Chesapeake Gold Corp. · TSXV:CKG
Chesapeake Gold — Investor Presentation (April 2022)
31 slides from Chesapeake Gold's investor presentation, Apr 27, 2022
Slide 1: Investor Presentation April 2022
INVESTOR PRESENTATION APRIL 2022 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. These include, without limitation, statements with respect to: the economic and project parameters presented in the PEA
Slide 3: 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) ~18Moz Au Contained ~20Moz Au Contained Maintains Enormous ✓ TOTAL RESOURCE ~500Moz Ag Contained ~560Moz Ag Contained Resource ✓ PROCESSING Heap Leach Unlocks Flotation / POX Autoclave
Slide 4: 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 equivale
Slide 5: Metates 2021 Resource Estimate
Metates 2021 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. Gol
Slide 6: Among The Largest Au-Ag Projects
Metates 1 Among The Largest Au-Ag Projects 60 54.0 ✓ Good grade ✓ No pre-stripping & low 50 LOM strip ratio 8.5 45.0 Metates2 Moz ✓ Expansions funded via Total Resources (Moz Au-Ag Eq.) higher grade heap 40 leach starter operation 28.1 Moz Large Resource Peer Average 28.1 27.0 30 17.3 20 13.7 12.3 1
Slide 7: Metates Targeting Higher Grade
Metates Targeting Higher Grade ▪ 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 ▪ Company drilled additional h
Slide 8: Metates Phase 1 Cross Section
Metates Phase 1 Cross Section Source: Metates Gold-Silver Project NI 43-101 Technical Report 2021 PEA. CKG: TSX.V | CHPGF: OTCQX PAGE 8
Slide 9: Metates April 2022 Follow-Up Drill Results
Metates April 2022 Follow-Up Drill Results ▪ Follow-up drilling continues to confirm higher grade nature of intrusive ▪ Released the final 13 of the 18 drill holes ▪ The assay intervals for these holes, which intersected the intrusive and intrusive breccia- hosted mineralization, were on average ~23
Slide 10: 2021 PEA Simple Flowsheet
2021 PEA Simple Flowsheet Source: Metates Gold-Silver Project NI 43-101 Technical Report 2021 PEA. CKG: TSX.V | CHPGF: OTCQX PAGE 10
Slide 11: 2021 PEA Site Layout
2021 PEA 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. CKG: TSX.V | CHPGF: OTCQX PAGE 11
Slide 12: 2021 PEA Reduced GHG Emissions & Water Consumption
2021 PEA 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 Tonnes CO2e / t of O
Slide 13: 2021 PEA Capital Cost Improvements
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 Crushing & Conveying $36,104 capex when Ponds & Pads $28,404 compared to the 2016 Reagent/Regeneration System $11,
Slide 14: 2021 PEA Summary Operating Cost
2021 PEA Summary Operating Cost LOM Average Cost LOM US$/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 $77.74 Total
Slide 15: 2021 PEA Phase 1 Production Profile
2021 PEA Phase 1 Production Profile Gold-Silver Equivalent Production Profile 180 Au-Ag Eq. Production (k oz) 160 140 120 100 80 60 40 20 - Payable Au Ozs Payable Ag Ozs Gold-Silver Grade Profile 1.40 70.00 1.20 60.00 Au Grade (g/t) Ag Grade (g/t) 1.00 50.00 0.80 40.00 0.60 30.00 0.40 20.00 0.20 10.
