Cornerstone Capital Resources Inc.

Transcription

1 Cornerstone Capital Resources Inc. Part 1. Carried Interest in Cascabel Cu Au Project & Prospect Generation in Ecuador, the most underexplored part of the Andes Part 2. - Project Exploration in the core of a new mineralized district in Northern Chile Exploring 1 World Class Mineral Districts 23 May 2017

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 Inc. 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 believes the facts and information contained in the pages of this presentation 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 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 Yvan Crepeau, P.Geo, MBA, Cornerstone s VP Exploration and President of Cornerstone subsidiaries Cornerstone Ecuador SA, La Plata Minerales SA, and Minera Cornerstone Chile Ltda, who is a qualified person in accordance with Canada s National Instrument

3 MANAGEMENT Hugh (Brooke) Macdonald, B. Bus., L.L.B. Director, President & CEO - 29 years experience in the mining industry, specializing in the legal aspects of exploration and mine development with an emphasis on Latin America. VP Legal Affairs for Skye Resources (Fenix NI laterite deposit, Guatemala) until its acquisition by HudBay Minerals (2004-8). Before that Placer Dome s legal counsel for Latin America exploration and Venezuela country manager. Practiced law with Baker & McKenzie in Venezuela (1984-8). LLB Queen's University in Ontario, admitted to practice in British Columbia in 1984 and in New York in Yvan Crepeau, P.Geo., MBA, VP Exploration - Explorationist with 30 years of experience in the evaluation and management of exploration projects in Eastern Canada, Asia, Central and South America, including complex contract and permitting negotiations with government entities. MBA from HEC in Montreal, specializing in International Management, and BSc in Geology from the University of Montreal. Colin McKenzie, P. Geo. - Non-Exec. Chairman - Director since 2006, and past President & CEO ( ). VP Exploration for Skye Resources (2004-8), Director, Exploration for Inco in charge of exploration in Latin America (2000-4). VP Exploration for Voisey's Bay Nickel ( ). B,Sc, (Honours) and M,Sc, degrees in Geology from Dalhousie University. Sabino DiPaola, CA CFO 10 years' experience in audit, finance and accounting while working as an auditor for PricewaterhouseCoopers and BDO Canada, has been involved with numerous financing and spin out transactions. Graduate, Concordia University. David Loveys, C.A., Director W. John Clarke, B. Comm., J.D, C. Arb., C. Med., Director Beverley A. Evans, C.A., Director & Chair Audit Committee 3

4 SHARE CAPITALIZATION AT MARCH 31, 2017 Common Shares 297,757,143 Listed warrants 26,666,667 Private warrants 80,596,519 Stock options 22,651,667 Finder s warrants 6,263,292 Fully diluted 433,935,288 Treasury Position: $CAD March 31, 2017 Breakdown of options & warrants in Appendix A 4

5 PROPERTIES CANADA ECUADOR Head Office: Ottawa, ON JOINT VENTURED PROPERTIES Cascabel Porphyry Cu Au (SolGold) Bramaderos Porphry Cu-Au (Avalon Minerals) 100% - OWNED PROPERTIES Vetas Grandes Epithermal Au-Ag Bella Maria Porphyry and breccia hosted Au-Cu OPTIONED PROPERTIES TO EARN 100% Caña Brava Porphyry Au-Cu & Epithermal Au-Ag GENEX program PROJECT GENERATION ENAMI EP strategic alliance agreement CHILE 100% - OWNED PROPERTIES Miocene - Porphyry Au-Cu and Epithermal Au-Ag 5

6 CORNERSTONE AND SUBSIDIARIES Cornerstone Capital Resources Inc. (TSX-V:CGP) o Prospect Generator o Focus on Ecuador and Chile Cornerstone Ecuador SA (CESA) o Active since 2005 o Investment: >$USD 30M, >75% by partners o Strategic Alliance (SA) and Joint Venture (JV) model o Approach: new project generation (GENEX) through sister company La Plata Minerales SA (PLAMIN) Exploraciones Novomining SA (ENSA) o Cascabel JV Minera Cornerstone Chile Ltda (MCCL) o Prospect generator o Miocene project 6

