News Summary
On December 18, 2025, NorthWest Copper reported assay results from two additional drill holes from its 2025 exploration program at the Kwanika property in British Columbia. The highlight was hole K-25-283, which intersected a high-grade interval of 43 metres grading 1.83% copper (Cu) and 1.28 g/t gold (Au), equivalent to 3.01% copper equivalent (CuEq), starting from a depth of 260 metres. The second hole, K-25-273, also returned two significant high-grade intercepts: 123 metres of 1.31% Cu and 0.83 g/t Au (2.09% CuEq) and 82.2 metres of 1.07% Cu and 1.71 g/t Au (2.62% CuEq).
The CEO, Paul Olmsted, stated that these results exceed expectations and consistently demonstrate the merit of prioritizing higher-grade zones. The results from the fourteen holes completed in the 2025 program, along with ongoing metallurgical test work, are expected to support a more capital-efficient and economically robust development plan in an updated Preliminary Economic Assessment (PEA).
Material Impact
The news is Materially Positive. The reported intercepts, particularly the 43 metres at 3.01% CuEq, are very high-grade and economically significant. This release is not a one-off success but the latest in a consistent series of strong drill results reported since October 2025.
The core of the analysis is how this news aligns with the company’s stated strategy. In early 2025, new management pivoted to focus on defining higher-grade zones within the existing Kwanika resource to improve the economics of the 2023 PEA. After successfully raising over C$4.6 million in mid-2025, the company initiated a drill program and metallurgical testing. The drill results announced over the past three months, including this most recent one, have systematically validated this strategy. Each successful hole de-risks the geological model and increases the probability that the updated PEA will show a viable, more capital-efficient project.
While the market has already reacted positively to the initial drill results (the stock rose from ~$0.20 to a high of $0.58), these continued high-grade hits provide crucial confirmation and build confidence in the asset’s quality. They demonstrate continuity of high-grade mineralization and successful targeting by the exploration team, which is critical for building a robust resource model for the updated PEA. This is not a “game-changing” new discovery, but it is a material confirmation that the company is successfully executing its value-enhancement plan.
Catalysts
– Remaining 2025 Drill Results: The release mentions results from 14 holes have been received. The program was planned for 17-18 holes. The final results should be released shortly.
– Metallurgical Test Results: This is a critical near-term catalyst. The company initiated a program in September 2025 to improve metal recoveries, particularly for gold, which were a weak point in the 2023 PEA (65.6% recovery). Positive results here could have a significant impact on the project’s projected cash flows.
– Updated Mineral Resource Estimate (MRE): The results from the 2022 and 2025 drill programs will be incorporated into a new MRE. The timing and quality of this update will be a key milestone.
– Updated PEA: The company has guided for an updated PEA in the first half of 2026. This will be the culmination of the 2025 work program and will provide the market with a new economic valuation of the project.
– 2026 Exploration Plans and Financing: The company will need to secure additional funding for its 2026 activities. Watch for announcements regarding a new budget and capital raise.
Materiality Conclusion
The announcement of further high-grade drill intercepts from Kwanika is materially positive. It successfully continues a trend of positive results that directly support the company’s strategic goal of delivering an improved PEA. Each high-grade result adds confidence and data points to de-risk the project’s geology and resource model, increasing the likelihood of a positive economic outcome in the forthcoming study.
