NovaCopper Inc. (NovaCopper) retained BD Resource Consulting, Inc. (BDRC) and Sim Geological Inc. (SGI), to prepare an updated mineral resource estimate for the Bornite Project and disclose it in a technical report prepared in accordance with National Instrument 43-101 and Form 43-101F1 (collectively “NI 43-101”). The Bornite Property (the Property) is part of the Upper Kobuk Mineral Projects (UKMP) mineral tenure package, which includes the Bornite Deposit, as well as numerous additional mineral showings/deposits. The Property is located in the Ambler mining district of the southern Brooks Range, in the Northwest Arctic Borough (NWAB) of Alaska. The Property is located 248 km east of the town of Kotzebue, 19 km north of the villlage of Kobuk, and 275 km west of the Dalton Highway, an all-weather state maintained highway. Figure 1.1 shows the location of the Property.

This updated mineral resource estimate and NI 43-101 Technical Report includes assays from an additional 8,142 m of drilling and 10,218 m of previously un-sampled historical drill core completed during the 2013 exploration program.

The Bornite Project is located in the Ambler mining district of the southern Brooks Range, in the NWAB of Alaska. The Property is geographically isolated with no current road access or nearby power infrastructure. The Property is located 248 km east of the town of Kotzebue, 19 km north of the village of Kobuk, and 275 km west of the Dalton Highway, an all-weather state maintained highway.

The Property is part of the UKMP mineral tenure package, which includes the Bornite Deposit, as well as numerous additional mineral showings/deposits. In October 2011, NovaCopper entered into an exploration agreement with NANA Regional Corporation, Inc. (NANA), the owner of the Property, for the development of the parties’ collective resource interests in the Ambler mining district. The agreement consolidates certain land holdings of the parties into an area of interest of an approximately 143,000 ha land package.

Mineralization in the UKMP area is characterized by two discrete mineralized belts: the Devonian Ambler Schist Belt and the Devonian Bornite carbonate sequence. The Ambler Schist Belt is host to a series of volcanogenic massive sulphide (VMS) deposits related to metamorphose and strongly deformed bimodal Devonian volcanic and sedimentary rocks. A series of notable VMS deposits, including the Arctic, Dead Creek (Shungnak), Sunshine, Horse Creek, Sun, and Smucker deposits, occur in this belt. At Bornite, the focus of this NI 43-101 technical report, mineralization is hosted in less-strongly deformed Devonian clastic and carbonate sedimentary rocks lying immediately south of the Ambler Schist Belt across the Ambler lowlands. Widespread hydrothermal dolomitization is characteristic of the belt and locally hosts the associated copper mineralization.

Bornite has characteristics similar to a series of districts and deposits including the Mt Isa district in Australia, the Tynagh deposit in Ireland, the Kipushi deposit in the Congo, and the Tsumeb deposit in Namibia. All of these deposits show: syngenetic to early epigenetic characteristics; emplacement in carbonate stratigraphy; and, early pyrite- dolomite alteration followed by copper dominant sulphide mineralization. All occur in intra-continental to continental margin settings undergoing extensional tectonics and bimodal volcanism. Basin-margin faults seem to play an important role in localizing mineralizing fluids.

Copper mineralization at Bornite is comprised of chalcopyrite, bornite, and chalcocite as stringers, veinlets, and breccia fillings distributed in stacked, roughly stratiform zones exploiting favourable stratigraphy. Stringer and massive pyrite and locally significant sphalerite occur above and around the copper zones, while locally massive pyrite and sparse pyrrhotite occur in association with siderite alteration below and adjacent to copper mineralization.

An updated mineral resource estimate has been prepared by Bruce M. Davis, FAusIMM, BDRC and Robert Sim P.Geo., SGI, both “Independent Qualified Persons” as defined in section 1.5 of NI 43-101. The mineral resource estimate is listed in Table 1.1.

In 2013, NovaCopper drilled an additional 17 holes at Bornite totaling 8,142 m of which 4,684 m was drilled at the Ruby Creek zone and 3,458 m at the South Reef zone. The program expanded the lateral, down-dip, extents in the northern part of the deposit and also provided additional delineation of some internal parts of the western Ruby Creek area.

In addition to the 2013 drilling, NovaCopper completed an extensive sampling program of 33 historical drill holes located in the Ruby Creek area that were drilled but only selectively sampled by Kennecott. This program has resulted in providing better continuity of mineral resources the Ruby Creek area.

Tests for reasonable prospects for economic viability suggest that the resource is potentially amenable to a combination of open pit and underground extraction methods. The estimate of mineral resources for the Bornite Project are summarized in Table 1.1. Mineral resources are not mineral reserves, as economic viability has not been demonstrated.

Resources stated as contained within a pit shell developed using a metal price of US$3.00/lb Cu, mining costs of US$2.00/tonne, milling costs of US$11/tonne, G&A cost of US$5.00/tonne, 87% metallurgical recoveries and an average pit slope of 43 degrees.

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves.

Inferred resources have a great amount of uncertainty as to their existence and whether they can be mined legally or economically. It cannot be assumed that all or any part of the Inferred resources will ever be upgraded to a higher category.

The level of understanding of the geologic controls that influence the distribution of copper mineralization at the Bornite Deposit is relatively good. The drilling, sampling and validation practices utilized by NovaCopper during the various campaigns have been conducted in a professional manner and adhere to accepted industry standards. The confidence in older, historic, drilling conducted by Kennecott has been demonstrated through a series of validation checks and, overall, the underlying database is considered sufficient for the estimation of Indicated and Inferred mineral resources.

BDRC and SGI have prepared an updated mineral resource estimate and supporting Technical Report in accordance with NI 43-101. The deposit remains “open” to potential expansion at depth and to the north and east. There are also indications that the mineralization may be continuous between the South Reef zone and the Lower Reef zone at Ruby Creek. Further drilling is warranted to test these assumptions.

Metallurgical testwork to date is very limited but suggests that potentially marketable concentrates can be produced using standard grinding and flotation methods.

Based on the information to date, the Bornite Project hosts a relatively large copper resource that is potentially amenable to a combination of open pit and underground extraction methods. It is recommended that NovaCopper continue to advance the Project through continued exploration, metallurgical studies, preliminary engineering studies, environmental base line analyses and should consider the generation of a preliminary economic analysis in the near future.

BDRC and SGI make the following recommendations for the next phase of work on the Bornite Project:

Continued integration of lithology, alteration, structural and mineral zoning domains in the interpretation of the geologic model. ($75,000)

Approximately 3,000 m of infill drilling, with holes spaced at 200 m intervals, to test the continuity of mineralization between the Ruby Creek Lower Reef zone and South Reef zone. ($1.5M)

Continued sampling of previously un-sampled Kennecott drill holes. ($200,000)

Update mineral resource estimate and technical report. ($75,000)

Metallurgical studies, including variability and grinding test work, examination of the process parameters needed to optimize the cleaning circuit, and monitoring of concentrate quality. ($170,000)

Implement an initial acid base accounting (ABA) waste characterization study suitable to support a PEA level study. $50,000.

NovaCopper, a company involved in the exploration and development of projects in the UKMP, retained BDRC and SGI to prepare an updated mineral resource estimate for the Bornite Project and disclose it in a technical report prepared in accordance with National Instrument 43-101 and Form 43-101F1 (collectively “NI 43-101”).

This report replaces the previous Technical Report for the Bornite Deposit, South Reef and Ruby Creek Zones, prepared for NovaCopper by BDRC and SGI dated February 8, 2013.

BDRC and SGI Qualified Persons (QPs) are responsible for sections 1 – 12 and 14 - 26 of the current technical report. NovaCopper engaged AGP Mining Consultants Inc. of Vancouver, BC to evaluate the general economic viability of the resource and to prepare a resource limiting pit shell as described in Section 14 of this report. International Metallurgical and Environmental Inc., of Kamloops, BC provided a summary of Bornite metallurgical test work (Section 13.0), and is the responsible QP for this section. BDRC and SGI used the information completed by these contributors to support information in this current technical report.

All units of measurement in this technical report are metric, unless otherwise stated. Specifically, in the section describing historic resource estimates, and when reporting contained copper, imperial units are used.

The monetary units are in US dollars, unless otherwise stated.

Bruce Davis, FAusIMM, the president of BDRC, is the principle author of this Technical Report. Robert Sim, P.Geo., the president of SGI, and Jeff Austin, P.Eng., the president of International Metallurgical & Environmental Inc., are co-authors of this Technical Report. Bruce Davis, Robert Sim and Jeff Austin are QPs as defined in NI 43-101, Standards of Disclosure for Mineral Projects, and in compliance with Form 43-101F1.

Neither Bruce Davis of BDRC, Robert Sim of SGI, nor Jeff Austin of International Metallurgical & Environmental Inc., nor any associates employed in the preparation of this report (Consultants), has any beneficial interest in NovaCopper. These Consultants are not insiders, associates, or affiliates of NovaCopper. The results of this Technical Report are not dependent on any prior agreements concerning the conclusions of this report, and there are no undisclosed understandings concerning future business dealings between NovaCopper and the Consultants. The Consultants are paid a fee for their work in accordance with normal professional consulting practices.

Bruce Davis conducted a site visit to the Bornite Project on July 26-27, 2011, and again on September 25, 2012. Figure 2.1 shows the Bornite exploration shaft and the NovaCopper exploration camp. The site visits included a review of: drilling procedures, site facilities, historic and recent drill core, logging procedures, data capture, and sample handling. During the 2012 Bornite site visit, Mr. Davis undertook a helicopter traverse along proposed access corridors and within the UKMP.

Reports and documents listed in Section 27.0 were used to support the preparation of the technical report. Additional information was sought from NovaCopper personnel where required.

