Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’...
Transcript of Cornerstone Capital Resources Inc. · This presentation includes ‘Forward-Looking Statements’...
TSXV-CGP OTC-CTNXF F-GWNExploring World Class Mineral Districts
Cornerstone Capital Resources Inc.
Corporate Presentation
October 2012
TSXV-CGP OTC-CTNXF F-GWN
Cautionary Statements
This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statements include Cornerstone Capital Resources continued advancement of its mineral exploration programs. When used in this presentation, 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 Capital Resources 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 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 Capital Resources believes the facts and information contained in the pages of this presentation to be as correct and current as possible, Cornerstone Capital Resources does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained in these pages. Nothing in this presentation constitutes either an offer to sell or a solicitation of an offer to buy any securities in the United States or any other jurisdiction.
The technical information contained in this presentation has been reviewed and approved by Terry Brace, P.Geo., Cornerstone’s VP Exploration (Canadian projects) and Yvan Crepeau, P.Geo, President of Cornerstone Ecuador SA and Minera Cornerstone Chile (Ecuadorian and Chilean projects), both of whom are qualified persons in accordance with National Instrument 43-101.
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70%
50%
51%
65%
60%
30%
50%
49%
35%
40%
0% 20% 40% 60% 80% 100%
Cape Ray
Little Deer
Macara
Cascabel
Shyri
Prospect Generator
Business Model - Partners
TSXV-CGP OTC-CTNXF F-GWN
Properties
ATLANTIC CANADA
ECUADOR
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Little Deer Copper Property - Newfoundland
50-50 JV with Thundermin Resources
Includes 2 past-producing underground copper mines –Little Deer and Whalesback
Little Deer Deposit
Mineral resources of 99.8 million lbs of copper (Indicated) and 175.9 million lbs of copper (Inferred)
Excellent metallurgical test results - saleable, high grade copper concentrate grading over 28% copper with over 97% recovery
Nov 1, 2011 – Results of positive Preliminary Economic Assessment (PEA) announced – 1800 t/d underground mine with ramp and shaft access with 9.5 year mine life, Initial capital cost of $110 million, After-tax NPV @ 6% of $86.7 million, After-tax IRR of 21.5%
Whalesback Deposit
Mineral resources of 29.3 million lbs of copper (Indicated) and 15.3 million lbs of copper (Inferred)
CHILELa Fortuna Property - Copper/Silver
Option to earn 100%
Cerro Negro copper-silver mine and mill complex located just 3 km to the west
Miocene Property - Gold/Copper/Silver
Option to earn 100%
Within the northern extension of the Maricunga magmatic belt which hosts several world-class gold deposits
Shyri Property (4 Gold prospects)
Intrepid Mines earning 60% interest by spending US$6 million over 5 years
First ever diamond drilling completed on Gama prospect in 2011 (13 holes, 4279 m)
Cascabel Property
SolGold earning 65% interest by spending US$7.8 million over 4 years
Aggressive US$2.8 million year 1 program with Phase 1 drilling planned Q4 2012-Q1 2013
Macará Property
JV with Newmont Ventures
2,500 km2 of prospective geology in southern Ecuador, including the 1,452 ha Bellavista concession
La Encrucijada, Bella Maria & Monterrey Properties
100% owned by Cornerstone
TSXV-CGP OTC-CTNXF F-GWN
Share Capitalization
(as at Sep. 14, 2012)
Shares Outstanding 142,931,355
Fully Diluted 167,587,774
Share Price $0.09
52 Week High / Low $0.055 – $0.22
Cash (June 30, 2012) $924,850 (No Debt)