7 ECUADOR INVESTMENT CLIMATE GENERAL US$, no exchange controls, foreign investor may own 100% of mineral rights >500,000 bpd oil exports (but with limited reserves) Political stability: Pro Mining President Lenin Moreno elected Feb 2017 Unprecedented infrastructure investment o New highways built. 89% of country s roads improved o 9 Hydroelectric plants being built and starting in 2016 will provide 8,300 MW of clean, low-cost energy o 15 airports and 5 international seaports improved o Multiple schools and medical centers built all over the country 7

8 ECUADOR INVESTMENT CLIMATE MINING SECTOR TAX ISSUES Fiscal stability contracts 25 yrs, renewable Accelerated depreciation, investor choice of 5-10 years Extraordinary income (windfall profits) tax (70%) only applicable when metal price exceeds 10 yr. rolling monthly average plus one standard deviation (likely 1 of every 7 years). Currency exportation tax (ISD) exemption for mining sector VAT (12%) refunds starting in 2018 Extraordinary Income (windfall profits) Tax and Sovereign adjustment are unlikely to be paid under normal circumstances, and never before discounted payback of the initial investment (Wood Mackenzie PDAC 2016 Presentation) 8

9 MINING TAXATION REGIME Ecuador s tax burden is competitive compared with regional countries 9 Source: Wood Mackenzie presentation at PDAC 2016

10 MINING TAXATION REGIME Projects with other cost structures yield different percentages, but do not alter the conclusion that Ecuador s tax burden is in the competitive range 10 Source: Wood MacKenzie presentation at PDAC 2016

11 ECUADOR PROJECTS 11

12 CASCABEL (Cu-Au) JV SolGold plc will own 85% (subject to funding 100% through BFS) Cornerstone 15% Targeting porphyry copper gold deposits Located in same belt as Junin (now Llurimagua) porphyry Cu- Mo deposit (982 M tons at 0.89% Cu, 0,04% Mo) and the Colosa porphyry Au deposit (905 M tons at 0,92 g/t Au) located to the north in central Colombia 12

13 CASCABEL (Cu-Au) INFRASTRUCTURE Paved road to site. 196 km (3 hrs drive) from Quito Available electrical power / water Important industrial port in Esmeraldas City (222 km to project site) downhill and by paved roads Old railroad from Ibarra to San Lorenzo being rehabilitated for tourism as a first step EXPLORATION 13 History Stream sediment (SS) anomaly defined by regional BGS survey Property acquired from SBRL in March 2011 and reconnaissance work identified a 3x3 km rock chip anomaly within a 5x5 km stream sediment anomaly Systematic exploration program started in May Alpala discovery outcrop found through prospecting work in the 1 st field sequence Good exploration results reported every month and all over the property: good signs Heli-borne magnetic survey Terraspec mineralogical mapping of soils Deep penetration 3D IP Orion survey TARGETS TO DATE Porphyry Cu-Au (14): Alpala (6), Triviño, Aguiñaga, Tandayama-America, Chinambicito, Cristal, Carmen, Parambas, Moran. Eight of them are high priority drilling.

14 CASCABEL (Cu-Au) Significant intersections from CSD (First hole ever drilled on the property) 0.34% Cu, 0.48 g/t Au (0.77% Cu Eq) from 16m, including: 0.37% Cu, 0.38 g/t Au (0.71% CuEq) from 16m and, 0.65% Cu, 1.00 g/t Au (1.55% CuEq from 222m) from CSD (Discovery hole) 0.62% Cu & 0.54 g/t Au (1.10% Cu Eq) from 24m to EOH, including: 0.93% Cu, 0.91 g/t Au (1.74% CuEq) from 658m to EOH) or, 1.03% Cu, 1.05 g/t Au (1.97% CuEq) from 778m to EOH) or, 1.27% Cu, 1.40 g/t Au (2.52% CuEq) from 1052m to EOH 2.97% Cu, 4.09 g/t Au and followed by a series of highly successful deep drill holes showing intercepts of > > 1% CuEq Note: Copper Equivalent (CuEq) has been calculated using $2.20 / Lb Cu and $1350 / oz Au 14

