Chesapeake Gold Corp. · TSXV:CKG
Chesapeake Gold — Investor Presentation (June 2019)
31 slides from Chesapeake Gold's investor presentation, June 2019
Slide 1: Chesapeake Gold Corporate Presentation June 2019
CKG: TSX.V CHPGF: OTCQX June, 2019
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain “forward-looking” statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. All resource estimates reported by the Company were calculated in accordance with the Ca
Slide 3: Corporate Summary
CHESAPEAKE GOLD Corporate Summary • Metates is one of the world’s largest undeveloped gold-silver-zinc projects ➢ 18.5 million ozs gold, 526 million ozs silver and 4.2 billion lbs zinc in reserves ➢ Regional exploration discovered a porphyry, skarn system and high grade vein field • Nevada Talapoosa
Slide 4: Capital Structure and Shareholder Distribution
Capital Structure Shareholder Distribution Capital Structure Share Price – 12 months TSX Venture symbol, OTCQX CKG, CHPGF Share price $1.70 Share price (52 week range) $2.65 - $1.41 Basic shares outstanding 44,573,866 Stock Options2 5,215,000 Fully diluted shares outstanding 49,788,866 Market capita
Slide 5: Proven Management and Board
Proven Management and Board Management Directors P. Randy Reifel P. Randy Reifel President & CEO, 35 years experience • Goldcorp director, former Francisco Gold Gerald Sneddon Gerald Sneddon Executive VP Operations, 45 years experience • Mining engineer, former Francisco Gold, MK Gold Gary Parkison
Slide 6: Metates - Mining Friendly Location
Metates - Mining Friendly Location 6
Slide 7: Metates – World Class Deposit
Metates – World Class Deposit Intrusive/Sedimentary Breccia Massive Intrusive 7
Slide 8: Metates Highlights
Metates Highlights World class mine with scalable development options • Two pre-feasibility studies demonstrate Metates economically viable to initially develop as a full scale operation or build smaller mine to fund to nameplate capacity • Highest and best industry standards for clean energy, water
Slide 9: Metates: Mine Summary
Metates: Mine Summary1 In production, one of the world’s largest gold and silver mines Reserves: Gold 18.5 Moz, Silver 526 Moz, Zinc 4.2 Blbs Years 2-7, Au 845 Kozs, Ag 25 Moz, Zn 175 Mlbs/year Production: Life of Mine2, Au 738 Koz, Ag 15 Moz, Zn 125 Mlbs/year Mine Life: 25 years Operation: 120,00
Slide 10: Metates Mine Site
Metates Mine Site (Year 3 Mining Operations) 10
Slide 11: El Paso Plant Site
El Paso Plant Site (Year 5 Development) 11
Slide 12: Strategically Near Regional Infrastructure
Strategically Near Regional Infrastructure Metates Site Natural Gas Pipeline El Paso Site Power Line Extension to Metates Cosala Culiacan Power Plant Access Road and Existing Concentrate Pipeline Desalination Plant Powerline Natural Gas Irrigation District Pipeline Extension Rail Line State Highways
Slide 13: Zinc is a Major By-Product
Zinc is a Major By-Product • Metates zinc reserves ranked in top 15 of the world • 25 year mine life producing 125 million pounds per year • Solvent Extraction & Electrowinning (SX/EW) - 99.9% zinc ingots Metates will produce 1.5 million tonnes of high grade ingots instead of concentrate sales • Pro
Slide 14: Metates and Pueblo Viejo Comparison
Metates and Pueblo Viejo Comparison Metates1 Pueblo Viejo Gold Reserves Grade (g/t) 0.60 2.76 Silver Reserves Grade (g/t) 14.8 17.4 Pit Mining Rate (t/day) 120,000 24,000 POX Processing Rate (t/day)2 18,000 24,000 POX Gold Grade (g/t)2 3.8 3.0 POX Silver Grade (g/t)2 72 21 Pueblo Viejo 90%Au 92% Au
Slide 15: Metates Grade and Per Tonne Value Comparison
Metates Grade and Per Tonne Value Comparison Norte Minas Grades Hycroft Livengood Abierto* Metates** KSM Conga Gold (g/t) 0.38 0.68 0.53 0.60 0.55 0.65 70 Silver (g/t) 14.4 - 1.4 14.9 2.6 2.1 Zinc (%) - - - 0.16 - - 14 Copper (%) - - 0.21 - 0.21 0.26 28 17 22 In-Situ Value/ore T $22.91 6 $27.34 $35.
