Chesapeake Gold Corp. · TSXV:CKG
Chesapeake Gold — Investor Presentation (March 2021)
29 slides from Chesapeake Gold's investor presentation, Mar 25, 2021
Slide 1: CKG: TSX.V CHPGF: OTCQX March 2021
CKG: 1 TSX.V CHPGF: OTCQX March 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 ⚫ Size & Leverage: One of the world’s largest undeveloped gold-silver reserves1 ◼ 2P Reserves of >18mm oz Au and >500mm oz Ag ◼ Life of Mine Strip Ratio 1:1 ⚫ Innovative & Tested Technology: Dramatically lowers capital outlay and greatly reduces environment footprint
Slide 4: Capital Structure & Shareholder Distribution
Capital Structure & Shareholder Distribution Capital Structure Share Price TSX Venture, OTCQX, symbol CKG, CHPGF Recent Share Price C$4.04 Share Price (52 week range) C$1.40 - $7.61 Basic Shares Outstanding (mm) 67 Market capitalization (basic) C$271 million Capital Position Shareholder Distribution
Slide 5: 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 ◼ Well defined orebody Breccia – >18 million ozs gold (0.6 g/t) – >500 million ozs silver (14.9 g/t) – >4 billion lbs zinc (0.16%) Massive ◼ Life of mine lo
Slide 6: 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 7: Metates: Among The Largest Silver Projects
Metates: Among The Largest Silver Projects Silver Only MI&I Resources (mm oz) 632 614 595 552 526 515 489 402 369 360 332 314 304 241 237 203 197 191 Source: Company Disclosures 7 1. Metates Gold-Silver Project NI 43-101 Technical Report Updated Pre Feasibility Study dated April 29, 2016.
Slide 8: 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 8 1. Metates Gold-Silver Project NI 43-101 Technical Report Updated
Slide 9: 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 10: 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 11: 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 allow for the oxidizing and leaching of transitional and sulfidic material in a heap leach application ◼ Extensively tested and
Slide 12: Copper Sulphide Oxidation Heap Leaching
Copper Sulphide Oxidation Heap Leaching The Spence and Cerro Colorado mines make up BHP's wholly-owned Pampa Norte copper mining operation in northern Chile, which produce >243,000t of copper annually ⚫ Alan Pangbourne was Project Manager for the Spence copper project which, when constructed, was th
Slide 13: 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 14: 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 15: Simplified Processing
Simplified Processing Existing Autoclave Flowsheet Proposed Heap Leach Flowsheet 15
Slide 16: Significantly Lower Initial Capex
Significantly Lower Initial Capex Initial Capex Intensity of Autoclave Projects vs Heap Leach1 (US$000’s/tpd capacity) Autoclave Peers Heap Leach Peers $138 $125 -91% $97 $87 $39 $18 $13 $12 $8 $8 $8 $8 $6 $5 $5 $3 Source: Company Disclosures 16 1. Peer data based on company disclosure, public filin
Slide 17: Significantly Lower Operating Costs
Significantly Lower Operating Costs Life of Mine Processing Costs of Autoclave Projects vs Heap Leach1 (US$/t processed) Autoclave Peers Heap Leach Peers $51 $47 -76% $38 $35 $17 $11 $11 $10 $9 $9 $9 $9 $8 $9 $7 $7 Source: Company Disclosures 17 1. Peer data based on company disclosure, public filin
Slide 18: 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 19: 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 20: 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 21: 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 22: 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 23: Chesapeake: Superior Leverage
Chesapeake: Superior Leverage Au-Ag Eq. Ounces per Common Share Outstanding 0.39 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 0.13 0.11 Peer Group Average: 0.08 ounces 0.07 0.04 0.0
Slide 24: Chesapeake: Significantly Undervalued
Chesapeake: Significantly Undervalued Enterprise Value / Au-Ag Equivalent oz (US$) $123 ✓ Team That Delivers ✓ Innovative Technology ✓ Massive, Scalable R&R $86 Strong re-rating potential $56 $49 $45 Peer Group Average: $47/oz $34 $33 $31 $12 $7 Novagold Osisko Sabina Corvus Perpetua Belo Sun Artemi
Slide 25: Appendix:
Appendix: ES 18. > ™ 526 MILLION OZ SILVER 4.2 BILLION LB ZINC METAT Na Mexico's Largest Undeveloped Gold and Silver Deposit
Slide 26: Appendix: Management and Board
Appendix: 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
Slide 27: Appendix: Talapoosa Resource Estimate
Appendix: 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 Indicated 12,785,400 0.96 394,334 12.55 5,160,273 Unoxidized M&I 28,362,470 1.11 1,012,802 14.97 13,649,358 850,200 ozs Au 11,
Slide 28: Appendix: Talapoosa Exploration Upside
Appendix: 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
Slide 29: 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