15 CASCABEL (Cu-Au) Intense B-veins stockwork with chalcopyrite 3.04% Cu, 9.54 g/t Au 15

16 CASCABEL (Cu-Au) Cascabel Project - Summary of Drill Hole Intersections Hole ID DepthFrom DepthTo Interval (m) Cu_% Au_g/t Cu.Eq_% True Width (E) CSD incl and CSD incl CSD CSD CSD incl CSD CSD incl incl CSD incl CSD incl incl CSD incl CSD incl incl CSD incl CSD incl CSD incl CSD CSD R incl CSD incl and CSD incl CSD incl incl Note: Assay results from 1794 to still pending CSD incl or Note: Assay results from 1400m to EOH (End Of Hole) still pending * Data Aggregation Method - Intercepts reported with up to 10m internal dilution. (Excluding bridging to a single sample) - Intercepts selected using Cu equivalent cutoff grades of 0.10, 0.20, 0.30, 0.50, 0.70, 1.0 and 1.50 ** Gold Conversion factor of 0.89 calculated from copper price US$2.20/lb and gold price US$1350/oz. 16

17 CASCABEL DEVELOPMENT CONCEPT 20

18 Summary Cascabel project brought from a regional stream sediment anomaly to drilling stage in 17 months and to discovery hole in less than 22 months Environmental Impact Study (EIS) completed/approved in 7 months Environmental license granted 24 hrs after EIS approval Very strong social license CASCABEL (Cu-Au) Alpala target drill tested to date but only one of 14 porphyry targets to be tested on the 50 km² property Surface exploration results, deep and extensive geophysical anomalies and drilling results are supportive of a large goldenriched porphyry copper occurrence Partner SolGold is funding 100% of project to finalization of a bankable feasibility study 18

19 CESA PROPERTIES Vetas Grandes & Bella Maria 100%-Owned properties Caña Brava Optioned to earn 100% property 19

20 VETAS GRANDES (Au-Ag) Epithermal Low to Intermediate Sulphidation goldsilver prospect Extensive surface sampling, trenching and geophysical surveys completed Several large, 3m to 7m veins and quartz vein/vein breccia/stockwork forming swarm striking eastnortheast over 1.4 km Excellent correlation between mapped veins, rock assay results, soil geochemistry Bonanza style mineralization: 3.4m grading 53.4 g/t Au and g/t Ag Regional mapping and prospecting work suggest that Vetas Grandes could be part of a new mineral district 20

21 VETAS GRANDES (Au-Ag) Excellent correlation between mapped veins, rock assay results and IP chargeability / resistivity anomalies Modeling using multi-elements geochemical distribution and ratios, spectrometry work, quartz vein textures defined prospective precious metals horizons and drill targets 21 Potential: 1Moz + gold and significant Ag Never has been drilled and is drill-ready

22 87% VETAS GRANDES (Au-Ag) TENTATIVE WORK PROGRAM & BUDGET - VETAS GRANDES PROJECT Apr-16 SHYRI - VETAS GRANDES PROJECT Year 1 / Month Year 2 / Month Budget Activity Cumulative % ADVANCED EXPLORATION PHASE (first 1.5 of 4 years) Work program Concessions fees 2016 (2300 hectares)* $ $ % Concessions fees 2017 (2300 hectares)* $ $ % Prospecting work ** Property and district scale $ $ % Detailed geology - 2 teams *** $ 0 $ % Soil geochem *** $ 0 $ % Trenching *** $ 0 $ % Geophysics - Magnetometer *** $ 0 $ % Geophysics - IP *** $ 0 $ % Drilling target definition *** $ $ % DDH - Phase m Phase m $ $ % Evaluation of results - Phase 1 11 months $ $ % DDH Phase m Phase m $ $ % Evaluation of results - Phase 2 18 months $ $ % $ % Permitting Social License and community relations program LS 6 months $ $ % Environmental License & management LA 6 months $ $ % Water permit PA 6 months $ $ % $ % * Advanced Exploration Stage (AES, Drilling) TOTAL: $ $ (ave/mo) ** Optional TOTAL + 10% contingencies $ $ (ave/mo) *** Work completed 22

