Chesterfield Resources Plc · LSE:CHF
Chesterfield Resources — Investor Presentation (June 2021)
37 slides from Chesterfield Resources's investor presentation, June 2021
Slide 1: Acquisition of major new copper exploration project in Canada
Acquisition of major new copper exploration project in Canada June 2021
Slide 2: Disclaimer
Disclaimer 2 These slides and the accompanying oral presentation (the “Presentation”) have not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”). If any person is in any doubt as to the contents of this Presentation, they should seek ind
Slide 3: An ambitious new player in the copper space
An ambitious new player in the copper space 3 • Main board LSE listed copper-focussed exploration company – RTO Cyprus 2018. Market capitalisation just £12m (CHF.L) • Initial operation in Cyprus, one of the best mining jurisdictions in the EU • World-class team of geologists from tier-one major mini
Slide 4: Cyprus Troodos programme: very active and yielding results
Cyprus Troodos programme: very active and yielding results 4 2021drilling and survey programme, Diamond drilling in June Good drill and geophysics results 2021 Cyprus: an historic FTSE 100 strategic mining center partner Multiple geophysics surveys followed by diamond drilling
Slide 5: A team to build a growth company in copper
A team to build a growth company in copper 5§§1 Neil O’Brien: Previously SVP of Exploration and Ajay Kejriwal: 30 years experience in finance, having New Business worked for Morgan Stanley, Development at Lundin Cazenove and Nomura. Mining Dave Cliff: Previously Paul Ensor: 32 years Head of Explorat
Slide 6: In a major energy transition explorers are the key
In a major energy transition explorers are the key 6 Copper is the new oil. The rush for discovery is on…..
Slide 7: Copper: the hunt is on to supply the electrification mega-trend
Copper: the hunt is on to supply the electrification mega-trend 7 "We see a significant copper deficit, in the region of 10 million tonnes, that will be required to balance market by 2030” Jeremy Weir, CEO, Trafigura, March 2021 The EV sector alone will need the equivalent of another two Glencores t
Slide 8: Objective: to significantly increase our copper footprint
Objective: to significantly increase our copper footprint 8 Strategy formulated in February, first deal signed in May
Slide 9: The Adeline project acquisition – highlights
The Adeline project acquisition – highlights 9 • Entire prospective copper belt. Licence area nearly 40km long, potential for a world class discovery. More than 200 known copper prospects within project area, yet very little drilling historically • Very low-risk jurisdiction. Labrador is now regarde
Slide 10: Adeline: well-located for a mining project
Adeline: well-located for a mining project 10 • Newfoundland-Labrador ranked No 8 best mining investment location in the world by the Fraser Institute • Year round mining. Project latitude south of that of Scotland. Exploration seasons in summer and winter, • Goose Bay, major regional services cente
Slide 11: Newfoundland-Labrador explorers are attracting strong valuations
Newfoundland-Labrador explorers are attracting strong valuations 11 • Major mines include Voisey’s Bay (Vale), Carol Lake (Rio Tinto) and Menihek (Tata Steel) • Newfoundland Gold: discovery 19m @ 93g/t Au, $750m+ market cap • Marathon Gold: discovery 4.4m oz 1.7 g/t Au $600+m market cap • Explorers:
Slide 12: Canada is a natural fit for our expansion plans
Canada is a natural fit for our expansion plans 12 • Chesterfield was co-founded by Canadian with a core group of long-term Canadian shareholders • Dr. Neil O’Brien, Director of Exploration, is a Canadian based near Toronto • A good synergistic fit for our copper exploration project in Cyprus, drill
Slide 13: Adeline: well within Chesterfield's bandwidth
Adeline: well within Chesterfield’s bandwidth 13 • Expenditure obligations undemanding: C$250,000 in first 18 months and C$1 million in first two and a half years. Initial exploration expenditure within current budgets • Altius is highly experienced in Labrador. Chesterfield has signed a Technical S
Slide 14: Labrador's Central Mineral Belt: copper district over-looked
Labrador’s Central Mineral Belt: copper district over-looked 14 The Central Mineral Belt (CMB) is of a globally significant scale and on the junction of three geological terranes Eastern CMB was intensely explored for uranium a decade ago, but the western belt was largely ignored as low in uranium S
Slide 15: Seal Lake Basin: over 200 copper prospects identified
Seal Lake Basin: over 200 copper prospects identified 15 44 Km Significant yet underexplored Copper Belt
Slide 16: Major sedimentary copper belts were formed at the same time
Major sedimentary copper belts were formed at the same time 16 Three major sedimentary copper belts were formed at the same time, about 1bn years ago Adeline has many striking similarities to the successful Katanga (Zambia) and Keweenawan (Michigan) belts have both yielded large copper mines. The Ad
Slide 17: Adeline is the same scale as the Chambisi basin in Zambia
Adeline is the same scale as the Chambisi basin in Zambia Chambisi West: • 45Mt @ 2.25% Cu Adeline License area (approximately 35km x 7km) superimposed on the Chambisi basin Chambisi Mine: • 200Mt @ 2.0% Cu Nkana-Mindola: • 612Mt @ 2.5% Cu Equivalent scale in Chambisi contains 20Mt+ contained copper
Slide 18: Similar geology to Keweenawan Copper Belt, Michigan, USA
Similar geology to Keweenawan Copper Belt, Michigan, USA Copperwood Project: • 100Mt @ 1.4% Cu, 4 g/t Ag • Mine feasibility stage project • Chalcocite in grey bed type host shale Native Copper Belt: • Basalt hosted • Produced 5Mt Cu White Pine Copper Mine: • Was once largest US source of Cu • 230Mt
