Contango Silver & Gold Inc. · AMEX:CTGO
Contango Silver & Gold — Contango ORE — Red Cloud Octoberfest 2020
28 slides from Contango Silver & Gold's conference presentation, October 2020
Slide 1: Investor Presentation – Red Cloud Octoberfest
INVESTOR PRESENTATION Red Cloud Octoberfest OCTOBER, 2020
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT This presentation contains forward-looking statements regarding CORE that are intended to be covered by the safe harbor "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995, based on CORE’s current expectations and includes statement
Slide 3: Cautionary Note Regarding Estimates of Resources; Non-GAAP Measures
CAUTIONARY NOTE REGARDING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES The Preliminary Economic Assessment (“PEA”) referenced herein was prepared in accordance with Canadian National Instrument 43-101 (NI 43-101). CORE is not subject to regulation by Canadian regulatory authorities and no
Slide 4: Peak Gold Project
PEAK GOLD PROJECT NEAR-TERM PRODUCTION POTENTIAL VALUE PROPOSITION EXPLORATION UPSIDE Entered into 70/30 JV agreement with Kinross to form Strong management that has created significant Significant exploration upside on 30% owned new Peak Gold JV; Royal Gold retains royalty; value for shareholders:
Slide 5: Officers & Directors
OFFICERS & DIRECTORS • OFFICERS • Rick Van Nieuwenhuyse – President and CEO • Leah Gaines – CFO • DIRECTORS • Brad Juneau (Chairman) • Joseph S. Compofelice • Joseph G. Greenberg • Richard A. Shortz • Rick Van Nieuwenhuyse STRONG MANAGEMENT WITH PROVEN TRACK RECORD Successful track record of finding
Slide 6: Corporate Overview
CORPORATE OVERVIEW • Sufficient cash to meet projected 2 year construction decision • Planned budget expected to be <US$5M per annum for Contango ORE • Tight Share Structure • Contango ORE could expect strong cash flow per share (CFPS) starting in 2024 assuming construction decision made CAPITAL STR
Slide 7: Peak Gold Deposit Estimated Production
PEAK GOLD DEPOSIT ESTIMATED PRODUCTION 100% basis 30% basis (100% basis) 250,000 200,000 150,000 100,000 50,000 AISC = $750/GEO1 - PERMITTING 2021 & FEASIBILITY 2022 2023 1 YEAR 2024 2 YEAR 20253 YEAR 2026 4 YEAR 2027 5 YEAR Production produciton of Gold Equivalent Ounces (GEO Au+Ag) (oz AuEq) 1 Bas
Slide 8: Peak Gold Estimated Cash Flow & CFPS
PEAK GOLD ESTIMATED CASH FLOW & CFPS (US$) (CFPS sensitivity (lines) & Absolute (bars) - US$) $400,000,000 $16.00 $350,000,000 $14.00 $300,000,000 $12.00 After Tax Cash Flow (US$) Cash flow per share (US$) $250,000,000 $10.00 $200,000,000 $8.00 $150,000,000 $6.00 $100,000,000 $4.00 $50,000,000 $2.00
Slide 9: Peak Gold Project Economics
PEAK GOLD PROJECT ECONOMICS Model Assumptions: • Using existing infrastructure, the Peak Gold JV expects faster permitting to allow for a 2024 start date US$ NAVPS Sensitivity to Gold Price (US$/oz)2 • Existing infrastructure expected to lower total capital 0% NAVPS 5% NAVPS 10% NAVPS project IRR% r
Slide 10: Peak Gold Project Location
PEAK GOLD PROJECT LOCATION The project is located 15 kms (10mi) from the Alaska Hwy and 400km (250 mi) to the Fort Knox Milling Complex
Slide 11: Asset Summary
ASSET SUMMARY 100% 30% 70% Peak Gold JV State Claims Peak Gold Project (170,000 Acres) (675,000 Acres) Contango is a 30% owner of the Peak Gold JV with Kinross owning the remaining 70% and acting as project operator The Peak Gold project consists of a ~675,000 acres land package Ore will be tr
Slide 12: Peak Gold JV Project Highlights
PEAK GOLD JV PROJECT HIGHLIGHTS • Processing ore from the Peak Gold Project at Fort Knox avoids mill construction and is expected to decrease execution risk, lower capital expenditures, drive attractive returns, and reduce the project’s environmental footprint and permitting requirements. • Leverage
Slide 13: Peak Gold Deposit – M&I Resources
PEAK GOLD DEPOSIT – M&I RESOURCES 9.2 M Tonnes @ 4.1 g/t Gold for 1.2 Million Ounces of Contained Gold 13
Slide 14: Peak Gold JV Project Highlights Cont.
