Cornerstone Capital Resources Inc - Alpala 2019 Preliminary€¦ · Cornerstone Capital Resources...

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22.2% Interest in Cascabel Copper/Gold Project in Ecuador TSXV-CGP www.cornerstoneresources.com [email protected] Copper Gold, Silver, Ecuador Gold, Silver, Chile Copper Cascabel A cut-off grade of 0.2% copper equivalent (CuEq) reflects the reasonable potential for economic extraction by high production rate mass mining methods such as block caving. There is potential for further growth with the 2019 drilling campaign to expand the deposit at Alpala SE, Alpala NW, Trivinio and Alpala Western Limb. Exploraciones Novomining S.A. (“ENSA”), an Ecuadorean company owned by SolGold and Cornerstone, holds 100% of the Cascabel concession. Subject to the satisfaction of certain conditions, including SolGold's fully funding the project through to bankable feasibility, SolGold Plc will own 85% of the equity of ENSA and Cornerstone will own the remaining 15% of ENSA. In addition to the 15% direct interest in Cascabel, Cornerstone owns ~8.5% of the shares of SolGold, for a total ~22.2% economic interest in Cascabel. Cornerstone has a 22.2% interest in the Cascabel project in NW Ecuador funded by joint-venture partner and operator SolGold Plc and targeting porphyry copper-gold deposits (including the Alpala deposit). 2.05Bt Indicated @ 0.60% CuEq (8.4 Mt Cu, 19.4 Moz Au) High-grade core of 400Mt @ 1.49% CuEq (3.6 Mt Cu, 11.9 Moz Au) Indicated Alpala Mineral Resource Estimate³ (Nov 2018) Metals prices assumed (US$) $3.30 lb Cu, $1,300 oz Au, $16 oz Ag LOM C1² Operating Cost US$0.90 lb Cu (after Au & Ag credits) Initial Capex US$2.7B Underground block cave mining, 55 years mine life After tax NPV (8%) US$4.3B & IRR 25.9% Alpala 2019 Preliminary Economic Assessment¹ Payback (from production start): 3.6 years 207,000 t Cu, 438,000 oz Au, 1.4M oz Ag Life of Mine: First 25 yrs: 150,000 t Cu, 245,000 oz Au, 913,000 oz Ag Average Annual Metal Production in Concentrate (rounded): Cornerstone Capital Resources Inc. is a prospect generator with a portfolio of gold, silver and copper projects in Ecuador and Chile. We leverage our own exploration funding through joint ventures and strategic partnerships, combining expertise and providing shareholders with potential for success at lower risk. January 2020

Transcript of Cornerstone Capital Resources Inc - Alpala 2019 Preliminary€¦ · Cornerstone Capital Resources...

Page 1: Cornerstone Capital Resources Inc - Alpala 2019 Preliminary€¦ · Cornerstone Capital Resources Inc. is a prospect generator with a portfolio of gold, silver and copper projects

Cornerstone Capital Resources Inc. is a well funded prospect generator with a diversified portfolio of gold, silver and copper projects in Ecuador and Chile. We leverage our own exploration funding through joint ventures and strategic partnerships, combining expertise and providing shareholders with potential for success at lower risk.

TSXV-CGP

22.2% Interest in Cascabel Copper/Gold Project in Ecuador

TSXV-CGPwww.cornerstoneresources.com [email protected]

CopperGold, Silver,

Ecuador

Gold, Silver,Chile

Copper

Cascabel

A cut-off grade of 0.2% copper equivalent (CuEq) reflects the reasonable potential for economic extraction by high production rate mass mining methods such as block caving. There is potential for further growth with the 2019 drilling campaign to expand the deposit at Alpala SE, Alpala NW, Trivinio and Alpala Western Limb.

Exploraciones Novomining S.A. (“ENSA”), an Ecuadorean company owned by SolGold and Cornerstone, holds 100% of the Cascabel concession. Subject to the satisfaction of certain conditions, including SolGold's fully funding the project through to bankable feasibility, SolGold Plc will own 85% of the equity of ENSA and Cornerstone will own the remaining 15% of ENSA. In addition to the 15% direct interest in Cascabel, Cornerstone owns ~8.5% of the shares of SolGold, for a total ~22.2% economic interest in Cascabel.

Cornerstone has a 22.2% interest in the Cascabel project in NW Ecuador funded by joint-venture partner and operator SolGold Plc and targeting porphyry copper-gold deposits (including the Alpala deposit).