Slide 16: Lowest Industry Quartile All-In-Sustaining Costs
Lowest Industry Quartile All-In-Sustaining Costs Metates Low AISC Drivers • Large scale open pit mine - 90% proven and probable reserves • Life of mine low strip ratio 1:1 • Significant silver and zinc by-product credits • Low natural gas energy costs • Favorable pesos exchange rate 16
Slide 17: Developing Project Pipeline - Value Generation
Developing Project Pipeline- Value Generation Strategic Advantages • Global discoveries are lagging production • New regional prospects leverage on Metates mine complex- low capital cost per ounce • Ten significant prospects identified and being systematically advanced • M & A transaction premiums d
Slide 18: Regional Location Map
Regional Location Map NICOLE Veins – Stockwork and Porphyry CERRO PELON Intermediate Sulpidation Epithermal CULIACAN METATES SAN JAVIER Disseminated and Stockwork LUCY El Paso Plant Skarn and Porphyry CRISY Quartz Breccia Veins LORETOS Porphyry Cu - Mo SPANIARD DURANGO Au –Ag Veins LEGEND Goyo Regio
Slide 19: Nicole
Nicole 135 m of 0.8 g/t Au, 16 g/t Ag, 0.7 % Zn 135 m of 0.8 g/t Au, 16 g/t Ag 0.7 % Zn 1 Km Anomaly 19
Slide 20: Lucy Prospect
Lucy Prospect • Gold-silver-zinc-copper skarn Significant Drill Results outcrops over 3.5 km by 1.5 km area From To Width Au Ag • Drilling confirmed near surface Hole (m) (m) (m) g/t g/t Cu % Zn % polymetallic mineralized bodies L-02 23 45 22 0.33 3.0 0.03 1.45 • Geophysics and geology indicate pote
Slide 21: Goyo Prospect
rospect ee nhac Goyo P a | a \ Hydrothermal Breccia
Slide 22: Crisy Prospect
Crisy Prospect @ Channel Samples —— aoe rll Under Exploration . ¥ ‘Ma oe oa ‘ L--- | <a al ¢ —. a 7 7 eo) Under Exploration ante Bs “2 A Er. oe ree geil 2 Km 10 m of 1.4 g/t Au 9.0 git Ag Quartz Breccia Veins © Channel Samp ° Under Sampling 14 m of 2.0 g/t Au Alteration 43 git Ag S24 m of 1.5 git Au
Slide 23: Talapoosa Project, Nevada (75%)
Talapoosa Project, Nevada (75%)1 Open pit resource 1.2 million ozs gold and 16 million ozs of silver Preliminary Economic Assessment2 Mine Operation3 Open pit, heap leach Mine Life 11 years Annual Gold Production 55,000 oz Annual Silver Production 679,000 oz All-In Sustaining Cost $599/oz Initial
Slide 24: Talapoosa Resource Estimate
Talapoosa Resource Estimate1 Gold Gold Silver Silver Measured and Tonnes (g/t)2 (oz) (g/t) (oz) Indicated Resource Measured 15,577,070 1.23 618,468 16.95 8,489,086 Unoxidized 850,200 ozs Au Indicated 12,785,400 0.96 394,334 12.55 5,160,273 11,330,000 ozs Ag Measured 28,362,470 1.11 1,012,802 14.97 1
Slide 25: Talapoosa Exploration Upside
Talapoosa Exploration Upside Appaloosa Zone • 7 km long by 1 km wide • District scale complex of coincident W-NW striking structures, cross-faults, volcanic rocks and dikes • Outcroping sinter and eruption breccias • Grap sample up to 60g/t Au, 5 metre channel @12g/t Au • Richard Sillitoe’s observat
Slide 26: Tatatila Project, Veracruz
Tatatila Project , Veracruz • Tatatila – Las Minas District hosts gold– copper skarns similar to the Torex Gold deposit in The Guerrero Gold Belt • Seven skarn prospects around Mexican Gold Las Minas deposit including possible extension of existing resource • Under-explored mineral region with multi
Slide 27: Tatatila Map and Prospects
Tatatila Map and Prospects 27
Slide 28: Proven and Probable Reserves 2018 Year-End (Million Ozs)
Proven and Probable Reserves 2018 Year-End (Million Ozs) 65 62 53 26 22 18 13 Newmont Barrick Goldcorp Kinross Agnico-Eagle Metates Yamana Axis Title Source: 2018-2019 Company Disclosures 28
Slide 29: Undeveloped Deposits in the Americas
Undeveloped Deposits in the Americas >500,000 oz Annual Production Donlin 1200 Metates (Nova Gold) (Chesapeake) Annual Gold/Silver Equivalent Production (koz) 1000 Pebble (Northern Dynasty) 800 KSM (Seabridge) Livengood (International Tower) 600 400 200 0 -$250 $0 $250 $500 $750 $1,000 LOM Net Cash
Slide 30: Opportunities and Next Steps
Opportunities and Next Steps • World class deposits are few - new grassroot discoveries are scarce • Several district scale gold and polymetallic projects being developed near Metates and proposed process plant • Advance Tatatila’s gold-copper skarn prospects to drill stage • Monetize Nevada Talapoo
Slide 31: For More Information Contact
For More Information Contact Head Office: USA Project Office: Mexico Office: P. Randy Reifel, President Gary Parkison, VP Development Alberto Galicia, VP Exploration Suite 201-1512 Yew Street 1194 Silverheels Drive Cerro Blanco #410, Lomas De Sahuatoba Vancouver, BC V6K 3E4 Larkspur, Colorado, USA 8