Chesapeake Gold Corp. · TSXV:CKG
Chesapeake Gold — Investor Presentation (January 2021)
27 slides from Chesapeake Gold's investor presentation, Jan 18, 2021
Slide 1: CKG: TSX.V CHPGF: OTCQX January 2021
CKG: 1 TSX.V CHPGF: OTCQX January 2021
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: Chesapeake Investment Highlights
Chesapeake Investment Highlights ⚫ Strong Leadership: Experienced management with successful, proven track record of large scale mine construction, novel process implementation, M&A ⚫ Size & Leverage: One of the world’s largest undeveloped gold-silver reserves1 >30 year mine life ◼ 2P Reserves of >1
Slide 4: Metates: Waking A Sleeping Giant
Metates: Waking A Sleeping Giant ⚫ One of the world’s largest undeveloped gold- silver-zinc projects with P&P reserves1 Intrusive / Sedimentary ◼ >18 million ozs gold (0.6 g/t) Breccia ◼ >500 million ozs silver (14.9 g/t) ◼ >4 billion lbs zinc (0.16%) Massive ◼ Life of mine low strip ratio 1:1 Intru
Slide 5: Metates: Among The Largest Au-Ag Projects
Metates: Among The Largest Au-Ag Projects1 60 54.1 ✓ Good grade ✓ No pre-stripping & low 50 8.5 45.0 LOM strip ratio Moz Metates2 MI&I Resources (Moz Au-Ag Eq.) ✓ Expansions funded via higher grade heap 25.8 40 leach starter operation Moz Large Resource 27.0 30 25.8 Peer Average 17.3 20 13.7 12.3 11
Slide 6: Metates: Among The Largest Silver Projects
Metates: Among The Largest Silver Projects Silver MI&I Resources (mm oz) 632 553 526 526 408 311 Pan American South 32 Silver Standard Chesapeake Levon Bear Creek Navidad Hermosa Pitarilla Metates1 Cordero Corani Source: Company Disclosures 6 1. Metates Gold-Silver Project NI 43-101 Technical Report
Slide 7: Metates: 2P Reserves vs Large Producers
Metates: 2P Reserves vs Large Producers 2019 Gold-Silver Equivalent 2P Reserves (mm oz) 52.5 44.5 25.2 25.1 22.1 20.5 17.6 6.5 Newcrest AngloGold Metates1 Kinross Agnico-Eagle Kirkland Lake Yamana B2Gold Source: Company Disclosures 7 1. Metates Gold-Silver Project NI 43-101 Technical Report Updated
Slide 8: Acquisition of Alderley Gold Corp.
Acquisition of Alderley Gold Corp. Chesapeake’s Business Rationale For Acquiring Alderley ✓Acquired Innovative Sulphide Heap Leach Technology ✓Highly Experienced Team of Proven Mine Builders to Management and Board ◼ New Management and Board additions bring over 60 years experience building and oper
Slide 9: Key Management Team Additions
Key Management Team Additions Alan Pangbourne – CEO & Director ⚫ >70 years experience working with the largest companies in the mining ⚫ >35 years of experience in mining operations; most recently President & CEO of Guyana Goldfields Inc. (sold space. to Zijin Mining Group Co., Ltd. for a 378% premi
Slide 10: Technology Background
Technology Background The copper industry has been oxidizing and heap leaching sulphides for decades ⚫ Recently similar concepts introduced to the precious metals industry that allow for the oxidizing and leaching of transitional and sulfidic material in a heap leach application ◼ Extensively tested
Slide 11: 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 12: Metates Testwork and Future Oxidation Studies
Metates Testwork and Future Oxidation Studies ⚫ Preliminary testing confirms Metates ore 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 in columns is planned to determine appropriate operat
Slide 13: Simplified Processing
Simplified Processing Existing Autoclave Flowsheet Proposed Heap Leach Flowsheet 13
Slide 14: Significantly Lower Initial Capex
Significantly Lower Initial Capex ⚫ The shift away from an autoclave process and towards a heap leach operation is expected to greatly reduce initial capital cost requirements / shareholder dilution ◼ To illustrate, we can observe the capital intensity of various autoclave projects vs. that of heap
Slide 15: Significantly Lower Operating Costs