23 BELLA MARIA (Au-Cu) Exceptionally high gold content in stream sediment and free gold panned samples over the entire property Soil geochemistry surveys have outlined a large (3 km x 2 km) coincident gold copper +/- molybdenum in-soil anomaly associated to porphyry-style mineralization in the central portion of property Seven (7) mineralized prospects identified Free Gold in Pan Concentrates 23

24 BELLA MARIA (Au-Cu) Bella Maria 3D Topo, district geology, mineralization and exploration results South and neighbor to Bella Maria: Newmont drilled thirteen holes on porphyry gold type mineralized zones 0-3km south of concession on its Cangrejos project: o Trinchera and Paloma targets: Seven drill holes cut greater than 70m at 0.5 g/t Au cut-off. Drill hole C99-14 cut 1.6 g/t Au and 0.2% Cu over 192m, including 3.1 g/t Au plus 0.3% Cu over 46m. o Cacique target: A 22m intercept assayed 2.6 g/t Au and approximately 0.2% copper. Odin drilled 9 holes (3540m) intersecting significant porphyry Au-Cu style mineralization and announced a 4M oz gold resource on January 25,

25 BELLA MARIA (Au-Cu) Stream sediment samples collected across the property are exceptionally anomalous in gold Large (3 by 2 km) coincident gold - copper molybdenum insoil anomaly identified in central part of property Seven (7) mineralized Au-Cu prospects have been identified Strong gold-copper mineralization found by drilling just south of property (Odin Mining) Results to date indicate excellent potential to host significant porphyry and structurally controlled (breccias and veins) gold and copper mineralization. Property never has been drilled but is drill-ready 25

26 CAÑA BRAVA (Au-Ag-Cu) Property hosts IS and HS epithermal gold-silver zones defined by extensive hydrothermal breccia and silica ribs developed on top of porphyry gold-copper style mineralization 26

27 CAÑA BRAVA (Au-Ag-Cu) Geology map and DDH proposal 4 Mineralized zones defined: Porphyry style at Q. Soroche and Q. Cana Brava Epithermal style at Soroche Norte and Noreste RTP ground magnetic data and interpretation 27

28 CAÑA BRAVA (Au-Ag-Cu) Geochemical signature: Epithermal IS veins at Soroche Norte with Au-Ag-Pb- Zn +/- As-Sb-Hg correlation High grade Au and Ag values associated to NE oriented silicified ribs Epithermal HS Au-Ag mineralization at Sector Norte Rock and soil Gold (Au) assay results Rock and soil Silver (Ag) assay results 28

29 CAÑA BRAVA (Au-Ag-Cu) Geochemical signature: Porphyry style at Soroche and Q. Caña Brava with strong Cu-Mo-Au correlation Peripheral and intermediate sulphidation at Soroche Norte Highly anomalous Mo +/- Cu values Rock and soil Copper (Cu) analytical results Results strongly suggest that a porphyry system(s) lies at shallow depth below Soroche and Q. Caña Brava targets with peripheral higher level Intermediate Sulphidation veins at Soroche Norte Property never has been drilled. Phase 1 drilling program (3,200m) is proposed Rock and soil Molybdenum (Mo) assay results 29

30 NEW PROJECT : TIOLOMA 4950 Concession granted on April 4, 2017 Underexplored area SW extension of the highly prospective exploration results obtained at Caña Brava Both concessions are strategically located at the junction of a NE oriented belt of epithermal precious metal and related mineralized porphyry prospects and deposits and of a NW-SE oriented belt of intrusives and associated epithermal and porphyry mineralization 30

