Corporate Presentation

20
Growing Gold Deposits and Advancing Projects in Canada July 2012 TSX-V: CT OTCQX: CTIIF Member of Forbes & Manhattan Group of Companies

Transcript of Corporate Presentation

Page 1: Corporate Presentation

Growing Gold Deposits and Advancing Projects in Canada

July 2012

TSX-V: CTOTCQX: CTIIF

Member of Forbes & Manhattan Group of Companies

Page 2: Corporate Presentation

2TSX-V: CT OTCQX: CTIIF

Forward Looking Statements

The information presented contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to estimated production, the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; and limitations on insurance coverage.

Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.

Dr. Bill Pearson, P.Geo. who is a Qualified Person as defined by National Instrument NI 43-101 and reviewed and approved the scientific and technical information contained in this presentation.

Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources.

The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

In connection with the recently announced private placement financing, this presentation shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities that are subject to the recently announced private placement financing have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Page 3: Corporate Presentation

3TSX-V: CT OTCQX: CTIIF

Overview

Castillian Resources Corp.TSX-V:CT, OTQX and CCTIIF

Canadian mineral exploration company whose focus is growing Gold deposits and advancing projects in Canada

Castillian's Flag Ship property is the Hope Brook Gold Project in southern Newfoundland

First NI 43-101 Mineral Resource released for Hope Brook February 2012

Canadian Creek property in central Yukon is adjacent Kaminak’s Sugar Gold-in-Soil Trend

South American assets are being monetized/joint ventured

Strong Board, Management and Technical Team

Page 4: Corporate Presentation

4TSX-V: CT OTCQX: CTIIF

2011: Accomplishments

Castillian has significantly advanced its flagship Hope Brook Gold Project in Newfoundland

• First NI 43 -101 mineral resource announced February 14, 2012 (filed April 5, 2012), meeting guidance at 740,000 inferred ounces of gold and 290,000 indicated ounces of gold and in just 16 months of exploration

• Discovery cost of approximately $10 per resource ounce

• Deposit is open along strike and at depth with a number of target areas already defined

• Mineralization occurs over 8km+ structure that is very underexplored

• Positive tailing results have the potential to increase current mineral resource estimate

o Average grade of 58 tailings samples tested is 0.96 g Au/t and 0.10% Cu (see April 24, 2012 press release).

Substantially advanced Canadian Creek project in Yukon, outlining a 7.5 km long gold-in-soil anomaly that is associated with a major structure

In Bolivia, continue to evaluate options related to Achachucani which hosts an historical resource of 2.3 million ounces*

Working on completing the sale of other non-core assets

*51.6Mt at 1.4 g Au/t EMUSA/BHP historical resource, non NI 43-101 compliant

Page 5: Corporate Presentation

5

Advancing Hope Brook

TSX-V: CT OTCQX: CTIIF

2010 FebruaryAcquired Hope Brook Gold Project

2010DecemberIntersected 2.41 g Au/t over 26.5 metres in Pit Zone

2011SeptemberIntersected 4.09 g Au/t over 29.3 metres in Mine Zone Extension

2011MarchIntersected 4.56 g Au/t over 8.9 metres in Hanging Wall Zone

2012FebruaryFirst NI 43 -101 Mineral Resource

Exploration Drilling Recommenced at Hope Brook

2010AugustStarted Exploration Program

Page 6: Corporate Presentation

6TSX-V: CT OTCQX: CTIIF

2012: Moving Castillian Forward

Successful initial 4,316 metre drill program testing priority targets completed at Hope Brook

