target zones: the Pit, Central, and Western Zones. The company is targeting grades between 1.5% and 2.5% CuEq, which are significantly higher than the average grades in many existing copper mines, and is assessing them for a more selective underground mining method.

The recent drill holes were designed specifically to test this model. Hole K-25-283 successfully filled a drilling gap in the Central Zone, not only confirming but expanding the known thickness and continuity of the high-grade mineralization. Hole K-25-273 provided crucial information about the structural geology, intersecting both the copper-dominant Pit Zone and the gold-dominant Central Zone. This has enhanced the understanding of how these zones are connected, which is vital for efficient mine planning and resource expansion, particularly for the near-surface open pit potential.

Geoff Chinn, VP of Business Development and Exploration, noted the importance of these geological insights. “Hole K-25-273 cut across a late fault that juxtaposes the Central Zones against Pit Zone 11, returning two high-grade intercepts that extend both zones,” he explained. “These results represent good progress towards expanding higher-grade zones and unravelling the structural controls on mineralization.”

Riding the Wave of Bullish Metal Markets

The timing of NorthWest’s exploration success could not be more opportune. The Kwanika project is rich in copper and gold, two metals currently experiencing powerful bull markets. Copper prices have surged in 2025, driven by a perfect storm of soaring demand from the global energy transition, electrification, and the build-out of AI-related data centers. Simultaneously, the market is bracing for a structural supply deficit projected to begin around 2026, as new mine development has failed to keep pace. This supply-demand imbalance has pushed price forecasts for the red metal into record territory, underpinning the value of high-quality development projects in stable jurisdictions.

Gold has followed a similar trajectory, hitting all-time highs as central banks aggressively accumulate reserves and investors seek a safe haven from geopolitical and economic uncertainty. The significant gold grades at Kwanika provide a valuable by-product credit that substantially lowers the cost of copper production, further strengthening the project's potential economics.

A Strategic Asset in a Premier Jurisdiction

Operating in British Columbia provides NorthWest with significant advantages. The province is a world-class mining jurisdiction with a long history of resource extraction, established infrastructure including low-cost hydroelectric power, and a skilled labor force. The provincial government has recently signaled its intent to fast-track the development of critical minerals projects, creating a dedicated Ministry of Mining and Critical Minerals in late 2024 to streamline permitting and attract investment.

Furthermore, NorthWest has demonstrated a commitment to responsible development and collaboration with local First Nations, a cornerstone of achieving the social license required to operate in British Columbia. The company has an existing Exploration Agreement with the Takla Lake First Nation and has emphasized its commitment to incorporating traditional land use and environmental stewardship into its plans. This proactive approach to ESG principles is critical for de-risking the project and ensuring a mutually beneficial path forward. As NorthWest continues to define the high-grade potential at Kwanika, its position as a key player in Canada’s critical minerals future becomes increasingly clear.