Market Cap $12.9 million
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Ecuador
JV Projects
Shyri
Cascabel
Macará
100%-Owned Cornerstone Projects
La Encrucijada – Epithermal HS
Bella Maria – Porphyry and breccia
Au-Cu
Monterrey – Epithermal LS and HS
Quito
CuencaShyri
Bella Maria
Macara
Monterrey
Fruta del Norte (Au-Ag)
Kinross Gold
Mirador (Cu-Au)
EcuaCorriente
Quimsacocha (Au-Ag)
Iamgold / INV Metals
Rio Blanco (Au-Ag)
International
Minerals
Zaruma (Au)
Dynasty Metals
& Mining
Cascabel
La Encrucijada
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Advanced Stage Projects
(other companies)
TSXV-CGP OTC-CTNXF F-GWN
Shyri (Au-Ag-Cu)
10 km
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QuimsacochaIamgold / INV
Metals
Rio BlancoInternational Minerals
ChauchaSouthern Copper
(Groupo Mexico)
1
2
3
JV partner Intrepid Mines
earning a 60% interest by
spending US$6 million over 5
years
Exploration Funding = 100%
Intrepid
Targeting epithermal gold – silver
deposits and porphyry copper-
moly-gold deposits
Neighbouring Deposits:1. Quimsacocha (Indicated Resources
= 3.3 Moz Au, 22.7 Moz Ag, 143.1
Mlb Cu)
2. Rio Blanco (Proven & Probable
Reserves = 0.6 Moz Au, 4.3 Moz Ag)
3. Chaucha – Large copper-moly
porphyry (no NI 43-101 compliant
resources)
Gama
Yanasacha
Canaribamba
Vetas Grandes
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Shyri (Au-Ag-Cu)
4 prospect areas (Gama, Yanasacha,
Vetas Grandes & Cañaribamba)
In 2011 completed the first ever diamond
drilling on the Gama prospect - 13 holes
totalling 4,279 m
Confirmed large porphyry-epithermal
system with gold-enrichment (0.71 g/t Au
over 45 m in hole GAD-11-002 and 0.45 g/t Au
over 26 m in hole GAD-11-011)
2012 Program
Ground geophysical surveys
(Magnetics and Induced
Polarization), soil geochemistry
surveys and detailed mapping
Q3-Q4 Phase 3 drilling (2,500 m)
on Satoshuaycu porphyry target
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Gama Prospect
Geology
Satoshuaycu
Target Area
(Phase 3 Drilling)
Boqueron
Target Area
(Phase 1 & 2 Drilling)
GAD-11-002
0.71 g/t Au, 0.18% Cu
over 45 m
TSXV-CGP OTC-CTNXF F-GWN10
Gama Prospect
Ground Magnetics
Satoshuaycu
Target Area
(Phase 3 Drilling)
Boqueron
Target Area
(Phase 1 & 2 Drilling)
GAD-11-002
0.71 g/t Au, 0.18% Cu
over 45 m
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Satoshuaycu Porphyry Target
Proposed Phase 3 Drill Holes
Target Attributes
Focus of porphyry intrusive activity
Large km-scale zones of associated
hydrothermal alteration
Coincident gold, copper & molybdenum soil
anomalies
Large associated magnetic high
Associated induced polarization
chargeability anomalies
Best result from Phase 1 & 2 drilling (GAD-
11-002) located on eastern extension and
higher part of the porphyry system
TSXV-CGP OTC-CTNXF F-GWN12
Cascabel (Au-Ag-Cu)
JV Partner SolGold plc
earning 65% interest by
spending US$7.8 million over 4
years
Exploration Funding = 100%
SolGold
Targeting porphyry gold-copper
deposits
Located in same belt as Junin
porphyry copper deposit (982
Mt @ 0.89% Cu – Codelco/
Enami) located 70 km to the
south, and the Colosa porphyry
gold deposit (24 Moz Au in
resources – AngloGold Ashanti)
located to the north in central
Colombia
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Cascabel
Gold & Copper Results
Gold
Rock Chips & Stream Seds
Copper
Rock Chips & Stream Seds
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CascabelMoran & Alpala Porphyry Target
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CascabelComposite Interpretation Section
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Chile
Escondida
El Penon MIOCENE
La Coipa
Lobo - Marte
Maricunga
Santiago
La Serena
Antofagasta
El Indio – El Tambo