31 NEW PROJECT : BRAMADEROS 4949 Has concession granted on December 27, 2016 Underlain by a cluster of Au-Cu porphyries Gold is present as dissemination in porphyry and hydrothermal breccia bodies/pipes and in quartz veins Extensive, 5km by 1-2 km, gold and copper (+/- molybdenum) in-soil anomaly located in the central part of the property has been partially tested by trenching and diamond drilling. Several anomalies still untested LOI signed on April 10, 2017 with Avalon Minerals Ltd and exploration program to start in June SE view of the Project PANAMERICAN HIGHWAY 31

32 NEW PROJECT : BRAMADEROS Mineralized zones & Gold assay results Mineralized zones & Copper assay results Mineralized zones & Moly assay results 32

33 GENERATIVE PROGRAM Example: BLOCK 2 GOLD Several datasets: > than 50,000 samples First-pass data processing completed with 93 anomalous areas defined Operational structure in place Cornerstone has a strong capability to generate and explore new projects 33

34 GENEX & TARGETING Second step, detailed compilation program completed 4 Zones, 5.55 M Has 100 gold and/or copper exploration targets defined Several target areas applied for (62,000 Has) under the ENAMI EP JV and on our own More could be done with a JV partner or partners 34 Targeting program: Cornerstone properties, main deposits, prospects, areas investigated, targets defined and concessions applied for

35 STRATEGIC ALLIANCE WITH ENAMI On June 14, 2016, Cornerstone Ecuador SA (CESA) signed the definitive Strategic Alliance and Joint Venture agreement with Ecuador s State Mining Company, ENAMI Empresa Pública. ENAMI EP has a preferential right to acquire mining concessions anywhere within the country. It has applied for approx. 40,000 Has of high quality targets in the Cascabel district under the JV agreement. Regional data compilation and integration Target areas defined using newly developed metallotects Zone 1 detailed data integration completed: 35 targets defined. 9 highest priority targets (60,000 has) selected for ground acquisition 35

36 CHILE MIOCENE PROJECT Miocene property geology map showing prospective areas 36

37 CHILE MIOCENE PROJECT Miocene property, alteration zones and mineral prospects. Gold assay results of Miocene project rock samples 37

38 CHILE MIOCENE PROJECT Arsenic assay results of Miocene project rock samples. Mercury assay results of Miocene project rock samples. 38

39 CHILE MIOCENE PROJECT Copper assay results of Miocene project rock samples. Molybdenum assay results of Miocene project rock samples. EARN-IN AGREEMENT COMPLETED ON APRIL 28,

40 WHY CORNERSTONE? Interest in Cascabel financed to Bankable Feasibility Study Timely opportunity for project generators in Ecuador Underexplored country hosting world class precious and base metals deposits Competitive tax regime and new regulations recently implemented making the country significantly more attractive First mover advantage Operational structure in place since 2005: Expertise and databases 3 Drill-ready and JV-ready projects 5.6M Has targeting program completed. 100 Cu and Au targets defined New concessions applied for and some more that could be applied for under ENAMI JV or under the general bidding process World class Cascabel discovery made in less than 2 years from an early grass-root, regional exploration program. 55,000 Has applied for in the same district. Exploring in the core of a new mineral district in northern Chile 40

41 APPENDIX A STOCK OPTIONS BREAKDOWN Price Expiry Date # Options $0.10 May 8, ,000 $0.10 June 11, ,000 $0.19 March 5, ,875,000 $0.10 January 29, ,410,000 $0.10 June 4, ,000 $0.05 June 13, ,046,667 $0.11 August 8, ,875,000 $0.15 November 15, 2021 * 9,400,000 * Subject to shareholder approval 22,651,667 41

42 APPENDIX A (cont.) WARRANTS BREAKDOWN Price Expiry Date # Warrants $0.35 April ,666,667 $0.20 April ,808,450 $0.10 May 12, ,596,519 $0.05 May 12, ,454, ,526,478 42

43 43