Contango Silver & Gold Inc. · AMEX:CTGO
Contango Silver & Gold — Contango ORE — Investor Presentation (October 2023)
35 slides from Contango Silver & Gold's investor presentation, Oct 31, 2023
Slide 1: Building Alaska's Next Gold Mines
NYSE-A: CTGO BUILDING ALASKA’S NEXT GOLD MINES November 2023 Exhibit 99.1
Slide 2: Forward Looking Statement
FORWARD LOOKING STATEMENT The Feasibility Study (“FS”) referenced herein that relates to Peak Gold, LLC (“Peak Gold”), was prepared by Kinross Gold Corporation (“Kinross”), which controls the Manager of Peak Gold and holds 70% of its outstanding membership interests, in accordance with Canadian Nati
Slide 3: Investment Highlights
Alaska considered one of the top 10 jurisdictions in the world for mining investments1 Manh Choh Mine - One of the world’s highest grade open pit gold mines (8 g/t expected average grade) We believe the following factors significantly de-risk the Manh Choh project: Agreement in place with Tetlin Ala
Slide 4: Developing Alaska's Next Gold Mines
Lucky Shot Mine – Initial Resource 100% owned Exploring historic high-grade gold mine Permitted for mining 106,000 Oz Indicated Resource grading 14.5 g/t Au Reserves/Resources Exploration Stage Fort Knox Mill Developing Alaska’s Next Gold Mines 4 Manh Choh Mine – Mining and Stockpiling Ore Underway
Slide 5: Capital Structure
Institutional Retail / Others Directors & Officers (Insiders) TRADING - NYSE AMERICAN: CTGO1 90-Day Avg. Daily Volume 57,773 shares per day 52-week range US$17.01 - $33.67 Market Cap $166 M *Russell 3000 Inclusion - June 26, 2023 CAPITAL STRUCTURE2 Issued & Outstanding 9.4 M Warrants 0.4 M Options 0
Slide 6: Manh Choh Gold Project
Feasibility in 2022Construction in 2023 Production in 2024Explore 2,800km2 area Development Plan - Mine Manh Choh gold ore and then truck and process the ore at Kinross’ Fort Knox Milling complex Reduces execution risk to produce gold and silver over 4.5 year mine-life starting second half of 2
Slide 7: Manh Choh Update – Groundbreaking Ceremony Mining Operations Initiated
Manh Choh Update – Groundbreaking Ceremony Mining Operations Initiated 7
Slide 8: Manh Choh Update – Mining Underway
Manh Choh Update – Mining Underway 8
Slide 9: Kiewit selected as mining contractor
Kiewit selected as mining contractor Founded in 1884, Kiewit is one of the largest engineering, construction and mining companies in North America Mining and Road Haul Contractors Engaged 9 Contracted for Ore Haul Alaska Business for 35 Years
Slide 10: Mill Modifications at Fort Knox Completed
10 10 Completed Completed Mill Modifications at Fort Knox
Slide 11: Manh Choh production and cost estimates
Using existing infrastructure at Fort Knox, Peak Gold is planning on a H2 2024 start date Production estimate of 914,000 GEO over a 4.5-years equating to roughly 225,000 gold equivalent ounces (“GEO”) per annum (30% to Contango Ore = +274,000 GEO or 67,500 GEO/Yr)1 Average processed grades expected
Slide 12: One of the Highest-Grade Open Pit Gold Mines in the World
1 See Contango’s SK1300 Manh Choh Technical Report Press Release dated May 26, 2023. See: https://www.contangoore.com/press-release/contango-ore-announces-completion-of-s-k-1300-technical-report-summary-for-its-manh-choh-project-in-Alaska. The information contained in, or otherwise accessible throug
Slide 13: Illustrative Economics at Select Gold Prices
Illustrative Economics at Select Gold Prices1 At gold spot price ($1,920/Ounce) as of August 28, 2023 $129 M+ of annual revenue $54 M+ of annual cash flow 1 See Contango’s SK1300 Manh Choh Technical Report Press Release dated May 26, 2023; Initial capex reflects the Kinross feasibility study reporte
Slide 14: See Contango’s SK1300 Manh Choh Technical Report Press Release dated May 26, 2023; Initial
1 See Contango’s SK1300 Manh Choh Technical Report Press Release dated May 26, 2023; Initial capex reflects the Kinross feasibility study reported in “Q2 Corporate Update ” Press Release and Corporate Presentation dated July 26 and 27, 2022; The optimization for the mineral reserve estimate assumed
Slide 15: Manh Choh Project and Surrounding Targets
Main MC North MC $3 Million Exploration Program Budgeted for 2023 Continued exploration for new resources in Chief Danny area Further evaluation of 685,000 acre Manh Choh project Additional regional stream sediment sampling Geologic mapping Geophysical surveys including detailed ground gravity surve
Slide 16: Manh Choh development timeline
DRILLING SCOPING STUDY PERMITTING & FEASIBILITY PRODUCTION DETAILED DESIGN PROCUREMENT CONSTRUCTION Approximately $19 M program in 2021 which included resource in-fill, hydrology, geotechnical, metallurgical engineering; environment and community outreach Tetlin Tribe indicates their support for the
Slide 17: Early-Stage Exploration Projects
1 Hart, C.J.R., 2005. Mid-Cretaceous Magmatic Evolution and Intrusion-related Metallogeny of the Tintina Gold Province, Yukon and Alaska. Unpublished PhD thesis, University of Western Australia, 198 p. 1 Early-Stage Exploration Projects (100% owned) Eagle-Hona Triple Z Shamrock Current focus on Luck
Slide 18: Lucky Shot Vein: Overview
Coleman Adit Lucky Shot “500” Adit War Baby Adit Looking NNE Enserch Tunnel Lucky Shot Vein 15.6 g/t Au = ½ Oz/ton Au1 +1 mile (1.6 km) strike length and open along strike and down dip See https://www.contangoore.com/press-release/contango-ore-issues-initial-s-k-1300-resource-technical-report-su