Slide 19: Similar structure and scale to the Udokan deposit, Siberia
Similar structure and scale to the Udokan deposit, Siberia 19 Adeline, Labrador Udokan, Russia Same Scale 1.4Bt @ 1.05% Cu, 10 g/t Ag (or 14Mt contained copper) Udokan Copper entering production in 2022 with a 1.4Bt deposit
Slide 20: Exploration History: a lot of field data, but very little drilling
Exploration History: a lot of field data, but very little drilling 20 Years Company Methods Drilling Comments • Extensive documentation of 1951- Frobisher- Prospecting 27 short • 200+ copper showings discovered 1956 Kennco Geochemistry holes • Trenching: 200+ copper showings Trenching (1743m) • Elli
Slide 21: An all-share deal, attractive for Chesterfield
An all-share deal, attractive for Chesterfield 21 100% of the project acquired by Chesterfield. Payment in 10% equity, and 10% in 20p three year warrants. No earn in payments Altius will retain a 1.6% royalty, own 10% of the company. Altius will become a strategic partner, helping us design and mana
Slide 22: Licence area covers 129 km2 (12,975 ha)
Licence area covers 129 km2 (12,975 ha) 22 Topography is typical Labrador, with lakes and wooded hills. Average temperatures range from -12˚ in January to 20˚ in July. Year round exploration possible, but best seasons around July-Sept and Jan-March. Licence area is more than twice the size of Manhat
Slide 23: Altius Minerals: an excellent new strategic partner in Canada
Altius Minerals: an excellent new strategic partner in Canada 23 • A TSX-listed company with a market capitalisation of approximately C$710 million. • A successful project generator, with royalties over 13 producing assets including the famous Voisey’s bay, 777 and Chapada Stream mines • 2020 royalt
Slide 24: The Adeline project: strong ESG credentials
The Adeline project: strong ESG credentials 24 • Copper is the basic building block for clean energy and clean air programmes • Local First Nation group supportive of mining in Labrador • Isolated area, away from communities • No multiple land-use issues. No parks or restricted use areas • Permittin
Slide 25: Cyprus: a surprising opportunity in the EU
2 Cyprus : a surprising opportunity in the EU 5 • Long and rich history of mining. The word “Copper” comes from the Latin name for Cyprus, which was “Cuprum”. It was the world centre of copper and gold in classical times. • One of the EU’s best mining jurisdictions. Supportive mines department. Econ
Slide 26: Why Cyprus? A major mining industry in the 1960s and 1970s
Why Cyprus? A major mining industry in the 1960s and 1970s 2 6 Old mines litter the Troodos hills in Cyprus
Slide 27: Buried VMS deposits in the Troodos foothills
Buried VMS deposits in the Troodos foothills 27 • Image to right: a clear example of a massive sulphide orebody trapped below a basalt flow. This had been exposed at the side of a hill and excavated. • VMS deposits form in clusters and stacks. Known as VMS camps. Typical mining project comprises sev
Slide 28: Cyprus: A substantial 97 km2 licence area to explore
Cyprus : A substantial 97 Km2 licence area to explore 28 • By far the largest licence package in Cyprus of any explorer • Clean licences bought inexpensively from the government • Actively managed land portfolio • An under-explored VMS camp in the heart of the Mediterranean Licences in the best mini
Slide 29: 2,000m diamond drilling programme to commence in June
2,000m diamond drilling programme to commence in June 29 “Olive” a large new anomaly
Slide 30: The 2021 exploration programme: an integrated approach
The 2021 exploration programme: an integrated approach 30 Surface loop EM AMT geophysics Percussion drilling, 20 holes Gravity geophysics 2,000m diamond drilling Downhole EM 2021 exploration methodology
Slide 31: 2021 a busy year. News flow now from two projects
2021 a busy year. News flow now from two projects 31 June: Commencement of diamond drilling in Cyprus….and geophysics results July: Commencement of field programme in Labrador, ….and updates of work August-September: results from Cyprus programme August-September: news and results from Labrador Mark
Slide 32: Polymetal invests for 22.9% stake in Chesterfield
Polymetal invests for 22.9% stake in Chesterfield 32 • A FTSE 100 company with a market capitalisation of around £8.1bn • One of the ten largest gold mining companies in the world and one of the five largest producers of silver • A popular stock with institutions, well regarded for corporate governa
Slide 33: Chesterfield: growth through exploration and acquisitions
Chesterfield: growth through exploration and acquisitions 33 Cyprus: an advanced exploration project our strategic partner for Cyprus Major new acquisition in Canada our strategic partner in Canada Chesterfield: an ambitious young company growing fast
Slide 34: Site visits in planning for both Labrador and Cyprus
Site visits in planning for both Labrador and Cyprus 34 A company committed to close investor relations
Slide 35: Why invest in Chesterfield?
Why invest in Chesterfield? 35 • An emerging play in the copper space. An ambitious high growth company through both exploration and acquisition. A tier one geological team and a tier one corporate team • News flow from two exploration projects. About to start drilling in Cyprus. Field programme in
Slide 36: Low market cap provides good leverage for growth
Low market cap provides good leverage for growth 36 Listing Standard Main Board London Stock Exchange Chart Title Ticker Symbol LSE:CHF Shares outstanding 112,000,231* 5% 23% 25% Polymetal Warrants and options 15,969,889 HNW Retail 47% Directors Fully diluted capital 117,681,001 Share price 12.0p Ma
Slide 37: Thank you from Chesterfield Resources: Questions?
Thank you from Chesterfield Resources: Questions? 37
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