The Property is part of the UKMP mineral tenure package, which includes the Bornite Deposit, as well as numerous additional mineral showings/deposits (Figure 4.1 and Figure 4.2). The Property is located in the Ambler mining district of the southern Brooks Range, in the NWAB of Alaska. The Property is located in Ambler River A-2 quadrangle, Kateel River Meridian T 19N, R 9E, sections 4, 5, 8 and 9.

The Bornite Project is located 248 km east of the town of Kotzebue, 19 km north of the village of Kobuk, 275 km west of the Dalton Highway, an all-weather state maintained public road, at geographic coordinates N67.07° latitude and W156.94° longitude (Universal Transverse Mercator (UTM) North American Datum (NAD) 83, Zone 4W coordinates 7440449N, 589811E).

The UKMP lands consist of NANA owned patented lands, NANA selected ANCSA lands, State of Alaska mining claims, and patented land owned by NovaCopper. The total land tenure package consists of 142,831 ha, 140,500 ha of which are within the NANA/NovaCopper “Area of Interest” covered by the NANA/NovaCopper Agreement. Twenty contiguous State of Alaska mining claims totaling 2,331 ha are outside of the NANA/NovaCopper Area of Interest. A breakdown of the UKMP lands is provided in Table 4.1.

On March 22, 2004, Alaska Gold Company, a wholly-owned subsidiary of NovaGold Resources Inc. (NovaGold) completed an Exploration and Option to Earn an Interest Agreement with Kennecott Exploration Company and Kennecott Arctic Company (collectively, Kennecott) on the Ambler land holdings.

On December 18, 2009, a Purchase and Termination Agreement was entered into between Alaska Gold Company and Kennecott whereby NovaGold agreed to pay Kennecott a total purchase price of $29 million for a 100% interest in the Ambler land holdings, which included the Arctic Project, to be paid as: $5 million by issuing 931,098 NovaGold shares, and two installments of $12 million each, due 12 months and 24 months from the closing date of January 7, 2010. The NovaGold shares were issued in January 2010, the first $12 million payment was made on January 7, 2011, and the second $12 million payment was made in advance on August 5, 2011; this terminated the March 22, 2004 exploration agreement between NovaGold and Kennecott. Under the Purchase and Termination Agreement, the seller retained a 1% net smelter return (NSR) royalty that is purchasable at any time by the land owner for a one-time payment of $10 million.

During 2011, NovaGold incorporated the NovaCopper entities and transferred its Ambler land holdings, including the Arctic Project from Alaska Gold Company to NovaCopper US Inc. In April 2012, NovaGold completed a spin-out of NovaCopper, with the Ambler lands, to the NovaGold shareholders and made NovaCopper an independent publically listed company, listed on the TSX and NYSE-MKT exchanges.

NANA AGREEMENT

In 1971, the US Congress passed the Alaska Native Claims Settlement Act (ANCSA) which settled land and financial claims made by the Alaska Natives and provided for the establishment of 13 regional corporations to administer those claims. These 13 corporations are known as the Alaska Native Regional Corporations (ANCSA Corporations). One of these 13 regional corporations is the Northwest Alaska Native Association (NANA) Regional Corporation, Inc. ANCSA Lands controlled by NANA bound the southern border of the Property claim block. National Park lands are within 25 km of the northern property border. The Bornite Deposit is located entirely on lands owned by NANA.

On October 19, 2011, NovaCopper and NANA Regional Corporation, Inc. entered into the “NANA Agreement” for the cooperative development of their respective resource interests in the Ambler mining district. The NANA Agreement consolidates NovaCopper’s and NANA’s land holdings into an approximately 142,831 ha land package and provides a framework for the exploration and development of the area. The NANA Agreement provides that NANA will grant NovaCopper the nonexclusive right to enter on, and the exclusive right to explore, the Bornite Lands and the ANCSA Lands (each as defined in the NANA Agreement) and in connection therewith, to construct and utilize temporary access roads, camps, airstrips and other incidental works. The NANA Agreement has a term of 20 years, with an option in favour of NovaCopper to extend the term for an additional 10 years. The NANA Agreement may be terminated by mutual agreement of the parties or by NANA if NovaCopper does not meet certain expenditure requirements on NANA’s lands.

Under the NANA Agreement, NANA is required to complete a baseline environmental report following the cleanup of the former mining camp on the Bornite Lands; this work must be completed to Alaska Department of Environmental Conservation standards. Cleanup includes the removal and disposal, as required by law, of all hazardous substances present on the Bornite Lands. NANA has indemnified and will hold NovaCopper harmless for any loss, cost, expense, or damage suffered or incurred attributable to the environmental condition of the Bornite Lands at the date of the baseline report which relate to any activities prior to the date of the agreement.

In addition, there are no indications of any known environmental impairment or enforcement actions associated with NovaGold’s activities to date. As a result, NovaGold, now NovaCopper has not incurred outstanding environmental liabilities in conjunction with its entry into the NANA Agreement.

Multiple permits are required during the exploration phase of the Property. Permits are issued from Federal, State, and Regional agencies, including: the Environmental Protection Agency (EPA), the US Army Corps of Engineers (USACE), the Alaska Department of Environmental Conservation (ADEC), the Alaska Department of Fish and Game (ADF&G), the Alaska Department of Natural Resources (ADNR), and the NWAB. The State of Alaska permit for exploration on the Property, the Annual Hardrock Exploration Activity (AHEA) Permit, is obtained and renewed every five years through the ADNR – Division of Mining, Land and Water. NovaCopper holds an AHEA exploration permit in good standing with the Alaska DNR, and has done so each year since 2004 under Alaska Gold Company, a wholly owned subsidiary of NovaGold and now NovaCopper. The Property is within the NWAB thus requiring a Title 9 Miscellaneous Land Use permit for mineral exploration, fuel storage, gravel extraction, and the operation of a landfill. NovaGold held these permits in good standing during the 2004 to 2008 seasons and renewed the permits for the 2010 exploration season to 2015. The Bornite Camp, Bornite Landfill, Dahl Creek Camp, and the to-be-constructed Arctic Camp are permitted by the ADEC.

A number of statutory reports and payments are required to maintain the claims in good standing on an annual basis. As the Bornite Project progresses, additional permits for environmental baseline and detailed engineering studies will be necessary at federal, state, and local levels. A detailed outline of permitting requirements is discussed in Section 20.0.

Primary access to the Property is by air, using both fixed wing aircraft and helicopters.

There are four well maintained, approximately 1,500 m-long gravel airstrips located near the Property, capable of accommodating charter fixed wing aircraft. These airstrips are located 40 km west at Ambler, 23 km southwest at Shungnak, 19 km south at Kobuk, and 15 km south at Dahl Creek. There is daily commercial air service from Kotzebue to the village of Kobuk, the closest community to the Property. During the summer months, the Dahl Creek Camp airstrip is suitable for larger aircraft, such as C-130 and DC-6.

In addition to the four 1,500 m airstrips, there is a 700 m airstrip located at the Bornite Camp. The airstrip at Bornite is suited to smaller aircraft, which support the Bornite Camp with personnel and supplies.

There is no direct water access to the Property. During spring runoff, river access is possible by barge from Kotzebue Sound to Ambler, Shungnak, and Kobuk via the Kobuk River.

A one-lane dirt track suitable for high-clearance vehicles or construction equipment links the Bornite Project’s main camp to the 400 m Dahl Creek airstrip and village of Kobuk.

The climate in the region is typical of a sub-arctic environment. Exploration is generally conducted from late May until late September. Weather conditions on the Property can vary significantly from year to year and can change suddenly. During the summer exploration season, average maximum temperatures range from 10°C to 20°C, while average lows range from -2°C to 7°C (Alaska Climate Summaries: Kobuk 1971 to 2000). By early October, unpredictable weather limits safe helicopter travel to the Property. During winter months, the Property can be accessed by snow machine, track vehicle, or fixed wing aircraft. Winter temperatures are routinely below -25°C and can exceed - 50°C. Annual precipitation in the region averages at 395 mm with the most rainfall occurring from June through September, and the most snowfall occurring from November through January.

The Property is approximately 248 km east of the town of Kotzebue, on the edge of Kotzebue Sound, 19 km north of the village of Kobuk, 275 km west of the Dalton Highway, and 485 km northwest of Fairbanks. Kobuk (population 151; 2010 US Census) is a potential workforce source for the Bornite Project, and is the location of one of the airstrips near the Property. Several other villages are also near the Property, including Shungnak located 23 km to the southwest with a population of 262 (2010 US Census) and Ambler, 40 km to the west with a population of 258 (2010 US Census). Kotzebue has a population of 3,201 (2010 US Census) and is the largest population centre in the Northwest Arctic Borough. Kotzebue is a potential source of limited mining-related supplies and labourers, and is the nearest centre serviced by regularly scheduled, large commercial aircraft (via Nome or Anchorage). In addition, there are seven other villages in the region that will be a potential source of some of the workforce for the Property. Fairbanks (population 32,036; 2011 US Census) has a long mining history and can provide most mining-related supplies and support that cannot be sourced closer to the Property.

Drilling and mapping programs are seasonal and have been supported out of the Main Bornite Camp and Dahl Creek Camp. The main Bornite Camp facilities are located on Ruby Creek on the northern edge of the Cosmos Hills. The camp provides office space and accommodations for the geologists, drillers, pilots, and support staff. There are four 2-person cabins installed by NANA prior to NovaCopper’s tenure.

In 2011, the main Bornite Camp was expanded to 20 sleeping tents, 3 administrative tents, 2 shower/bathroom tents, 1 medical tent, and 1 dining/cooking tent. With these additions, the camp capacity was increased to 49 beds. A 30 m by 9 m core logging facility was also built in summer of 2011. An incinerator was installed near the Bornite airstrip to manage waste created by the Bornite Project. Power for the Bornite Project is supplied by a 175 kW Caterpillar diesel generator. Water is provided by a permitted artesian well located 250 m from the Bornite Camp.

