Cornerstone Capital Resources Inc.

Transcription

1 Exploring World Class Mineral Districts Cornerstone Capital Resources Inc. Corporate Presentation (AGM) July 24, 2013

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 Yvan Crepeau, P.Geo, MBA, Cornerstone s VP Exploration and President of Cornerstone Ecuador SA and Minera Cornerstone Chile), who is a qualified person in accordance with National Instrument

3 PROPERTIES ATLANTIC CANADA Little Deer Copper Property, Newfoundland JV with Thundermin Resources Includes 2 past-producing underground copper mines Little Deer and Whalesback ECUADOR Cascabel & La Encrucijada Properties SolGold can earn 85% interest by spending C$2.5 million, subscribing C$1.2 million Cornerstone shares & issuing C$500,000 SolGold shares Multiple prospective near-surface porphyry gold-copper targets identified Phase 1 drilling planned Q Macará Property JV with Newmont Ventures 2,500 km 2 of prospective geology in southern Ecuador, including the 1,452 ha Bellavista concession Shyri, Bella Maria & Caña Brava Properties 100% owned by Cornerstone Shyri - Vetas Grandes epithermal gold prospect Bella Maria & Caña Brava Highly prospective porphyry and epithermal targets 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 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 3

4 SHARE CAPITALIZATION (as at June 30, 2013) Shares Outstanding 151,931,354 Fully Diluted 176,012,936 Share Price (July 23, 2013) $ Week High / Low $0.125 $0.02 Cash Position Market Cap (July 23, 2013) $425,000 (No Debt) $6.8 million 4

5 ECUADOR JV Projects Cascabel Quito Cascabel La Encrucijada Macará Rio Blanco (Au-Ag) International Minerals Zaruma (Au) Dynasty Metals & Mining Shyri Cuenca La Encrucijada Bella Maria Monterrey Macara Quimsacocha (Au-Ag) INV Metals Mirador (Cu-Au) EcuaCorriente 100%-Owned Cornerstone Projects Shyri Bella Maria Caña Brava Epithermal (Au-Ag) & Porphyry (Au-Cu) Targets Fruta del Norte (Au-Ag) Kinross Gold Advanced Stage Projects (other companies) 5

6 CASCABEL (Au-Ag-Cu) JV Partner SolGold plc can earn 85% interest by spending C$2.5 million, subscribing C$1.2 million Cornerstone shares & issuing C$500,000 SolGold shares 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 6

7 CASCABEL Moran & Alpala Porphyry Target Channel TR g/t Au & 0.59% Cu 7

8 CASCABEL Composite Interpretation Section Channel TR g/t Au & 0.59% Cu 8

9 CASCABEL Alpala Channel Results 9

10 CASCABEL Transport Route & Field Camps 10

11 BELLA MARIA (Au-Cu) 100%-owned Cornerstone Abundant free gold in stream sediment panning samples Anomalous gold and copper in rock samples Soil geochemistry surveys have outlined a large (3.5 km x 1.5 km) coincident gold and copper-in-soil anomaly accompanied by porphyry-style mineralization in the central portion of property Permits required to carry out field surveys have already been received Actively seeking a JV partner to advance exploration Free Gold in Panning Samples 11

12 CAÑA BRAVA (Au-Ag-Cu) Geology & Alteration Lithocap Hydrothermal Breccia 12

13 VETAS GRANDES 13

14 VETAS GRANDES Rock Sampling Results 14

15 CHILE 15 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 Cerro Negro Santiago Gold deposit/mine Copper deposit/mine Escondida MIOCENE La Coipa Lobo - Marte Pascua Lama Veladero El Indio El Tambo El Bronce

16 MIOCENE Property Overview 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 16

17 MIOCENE (Au-Ag-Cu) 17

18 MIOCENE (Au-Ag-Cu) Major Gold Deposits, Maricunga & El Indio Belts Project Mineral Reserves (Proven + Probable) Mineral Resources (Measured + Indicated) Au (Moz) Ag (Moz) Cu (Mlb) Au (Moz) Ag (Moz) Cu (Mlb) Maricunga Belt La Coipa (Kinross) La Pepa (Yamana) Lobo - Marte (Kinross) Volcan (Andina) Maricunga (Kinross) Caspiche (Exeter) Cerro Casale (Barrick-Kinross) El Indio Belt Pascua Lama (Barrick) Veladero (Barrick) El Indio (Exhausted El Tambo Mines) TOTAL

19 CHILE ARGENTINA Zone 3 MIOCENE (Au-Ag-Cu) Regional Reconnaissance Program Zone 1 Zone 5 Zone Soils Rocks Ha Zone Zone Zone Zone Zone Others - 7 Total Zone 2 19

20 LITTLE DEER (Cu) 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 20

21 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,

22 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,

23 LITTLE DEER DEPOSIT Scoping Level Metallurgical Test Work 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) 23

24 LITTLE DEER DEPOSIT Preliminary Economic Assessment 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) 24

25 LITTLE DEER Infrastructure Old Tailings Impoundment Whalesback Mine Little Deer Deposit Goodyear s Cove Port Provincial Hydro Grid Substation Goodyear s Cove Port 25

26 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 26

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