Chesapeake Gold Corp. · TSXV:CKG
Chesapeake Gold — Investor Presentation (May 2024)
32 slides from Chesapeake Gold's investor presentation, May 2024
Slide 1: Corporate Presentation May 2024
CORPORATE PRESENTATION MAY 2024 CKG: TSX.V CHPGF: OTCQX
Slide 2: Cautionary Notes
Cautionary Notes Cautionary Note Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Canadian securities legislation. Such forward-looking statements include, without limitation, statements with respect to: the economic and project param
Slide 3: Cautionary Notes
Cautionary Notes Cautionary Note Regarding Mineral Resource Estimates The PEA was prepared and filed by the Company and can be accessed under the Company's SEDAR+ profile at www.sedarplus.ca or on the Company's website at https://chesapeakegold.com/. The PEA was prepared in accordance with National
Slide 4: Chesapeake Gold Investment Highlights
Chesapeake Gold Investment Highlights ▪ New Oxide Gold Discovery at the Lucy Project • 2023 drilling intercepted 6.1g/t gold over 24m from surface1 • One of several holes delineating a 500m zone of mineralized skarn Talapoosa ▪ Metates – A Re-Invented Story ▪ Size & Leverage: One of the world’s larg
Slide 5: Lucy Project – New Gold Discovery
Lucy Project – New Gold Discovery 1 Drilling Returned 6.1g/t Gold over 24 metres from Surface ▪ Lucy project in central Sinaloa, Mexico, comprises 483ha and is located within 5km of a paved highway ▪ The recent 1,710m drilling campaign discovered a northeast trending zone of skarn of at least 500m i
Slide 6: Lucy Project – Up to 97% Gold Recoveries
Lucy Project – New Gold Discovery 1 Up to 97% Gold Recoveries Achieve in Preliminary Met. Work ▪ The initial metallurgical test work consisted of 4 holes selected across the Lucy mineralized corridor; each hole was then sampled as a unique composite ▪ The results of this initial test work support th
Slide 7: Metates – A Re-Invented Story
Metates – A Re-Invented Story Not How You Remember It → Waking A Sleeping Giant PAST (2016 PFS) CURRENT (2021 PEA) Intrusive / Sedimentary M&I ~19Moz Au & 503Moz Ag Contained M&I ~17Moz Au & 423Moz Ag Contained 1 ✓ TOTAL RESOURCE Inf. ~1Moz Au & 16Moz Ag Contained Breccia Maintains Inf. ~2Moz Au & 5
Slide 8: Reduced GHG Emissions & Water Consumption
Metates – A Re-Invented Story Reduced GHG Emissions & Water Consumption ▪ Will produce “Green Gold” as when compared to conventional processes: • Utilizes less water; • Reduces power consumption and pollution; and • Eliminates the need for a tailings dam ▪ Leading to a simplified permitting process
Slide 9: Waking A Sleeping Giant
Metates Waking A Sleeping Giant ▪ One of the world’s largest undeveloped gold- silver deposits1,2,3 Intrusive / Sedimentary • Well-defined resource Breccia • 921.2Mt in the Measured and Indicated Mineral Resource category with 16.8Moz gold (0.57 g/t) and 423Moz silver (14.3 g/t) Massive • A further
Slide 10: Targeting Higher Grade
Metates Targeting Higher Grade ▪ 2021/22 drilling confirms higher grade intrusive • Assay grade and intercepts better than expected, >18% improvement in grade CKG: TSX.V | CHPGF: OTCQX PAGE 10
Slide 11: 2023 Updated Resource Estimate
Metates 1 2023 Updated Resource Estimate ▪ Incorporates all 2021 and 2022 drilling results ▪ 15.8% increase in gold grade of Intrusive and Intrusive Breccia zone Gold Eq. Gold Silver Gold Silver Resource Category Mtonnes (g/t) (g/t) (g/t) (Moz) (Moz) Measured Mineral Resource 31.1 1.10 0.86 18.1 0.8
Slide 12: Encouraging Results from Metallurgical Testwork
Encouraging Results from Metallurgical Testwork1 Sulphide Leach Technology Update Metallurgical work has continued to investigate various parameters to accelerate the oxidation kinetics and the oxidation rate of the sulphide leach technology The new conditions are showing very encouraging oxidation
Slide 13: Mineralogical Investigation / Phase 3 Met Update
Metates Mineralogical Investigation1 Phase 3 Met Update 2 1. Chesapeake announces metallurgical testwork update news release dated September 6, 2023. 2. Marcasite. (2023, September 1). Encyclopædia Britannica. https://www.britannica.com/science/marcasite#/media/1/364089/119889 CKG: TSX.V | CHPGF: OT
Slide 14: 2021 PEA Simple Flowsheet
Metates 2021 PEA Simple Flowsheet Source: Metates Suphide Heap Leach Project Phase 1, Amended NI 43-101 Technical Report Preliminary Economic Assessment with an effective date of December 15, 2022, and dated January 13, 2023. . CKG: TSX.V | CHPGF: OTCQX PAGE 14
Slide 15: 2021 PEA Site Layout – Overlain by Proof of Concept Results
Metates 2021 PEA Site Layout – Overlain by Proof of Concept Results Infrastructure: ▪ Compact Layout ▪ All Infrastructure onsite ▪ Location identified for Ph 2 oxidation pad ▪ Final Pad Sized for 100% of Intrusive Proof of Concept Results: ▪ Sulphide Oxidative Leach • 30% oxidized in 128 days ▪ Cyan