2.05Bt Indicated @ 0.60% CuEq(8.4 Mt Cu, 19.4 Moz Au)High-grade core of 400Mt @ 1.49% CuEq(3.6 Mt Cu, 11.9 Moz Au) Indicated

Alpala Mineral ResourceEstimate³ (Nov 2018)

Metals prices assumed (US$) $3.30 lb Cu, $1,300 oz Au, $16 oz Ag

LOM C1² Operating Cost US$0.90 lb Cu (after Au & Ag credits)

Initial Capex US$2.7B

Underground block cave mining, 55 years mine life

After tax NPV (8%) US$4.3B & IRR 25.9%

Alpala 2019 Preliminary Economic Assessment¹

Payback (from production start):

3.6 years

207,000 t Cu, 438,000 oz Au, 1.4M oz AgLife of Mine:

First 25 yrs:

150,000 t Cu, 245,000 oz Au, 913,000 oz Ag

Average Annual Metal Production in Concentrate (rounded):

Cornerstone Capital Resources Inc. is a prospect generator with a portfolio of gold, silver and copper projects in Ecuador and Chile. We leverage our own exploration funding through joint ventures and strategic partnerships, combining expertise and providing shareholders with potential for success at lower risk.

January 2020

Page 2: Cornerstone Capital Resources Inc - Alpala 2019 Preliminary€¦ · Cornerstone Capital Resources Inc. is a prospect generator with a portfolio of gold, silver and copper projects

www.cornerstoneresources.com [email protected]

Brooke Macdonald - President & CEO

David Loveys - CFO

Yvan Crepeau - VP Exploration

(343) [email protected]

Share Capital

*@ C$2.00 exercise price expiring May 12, 2021

Total (Fully Diluted: Jan 2020) 37,445,362

Treasury position @ Sept 30, 2019 ~C$1.4M

Warrants* 2,661,576

Options 2,390,625

Common Shares Issued 32,393,161

Yvan Crepeau, MBA, P.Geo., Cornerstone's Vice President, Exploration and a qualified person in accordance with National Instrument 43-101, has reviewed and approved the information contained in this company profile.This profile may contain 'Forward-Looking Statements' that involve risks and uncertainties, such as statements of Cornerstone's plans, objectives, strategies, intentions and expectations. The words “potential,” “anticipate,” “forecast,” “believe,” “estimate,” “expect,” “may,” “project,” “plan,” and similar expressions are intended to be among the statements that identify 'Forward-Looking Statements.' Although Cornerstone believes that its expectations reflected in these 'Forward-Looking Statements' are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets, predicting natural geological phenomena and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our Forward-Looking Statements. Although Cornerstone believes the facts and information contained in this profile to be as correct and current as possible, Cornerstone does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained herein and these statements should not be relied upon as representing its views subsequent to the date of this profile. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements. This profile does not constitute an offer to sell or a solicitation of an offer to buy any securities of Cornerstone in the United States of America.

²C1 includes all site operating costs, concentrate shipping costs, smelting and refining charges, but excludes royalty payments, taxes & profit share.

¹The PEA dated June 7, 2019, with an Effective Date of March 25, 2019 was prepared by independent consultants Wood plc in the role of Lead Consultants with direct responsibility for the Minerals Processing, Materials Handling and Project Infrastructure components of the study, and the participation of SRK Consulting (UK) Limited (Resource Estimation), SRK Exploration Services Limited (Geology), Mining Plus Pty Ltd (Geotechnical, Hydrogeology and Mine Planning), Knight Piesold Ltd (Environmental and Community), and Ernst and Young (Economic Analysis). The Technical Report and consents of Qualified Persons are available for review on SEDAR (www.sedar.com) and on the Company's website (www.cornerstoneresources.com).

3See Nov. 20, 2018 news release and Technical Report filed Jan. 3, 2019 at www.sedar.com. Mr. Martin Pittuck, MSc, CEng., MIMMM, is responsible for the updated MRE and is an “independent qualified person” as such term is defined in NI 43-101.

Strategic Alliance - ENAMI EP

Other Properties

On June 13, 2016, Cornerstone signed a definitive agreement with Ecuador's State Mining Company “ENAMI EP”, to jointly explore new prospective gold and copper properties identified using the Company's extensive proprietary geological database gathered since 2005 in Ecuador. The principal terms of the arrangement are described in Cornerstone's news release dated June 14, 2016. Nine concessions have been granted so far, near the Cascabel concession (see news release dated March 6, 2017) and early stage exploration is underway, including stream sediment, rock chip and soil sampling and an aerial magnetic survey that has been completed.

Ecuador ChileBramaderos (Cu-Au)

Ÿ 87.5% Sunstone, 12.5% CornerstoneŸ JV with Sunstone Metals Ltd. (ASX:STM)

Ÿ Strong indications of a possible porphyry Au-Cu target beneath the epithermal system

Ÿ Hosts two large high sulphidation epithermal Au-Ag zones.

Ÿ Farm-in with Newcrest Mining Ltd. (ASX:NCM)

Miocene (Au-Cu)Ÿ Farm-in with Newcrest Mining Ltd. (ASX:NCM)Ÿ Extensive high sulphidation epithermal zones and rock

geochemical assay results are supportive of a prospective porphyry and epithermal mineralization

Ÿ Along strike to newly discovered epithermal Au-Ag prospects

Caña Brava (Au-Cu)