Slide 16: 2021 PEA Financial Summary
2021 PEA Financial Summary ▪ 2021 PEA: Smaller expandable LOM Metrics (Base Case) ‘starter’ project Initial Capex US$mm 359 Sustaining (incl. Closure) Capex US$mm 176 Throughput K tpd 15 ▪ LOM Operating Cash Flow: Gold Grade g/t 0.76 C$3.5bn Silver Grade g/t 15.71 Gold Recovery % 70 Silver Recovery
Slide 17: 2021 PEA Phase 1 Sensitivities
2021 PEA Phase 1 Sensitivities ▪ Compelling project economics & significant leverage to gold and silver prices Table 1: C$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 22 $1,087 $1,427 $1,7
Slide 18: 2021 PEA Optimization Opportunities & Next Steps
2021 PEA Optimization Opportunities & Next Steps ⚫ Opportunities: ◼ Expandable ‘starter’ operation: The smaller 15k tpd starter operation conservatively excludes opportunities to scale beyond the ‘starter case’ and bring future production forward, shortening the initial 31-year mine life ◼ Potential
Slide 19: Metallurgical Testwork Preparation
Metallurgical Testwork Preparation ◼ To prepare for a large and extensive metallurgical testwork program on recently drilled core, Chesapeake has set up a procedural trial on previous Metates core that had been held in storage ◼ The composite being tested was an intrusive ore sample crushed to a nom
Slide 20: Sulphide Oxidation: Copper vs. Gold/Silver
Acquisition of Alderley Gold Corp. Sulphide Oxidation: Copper vs. Gold/Silver Copper Sulphide Oxidation Gold / Silver Pyrite Oxidation ▪ Crushing to ½” ▪ Crushing to ½” ▪ Mixing/agglomeration drum ▪ Mixing/agglomeration drum ▪ Ensures controlled reagent addition & ▪ Ensures controlled reagent additi
Slide 21: Superior Leverage To Precious Metal Prices
Chesapeake Superior Leverage To Precious Metal Prices Au-Ag Eq. Ounces per Common Share Outstanding 0.42 Metates Ranks #1 amongst peers on a gold-silver equivalent ounce per share outstanding basis, providing superior leverage to a high gold & silver price environment 0.13 Peer Group Average: 0.08 o
Slide 22: Significantly Undervalued
Chesapeake Significantly Undervalued Enterprise Value / Au-Ag Equivalent oz (US$) $134 ✓ Team That Delivers ✓ Innovative Technology ✓ Massive, Scalable R&R $100 Strong re-rating potential $49 Peer Group Average: $49/oz $46 $40 $32 $26 $8 $4 Osisko Mining Novagold Orezone Artemis Gold Sabina Belo Sun
Slide 23: Investment Highlights
Chesapeake Investment Highlights ▪ Size & Leverage: One of the world’s largest undeveloped gold-silver deposits • 20.4mm oz Au and 560mm oz Ag ▪ Higher Grade Core Confirmed in 2022 ▪ Innovative & Tested Technology: Dramatically lowers capital outlay and greatly reduces environment footprint, produci
Slide 24: Appendix
CHESAPEAKE Appendix METATES ae eeger w 5 eg Mexico's Largest Undeveloped Gold and Silver Deposit
Slide 25: Acquisition of Alderley Gold Corp. – January 2021
Acquisition of Alderley Gold Corp. January 2021 ✓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 operating large scale projects throughout the
Slide 26: Alderley Technology Background
Acquisition of Alderley Gold Corp. 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 ap
Slide 27: Copper Sulphide Oxidation Heap Leaching
Acquisition of Alderley Gold Corp. 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 proj
Slide 28: Precious Metal vs Copper Heap Leach Process
Acquisition of Alderley Gold Corp. 1 Precious Metal vs Copper Heap Leach Process ▪ 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 h
Slide 29: Metates Testwork and Future Oxidation Studies
Acquisition of Alderley Gold Corp. 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 plan
Slide 30: Chesapeake Management & Board
Chesapeake Management & Board Management Directors P. Randy Reifel P. Randy Reifel Executive Chairman, 36 years experience Former Francisco Gold CEO, Glamis and Goldcorp director Alan Pangbourne Alan Pangbourne President & CEO, 35 years experience Former Guyana Goldfields CEO; SSR Mining COO; Kinros
Slide 31: For More Information Contact
For More Information Contact: Head Office: Mexico Office: USA Project Office: Suite 1201 – 1166 Alberni Street Cerro Blanco #410, Lomas De Sahuatoba 1194 Silverheels Drive Vancouver BC V6E 3Z3 Durango, Mexico, CP 34108 Larkspur, Colorado, USA 80118 Phone: +1 778 731 1362 Phone: 52-618-130-2326 Phone