In 2012, the camp was further expanded with the addition of a laundry tent, a women's shower/washroom tent, a recreation tent, several additional sleeping tents, and a 2 x enlargement of the kitchen tent. Camp capacity increased to 76 beds. The septic field was upgraded to accommodate the increase in camp population. One of the two-person cabins was winterized for use by the winter caretaker. A permitted landfill was established to allow for the continued cleanup and rehabilitation of the historic shop facilities and surroundings.

The Dahl Creek camp is an overflow or alternative facility to the main Bornite Camp. The Dahl Creek camp has a main cabin for dining and administrative duties, and a shower facility. Sleeping facilities include two hard-sided sleeping cabins with seven beds (primarily used for staff), two 4-person sleeping tents, and three 2-person sleeping tents for a total of 21 beds. There are support structures, including a shop and storage facilities.

Proposed infrastructure is discussed in more detail in Section 18.0. Currently, the Bornite Project does not have access to Alaska power and transportation infrastructure.

Beginning in 2009, the Property has been the focus of an access corridor study. The State of Alaska has spent approximately $10 million to identify proposed access routes to the Ambler mining district, and to initiate environmental baseline studies. The working group for this study consists of the Alaska Department of Transportation (ADOT), the ADNR, the Governor’s Office, the Alaska Industrial Development and Export Authority (AIDEA), NANA, and NovaCopper.

Based on this work the Brooks East route has been selected as the preferred alternative. It is a 322 km road running east from the Property to the Dalton Highway and is now referred to as the Ambler Mining District Industrial Access Road or AMDIAR. The environmental baseline study for the route is expected to be completed in 2013, with the environmental impact study to follow in early 2014. A budget of $8.5M has been committed for 2013/2014 to support pre-design and environmental permitting. A budget of $10M has been proposed for 2014/2015 to support environmental studies, legal and permitting the preferred access route.

The Bornite Project is located on Ruby Creek on the northern edge of the Cosmos Hills. The Cosmos Hills are part of the southern flank of the Brooks Range in Northwest Alaska. Topography in the area is moderately rugged. Maximum relief in the Cosmos Hills is approximately 1,000 masl with an average of 600 masl. Talus covers the upper portions of the hills; glacial and fluvial sediments occupy valleys.

The Kobuk Valley is located at the transition between boreal forest and Arctic tundra. Spruce, birch, and poplar are found in portions of the valley, with a ground cover of lichens (reindeer moss). Willow and alder thickets and isolated cottonwoods follow drainages, and alpine tundra is found at higher elevations. Tussock tundra and low, heath-type vegetation covers most of the valley floor. Patches of permafrost exist on the Property.

Permafrost is a layer of soil at variable depths beneath the surface where the temperature has been below freezing continuously from a few to several thousands of years (Climate of Alaska 2007). Permafrost exists where summer heating fails to penetrate to the base of the layer of frozen ground and occurs in most of the northern third of Alaska as well as in discontinuous or isolated patches in the central portion of the state.

Wildlife in the Property area is typical of Arctic and Subarctic fauna (Kobuk Valley National Park 2007). Larger animals include caribou, moose, Dall sheep, bears (grizzly and black), wolves, wolverines, coyotes, and foxes. Fish species include salmon, sheefish, arctic char, and arctic grayling. The Kobuk River, which briefly enters the UKMP on its southwest corner, is a significant salmon spawning river. The Caribou on the Property belong to the Western Arctic herd that migrates twice a year – south in August, from their summer range north of the Brooks Range, and north in March from their winter range along the Buckland River.

The Company has sufficient surface rights for its planned mining operations including sufficient land to construct various facilities such as tailings storage areas, potential waste disposal areas, potential stockpile areas and potential processing plants.

Regional exploration began in the early 1900s when gold prospectors noted copper occurrences in the hills north of Kobuk, Alaska. In 1947, local prospector Rhinehart “Rhiny” Berg along with various partners traversing in the area located outcropping mineralization along Ruby Creek (Bornite) on the north side of the Cosmos Hills. They subsequently staked claims over the Ruby Creek showings and constructed an airstrip for access. In 1957, BCMC, Kennecott's exploration subsidiary, optioned the property from Berg.

Exploration drilling in 1961 and 1962 culminated in the discovery of the “No.1 Ore Body” where drill hole RC-34 cut 20 m of 24% copper (the “No.1 Ore Body” is a historic term used by BCMC that does not connote economic viability in the present context; it is convenient to continue to use the term to describe exploration work and historic resource estimation in a specific area of what is now generally known as Ruby Creek Upper Reef). The discovery of the “No.1 Ore Body” led to the development of an exploration shaft in 1966. The shaft, which reached a depth of 328 m, encountered a significant watercourse and was flooded near completion depth. The shaft was subsequently dewatered and an exploration drift was developed to provide access for sampling and mapping, and to accommodate underground drilling to further delineate mineralization. A total of 59 underground holes were drilled and, after the program, the shaft was allowed to re-flood.

The discovery of the Arctic Project in 1965 prompted a hiatus in exploration at Bornite, and only limited drilling occurred up until 1976.

In the late 1990s, Kennecott resumed its evaluation of the Bornite deposit and the mineralization in the Cosmos Hills with an intensive soil, stream, and rock chip geochemical sampling program using 32 element ICP analyses. Grid soil sampling yielded 765 samples. Ridge and spur sampling resulted in an additional 850 soil samples in the following year. Skeletonized core samples (85 samples) from key historic drill holes were also analyzed using 32 element ICP analytical methods. Geochemical sampling identified multiple areas of elevated copper and zinc in the Bornite region (Kennecott Annual Ambler Project Reports, 1995-1997).

Kennecott completed numerous geophysical surveys as an integral part of exploration throughout their tenure on the property. Various reports, notes, figures, and data files stored in Kennecott’s Salt Lake City exploration office indicated that geophysical work included, but was not limited to, the following:

Airborne magnetic and electromagnetic (EM) surveys (fixed-wing INPUT) (1950s)

Gravity, single point (SP), Audio-Frequency Magneto-Telluric (AMT), EM, borehole and surface IP/resistivity surveys (1960s)

Gravity, airborne magnetic, and Controlled Source Audio-frequency Magneto- Telluric (CSAMT) surveys (1990s)

Several studies have been undertaken reviewing the geology and geochemistry of the Bornite deposit. Most notable is Murray Hitzman’s PhD dissertation at Stanford University (Hitzman, 1983) and Don Runnel’s PhD dissertation at Harvard University (Runnels, 1963). Bernstein and Cox reported on mineralization of the “No. 1 Ore Body” in a 1986 paper in Economic Geology (Bernstein et al, 1986).

In addition to the historical work, Ty Connor at the Colorado School of Mines is currently undertaking an MSc thesis study on the breccias and mineralization at Bornite.

Kennecott conducted two technical reviews of the groundwater conditions (Vance, 1962) and a summary of the findings related to the flooding of the exploration shaft (Erskine, 1970).

In 1961, Kennecott collected 32 coarse reject samples from five drill holes to support preliminary metallurgical test work at Bornite. Samples targeted high-grade (> 10%) copper mineralization from the Upper Reef at Ruby Creek (Lutz, 1961). An extensive discussion of the historic and current metallurgical studies is presented in Section 13.0 of this report.

All of the historical mineral resource estimates presented below were made prior to the implementation of NI 43-101. They do not conform to NI 43-101 reporting standards and should not be relied upon or interpreted as such. A QP has not done sufficient work to classify the historical estimates as current mineral resources and NovaCopper is not treating the historical estimates as current mineral resources. They are presented here for information purposes only.

The earliest and most widely repeated resource number reported 91 million tons at 1.2% Cu in an unconstrained polygonal resource estimate. At a constrained 1% Cu cut-off grade, 21.2 million tons of 3.04% Cu and at a 2.5% Cu cut-off, 5.2 million tons of 5.83% Cu were reported. The estimation is based on an 11.0 ft³/ton tonnage factor for the Lower Reef or lower grade mineralization and a 10.0 ft³/ton tonnage factor for the higher grade Upper Reef mineralization. It is not known if the tonnage factors were based on any direct specific gravity measurements of the Bornite drill core. Metals such as silver and cobalt were not considered in any of the historical estimations.

The Bornite Project is located within the Arctic Alaska Terrane, a sequence of mostly Paleozoic continental margin rocks that make up the Brooks Range and North Slope of Alaska (Moore, 1992). It is within the Phyllite Belt geologic subdivision, which together with the higher-grade Schist Belt, stretches almost the entire length of the Brooks Range and is considered to represent the hinterland of the Jurassic Brooks Range orogeny. The southern margin of the Phyllite Belt is marked by mélange and low angle faults associated with the Kobuk River fault zone, while the northern boundary is thought to be gradational with the higher-grade metamorphic rocks of the Schist Belt (Till et al., 2008).

The tectonic setting of the project area during mineralization (early Devonian) has been masked by subsequent deformation and remains poorly understood. Dillon et al. (1980) interpret the existence of Devonian granites throughout the Brooks Range as supporting a volcanic arc environment, while Hitzman et al. (1986) point to bimodal volcanic rocks and abrupt sedimentary facies transitions as supporting an extensional tectonic setting. Based on igneous geochemistry, Ratterman et al. (2006) suggest that the Ambler sequence volcanic rocks were emplaced in an extensional back-arc spreading environment; however, the original pre-deformation spatial relationship between the Bornite Project area and the Ambler sequence is still poorly understood.

The project area underwent regional deformation and metamorphism during the Middle Jurassic to Early Cretaceous Brooks Range orogeny. The collision of the Koyukuk Arc Terrane from present-day south caused north-directed imbrication and partial subduction of the Arctic Alaska passive margin sedimentary sequence. Rocks in the Schist Belt were metamorphosed to blueschist facies but were partially exhumed by north-directed faulting prior to full thermal equilibration. Both the Schist Belt and the Phyllite Belt cooled from greenschist conditions during a period of rapid extension and erosion beginning around 103 Ma (Moore et al., 1994, Vogl et al., 2003).