Pascua Lama
Veladero
Cerro Negro
Andacollo
El Bronce
One of the world’s top mining
jurisdictions
World class gold and copper
deposits
Politically stable with established
regulatory environment
Long history of mining
Experienced labour force and
excellent infrastructure
Gold deposit/mine
Copper deposit/mine
LA FORTUNA
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Chilean Property Overview
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Option to acquire 100% entered March 2011
Located in the Valparaíso Region of central Chile, approximately 100 km north of Santiago
August 30, 2011 preliminary results of ongoing exploration program
Seven prospective mineralized zones distributed over a large area (18 km2) identified to date
Trench TH1 returned 19.5 m at 1.34% Cu and 58.0 g/t Ag
Of 163 rock samples collected during mapping and prospecting, 34 (19%) returned >0.5% Cu, including 24 (14%) which returned >1.0% Cu; 18 (10%) returned >30 g/t Ag, including 5 (3%) which returned >100 g/t Ag
78% of copper is soluble in samples (49) which returned >0.5% Cu
Option Agreement
option payments of CDN$600,000 payable over 4 years ($70,000 at signing, $30,000 at end of year 1, and $500,000 at end of year 4)
CDN$3 million in exploration expenditures over 4 years ($500,000 in year 1, $750,000 in each of years 2 & 3, and $1 million in year 4)
1.5% NSR with advance payments annually following option exercise
La Fortuna (Ag-Cu)
Option to acquire 100% entered February 2011
Located in the Regions of Atacama and Antofagasta of northern Chile, approximately 200 km southeast of the port city of Antofagasta
Underlain by the same Miocene and Pliocene volcanic sequences that host the world class gold deposits in the Maricunga and El Indio magmatic belts to the south
The Maricunga belt contains a number of undeveloped advanced stage projects and two producing gold mines - Kinross Gold's Maricunga and La Coipa open pit mines
Option Agreement
option payments of CDN$500,000 payable over 5 years ($40,000 in each of years 1 & 2, $60,000 in year 3, $120,000 in year 4, and $240,000 in year 5), 50% may be in CGP shares
CDN$5 million in exploration expenditures over 5 years ($500,000 in years 1 & 2, $1 million in year 3, and $1.5 million in each of years 4 & 5)
2% NSR with the right to buy back half for US$1 million
Miocene (Au-Ag-Cu)
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La Fortuna (Cu-Ag)
Cerro Negro
Mine & Mill Complex
(SX-EW Plant & Concentrator)
4 km
0Trenches
3.62 %Cu, 13 g/t Ag
Target Areas
4.48 %Cu, 300 g/t Ag
2.92 %Cu, 196 g/t Ag
1.88 %Cu, 249 g/t Ag
TH14A: 7.7m@ 0.36% Cu, 12g/t Ag
TH14B: 26.3m@ 0.18% Cu, 6g/t Ag
1.89 %Cu, 79 g/t Ag
TH1: 19.5m@ 1.34% Cu, 58g/t Ag
TH11: 2.2m@ 0.51% Cu
TH9: 4m@ 0.34% Cu
and 5.5m @ 0.12% Cu
TH15A: 12m@ 0.39% Cu
TH12: 28.1m@ 0.16% Cu
TH6: 18m@ 0.08% Cu
and 1.2m@ 0.27% Cu
and 2.2m@ 0.31% Cu, 8g/t Ag
TH7: 16m@ 0.49% Cu, 10g/t Ag
and 10.8m@ 0.95% Cu, 18g/t Ag
TH8: 117.9m@ 0.19 % Cu, 10g/t Ag
including 52.4m@ 0.33% Cu, 17g/t Ag
Cu Showing (>0.5%)
TH2: 12m@ 0.21% Cu, 13g/t Ag
TH5: 24m@ 0.09% Cu, 8g/t Ag
1.16 %Cu, 65 g/t Ag
1.58 %Cu
MCCL CAMP
3.49 %Cu, 16 g/t Ag
0.9 %Cu
0.78 %Cu, 30 g/t Ag
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La Fortuna (Cu-Ag)
Drill Hole Plan: 18 Holes
5400 meters
Magnetics
IP and proposed DDH
Geology
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TSXV-CGP OTC-CTNXF F-GWN20
La Fortuna (Cu-Ag)
SECTION N165
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Little Deer (LD) Copper Project
Located 10 km north of Springdale in
north-central Newfoundland
50-50 JV with Thundermin Resources
Includes the past-producing
Whalesback and Little Deer copper
mines which operated during the 1960’s
and 1970’s.