• 5.47 g Au/t over 38.0m

• 3.78 g Au/t over 53.0m and 4.41 g Au/t over 5.0m

Continue to test tailings

Complete metallurgical testing

Complete technical work for PEA

Sell or joint venture non core assets

Deliver mineral resource estimate update by end of 2012

Create a multi-million ounce resource company via drilling and acquisitions

Page 7: Corporate Presentation

TSX-V: CT OTCQX: CTIIF

CT Undervalued with Tremendous Upside Potential

7

Tore

x G

old

Pre

mie

r G

old

Tre

law

ney

Rom

arc

o M

inera

ls

Maudore

Min

era

ls

Deto

ur

Gold

Guyana G

old

field

s

Rain

y R

iver

Reso

urc

es

Pro

dig

y G

old

Explo

reco

Avg

Mid

way G

old

Belo

Sun M

inin

g

Am

ari

llo G

old

Carl

isle

Gold

field

s

Nort

hern

Gold

Rio

Novo

Cast

illia

n

Magella

n M

inera

ls

Pro

be M

ines

Rye P

atc

h G

old

Chesa

peake

Gold

Gry

phon G

old

Mega P

reci

ous

Meta

ls

Vic

tori

a G

old

Tem

ex R

eso

urc

es

Sandsp

ring R

eso

urc

es

PC

Gold

Aurv

ista

Gold

Cora

l Gold

$0

$25

$50

$75

$100

$125

$150

$175

$200

Average adjusted market capitalization for junior gold companies$60/ozCastillian adjusted market capitalization $20/oz

RBC Capital Markets , JR. Golds – Explorers and Developers, AMC/oz Valuations, January 2012

Page 8: Corporate Presentation

8TSX-V: CT OTCQX: CTIIF

Hope Brook Gold: The Flagship Project

Option to purchase 100%interest in 993 claims coveringapproximately 25,000 ha

Historical production (1987 –1997) of 752,163 ounces gold intime of low gold prices (<US$400/oz)

Page 9: Corporate Presentation

9TSX-V: CT OTCQX: CTIIF

Major Gold Mineralized Structuremore than 8 km in Length

Structure likely continues under granite sheet

Page 10: Corporate Presentation

10TSX-V: CT OTCQX: CTIIF

Large Scale Mineralized System

Alteration zone extends 8+ km along strike with a number of gold occurrences

Mineralized zone open along strike in both directions and at depth

Major focus is exploring for more higher grade zones

Helicopter for scale

Open Pit (behind

hill)

Altered & Mineralized Shear Zone 500+m wide

Cinq Cerf Fault

Page 11: Corporate Presentation

11TSX-V: CT OTCQX: CTIIF

Hope Brook Gold Resource Model

740,000 inferred and 290,000 indicated ounces of gold are located within this model

open

open

open240 Zone

open

Mine Zone

Page 12: Corporate Presentation

12TSX-V: CT OTCQX: CTIIF

NI 43-101 Mineral Resource

Constraining shell incorporates essentially all of the remaining historic resources in the former Hope Brook mine in addition to new areas of resource as defined by Castillian, including the Pit Zone, Hanging Wall Zone and Mine Zone Extension.

There is a possible copper credit that is not included in the mineral resource due to missing copper assays in historical drill holes.

• NI 43-101 Technical Report “Mineral Resource Estimate Technical Report, Hope Brook Gold Project, Newfoundland and Labrador, Canada” February 14th 2012. Prepared by Pierre Desautels, P. Eng., Jay Melnyk, P.Eng., and Mike Cullen, P.Geo.

NI 43-101 MINERAL RESOURCE ESTIMATE, HOPE BROOK GOLD PROJECT *

Within constraining shell

@ 0.50 g Au/t cutoffBelow constraining shell

@ 2.0 g Au/t cutoffTotal

Category

Tonnes(millions)

Gold(g/t)

Gold(oz)

Tonnes(millions

)

Gold(g/t)

Gold(oz)

Tonnes(millions

)

Gold(g/t)

Gold(oz)

Indicated

4.0 1.11 140,000 1.5 3.04 150,000 5.5 1.65290,00

0

Inferred 11.2 1.57 570,000 2.0 2.65 170,000 13.2 1.73740,00

0

Page 13: Corporate Presentation

13TSX-V: CT OTCQX: CTIIF

Major Exploration Upside at Hope Brook

Deposit is open along strike and at depth

Twinned holes typically return much higher gold and copper grades compared to historical holes

