Cornerstone Capital Resources Inc.

Transcription

1 Exploring World Class Mineral Districts Cornerstone Capital Resources Inc. Corporate Presentation October 2012

2 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 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. 2 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

3 Prospect Generator Business Model - Partners Shyri 60% 40% Cascabel 65% 35% Macara 51% 49% Little Deer 50% 50% Cape Ray 70% 30% 0% 20% 40% 60% 80% 100% 3

4 Properties ATLANTIC CANADA Little Deer Copper Property - Newfoundland JV with Thundermin Resources Includes 2 past-producing underground copper mines Little Deer and Whalesback ECUADOR 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 Q Q Macará Property JV with Newmont Ventures 2,500 km 2 of prospective geology in southern Ecuador, including the 1,452 ha Bellavista concession La Encrucijada, Bella Maria & Monterrey Properties 100% owned by Cornerstone Little Deer Deposit Mineral resources of 99.8 million lbs of copper (Indicated) and 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 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) CHILE La 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 4

5 Share Capitalization (as at Sep. 14, 2012) Shares Outstanding 142,931,355 Fully Diluted 167,587,774 Share Price $ Week High / Low $0.055 $0.22 Cash (June 30, 2012) $924,850 (No Debt) Market Cap $12.9 million 5

6 Ecuador JV Projects Cascabel Quito Shyri Cascabel Macará Rio Blanco (Au-Ag) International Minerals Shyri Cuenca 100%-Owned Cornerstone Projects La Encrucijada Epithermal HS Zaruma (Au) Dynasty Metals & Mining Bella Maria La Encrucijada Monterrey Macara Quimsacocha (Au-Ag) Iamgold / INV Metals Mirador (Cu-Au) EcuaCorriente Bella Maria Porphyry and breccia Au-Cu Monterrey Epithermal LS and HS Fruta del Norte (Au-Ag) Kinross Gold Advanced Stage Projects (other companies) 6

7 Shyri (Au-Ag-Cu) 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 coppermoly-gold deposits Neighbouring Deposits: 1. Quimsacocha (Indicated Resources = 3.3 Moz Au, 22.7 Moz Ag, Mlb Cu) 2. Rio Blanco (Proven & Probable Reserves = 0.6 Moz Au, 4.3 Moz Ag) 3. Chaucha Large copper-moly porphyry (no NI compliant resources) 3 Chaucha Southern Copper (Groupo Mexico) 10 km 2 Gama Rio Blanco International Minerals Vetas Grandes 1 Canaribamba Yanasacha Quimsacocha Iamgold / INV Metals 7

8 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 and 0.45 g/t Au over 26 m in hole GAD ) 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 8

9 Gama Prospect Geology Satoshuaycu Target Area (Phase 3 Drilling) Boqueron Target Area (Phase 1 & 2 Drilling) GAD g/t Au, 0.18% Cu over 45 m 9

10 Gama Prospect Ground Magnetics Satoshuaycu Target Area (Phase 3 Drilling) Boqueron Target Area (Phase 1 & 2 Drilling) GAD g/t Au, 0.18% Cu over 45 m 10

11 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 ) located on eastern extension and higher part of the porphyry system 11

12 Cascabel (Au-Ag-Cu) 12 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 ( % 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

13 Cascabel Gold & Copper Results Gold Rock Chips & Stream Seds Copper Rock Chips & Stream Seds 13

14 Cascabel Moran & Alpala Porphyry Target 14

15 Cascabel Composite Interpretation Section 15

16 Chile 16 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 Antofagasta El Penon Maricunga La Serena Andacollo LA FORTUNA Cerro Negro Santiago Gold deposit/mine Copper deposit/mine Escondida MIOCENE La Coipa Lobo - Marte Pascua Lama Veladero El Indio El Tambo El Bronce

17 Chilean Property Overview La Fortuna (Ag-Cu) Miocene (Au-Ag-Cu) 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 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 17

18 La Fortuna (Cu-Ag) TH15A: 0.39% Cu 2.92 %Cu, 196 g/t Ag 4.48 %Cu, 300 g/t Ag 3.62 %Cu, 13 g/t Ag 1.88 %Cu, 249 g/t Ag 1.89 %Cu, 79 g/t Ag TH14A: 0.36% Cu, 12g/t Ag TH14B: 0.18% Cu, 6g/t Ag TH8: 0.19 % Cu, 10g/t Ag including 52.4m@ 0.33% Cu, 17g/t Ag TH2: 12m@ 0.21% Cu, 13g/t Ag TH11: 2.2m@ 0.51% Cu TH9: 4m@ 0.34% Cu and 0.12% Cu TH1: 19.5m@ 1.34% Cu, 58g/t Ag 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 TH5: 24m@ 0.09% Cu, 8g/t Ag 3.49 %Cu, 16 g/t Ag 1.58 %Cu MCCL CAMP 1.16 %Cu, 65 g/t Ag 0.78 %Cu, 30 g/t Ag 0.9 %Cu km Cerro Negro Mine & Mill Complex (SX-EW Plant & Concentrator) Cu Showing (>0.5%) Trenches Target Areas

19 La Fortuna (Cu-Ag) Magnetics N IP and proposed DDH Geology Drill Hole Plan: 18 Holes 5400 meters 19

20 La Fortuna (Cu-Ag) SECTION N165 20

21 Little Deer (LD) Copper Project Located 10 km north of Springdale in north-central Newfoundland 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 compliant mineral resource estimate and PEA completed 21

22 Little Deer Whalesback 3D Model (looking NW) Little Deer Deposit Whalesback Deposit Drift 800 Level Deposits 780 m apart Classification Tonnes Cu (%) Cu (M lbs) Indicated 797, Inferred 443, Classification Tonnes Cu (%) Cu (M lbs) Indicated 1,911, Inferred 3,748,

23 NI Mineral Resources (P&E Mining Consultants) Resource Classification - Mineralized Zone LITTLE DEER DEPOSIT (1) Tonnes % Cu Cu lbs (M) Indicated Little Deer Zone 1,911, Inferred Little Deer Zone 1,240, Inferred Footwall Zone 1,711, Inferred Footwall Zone Splay 797, WHALESBACK DEPOSIT (2) Indicated - Whalesback 797, Inferred - Whalesback 443, Total Indicated 2,708, Total Inferred 4,191, (1) P&E Mining Consultants, August 5, 2011 (2) P&E Mining Consultants, July 26,

24 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) 24

25 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) 25

26 Little Deer Infrastructure Old Tailings Impoundment Whalesback Mine Little Deer Deposit Goodyear s Cove Port Provincial Hydro Grid Substation Goodyear s Cove Port 26

27 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 Q and Expect continued positive news flow from drilling results at Shyri, Cascabel, La Fortuna and Little Deer projects 27

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