In the project area, a strand of the Kobuk fault zone separates the Cosmos Hills stratigraphy (Schist Belt and Phyllite Belt) from the overlying Angayucham Terrane, and another strand may separate Cosmos Hills from the Ambler sequence to the north (Figure 7.1).

The autochthonous stratigraphy of the district is characterized by lower greenschist to epidote-amphibolite facies, pelitic, carbonate, and local metavolcanic rocks as shown in Figure 7.1 and summarized in Table 7.1.

The intersection of the Cosmos Arch and the Kogoluktuk River drainage 14 km southeast of Bornite exposes a cataclastic orthogneiss of granitic composition which intrudes the Kogoluktuk Schist. Zircons return a syn-mineral uranium-lead age of 386 ± 3 Ma (Till et al., 2008, citing W.C. McClelland).

Higher in the section, the Kogoluktuk Schist is also intruded by sill-form metagabbro bodies of unknown age. Other metamafic ‘greenstones’ are interpreted to have originated as flows and/or tuffaceous sediments (Hitzman, 1986).

Although none occur in the Bornite resource area, discontinuous stratabound greenstone bodies occur in the Anirak Schist and at the base of the Bornite carbonate sequence, particularly west and southwest of Bornite (Hitzman et al., 1982). A gabbroic outcrop approximately 200 m in width outcrops 2 km east of Bornite and is interpreted to be Cretaceous to Tertiary in age.

The most significant igneous rocks in the district are the bimodal volcanic rocks of the Ambler sequence—host of the Ambler VMS district—which outcrop 20 km north of Bornite, but are not observed in the Cosmos Hills (Table 7.1). These include sub-alkaline basaltic flows and sills with an un-depleted mantle geochemical signature. Sub-alkaline rhyolitic to andesitic tuffs and flows have geochemistry consistent with formation from a source that includes melting continental crust. Geochemistry collectively implies origin in an extensional, back-arc basin setting (Ratterman et al., 2006). Uranium-lead zircon dating from Ambler sequence metarhyolites returns ages of 376-387 Ma (McClelland et al., 2006), which are syn- to early post-mineral with respect to the Bornite (Ruby Creek) deposit.

TIMING OF MINERALIZATION IN THE DISTRICT

Sulphide mineralization (chalcopyrite, pyrite, and bornite) from Bornite (Ruby Creek) was dated by Re-Os techniques (Selby et al., 2009), producing an age of 384 ± 4.2 Ma for main stage copper mineralization.

The syngenetic VMS deposits in the Ambler sequence are constrained by dating of related felsic volcanic rocks. Early post-mineral metarhyolite at the Arctic deposit yielded a mean uranium-lead zircon age of 378 ± 2Ma. Uranium-lead zircon ages for metarhyolite at the Tom-Tom prospect, 11 km east of Arctic, and the Sun prospect, 60 km east of Arctic, are 381 ± 2 Ma and 386 ± 2 Ma, respectively (McClelland et al., 2006). Since the VMS deposits and Bornite deposit may have a common fluid source, the potential scale of Bornite type mineralization may be much larger than the reefs delineated by current drilling.

The geology of the Bornite resource area is composed of alternating beds of carbonate rocks (limestone and dolostone) and calcareous phyllite. Limestone transitions laterally into dolostone, which hosts the majority of the mineralization and is considered to be hydrothermal in origin. Spatial relationships and petrographic work establish dolomitization as genetically related to early stages of the copper mineralizing system (Hitzman, 1986).

NovaCopper geologists have been unable to identify any meta-igneous rocks in the resource area; all lithologies described are interpreted as meta-sedimentary in origin.

LITHOLOGY UNITS

The current lithology system derives from early BCMC core logs (1960). Original unit descriptions have not been found; however, the units were re-described during re-logging by NovaGold geologists in the summer of 2010. The scheme encompasses not only primary lithology, but also alteration, and compositional and textural variations. Resource-scale geologic interpretation and modeling is based on the hierarchical generalization shown in Table 7.2. Figure 7.2 shows typical dolomitized sedimentary breccias of the Bornite carbonate sequence, which are the principal host of mineralization at Bornite.

(a) Argillaceous/Carbonaceous Phyllite (AP): Carbonaceous, weak-mod calcareous phyllite with >75% phyllosilicates. Typically 1-2% pyrite; (b) Argillaceous/Carbonaceous Phyllitic Limestone (APL): Carbonaceous limestone (marble) with 5-20% phyllosilicates. Typically 1-2% pyrite; (c) Tan Phyllite (TP): Non-carbonaceous, weak-mod calcareous phyllite with > 75% phyllosiliicates. Typically contains 1-2% fine-grained pyrite; (d) Tan Phyllitic Limestone (TPL): Non-carbonaceous limestone (marble) with 5-20% phyllosilicates. Typically contains 1-2% very fine grainedd pyrite.

Structural fabrics observed on the property include bedding and two separate foliations. Bedding (S0) can be measured only rarely where phyllite and carbonate are interbedded and it is unclear to what extent it is transposed. The pervasive foliation (S1) is easily measured in phyllites and may be reflected by colour banding and/or stylolamination (flaggy habit in outcrop) of the carbonates. Core logging shows that S1 is folded gently on the 10 m scale and locally tightly folded at the decimetre scale. S2 axial planar cleavage is locally developed in decimetre scale folds of S1. Both S1 and S2 foliations are considered to be Jurassic in age.

Owing to their greater strength, bodies of secondary dolostone have resisted strain and foliation development, whereas the surrounding limestone and calc-phyllite have become attenuated during deformation. The result is that the carbonate section increases in thickness in some areas of dolomitization and mineralization. This deformation, presumably Jurassic, complicates sedimentological interpretations.

Potentially the earliest and most prominent struucture in the resource area is the northeast-trending, steeply northwest-dipping Iron Mountain structure. The structure shows significant displacement of basal Quartz Phyllite (QP) to the east across the structure and has been interpreted as: a pre or syn-mineral (Devonian) growth fault; orr, the post-mineral (Cretaceous) axis of a small overturned kink fold.

Numerous observations can be made to support both interpretations. Importantly, the distribution of pre-mineral sedimentary breccias and the minneralization which is relatively undeformed along the corridor suggest an early ore-controlling origin of the structure while the locally overturned nature of the displacement, some possible overturned stratigraphy and mineralization and shear deformation within the Anirak Schist along its contact with the Bornite carbonate suggests a possible post-mineral fold origin.

To the north, the Bornite Carbonate sequence is in fault contact with the Beaver Creek phyllite along the moderately north-dipping Beaver Creek fault. The fault, a thick, brittle structure of potentially regional significance, defines the roughly bedded parallel base of the Beaver Creek phyllite and the Bornite Carbonate sequence in the immediate Bornite area. Both the Beaver Creek fault and the Bornite Carbonate sequence are cut by a series of north-trending high angle structures of apparent small displacement as shown in Figure 7.1 (Hitzman et al., 1982).

Mineralization at Bornite occurs as tabular mineralized zones that coalesce into crudely stratiform bodies hosted in secondary dolomite. Two significant dolomitic horizons that host mineralization have been mapped by drilling and include: 1) the Lower Reef, a thick 100 to 300 m thick dolomitized zone lying immediately above the basal quartz phyllite (QP) unit of the Anirak Schist; and 2) the Upper Reef, a 100 to 150 m thick dolomite horizon roughly 300 m higher in section.

The Lower Reef dolomite outcrops along the southern margin of the Ruby Creek zone and is spatially extensive throughout the deposit area. It hosts a significant portion of the shallow resources in the Ruby Creek zone as well as higher grade resources down dip and to the northeast in the South Reef. The Upper Reef zone hosts relatively high-grade resources to the north in the Ruby Creek zone. The Upper reef zone appears to lie at an important NE- trending facies transition to the NW of the main drilled area and locally appears to be at least partially thrust over the Lower Reef stratigraphy to the southeast.

Drill results from 2013 show dolomitization and copper mineralization in the Upper and Lower Reefs coalescing into a single horizon along the northern limits of current exploration. The NE- trending Ruby Creek and South Reef zones also coalesce into a roughly 1000 m wide zone of >200 m thick dolomite containing significant copper mineralization dipping north at roughly 5-10 degrees.

Figure 7.4 shows the grade thickness (Cu% x thickness in metres) distribution of copper mineralization for the Bornite deposit.

Copper mineralization at Bornite is comprised of chalcopyrite, bornite, and chalcocite distributed in stacked, roughly stratiform zones exploiting favourable stratigraphy within the dolomitized limestone package. Mineralization occurs, in order of increasing grade, as disseminations, irregular and discontinuous stringer-style veining, breccia matrix replacement, and stratiform massive sulphides. Figure 7.5 shows typical mineralization of the Bornite deposit characterized by chalcocite, bornite, chalcopyrite and pyrite mineralization.

The distribution of copper mineral species is zoned around the bottom-centre of each zone, with bornite-chalcocite-chalcopyrite at the core and progressing outward to chalcopyrite-pyrite. Additional volumetrically minor copper species include carrollite, digenite, tennantite-teetrahedrite, and covellite (Bernstein and Cox, 1986). Stringer pyrite and locally significant sphalerite occur above and around the copper zones, while locally massive pyrite and sparse pyrrhotite occur in association with siderite alteration below copper mineralization in the Lower Reef.

In addition to the copper mineralization, significant cobalt mineralization (for example, drill hole RC11-0187 with 34.7 m at 0.10% Co in the South Reef, and drill hole RC11- 0184 with 5.5 m at 0.44% Co in the Upper Reef) is found accompanying bornite-chalcocite mineralization. Cobalt occurs with high-grade cop pper as both carrollite (Co2CuS4) and as cobaltiferous rims on recrystallized pyrite grains (Bernstein and Cox, 1986).