Slide 19: Lucky Shot Vein: Aerial View
Lucky Shot Vein: Ariel View 19 1 The historical production information presented is based upon reports file by the US Geological Survey from information provided by prior owners and operators of the mines. The Company has not undertaken any independent work to verify or confirm the previously report
Slide 20: Lucky Shot: Fully Permitted Mine Site - Safety First
Fully Permitted Active Mine Site Safety First Approach Zero LTIs Lucky Shot: Fully Permitted Mine Site - Safety First 20
Slide 21: Lucky Shot Mineral Resource Estimate
Classification Tonnes Au Grade (g/t) Au Ounces Measured - - - Indicated 190,092 15.6 95,036 TOTAL 190,092 15.6 95,036 Inferred 74,265 9.9 23,642 Classification Tonnes Au Grade Au Ounces (g/t) Measured - - - Indicated 36,871 8.9 10,584 TOTAL 36,871 8.9 10,584 Inferred 7,793 5.9 1,468 Coleman Lucky Sh
Slide 22: Coleman Segment of Lucky Shot Vein: Infill and Expand Resource
? Coleman Segment of Lucky Shot Vein: Infill and Expand Resource 22 Objectives: Upgrade 100,000 Oz Indicated Resource to Measured category Increase M&I Resource to 150,000 oz gold Evaluate mine optimization from Enserch tunnel Assess continued exploration opportunities Classification Tonnes Au Grade
Slide 23: Lucky Shot Vein: Exploration Open Along Strike and Down Dip
Oblique View of Lucky Shot Segment – Looking NE Lucky Shot Vein: Exploration Open Along Strike and Down Dip 23 Classification Tonnes Au Grade Au Ounces (g/t) Measured - - - Indicated 36,871 8.9 10,584 TOTAL 36,871 8.9 10,584 Inferred 7,793 5.9 1,468 Lucky Shot Segment of Lucky Shot Vein
Slide 24: Lucky Shot Vein: Exploration Drill Plan
13,000 meter in-fill drill program for 15-20 meter spacing Looking Southwest Lucky Shot Vein: Exploration Drill Plan 24 Objective: Outline 400,000 ounces of gold resource Enserch Tunnel
Slide 25: Thank You
THANK YOU 25 Corporate Inquires:info@contangoore.com+1-778-386-6227www.contangoore.com Twitter: @orecontangoLinkedIn: Contango OREInstagram: ContangoOREFacebook: Contango ORE
Slide 26: Non-GAAP measures notice
This presentation contains forward looking estimates of all-in sustaining cost (“AISC”), resources and EBITDA, which are financial measures not determined in accordance with United States generally accepted accounting principles (“GAAP”). We cannot provide a reconciliation of estimated AISC, resourc
Slide 27: Supply and Demand: US Bonds and Gold
Supply and Demand: US Bonds and Gold* • As the supply of government bonds has continued to increase over the past year, the price of bonds has declined. • Meanwhile the supply of gold has been stable, and the price of gold has risen. • The forecast in the coming years is for a substantial increase i
Slide 28: Supply of new government bonds has increased
The supply of new government bonds into the market has increased substantially over the past few years. 28 Chart of the total amount of U.S. government debt outstanding 2018 through 2023 Supply and Demand: US Bonds and Gold
Slide 29: Bond supply and bond prices
As bond supply has flooded the market over the past year, the price of bonds has declined. 29 Supply and Demand: US Bonds and Gold Chart shows total government debt outstanding relative to the price of the iShares 20 Year Plus Treasury ETF (TLT)
Slide 30: Gold supply has been stable
30 Source: World Gold Council Source: World Gold Council As gold supply has remained stable, the price of gold has been relatively stable. The chart below shows gold supply relative to the gold price over the past twelve quarters. The supply of gold meanwhile, has been stable over the past few years
Slide 31: Gold supply will likely decline
Over the next 10 years at today’s gold price, supply of gold will likely decline. Only a substantial increase in the price of gold will adequately incentivize producers to build enough new mines to replace mine depletion. The supply of bonds however, is projected to increase substantially over the
Slide 32: Gold and real interest rates correlation
For over 10 years gold has shown a close inverse correlation with real interest rates – No longer! “Obviously, this isn’t a normal market environment!”* 32 Supply and Demand: US Bonds and Gold Chart shows gold price versus inversed 10 year real interest rates * Brien Lundin
Slide 33: Gold in the 1970s
When’s the last time that happened?….the 1970s….when gold went from $35 to $800/oz 33 Supply and Demand: US Bonds and Gold Chart shows Gold Price un-adjusted US Dollars with Recessions Gold Price $20.78 to $35/oz The 1970s ~40% ~23X at peak after 10 year period Gold Price “stable” between $300 to $4
Slide 34: Gold price inflation adjusted
When’s the last time that happened?….the 1970s….when gold went from $35 to $800/oz 34 Supply and Demand: US Bonds and Gold Chart shows Gold Price inflation adjusted US Dollars with Recessions Gold Price $20.78 to $35/oz The 1970s Between 1980 and 2000 gold lost out on an inflation adjusted basis and
Slide 35: Gold price in log scale
When’s the last time that happened?….the 1970s….when gold went from $35 to $800/oz 35 Supply and Demand: US Bonds and Gold Chart shows gold price un-adjusted US dollars in log scale with recessions Gold Price $20.78 to $35/oz Gold Price $20.78 to $35/oz The 1970s Remember: This is Log Scale! And too