PEAK GOLD JV PROJECT HIGHLIGHTS CONT • Peak Gold JV has commenced a $3.6 million infill, geotechnical and metallurgical drilling program to advance feasibility and permitting studies. • Initial permitting activities are expected to commence in parallel with the drilling program. OPEN • Peak Gold JV
Slide 15: Peak Gold Project and Surrounding Targets
PEAK GOLD PROJECT AND SURROUNDING TARGETS
Slide 16: Peak Gold Project and Surrounding Targets
PEAK GOLD PROJECT AND SURROUNDING TARGETS North Peak Main Peak
Slide 17: Exploration Upside
EXPLORATION UPSIDE PEAK GOLD JV LANDS • 675,000 Acres of Exploration Lands with multiple targets • Peak Gold’s exploration on the Tetlin Lands has been limited except for the areas around the identified deposits where there is an extensive database. • Specifically, there has only been minor explorat
Slide 18: Lower Risk & Reduced Timeline to Production Decision
LOWER RISK & REDUCED TIMELINE TO PRODUCTION DECISION • Initial permitting activities are expected to commence in parallel with the drilling; • Peak Gold JV expects to complete permitting • Infill, geotechnical and metallurgical and a feasibility study by the end of 2022; drilling program in 2020; •
Slide 19: Management and Partner Quotes
“The relatively high-grade, low-cost Peak Gold project is an excellent addition to our portfolio, as it allows us to leverage our existing mill and infrastructure at Fort Knox and strengthens our medium-term production and cash flow profile. In today’s gold price environment, Peak Gold is an attract
Slide 20: Executive Summary
DEVELOPING ALASKA’S NEXT GOLD MINE EXECUTIVE SUMMARY IN PARTNERSHIP WITH KINROSS AND THE TETLIN ALASKA NATIVE TRIBE • Contango ORE, Inc. is a gold development and exploration company with the goal to develop Alaska’s next producing gold mine • The Company is the 30% owner of the Peak Gold JV with Ki
Slide 21: Investment Opportunity
INVESTMENT OPPORTUNITY WHY INVEST NOW?
Slide 22: Thank You
THANKYOU :
Slide 23: Corporate Inquiries
OTCQB:CTGO Corporate Inquires: info@contangoore.com +1-778-386-6227 www.contangoore.com Twitter: @orecontango LinkedIn: Contango ORE Instagram: ContangoORE Facebook: Contango ORE
Slide 24: Appendix – Non-GAAP Reconciliation Disclaimer
APPENDIX NON-GAAP RECONCILIATION DISCLAIMER This presentation contains forward looking estimates of all-in sustaining cost (“AISC”), resources and EBITDA, which are a financial measures not determined in accordance with United States generally accepted accounting principles (“GAAP”). We cannot provi
Slide 25: Triple Z Prospect: Geochemistry, MAG Low and Resistivity High
Triple Z Prospect: Coincident Triple Z Prospect Multi-element Geochemistry MAG Low and Resistivity High
Slide 26: Triple Z Prospect: Geochemistry and 3D IP Chargeability
Triple Z Prospect: Coincident Triple Z Prospect Multi-element Geochemistry and 3D IP Chargeability + Resistivity + Drilling
Slide 27: Hona Prospect – Coincident Mag-VTEM with Geochemistry
Hona Prospect – Multiple, Coincident Mag-VTEM with Geochemistry and Favorable Porphyry/IRG Geology Hona Prospect
Slide 28: Strong Multiple-Element Geochemistry on Dome and Eagle
Dome and Eagle Strong Multiple-Element Geochemistry Prospects on Dome and Eagle Target Areas