(a) Typical high-grade chalcocite-bornite-chalcopyrite mineralization; often form stringers, veinlettes, disseminations and breccia fillings; (b) Chalcocite (CuS) appears dark grey to black, occurs with massive sulphide zones and typically with bornite. Metaallic luster observed by tilting specimen back and forth under light; (c) Massive sulphide mineralization, chalcocite-bornite-chalcopyrite of the historically termed “No. 1 Ore Body” Upper Reef - Ruby Creek; (d) Typical disseminated 1-2% pyrite in Quartz Phyllite (QP) – Rock unit defines the base of the Bornite carbonate sequence, equivalent to the Anirak Schistt.

Limestone in much of the resource area is altered to secondary hydrothermal dolostone. Dolomitic alteration follows and also cuts stratigraphy, generally following the distribution of copper sulphide mineralization which is almoost entirely hoosted within it. Iron content of secondary dolomite is distinctively zoned, with high-iron dolostone centred on the axis of higher-grade chalcopyrite-bornite-chalcocite mineralization (Figure 7.6, Figure 7.7, and Figure 7.8). At its most intense, dolomitic alteration can also include secondary siderite (± pyrrhotite), which is mapped as an elongatedd northeast-trending body beneath copper mineralization in the Lower Reef (Hitzman, 1986).

Secondary dolomite alteration is mainly restricted to the limestone units, although calcareous phyllites are locally affected. More widespread are the green-gray ‘bleached’ calc-phyllites (so-called ‘talc’ phyllites), which are tentatively interpreted as an alteration product of the dark gray argillaceous calc-phyllite units. Bleached calc-phyllite occurs as discontinuous, semi-stratiform to discordant bodies within the larger interpreted phyllite beds; distribution is ambiguous with respect to dolomitization and copper mineralization. Initial analysis of ICP multi-element data indicattes that bleached phyllites have experienced neither magnesium nor sodium metasomatism.

The Bornite carbonate sequence, host to the miineralization at Bornite, is exposed over approximately 16 km along the north slope of the Cosmos Hills and to a lesser extent on the southern margin of the Cosmos Hills arch (Figure 7.1). Numerous areas of hydrothermal dolomitization and copper mineralization occur across the entire width of outcropping carbonatees and are the focus of ongoing regional exploration by NovaCopper. Most notable of the known prospects are the Pardner Hill and Aurora Mountain areas, where outcropping mineralization was discovered and drill-tested during the Kennecott era.

The Pardner Hill prospect is located 5 km west of Bornite (Figure 7.1) and consists of a 3 km copper (± zinc) soil and rock geochemical anomaly in rubble cropping ferroan dolostone. Kennecott drilled 16 holes in the area and defined a stratiform copper mineralized zone approximately 150 m by 400 m and varying from 5 m to 35 m thick at the southern end of the geochemical anomaly. Mineralization remains open down-dip and to the south.

Dolomitization and anomalous copper and zinc geochemistry also characterize the Aurora Mountain prospect located 6 km west of Bornite (Figure 7.1). Anomalies are distributed along a 2 km mineralized horizon about a third of which has been tested by four Kennecott-era drill holes.

Exploration work completed by previous operators BCMC and Kennecott (1957 through 1998) is summarized in Section 6.0 of the Report. In addition to extensive drilling, BCMC and Kennecott completed widespread surface geochemical sampling, regional and property scale mapping, and numerous geophysical surveys. The majorities of these data have been acquired by NovaCopper and form the bases for renewed exploration, targeting Bornite-style mineralization in the Bornite Carbonate Sequence.

In 2006, NovaGold contracted Fugro Airborne Surveys (Fugro) to complete a detailed helicopter DIGHEM magnetic, EM and radiometric survey of the Cosmos Hills. The survey covered a rectangular block approximately 18 km by 49 km which totaled 2,852 line kilometres. The survey was flown at 300 m line spacing with a line direction of N20E. The DIGHEM helicopter survey system produced detailed profile data of magnetics, EM responses and radiometrics (total count, uranium, thorium, and potassium) and was processed into maps of magnetics, discrete EM anomalies, EM apparent resistivity, and radiometric responses. A report and Fugro-processed maps and grids are available (Fugro, 2007). Figure 9.1 shows total field magnetics from the survey.

In 2010, in anticipation of completing the NANA Agreement, NANA granted NovaGold permission to begin low level exploration at Bornite; this consisted of re-logging and re- analyzing select drill holes using a Niton portable XRF. A profile containing Kennecott surface diamond drill holes: RC-27, -29, -32, -35, -53, -0, -62, and -102, and underground drill hole RU-16 were re-logged and re-analyzed in the Bornite camp in July and August 2010 (Figure 9.2). In general, the re-logging compared moderately well with the 1996 Kennecott interpretation. General relationships apparent in Figure 9.2 include: a thick area of dolomitization centered approximately at drill hole RC-60 corresponding with mineralization, and surrounding and overlying the Ruby Creek Upper Reef zone; iron-rich dolomite, forming an inner alteration zone; and, a strong stratigraphic control with mineralization occurring in dolomitized limestones immediately overlying a graphitic phyllite.

In 2011, NovaGold contracted Zonge International Inc. (Zonge) to conduct both dipole- dipole complex resistivity induced polarization (CRIP) and natural source audio- magnetotelluric (NSAMT) surveys over the northern end of the prospect to develop tools for additional exploration targeting under cover to the north.

NSAMT data were acquired along two lines totaling 5.15 line-km, with one line oriented generally north-south through the centre of the survey area and one being the southernmost east-west line in the survey area. CRIP data were acquired on five lines: four east-west lines and one north-south line, for a total coverage of 14.1 line-km and 79 collected CRIP stations. The initial objective of the survey was to investigate geological structures and the distribution of sulphides possibly associated with copper mineralization.

Results from the paired surveys show that wide-spaced dipole-dipole resistivity is the most effective technique to directly target the mineralization package. Broad low resistivity anomalies reflecting pyrite haloes and mineralization appear to define the limits of the fluid package. Well-defined and often very strong chargeability anomalies are also present, but appear in part to be masked by phyllitic units which also have strong chargeability signatures. The NSAMT show similar resistivity features as the IP, but are less well resolved.

In light of the success of the 2011 geophysical program, NovaCopper contracted Zonge to conduct a major district-wide dipole/dipole IP survey, a down-hole IP radial array survey in the South Reef area, and an extensive physical property characterization study of the various lithologies to better interpret the existing historical geophysical data.

Zonge completed 48 line km of 200 m dipole/dipole IP during 2012, infilling and expanding on the 2011 survey, and stretching across the most prospective part of the outcropping permissive Bornite Carbonate sequence. Figure 9.4 and Figure 9.5 show isometric views of the combined 2011 and 2012 surveys for resistivity and IP, respectively. The results show a well-defined low resistivity area associated with mineralization and variable IP signatures attributed both to mineralization and the overlying Beaver Creek phyllite. Numerous target areas occur in the immediate Bornite area with lesser targets occurring in the Aurora Mountain and Pardner Hill areas and in the far east of the survey area. During the 2012 drill program at South Reef, a single drill hole was targeted on a low resistivity area approximately 500 m to 600 m southeast of the South Reef mineralization trend. Although the drill hole intersected some dolomite alteration in the appropriate stratigraphy, no significant sulphides were encountered.

In addition to the extensive ground IP survey, Zonge also completed 9 km of down-hole radial IP using an electrode placed in drill hole RC12-0197 to further delineate the trend and potential in and around the South Reef.

In addition to the 2012 ground geophysical surveys, extensive physical property data including resistivity, chargeability, specific gravity, and magnetic susceptibility were captured for use in modelling the existing ground IP and gravity surveys, and the airborne EM and magnetic surveys. In general, some broad comments can be made concerning geophysical domains in and around mineralization at Bornite. Mineralization is characterized by low resistivity < 20 ohms, ambiguous but elevated, often irregular chargeability highs (> 35 milliradians) marginal to the mineralization, and 3-5 milligal gravity anomalies. Mineralization appears to lie along the flanks of 20-150 nT long wave magnetic anomalies which might reflect deep-seated mafic greenstones deeper in the stratigraphy.

In addition to geophysical focused exploration, a district wide geologic map was compiled integrating Kennecott’s 1970’s mapping of the Cosmos Hills with selective NovaCopper mapping in 2012.

The emphasis of the 2013 program was to further validate and refine the 2012 geologic map of the Cosmos Hills. A deep penetrating soil and vegetation geochemical orientation survey was completed over the South Reef deposit, utilizing various partial leaches and pH methods. The initial, approximately 1 km, test lines suggest a good response for several of the partial leaches of the soils but little response in the vegetative samples; further follow-up is warranted to the north of the deposit into the Ambler lowlands.

Outcropping exposures of the mineralization-hosting carbonate stratigraphy along with large areas of precursor dolomite alteration occur over approximately 18 km of strike along the northern flank of the Cosmos Hills. Historical exploration drilling has focused solely on outcropping mineralization and subsurface extensions at the Bornite, Aurora Mountain, and Pardner Hill areas. Much of the carbonate belt has yet to be evaluated.

Recent US Geological Survey (USGS) dating of mineralization in the Ambler mining district has shown that the VMS belt that hosts the Arctic deposit and the Bornite carbonate- hosted mineralization are contemporaneous and only slightly post-date enclosing stratigraphy (Selby et al., 2009). This early and extensive syngenetic/early epigenetic signature, along with the overall fluid chemistry of the system investigated by early workers, such as Hitzman (1983 and 1986), point to large saline basin-generated fluid transport as the mechanism controlling the metallogeny of the Ambler mining district. Importantly, similar metallogenies related to saline, basin-generated fluids and their associated deposits form some of the largest copper districts in the world.