Slide 16: 2021 PEA Financial Summary
Metates 2021 PEA Financial Summary ▪ 2021 PEA: Smaller expandable LOM Metrics (Base Case) ‘starter’ project Initial Capex US$mm 359 Sustaining (incl. Closure) Capex US$mm 176 Throughput K tpd 15 • LOM Operating Cash Flow: Gold Grade Silver Grade g/t g/t 0.76 15.71 C$3.5bn Gold Recovery % 70 Silver R
Slide 17: 2021 PEA Sensitivities
Metates 2021 PEA Phase 1 Sensitivities ▪ Compelling project economics & significant leverage to gold and silver prices Table 1: C$mm Pre-Tax NPV(5%) Sensitivity Analysis: Au & Ag Prices Gold Price (US$/oz) 1,400 1,600 1,800 2,000 2,200 20 $1,005 $1,345 $1,685 $2,025 $2,365 Silver Price (US$/oz) 22 $
Slide 18: Significantly Undervalued
Chesapeake Gold Significantly Undervalued Enterprise Value / Au-Ag Equivalent oz (US$) ✓ Team That Delivers $128 ✓ Innovative Technology $123 ✓ Massive, Scalable R&R Strong re-rating potential $52 $51 $49 Peer Group Average: $54/oz $11 $11 $6 $3 Osisko Mining Artemis Gold Novagold Perpetua Orezone G
Slide 19: Superior Leverage To Precious Metal Prices
Chesapeake Gold Superior Leverage To Precious Metal Prices AuEq. Ounces per Common Share Outstanding 0.46 Metates Ranks #1 amongst peers on a gold-silver equivalent ounce per share outstanding basis, providing superior leverage to a high gold & silver price environment 0.12 0.08 Peer Group Average:
Slide 20: Added to the Nasdaq Metals Focus Silver Miners Index
Chesapeake Gold Added to the Nasdaq Metals Focus Silver Miners Index ▪ Chesapeake recently joined its first index, our selection to this silver index is further recognition of our progress and achievements at Metates Metates is one of the world’s largest undeveloped gold-silver deposits1 1. Mexico’s
Slide 21: Summary and Upcoming Catalysts
Chesapeake Gold Summary and Upcoming Catalysts ▪ Lucy Project – Sinaloa, Mexico ▪ Oxidative Leach Technology New oxide gold discovery starting at surface Faster Oxidative solution Identified in 2023 Mineralized skarn has been delineated over 500m Unlocks global refractory gold deposits and is still
Slide 22: Appendix
Appendix Mexico’s Largest Undeveloped Gold and Silver Deposit1 1. Mexico’s biggest undeveloped gold deposits Published: Bnamericas -Tuesday, November 24, 2020 CKG: TSX.V | CHPGF: OTCQX 22
Slide 23: Precious Metal vs Copper Heap Leach Process
Precious Metal vs Copper Heap Leach Process1 ▪ With the oxidation process, a key variable is 100% the relationship between % of sulphides oxidized and final Au / Ag recoveries • High levels of oxidation required to achieve economic levels of metal recovery would have meant higher costs due to more t
Slide 24: Testwork and Future Oxidation Studies
Metates Testwork and Future Oxidation Studies ▪ Preliminary testing confirms Metates mineralization oxidizes and releases gold and silver enabling metal recoveries in a typical CN / lime Heap Leach • Going forward, full test work program with fresh material is planned to determine appropriate operat
Slide 25: 2021 PEA Capital Cost Improvements
Metates 2021 PEA Capital Cost Improvements Summary of Capital Costs (US$000’s) ▪ Dramatically Lower Capital Cost: Metates Site: Mining Equipment & Mine Development $18,713 • A ~90% reduction in capex when Crushing & Conveying $36,104 compared to the 2016 PFS Ponds & Pads $28,404 Reagent/Regeneration
Slide 26: 2021 PEA Summary Operating Cost
Metates 2021 PEA Summary Operating Cost LOM Average Cost LOM US$/Au Oz. US$/t processed Metates Site Mining (including rehandle and equipment lease costs) $7.51 $441.70 Processing (Crushing, Stacking, Oxidation, Leach, Merrill-Crowe) $8.05 $473.65 Site Support $1.41 $82.69 Profit Sharing $1.32 $77.7
Slide 27: 2021 PEA Production Profile
Metates 2021 PEA Phase 1 Production Profile Gold-Silver Equivalent Production Profile 180 Au-Ag Eq. Production (k oz) 160 140 120 100 80 60 40 20 - Payable Au Ozs Payable Ag Ozs Gold-Silver Grade Profile 1.40 70.00 1.20 60.00 Au Grade (g/t) Ag Grade (g/t) 1.00 50.00 0.80 40.00 0.60 30.00 0.40 20.00
Slide 28: Management & Board
Chesapeake Gold Management & Board Management Directors P. Randy Reifel P. Randy Reifel Executive Chairman, 36 years experience Former Francisco Gold CEO, Glamis and Goldcorp director Jean-Paul Tsotsos Alan Pangbourne Interim Chief Executive Officer, +15 years of Former Chesapeake Gold and Guyana Go
Slide 29: Notes
Notes CKG: TSX.V | CHPGF: OTCQX PAGE 29
Slide 30: Notes
Notes CKG: TSX.V | CHPGF: OTCQX PAGE 30
Slide 31: Notes
Notes CKG: TSX.V | CHPGF: OTCQX PAGE 31
Slide 32: For More Information Contact
For More Information Contact: Head Office: Mexico Office: USA Project Office: Suite 201 – 1512 Yew Street Cerro Blanco #410, Lomas De Sahuatoba 1194 Silverheels Drive Vancouver BC V6K 3E4 Durango, Mexico, CP 34108 Larkspur, Colorado, USA 80118 Phone: +1 778 731 1362 Phone: 52-618-130-2326 Phone: 720