Significantly Lower Operating Costs ⚫ Also expecting a similar decrease in ongoing operating costs, as heap leach projects are significantly simpler than autoclave operations ◼ To illustrate, we can observe the LOM processing costs of various autoclave projects vs. that of heap leach operations LOM
Slide 16: Environmental & Permitting Advantages
Environmental & Permitting Advantages ⚫ Sulfide heap leach technology provides opportunities to strategically improve the project economics of certain large scale, marginal deposits, while also reducing their planned environmental footprints in an era of intense ESG focus ⚫ Will produce ‘green gold’
Slide 17: Reduced GHG Emissions & Water Consumption
Reduced GHG Emissions & Water Consumption ⚫ For Metates, the shift away from an autoclave process towards a heap leach operation means an order of magnitude reduction in future CO2 emissions and water consumption ◼ To illustrate these environmental benefits, we can observe Barrick Gold’s reported 20
Slide 18: Permitting In Durango State
Permitting In Durango State ⚫ Overall, permitting in Mexico is straightforward and governed by mandated processing timeframes ◼ Based on current information, a permitting timeframe of 18 months is considered reasonable for Metates ⚫ Federal laws regulate mining in Mexico, with some aspects subject t
Slide 19: Strong Community Relations
Strong Community Relations ⚫ Chesapeake’s management (formerly Francisco Gold) has been operating in Mexico since 1994 ⚫ Strong relationship with the Metates community for over 14 years ⚫ Exploration agreement in place to carry out the Road Construction Meeting 2020 Covid19 times various studies on
Slide 20: Work Timeline & Key Catalysts
Work Timeline & Key Catalysts Steady stream of catalysts and de-risking events for CKG over next 2-3 years Year: 2021 2022 2023 2024 2025 2026 Quarter: Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Corporate CKG Team Additions Construction Financing Metates Development Bulk
Slide 21: Capital Structure & Shareholder Distribution
Capital Structure & Shareholder Distribution Capital Structure Share Price TSX Venture, OTCQX, symbol CKG, CHPGF Recent Share Price C$5.60 Share Price (52 week range) C$1.40 - $7.61 Basic Shares Outstanding (mm) 66.3 Market capitalization (basic) C$371 million Capital Position Shareholder Distributi
Slide 22: Chesapeake: Significantly Undervalued
Chesapeake: Significantly Undervalued Enterprise Value / Au-Ag Equivalent oz (US$) ✓ Team That Delivers $142 ✓ Innovative Technology ✓ Massive, Scalable R&R $117 $112 Strong re-rating potential $70 $66 Peer Group Average: $65/oz $46 $42 $36 $11 $10 Novagold Osisko Sabina Midas Corvus Belo Sun Artemi
Slide 23: Appendix
Appendix: ES 18. > ™ 526 MILLION OZ SILVER 4.2 BILLION LB ZINC METAT Na Mexico's Largest Undeveloped Gold and Silver Deposit
Slide 24: Management and Board
Management and Board Management Directors P. Randy Reifel P. Randy Reifel President & Chairman, 36 years experience Former Francisco Gold CEO, Glamis and Goldcorp director Alan Pangbourne Alan Pangbourne Chief Executive Officer, 35 years experience Former Guyana Goldfields CEO; SSR Mining COO; Kinro
Slide 25: Talapoosa Resource Estimate
Talapoosa Resource Estimate1 Measured and Tonnes Gold Gold Silver Silver Indicated Resource (g/t)2 (oz) (g/t) (oz) Unoxidized Measured 15,577,070 1.23 618,468 16.95 8,489,086 850,200 ozs Au 11,330,000 ozs Ag Indicated 12,785,400 0.96 394,334 12.55 5,160,273 Measured & 28,362,470 1.11 1,012,802 14.97
Slide 26: 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 • Outcropping sinter and eruption breccias • Grap sample up to 60g/t Au, 5 metre channel @12g/t Au • Richard Sillitoe’s observa
Slide 27: For More Information Contact:
For More Information Contact: Head Office: USA Project Office: Mexico Office: Suite 201-1512 Yew Street 1194 Silverheels Drive Cerro Blanco #410, Lomas De Sahuatoba Vancouver, BC V6K 3E4 Larkspur, Colorado, USA 80118 Durango, Mexico, CP 34108 Phone: 604-731-1094 Phone: 720-308-1113 Phone: 52-618-130
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