Understanding the potential scale of mineralization in the Ambler mining district has led NovaCopper to adopt geophysical and geochemical zonation as the main tools for exploration.

Airborne geophysics completed in 2006, discussed in Section 9.1, along with district-wide compilations of select third party data, discussed Section 9.2 and shown in Figure 9.3, show that the Bornite carbonate section and bounding stratigraphy simply dip to the north under the Ambler lowlands toward the Ambler Schist Belt. This opens up important potential to explore for high-grade, Bornite-style, carbonate-hosted deposits at depth using new deeper-penetrating geophysical techniques.

The geophysical surveys have delineated significant north-northeast to northeast oriented structures which appear in part to control local basin morphology and mineralization (Figure 9.1). Better understanding of basin development and its structural framework is critical to the exploration of Bornite-style systems.

In 1999, Kennecott completed an initial gravity survey of the lowlands showing significant gravimetric anomalies which may indicate structural dislocations and potential alteration and mineralization (Figure 6.1) . In 2011, NovaCopper investigated both deep IP and NSAMT geophysical techniques.

A total of 183 surface core holes and 51 underground core holes, totaling 78,147 m have been drilled, targeting the Bornite deposit during 21 different annual campaigns dating from 1957 through 2013. All of the drill campaigns, with the exception of the 2011 NovaGold campaign and the 2012 and 2013 NovaCopper campaigns were completed by Kennecott or their exploration subsidiary BCMC. Table 10.1 summarizes operators, annual campaigns, number of drill holes and metres drilled on the deposit. All drill holes listed in this table (except RC13-230 and RC13-232 which have been reserved for metallurgical studies) were utilized in the estimation of the current resource.

In the initial years of drilling at Bornite, Kennecott relied on AX core (1.1875 in or 30.2 mm diameter), but, as drilling migrated towardss deeper targets, a change to BX core (1.625 in or 41.3 mm diameter) was implemented to help limit deviation. From 1966 to 1967, drilling activity at Bornite moved underground and EX diameter core (0.845 in or 21.5 mm diameter) was implemented to define the Ruby Creek Upper Reef zone “No.1 Ore Body”. Drilling activity moved back to the surface in 1968, and, from 1968 to 1972, BX core was most commonly drilled. In later years, core size increased to NX (2.125 in or 54.0 mm diameter) and finally, in 2011, core size increased to NQ (1.874 in or 47.6 mm diameter) and HQ (2.5 in or 63.5 mm diameter). Progressively larger diameter drill rods have been continually used over the years in ann attempt to minimize drill hole deviations.

The Kennecott and NovaCopper era drilling have been conducted using drill equipment utilizing imperial measurement units. All Imperial units havee been converted to metric equivalents in the NovaCopper database for the purposes of data management. NovaCopper works exclusively in metric units.

There is only partial knowledge of specific drill core handling procedures used by Kennecott during their tenure at the Bornite Deposit. All of the drill data collected during the Kennecott drilling programs (1958 to 1997) was logged on paper drill logs, copies of which are stored in the Kennecott office in Salt Lake City, Utah. Electronic scanned copies of the paper logs, in PDF format, are held by NovaCopper.

Drill core was sawed or split with a splitter, with half core submitted to various assay labs and the remainder stored in the Kennecott core storage facility at the Bornite Deposit. In 1995, Kennecott entered the drill assay data, the geologic core logs, and the down hole collar survey data into an electronic format. In 2009, NovaGold geologists verified the geologic data from the original paper logs against the Kennecott electronic format and then merged the data into a Microsoft™ SQL database.

Sampling of drill core by Kennecott and BCMC focused primarily on the moderate to high grade mineralized zones. Intervals of visible sulphide mineralization containing roughly >0.5 to 1% copper were selected for analysis by Union Assay Office Inc. of Salt Lake City, Utah. This approach left numerous intervals containing weak to moderate copper mineralization un-sampled in the historic drill core. During the 2013 exploration program, NovaCopper began sampling a portion of this remaining drill core in select holes in the Ruby Creek area. NovaCopper plans to continue to collect additional samples from these older core intervals in order to provide a more extensive and continuous suite of data across the deposit area.

NOVAGOLD/NOVACOPPER PROCEDURES

Throughout NovaCopper’s tenure at Bornite, the following core handling procedures have been implemented. Core is slung by helicopter, or transported by truck or ATV, from the drill rig to the core-logging facility. Upon delivery, geologists and geotechnicians open and inspect the core boxes for any irregularities. They first mark the location of each drilling block on the core box, and then convert footages on the blocks into metric equivalents. Geotechnicians or geologists measure the intervals (or “from/to”) for each box of core and include this information, together with the drill hole ID and box number, on a metal tag stapled to the end of each box.

Geotechnicians then measure the core to calculate percent recovery and rock quality designation (RQD). RQD is the sum of the total length of all pieces of core over 12 cm in a run. The total length of core in each run is measured and compared to the corresponding run length to determine percent recovery.

Core is then logged with lithology and visual alteration features captured on observed interval breaks. Mineralization data, including total sulphide (recorded as percent), sulphide type (recorded as a relative amount), and gangue and vein mineralogy are collected for each sample interval with an average interval of approximately 2 m. Structural data is collected as point data.

The 2011 thru 2013 NovaGold/NovaCopper diamond drilling programs used a commercial, computer-based core logging system for data capture; GeoSpark Logger© developed by GeoSpark Consulting Inc. During each drill program, all logging data was captured on individual laptops in a Microsoft™ SQL database and then validated and merged into the camp server. In 2012, the system was modified to allow each laptop to sync daily to the Data Logger database residing on the Bornite Camp server. The server was periodically backed up and the database was sent to Vancouver, British Columbia for integration into the master database. The camp server is stored in the Fairbanks field office at the end of each field season. Hardcopies of the 2011 thru 2013 drill core logs are stored in the Fairbanks office. Scanned copies of the Kennecott-era drill logs are also stored in the Fairbanks field office.

DRILL CORE RECOVERY

Table 10.4 shows the core recovery data compared to various rock types with available recovery data for all campaigns through to 2013. In general, core recovery averaged >87.8% with only slightly poorer recoveries in phyllitic rocks. The dolostone and the dolostone clastic breccia, principal hosts of mineralization, show recoveries of 87.3% and 90.3 respectively.

Kennecott provided NovaGold with collar coordinates for all historical holes in UTM coordinates using the NAD27 datum. During the 2011 field season, the collar locations of 63 historic surface holes were re-surveyed in UTM NAD83 zone 4N datum. The results of this re-survey were compared to the original Kennecott collar survey data as described below.

Horizontal errors were found to cluster tightly around zero, with a mean difference of +1.61 m Easting and -0.80 m Northing. Absolute total horizontal error ranged from 0.39 m to a maximum 24.27 m, with a median absolute error of 1.22 m. The 24.27 m difference was considered to be the result of an individual surveying error. Based on these results, the remaining 68 un-surveyed Kennecott drill hole collars were accepted without application of a horizontal correction.

Vertical errors were identified in the 2011 collar re-survey campaign. The checks revealed a semi-systematic elevation error of about +10 m vertical for most of the historic collar locations compared to the 2011 re-survey. Elevation differences in the existing database were found to range from -2.17 m to +10.91 m, with a median error of +9.61 m. While these errors show some systematic patterns in space and time, a unifying correction factor for elevation based on the survey results was considered inappropriate. Ultimately, NovaCopper assigned collar elevations for all historic drill holes that could not be re-surveyed based on the 2010 PhotoSat 1 m resolution digital terrain model (DTM). The collar elevations for the 63 re-surveyed holes were assigned elevations from the 2011 re-survey.

Also, the benchmark for the shaft and the elevation control for the underground drill hole collar surveys could not be located during the re-survey exercise to provide a reasonable elevation check between the underground survey and the surface elevations of the DTM. Therefore, the underground holes were given a blanket +10 m vertical correction consistent with the error observed in the re-surveyed surface holes around the underground workings. As a quantitative check, it was confirmed that the lithological contacts constructed from the adjusted drill holes aligned well with the lithological contacts encountered in the 2011 drilling.

Collar locations for the 14 holes drilled in 2011 were surveyed by NovaGold using a differential GPS relative to benchmark ‘AAA-1' established by Karl Spohn, PLS, WH Pacific, Inc. (WHPacific), in 2010. An Ashtech ProMark2 GPS instrument was used for these surveys.

In 2012, collar locations for 17 of the 22 holes drilled in 2012 were surveyed by WHPacific professional land surveyors using a differential GPS relative to benchmark ‘AAA-1’. The remaining five holes were surveyed by NovaCopper using an Ashtech ProMark2 GPS instrument relative to benchmark ‘AAA-1’.

In 2013, collar locations for all 17 drill holes were surveyed by NovaCopper using an Ashtech ProMark2 GPS instrument relative to benchmark ‘AAA-1’. All 2011, 2012 and 2013 holes were surveyed in the UTM NAD83 zone 4N datum coordinate system.

Approximately one half of the drill holes in the database have associated down-hole surveys. On a core-length basis, this represents approximately 71% of the drilling, as the more recent holes, which typically have down-hole surveys, tend to be longer compared to the historic drilling.

Since 1961, Sperry-Sun single shot surveys were conducted on drill holes that encountered significant mineralization. Drill holes with marginal mineralization were often not surveyed. In 1961, Kennecott attempted to conduct down-hole surveys in holes drilled in 1959 and 1960. Of the 51 underground holes, only 11 are surveyed. From 1968 through 1997, down-hole surveys were sporadic. The first six holes of the 1968 campaign, and all holes drilled in 1971 and 1997 were not surveyed.