Historic drill holes too short to test depth extension

Widespread higher grade mineralization

Silicified zones can be traced using geophysics

Page 14: Corporate Presentation

14TSX-V: CT OTCQX: CTIIF

Major Targets and Planned Drilling Areas at Hope Brook

5000 metre exploration drilling program in progress

Page 15: Corporate Presentation

15TSX-V: CT OTCQX: CTIIF

Applying Technology: Titan 24 Survey at Hope Brook

Former HB Mine

Major Target Zone

Page 16: Corporate Presentation

16TSX-V: CT OTCQX: CTIIF

Hope Brook Gold’s Infrastructure Advantages

Power from ProvincialElectrical Power Grid

Wharf on Tide Water

Existing Tailings Ponds

1.2km Long Air Strip

Ramp to 350m below surface

Excellent Local Labour Force

Highly rated mining jurisdiction

Good Road Network

Air Strip

Wharf

Modern Winterized Camp

Ramp Portal

Page 17: Corporate Presentation

17TSX-V: CT OTCQX: CTIIF

Corporate Summary

CAPITALIZATION

Symbol TSX-V: CT OTCQX: CTIIFFrankfurt: Cy4

52 Week Trading Range $0.04-0.20

Price (July 12, 2012) $0.04

Average Volume (3 mth) 340,175

Market Cap $13.3 M

Shares Issued 332 M*

Fully Diluted 389 M

Cash at March 2012 $2.4 M

MAJOR SHAREHOLDERS

Management and Insiders

Pyramis

Ned Goodman Investment Management

Mayo Investments

RBC Asset Management

Pinetree Capital

Aberdeen International 

Howson Tattersall

TD Asset Management

Source: Bloomberg

June 8, 2012

* At the May 9th AGM, a proposed consolidation of Castillian’s issued and outstanding common shares on the basis of one (1) post-consolidation common share for every five (5) pre-consolidation common shares issued and outstanding was passed.

Page 18: Corporate Presentation

18TSX-V: CT OTCQX: CTIIF

Management

Bill Pearson, Ph.D., P.Geo., President & CEO, Director– Over 37 years of exploration experience from grassroots through to advanced projects

and mine development; former VP Exploration for Desert Sun Mining.

Greg Duras, CGA, CPA, CFO– Over 14 years of corporate and project finance experience in the resource sector.

Colinda Parent, CFA, Corporate Development– Extensive capital markets experience having spent more than 15 years in institutional

equity sales and five years in investment banking.

Josh Van Deurzen, JD, MBA, Corporate Secretary– Corporate and securities lawyer who works as a legal consultant to various public and

private companies in the resource-based sectors.

Kevin Brewer, P.Geo., Manager, Yukon– Professional geoscientist with over 25 years of mining industry experience.

Chris Hale, Ph.D., P.Geo., Chief Geophysicist– Exploration geophysicist with more than 35 years experience worldwide.

Page 19: Corporate Presentation

19TSX-V: CT OTCQX: CTIIF

Board of Directors

David Gower, P.Geo., Chairman– Over 20 years’ experience with Falconbridge & Noranda (now Xstrata), most recently as

GM of Global Nickel & PGM Exploration.

Bill Pearson, Ph.D., P.Geo., President & CEO, Director

Mike Hoffman, P.Eng., Director– Professional mining engineer with over 25 years of experience in mine operations,

projects, engineering and corporate development.

Brian Penney, P.Eng., Director– Twenty years of experience in the mining sector also includes senior operating and

environmental positions in the gold industry, current COO of Alderon Iron Ore Corp.

David S. Warner, MBA, Independent Director– Accounting professional with 30 year career spent at KPMG LLP, most recently as

Partner.

Page 20: Corporate Presentation

20TSX-V: CT OTCQX: CTIIF

Contact Information

Bulgan OrgilsaikhanCommunications

[email protected] 309 2895www.castillian.ca

Bill PearsonPresident & [email protected] 416 861 2968www.castillian.ca

Member of Forbes & Manhattan Group of Companies