Chesapeake Gold Corp. · TSXV:CKG
Chesapeake Gold — Investor Presentation (July 2021)
18 slides from Chesapeake Gold's investor presentation, Jul 26, 2021
Slide 1: Metates 2021 PEA Phase 1
Z Y, ast >> < CHESAPEAKE GOLD CORP. Metates 2021 PEA Phase 1 Financeable, Deliverable & Expandable CKG: TSX.V CHPGF: OTCQX July 2021
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. These include, without limitation, statements with respect to: the economic and project parameters presented in the PEA
Slide 3: Metates: Waking A Sleeping Giant
Metates: Waking A Sleeping Giant ⚫ One of the world’s largest undeveloped gold- silver deposits1 Intrusive / Sedimentary ◼ Well defined orebody Breccia – 1,365 million tonne resource with >20 million ozs gold (0.5 g/t) – >550 million ozs silver (13 g/t) Massive – 28.1 million ozs gold-silver equival
Slide 4: Metates Resource Estimate
Metates Resource Estimate ⚫ The Metates project in Mexico is one of the largest, undeveloped disseminated gold and silver deposits in the world ⚫ The PEA only focuses on the higher-grade intrusive portion of the Metates orebody, which represents <20% of the total mineral endowment. Gold Eq. Gold Sil
Slide 5: Targeting Higher Grade
Targeting Higher Grade1 ⚫ 2021 drilling confirms higher grade intrusive ◼ 5 hole fence over 500m confirms general geology and mineralization ◼ Assay grade and intercepts better than expected, >18% improvement in grade, 2 of the best holes ever drilled at Metates 1. See Chesapeake Gold’s June 28, 202
Slide 6: Phase 1 Metates Cross Section
Phase 1 Metates Cross Section Source: Metates Gold-Silver Project NI 43-101 Technical Report 2021 PEA. 6
Slide 7: Site Layout
Site Layout • Compact Layout • All Infrastructure onsite • Location identified for Ph 2 oxidation pad • Final Pad Sized for 100% of Intrusive Source: Metates Gold-Silver Project NI 43-101 Technical Report 2021 PEA. 7
Slide 8: PEA Flowsheet
PEA Flowsheet Source: Metates Gold-Silver Project NI 43-101 Technical Report 2021 PEA. 8
Slide 9: 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 10: Capital Cost Improvements
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 compared Crushing & Conveying $36,104 to the 2016 PFS Ponds & Pads $28,404 Reagent/Regeneration System $11,677 M
Slide 11: Summary Operating Cost
Summary Operating Cost LOM Average Cost LOM US$/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 $77.74 Total Operating
Slide 12: Phase 1 Production Profile
Phase 1 Production Profile Gold-Silver Equivalent Production Profile 180 Au-Ag Eq. Production (k oz) 160 140 120 100 80 60 40 20 - Payable Au Ozs Payable Ag Ozs Gold-Silver Grade Profile 1.40 70.00 1.20 60.00 Au Grade (g/t) Ag Grade (g/t) 1.00 50.00 0.80 40.00 0.60 30.00 0.40 20.00 0.20 10.00 - - Go
Slide 13: Phase 1 Financial Summary
Phase 1 Financial Summary ⚫ 2021 PEA: Smaller expandable ‘starter’ LOM Metrics (Base Case) project Initial Capex US$mm 359 ◼ LOM Operating Cash Flow: C$3.5bn Sustaining (incl. Closure) Capex US$mm 176 Throughput K tpd 15 ◼ Avg. Operating Cash Flow: C$110mm Gold Grade g/t 0.76 Silver Grade g/t 15.71
Slide 14: Phase 1 Sensitivities
Phase 1 Sensitivities ⚫ Compelling project economics & significant leverage to gold and silver prices Table 1: C$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 22 $1,087 $1,427 $1,767 $2,107
Slide 15: Optimization Opportunities & Next Steps
Optimization Opportunities & Next Steps ⚫ Opportunities: ◼ Expandable ‘starter’ operation: The smaller 15k tpd starter operation conservatively excludes opportunities to scale beyond the ‘starter case’ and bring future production forward, shortening the initial 31-year mine life ◼ Potential For High
Slide 16: Chesapeake: Significantly Undervalued
Chesapeake: Significantly Undervalued Enterprise Value / Au-Ag Equivalent oz (US$) $109 ✓ Team That Delivers ✓ Innovative Technology $96 ✓ Massive, Scalable R&R $87 Strong re-rating potential $54 Peer Group Average: $52/oz $46 $44 $43 $24 $11 $7 Novagold Osisko Mining Corvus Sabina Perpetua Orezone
Slide 17: Chesapeake Investment Highlights
Chesapeake Investment Highlights ⚫ Size & Leverage: One of the world’s largest undeveloped gold-silver deposits ◼ >20mm oz Au and >550mm oz Ag ⚫ Higher Grade Core Identified in 2021 ⚫ Innovative & Tested Technology: Dramatically lowers capital outlay and greatly reduces environment footprint, produc
Slide 18: 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