Four Kennecott drill holes at South Reef that were never surveyed have been assigned projected deviations based on nearby (surveyed) holes (down-hole surveys have been assigned to holes RC-96, RC-95, RC-99 and RC-163). The resulting locations of mineralized intervals in these drill holes mesh better with the overall geologic interpretation of the deposit.

The sampling procedures are described in Section 10 of this report. Once drill core was sawed, one half was retained for future reference and the other half was sent to ALS Minerals (formerly ALS Chemex) in Vancouver for analyses.

Shipment of core samples from the Bornite camp occurred whenever backhaul capacity was available on the chartered aircraft, which was generally 5 to 6 days a week. Rice bags, containing two to four individual poly-bagged core samples, were marked and labeled with the ALS Minerals address, project name (Bornite), drill hole number, bag number, and sample numbers enclosed. Rice bags were secured with a pre-numbered plastic security tie, assembled into loads for transport by chartered flights on a commercial airline to Fairbanks, and directly delivered by a contracted expeditor to the ALS Minerals preparation facility in Fairbanks. In addition to the core samples, control samples were inserted into the shipments at the approximate rate of one standard, one blank and one duplicate per 17 core samples:

Standards: four to five certified standards were used each year at the Bornite Project. Standard reference material was purchased from a commercial supplier (CDN located in Vancouver BC). Standards were “blindly” incorporated into the sample sequence. When required, the core cutter inserted a sachet of the appropriate standard, as well as the sample tag, into the sample bag.

Blanks: were composed of un-mineralized marble drill core from an abandoned hole, which was split to mimic a regular core sample. Blanks were also incorporated “blindly” into the sample sequence. When required, the core cutter inserted about 150 g of blank, as well as the sample tag, into the sample bag.

Duplicates: the assay laboratory was instructed to split the sample and run both splits as two separate samples. The core cutter inserted a sample tag into an empty sample bag.

Density determinations were not conducted by BCMC/Kennecott on any of the older drill holes. NovaCopper has conducted SG measurements on some select historic drill holes during the 2013 re-sampling program.

In total, 4,471 valid SG determinations were collected during 2011, 2012 and 2013, ranging from 2.12 to 4.94. NovaGold and NovaCopper geologists collected “full-assay- width” SG determinations from available historic split core and NovaGold/NovaCopper whole core. The samples averaged 1.02 m in length and were collected continuously within mineralized zones estimated as having ≥ 1% chalcopyrite (CuFeS2) or its equivalent copper content (0.3% Cu). In un-mineralized zones, samples were collected every 10 to 15 m. A digital Intell-Lab Balance was utilized to determine a weight-in-air value for dried core, followed by a weight-in-water value. The wet-value was determined by submerging the entire assay interval within a wire basket into a water-filled tote. The SG value was then calculated using the following formula:

Samples were not sealed with wax prior to measuring the weight-in-water. There is relatively little porosity evident in the rocks at Bornite and, as a result, this is not considered to be a significant factor in determining density measurements. The density measurements appear to be appropriate for a deposit of this type.

Security measures taken during historical Kennecott and BCMC programs are unknown to NovaCopper; however, NovaCopper is not aware of any reason to suspect that any of these samples have been tampered with. The 2011 to 2013 samples were either in the custody of NovaGold or NovaCopper personnel or the assay laboratories at all times, and the chain of custody of the samples is well documented.

The laboratories used during the various exploration, infill, and step-out drill analytical programs completed on the Bornite Project are summarized in Table 11.2.

Gold assays in 2011 and 2012 were determined using fire analysis followed by an atomic absorption spectroscopy (AAS) finish; gold was not analyzed in 2013. The lower detection limit was 0.005 ppm gold; the upper limit was 10 ppm gold. An additional 48- element suite was assayed by inductively coupled plasma-mass (ICP-MS) and atomic emission spectroscopy (ICP_AES) methodologies, following a four acid digest. Over limit (>1.0%) copper and zinc analyses were completed by atomic absorption (AA), following a four acid digest.

ALS Minerals has attained International Organization for Standardization (ISO) 9001:2000 registration. In addition, the ALS Minerals laboratory in Vancouver is accredited to ISO 17025 by Standards Council of Canada for a number of specific test procedures including fire assay of gold by AA, ICP and gravimetric finish, multi-element ICP and AA assays for silver, copper, lead and zinc. NovaCopper has no relationship with any primary or check assay labs utilized.

Previous data verification campaigns are described in the “Technical Report for the Bornite Deposit, South Reef and Ruby Creek Zones, Northwest Alaska, USA” (NovaCopper, 2013).

During 2012 and 2013, NovaCopper staff performed continuous validation of the drill data; both while logging was in progress and after the drill season was complete (West, 2013). NovaCopper also retained independent consultant Caroline Vallat, P.Geo. of GeoSpark Consulting Inc. (GeoSpark) to: 1) import digital drill data to the master database and conduct QA/QC checks upon import, 2) conduct a QA/QC review of paired historical assays and NovaCopper 2012 and 2013 re-assays; 3) monitor an independent check assay program for the 2012 and 2013 drill campaigns; and 4) generate a QA/QC report for the 2012 and 2013 drill campaigns. Below is a summary of the results and conclusions of the GeoSpark QA/QC review.

During 2012 and 2013, NovaCopper conducted a large re-assay program and check sampling campaign on pre-NovaCopper (pre-2011) drill core. Within the Ruby Creek zone the database includes a total of 4,187 original, historic RC prefixed drill hole assays. The 2012 and 2013 exploration programs on the Bornite project included re-assay of 1,304 of these samples and the original samples are now superseded by the newer results which were analyzed by ALS. Of the 1,304 re-assays there were 865 with a match of hole identity and drill hole interval allowing direct comparison of the results. In addition to the re-assay of existing sample intervals a large number of additional samples were assayed in 2012 and 2013 for the RC prefixed drill holes amounting to 7,022 additional samples for a total of 14,822.21 m of new (2012 and 2013) sampling on the RC drill holes. Within the Bornite project database there are a total of 10,770 primary samples for RC prefixed drill holes including:

It is GeoSpark’s opinion that this review has shown no major reason for concern with the overall quality of earlier copper estimations.

GeoSpark has conducted a series of QA/QC reviews on the NovaGold and NovaCopper Bornite Project 2011, 2012 and 2013 analytical results. These QA/QC reviews serve to infer the accuracy and precision of the analytical assay results through examination of duplicate, standard, and blank control samples.

The QA/QC reviews are documented in a series of memos (Vallat 2012, 2013a, 2013b). The reviews are summarized in the following subsections by year of campaign.

The 2011 exploration program QAQC was monitored by NovaGold. GeoSpark saw no indication of significant assay quality deficiency.

The 2012 exploration program at the Bornite Project included the drilling of 20 new drill holes (RC12-0195 to RC12-0215w) and a re-sampling and re-assaying program on 9 historic drill holes. The 2012 sampling amounted to 6,764 samples covering 14,818.63 m.

The review of the control sample analytical results indicates assay results of sufficient quality to adequately represent the drill hole results for the Bornite Project.

2013

The 2013 exploration program at the Bornite Project included the drilling of 17 new drill holes (RC13-0217 to RC13-0233) and a large re-sampling and re-assaying program on 33 historic drill holes (31 prefixed RC and 2 prefixed NANA). The 2013 sampling amounted to 9,045 samples covering 18,656.71 m.

The review of the control sample analytical results indicates assay results of sufficient quality to adequately represent the drill hole results for the Bornite Project.

DENSITY DETERMINATIONS QA/QC

QA/QC review of the 2011, 2012 and 2013 SG determinations for the Bornite Project were conducted by NovaCopper staff and are documented in a series of memos. Where SG determinations have matching assay from/to intervals, a stoichiometric check was completed (West, 2014). The 2011 and 2012 wet/dry measurements compare well with the stoichiometrically estimated values. In addition, extreme SG determinations (below 2.0 and above 5.0) were flagged and evaluated individually by the project geologist.

AUTHOR’S OPINION

BDRC and SGI believe the database meets or exceeds industry standards of data quality and integrity. They further believe the sample preparation, security, and analytical procedures are adequate to support resource estimation.

Bruce Davis, FAusIMM, BD Resource Consulting, Inc., examined a series of randomly selected drill core intervals from the Ruby Creek and South Reef zones during his site visits in July, 2011 and September, 2012. In all cases, the type and content of observed copper-bearing minerals supported the copper grades found in the Bornite Project database.

Following the generation of the South Reef resource model in 2012, Robert Sim, P.Geo., SIM Geological Inc., randomly selected four NovaCopper-era drill holes for manual validation. The collar, survey, and assay information for these holes in the electronic database was checked against original data sources and no significant errors or differences were found.

Following the completion of the 2013 resource model, an additional 5 holes drilled by NovaCopper during the recent program, were randomly selected for validation purposes. Once again, no significant errors or differences were found.

Bruce Davis and Robert Sim have reviewed NovaCopper’s drilling and sampling procedures and confirm that they follow accepted industry standards. The accuracy and precision of all NovaCopper samples have been maintained through the application of a QA/QC program that follows accepted industry standards. NovaCopper has conducted a series of validation checks that exhibit a reasonable degree of confidence in the location and assay results from the older Kennecott drill holes.

Given the assay check results, the review of the drilling and core sampling, and the comparison of certificates to the electronic database, the sample assay data are within acceptable limits of precision and accuracy to generate a mineral resource estimate.

BDRC and SGI believe the database has been generated using accepted industry standards and the contained data are sufficient for the estimation of Indicated and Inferred mineral resources.

Metallurgical studies were conducted in 1961 and 2012 with metallurgical test work campaigns undertaken at the Kennecott Research Centre (KRC), and at ALS Metallurgy (Kamloops).

In 1961, Kennecott collected 32 coarse reject samples from five drill holes (RC-34, RC- 54, RC-60, RC-61, and RC-65) to support preliminary metallurgical test work at Bornite. Samples targeted high-grade (> 10%) copper mineralization from the Upper Reef Ruby Creek zone (“No.1 Ore Body”) (BCMC, 1961).