Since 2007, completed > 50,000 m of
diamond drilling and spent $8 million
on exploration
NI 43-101 compliant mineral resource
estimate and PEA completed
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Little Deer – Whalesback
3D Model (looking NW)
Whalesback
Deposit
Little Deer
Deposit
Drift – 800’ Level
Classification Tonnes Cu (%) Cu (M lbs)
Indicated 1,911,000 2.37 99.8
Inferred 3,748,000 2.13 175.9
Deposits 780 m apart
Classification Tonnes Cu (%) Cu (M lbs)
Indicated 797,000 1.67 29.3
Inferred 443,000 1.57 15.3
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NI 43-101 Mineral Resources
(P&E Mining Consultants)
Resource Classification -
Mineralized ZoneTonnes % Cu Cu lbs (M)
LITTLE DEER DEPOSIT (1)
Indicated – Little Deer Zone 1,911,000 2.37 99.8
Inferred – Little Deer Zone 1,240,000 1.93 52.8
Inferred – Footwall Zone 1,711,000 2.04 77.0
Inferred – Footwall Zone Splay 797,000 2.64 46.2
WHALESBACK DEPOSIT (2)
Indicated - Whalesback 797,000 1.67 29.3
Inferred - Whalesback 443,000 1.57 15.3
Total Indicated 2,708,000 2.16 129.1
Total Inferred 4,191,000 2.07 191.3
(1) P&E Mining Consultants, August 5, 2011
(2) P&E Mining Consultants, July 26, 2012
TSXV-CGP OTC-CTNXF F-GWN24
Scoping Level Metallurgical Test Work
Little Deer Deposit
Highlights
Production of a saleable, high grade copper concentrate grading over 28%
copper with over 97% copper recovery in locked cycle tests
Copper concentrates free of any deleterious elements
Copper recovered employing a simple rougher-cleaner flowsheet using a
common xanthate collector
Copper mineralization of medium hardness with Bond ball mill work index
of 14.6 kilowatt hours per tonne (“kWh/t”)
Fresh and aged tailings decant solutions well within Canadian Metal
Mining Effluent Regulations (“MMER”) limits and non-lethal designations
for MMER aquatic toxicology tests
* SGS Lakefield (2010)
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Preliminary Economic Assessment
Little Deer Deposit
PEA Highlights - Base Case
Financial Summary (100% Equity Basis)
Initial Capital Cost = $110 million
Average Operating Cost = $47.32/t of ore mined & milled ($1.16/lb copper)
Total Revenue = $829 million
Pre-tax Net Cash Flow = $237 million. After-tax Net Cash Flow = $166 million
Pre-tax NPV = $130.4 million. After-tax NPV = $86.7 million
Payback of Pre-Production Capital = 3.5 years
Pre-tax IRR = 26.0%. After-tax IRR = 21.5%
Assumptions: Copper Price = US$3.75/lb, US$0.95 = C$1.00, 6% Discount Rate)
* P&E Mining Consultants (Nov. 01, 2011)
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Little Deer Infrastructure
Goodyear’s Cove
Port
Little
Deer
Deposit
Provincial
Hydro Grid
Substation
Goodyear’s
Cove Port
Old Tailings Impoundment
Whalesback Mine
TSXV-CGP OTC-CTNXF F-GWN27
Summary
Experienced senior management and technical team
Prospect generator following the joint venture model to
diversify risk ( 50% exploration funded by JV partners)
Portfolio of highly prospective exploration projects in
Ecuador, Chile and Atlantic Canada with a strong focus
on gold and copper
Q4 2012 and 2013 - Expect continued positive news
flow from drilling results at Shyri, Cascabel, La Fortuna
and Little Deer projects
TSXV-CGP OTC-CTNXF F-GWN28