cornerstone capital resources inc
TRANSCRIPT
TSXV-CGP OTC-CTNXF F-GWNExploring World Class Mineral Districts
Cornerstone Capital Resources Inc.
Corporate Presentation (AGM)
July 24, 2013
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 mineralexploration programs. When used in this presentation, the words “potential,” “anticipate,”“forecast,” “believe,” “estimate,” “expect,” “may,” “project,” “plan,” and similar expressions areintended 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 websiteat www.sedar.com. For us, uncertainties arise from the behaviour of financial and metalsmarkets and from numerous other matters of national, regional, and global scale, including thoseof an environmental, climatic, natural, political, economic, business, competitive, or regulatorynature. These uncertainties may cause our actual future results to be materially different thanthose expressed in our forward looking statements.
Although Cornerstone Capital Resources believes the facts and information contained in thepages of this presentation to be as correct and current as possible, Cornerstone CapitalResources does not warrant or make any representation as to the accuracy, validity orcompleteness of any facts or information contained in these pages. Nothing in this presentationconstitutes either an offer to sell or a solicitation of an offer to buy any securities in the UnitedStates or any other jurisdiction.
The technical information contained in this presentation has been reviewed and approved byYvan Crepeau, P.Geo, MBA, Cornerstone’s VP Exploration and President of Cornerstone EcuadorSA and Minera Cornerstone Chile), who is a qualified person in accordance with NationalInstrument 43-101.
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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)
CHILEMiocene Property - Gold/Copper/Silver
Option to earn 100%
Within the northern extension of the Maricunga magmatic belt which hosts several world-class gold deposits
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 Q3 2013
Macará Property
JV with Newmont Ventures
2,500 km2 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
TSXV-CGP OTC-CTNXF F-GWN
SHARE CAPITALIZATION(as at June 30, 2013)
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Shares Outstanding 151,931,354
Fully Diluted 176,012,936
Share Price (July 23, 2013) $0.045
52 Week High / Low $0.125 – $0.02
Cash Position $425,000 (No Debt)
Market Cap (July 23, 2013) $6.8 million
TSXV-CGP OTC-CTNXF F-GWN
ECUADOR
JV Projects
Cascabel
La Encrucijada
Macará
100%-Owned Cornerstone Projects
Shyri
Bella Maria
Caña Brava
Quito
CuencaShyri
Bella Maria
Macara
Monterrey
Fruta del Norte (Au-Ag)
Kinross Gold
Mirador (Cu-Au)
EcuaCorriente
Quimsacocha (Au-Ag)
INV Metals
Rio Blanco (Au-Ag)
International
Minerals
Zaruma (Au)
Dynasty Metals
& Mining
Cascabel
La Encrucijada
5
Advanced Stage Projects
(other companies)
Epithermal (Au-Ag)
& Porphyry (Au-Cu)
Targets
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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 (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
TSXV-CGP OTC-CTNXF F-GWN7
CASCABELMoran & Alpala Porphyry Target
Channel TR46
45.6 m @ 0.81 g/t Au & 0.59% Cu
TSXV-CGP OTC-CTNXF F-GWN8
CASCABELComposite Interpretation Section
Channel TR46
45.6 m @ 0.81 g/t Au & 0.59% Cu
TSXV-CGP OTC-CTNXF F-GWN9
CASCABELAlpala Channel Results
TSXV-CGP OTC-CTNXF F-GWN10
CASCABELTransport Route & Field Camps
TSXV-CGP OTC-CTNXF F-GWN11
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
Free Gold
in Panning
Samples
Permits required to
carry out field surveys
have already been
received
Actively seeking a JV
partner to advance
exploration
TSXV-CGP OTC-CTNXF F-GWN12
CAÑA BRAVA (Au-Ag-Cu)
Geology & Alteration
Hydrothermal
Breccia
Lithocap
TSXV-CGP OTC-CTNXF F-GWN13
VETAS GRANDES
TSXV-CGP OTC-CTNXF F-GWN14
VETAS GRANDESRock Sampling Results
TSXV-CGP OTC-CTNXF F-GWN15
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
TSXV-CGP OTC-CTNXF F-GWN
MIOCENEProperty Overview
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Option to acquire 100% entered February 2011
Located in the Regions of Atacama and Antofagasta of northernChile, approximately 200 km southeast of the port city ofAntofagasta
Underlain by the same Miocene and Pliocene volcanic sequencesthat host the world class gold deposits in the Maricunga and ElIndio magmatic belts to the south
The Maricunga belt contains a number of undeveloped advancedstage projects and two producing gold mines - Kinross Gold'sMaricunga and La Coipa open pit mines
Option Agreement
Option payments of CDN$500,000 payable over 5 years ($40,000in 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 ($500,000in years 1 & 2, $1 million in year 3, and $1.5 million in each ofyears 4 & 5)
2% NSR with the right to buy back half for US$1 million
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MIOCENE (Au-Ag-Cu)
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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) 1.1 37.9 -- 0.3 13.9 --
La Pepa (Yamana) -- -- -- 2.8 -- --
Lobo - Marte (Kinross) 5.6 -- -- 0.6 -- --
Volcan (Andina) 6.6 -- -- 8.9 -- --
Maricunga (Kinross) 6.4 -- -- 2.9 -- --
Caspiche (Exeter) -- -- -- 21.3 48.4 5300.0
Cerro Casale (Barrick-Kinross) 23.2 58.7 5782.0 2.7 7.4 880.0
El Indio Belt Pascua Lama (Barrick) 17.8 671.1 655.7 4.8 136.1 194.0
Veladero (Barrick) 12.2 224.6 -- 0.9 24.9 --
El Indio (Exhausted
El Tambo Mines)
TOTAL 75.9 1007.5 6438.0 45.2 230.7 6374.0
0.3 -- -- --3.0 15.1
Major Gold Deposits,
Maricunga & El Indio Belts
MIOCENE (Au-Ag-Cu)
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Zone Soils Rocks Ha
Zone 1 741 131 20 100
Zone 2 119 24 6 500
Zone 3 431 99 11 400
Zone 4 30 6 0
Zone 5 - 13 3 100
Others - 7
Total 1321 280 41 100
ARGENTINA
CHILE
Zone 1
Zone 2
Zo
ne 3
Zone 5
Regional Reconnaissance
Program
MIOCENE (Au-Ag-Cu)
TSXV-CGP OTC-CTNXF F-GWN20
LITTLE DEER (Cu)
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
TSXV-CGP OTC-CTNXF F-GWN21
LITTLE DEER – WHALESBACK3D 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
TSXV-CGP OTC-CTNXF F-GWN22
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-GWN23
LITTLE DEER DEPOSITScoping 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)
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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)
LITTLE DEER DEPOSITPreliminary Economic Assessment
TSXV-CGP OTC-CTNXF F-GWN25
LITTLE DEERInfrastructure
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-GWN26
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
TSXV-CGP OTC-CTNXF F-GWN27