All sample intervals, in total weighing approximately 68 kg (150 lbs), were composited using weighted compositing methodology. Prior to compositing, each sample was crushed and screened to pass a 10-mesh screen. The composite sample assayed 13.9% Cu.

Locked-cycle laboratory test work suggested that 97.64% of the copper was recoverable in a concentrate assaying 43.90% copper. Fine grinding to 5% passing +200-mesh was required to obtain the liberation of copper minerals from pyrite necessary for such a high recovery. Mineralogical test work on the composite sample showed high-grade mineralization of the “No.1 Ore Body” is dominated by bornite with subordinate chalcocite and chalcopyrite.

It is not known whether the test work conducted by Kennecott used samples representative of the various types of high-grade mineralization, or whether any deleterious elements were encountered during the tests.

In 2012, NovaCopper contracted ALS Metallurgy of Kamloops, BC to conduct preliminary sample characterization and flotation test work on samples produced from South Reef zone mineralization of the Bornite Deposit. To the extent known, the samples are representative of the styles and types of South Reef zone mineralization and do not represent proposed open pit recoverable resources at the Ruby Creek zone. The test work program at ALS Metallurgy was based on traditional grinding and flotation test work aimed at producing saleable copper concentrates. Copper recovery test work was conducted using an assumed process flowsheet.

Primary crushing

SAG milling and ball milling to approximately 100 microns

Rougher flotation

Rough concentrate re-grinding to approximately 10 to 20 microns

Flotation cleaning to produce final copper concentrates

Concentrate de-watering

Tailings deposition of tailings solids

The concentrates are unlikely to contain payable precious metals as these appear to be below accepted splitting limits within traditional concentrate sales terms.

The concentrates are also considered to contain low levels of penalty elements and elements such as arsenic, antimony, mercury and cadmium. The concentrates will likely not incur any financial penalty under traditional sales terms. Zinc may incur a payable penalty if levels are consistently above about 3 percent zinc. It would be an added transportation expense at those levels as well. Zinc is typically not payable within copper concentrates.

Additional metallurgical test work is required to support the Bornite project as it moves through the development process. Key areas that require additional test work are:

Additional sample material is needed to better understand the potential variability (both grade and spatial variability) that may be present in the deposit.

A thorough examination of the process parameters needed to optimize the cleaning circuit recoveries is recommended. This should address previously observed low cleaner circuit recoveries.

Additional grinding test work is required to confirm the continuity of the observed grindability data.

Concentrate quality should continue to be monitored in any future test work.

This section describes the generation of an updated mineral resource estimate for the Bornite Project. The mineral resource estimate has been prepared by Bruce M. Davis, FAusIMM, BD Resource Consulting (BDRC) and Robert Sim, P.Geo., SIM Geological Inc. (SGI), both “Independent Qualified Persons” as defined in NI 43-101. NovaCopper has filed two previous NI 43-101 Technical Reports on the Bornite Project dated July 18, 2012 and February 5, 2013. The effective date of this estimate is March 18, 2014.

This section describes the resource estimation methodology and summarizes the key assumptions considered by the Qualified Persons. In the opinion of the Qualified Persons, the resource evaluation reported herein is a sound representation of the copper mineral resources found on the Bornite Project at the current level of sampling. The mineral resources have been estimated in conformity with generally accepted CIM Estimation of Mineral Resources and Mineral Reserves Best Practices Guidelines and are reported in accordance with the Canadian Securities Administrators’ NI 43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resource will be converted into mineral reserve.

The database used to estimate the Bornite Project mineral resource was audited by the Qualified Persons. The Qualified Persons are of the opinion that the current drilling information is sufficiently reliable to interpret with confidence the boundaries for copper mineralization and that the assay data are sufficiently reliable to support mineral resource estimation.

The resource estimate was generated using MineSight® v8.20. Some non-commercial software, including the Geostatistical Library (GSLib) family of software, was used for geostatistical analyses.

NovaCopper provided the Bornite database in Microsoft™ Excel format, exported from the master (GeoSpark Core Database System) database. The files contain collar, survey, assay, lithology, and specific gravity data, and other geological and geotechnical information.

The number and length of drill holes described here represents the database used to generate the estimate of mineral resources. These figures may differ slightly from those described in Section 10 of this report. The Project database comprises a total of 235 diamond drill (core) holes totalling 77,727 m; 174 holes target the Ruby Creek zone and 42 holes target the South Reef zone. The remaining 19 holes in the database are exploratory in nature and test for satellite mineralization proximal to the Bornite Deposit. The database contains a total of 24,538 samples that have been analyzed for copper content. Most holes drilled by NovaCopper, plus a few select holes drilled by Kennecott, contain additional analyses for elements such as zinc, lead, gold, silver, and cobalt; these do not show any significant economic potential and have been excluded from the estimation of mineral resources.

Historic drilling at the Bornite Project was conducted by Kennecott, a leading technical exploration company during its tenure, known for rigorously controlled drilling programs which typically included the insertion of quality control samples. Unfortunately, records from the Kennecott-era are incomplete and direct validation of some portions of the database cannot be made. Comparison of declustered data sets, derived from the two vintages of drilling, indicate the Kennecott and NovaCopper drilling produce essentially the same results. NovaCopper has re-sampled portions of holes drilled by Kennecott for validation purposes as described in Section 11 of this report. There is no reason to believe the sample results produced during historic drilling are significantly different from those being generated by NovaCopper.

With the drilling completed by NovaCopper, plus the additional re-sampling of the historic drill core, the original Kennecott sample data represents a relatively minor proportion of the overall database. All of the historic drilling has been included in the Bornite mineral resource estimate and there have been no adjustments made to any of this historical data.

The geologic model interpreted for the Bornite Deposit consists primarily of a series of inter-bedded carbonate and phyllitic rocks that dip gently to the north and overlay a quartz-phyllite footwall. Copper mineralization primarily occurs as massive, semi- massive, stringer, veinlet and disseminated accumulations of chalcopyrite, bornite and chalcocite in dolomitized portions of the sedimentary host rocks. The foundation of the resource model is based on a lithology model consisting of four separate carbonate units intercalated by six phyllite domains (Figure 14.3). Only two of the phyllite units occur across the extents of the resource model (Phyl6 and Phyl8). The other four phyllite domains occur only in the Ruby Creek area. The lowest Carb1 unit contains the South Reef zone and portions of the Lower Reef mineralization at Ruby Creek; the remainder of the Lower Reef zone occurs in Carb2. Phyl7 forms the boundary between Carb2 and Carb3 and segregates the Upper and Lower Reefs at Ruby Creek.

The interpreted geologic domains are summarized in Table 14.2.

COMPOSITING

Compositing drill hole samples standardizes the database for further statistical evaluation. This step eliminates any effect the sample length may have on the data. To retain the original characteristics of the underlying data, a composite length that reflects the average, original sample length is selected: a too long composite can sometimes result in a degree of smoothing that can mask certain features of the data.

At Ruby Creek, the average sample length is 2.08 m and at South Reef the average is 2.20 m. As a result, a composite length of 2 m has been selected for the Bornite Deposit.

Drill hole composites are length-weighted and are generated down-the-hole, meaning composites begin at the top of each drill hole and are generated at constant intervals down the length of the hole. Composites were broken at lithology domain boundaries. Once composites were generated, probability shell codes were assigned on a majority basis. Several holes were randomly selected and the composited values were checked for accuracy. No errors were found.

EXPLORATORY DATA ANALYSIS

Exploratory data analysis (EDA) involves statistically summarizing the database to better understand the characteristics of the data that may control grade. One of the main purposes of EDA is to determine if there is evidence of spatial distinctions in grade. This would require the separation and isolation of domains during interpolation. The application of separate domains prevents unwanted mixing of data during interpolation, and the resulting grade model will better reflect the unique properties of the deposit. However, applying domain boundaries in areas where the data are not statistically unique may impose a bias in the distribution of grades in the model.

A domain boundary, which segregates the data during interpolation, is typically applied if the average grade in one domain is significantly different from another. A domain boundary may also be applied where a significant change in the grade distribution exists across the contact.

Boxplots

Descriptive statistics were generated from samples located within the various domains and are presented in a series of boxplots (Figure 14.8 and Figure 14.9). Significant mineralization occurs primarily in the Carb 1, 2 and 3 domains. The spread of data in these domains indicates that only portions of the carbonates are mineralized. The phyllite domains are generally void of copper content except for a few rare samples. Boxplots of copper by probability shells shows relatively distinct grade properties between the three domains.

Contact profiles evaluate the nature of grade trends between two domains; they graphically display the average grades at increasing distances from the contact boundary. Those contact profiles that show a marked difference in grades across a domain boundary indicate that the two datasets should be isolated during interpolation. Conversely, if a more gradual change in grade occurs across a contact, the introduction of a hard boundary (in other words, segregation during interpolation) may result in much different trends in the grade model; in this case, the change in grade between model domains is often more abrupt than the trends seen in the raw data. Finally, a flat contact profile indicates that there are no grade changes across the boundary; in this case, hard or soft domain boundaries will produce similar results in the model.

A series of contact profiles were generated to evaluate the copper trends between various domains. Figure 14.10 shows an abrupt change in grade at the contact between samples in the carbonate and phyllite domains indicating that data contained in these should remain segregated during block grade estimations.

The boxplot and contact profiles analysis shows distinct differences in sample data contained in carbonate and phyllite domains and that these data should remain segregated during the estimation of copper grades in the block model. Analysis of the probability grade shells also indicate that these encompass differing populations of samples that should not be mixed during copper grade interpolations.

Based on these results, a combination of lithology and probability grade shell domains are used to control the distribution of copper in the resource block model. These “estimation domains” are summarized in Table 14.3.