ecuador: back as a land of opportunity? · 2020. 10. 19. · o trinchera and paloma targets: seven...

TSXV-CGP OTC-CTNXF F-GWNExploring World Class Mineral Districts

Ecuador: Back as a land of opportunity?(Ecuador: De vuelta como tierra de oportunidades?)

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8 Sept. 2016Chile Explore 2016

Cornerstone Capital Resources Inc.

TSXV-CGP OTC-CTNXF F-GWN

CAUTIONARY STATEMENTS

This presentation includes ‘Forward-Looking Statements’ as well as historical information. These statementsinclude Cornerstone Capital Resources’ continued advancement of its mineral exploration programs. When usedin 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-LookingStatements’ are reasonable, such statements may involve unknown risks, uncertainties and other factorsdisclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arisefrom the behaviour of financial and metals markets and from numerous other matters of national, regional, andglobal scale, including those of an environmental, climatic, natural, political, economic, business, competitive, orregulatory nature. These uncertainties may cause our actual future results to be materially different than thoseexpressed in our forward looking statements.

Although Cornerstone Capital Resources believes the facts and information contained in the pages of thispresentation to be as correct and current as possible, Cornerstone Capital Resources does not warrant or makeany representation as to the accuracy, validity or completeness of any facts or information contained in thesepages. Nothing in this presentation constitutes either an offer to sell or a solicitation of an offer to buy anysecurities 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 Ecuador SA and Minera CornerstoneChile, who is a qualified person in accordance with National Instrument 43-101.

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TALKING POINTS

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• Who’s Cornerstone Capital Resources Inc.?• Ecuador: Ups and downs

o From a hot spot to bad guy and then…o Changes to taxation and regulationso Infrastructures and other positive attributeso Mineral endowment and exploration potential

• What can make you believe that Ecuador could be different? Cascabel as an example

o From acquisition to a possible world class deposito Environmental management o Social management o Summary and conclusions

• Mineral endowment and Ecuador mining / exploration projects • Cornerstone’s exploration projects

o Vetas Grandeso Bella Mariao Cana Bravao GENEX

• New concessions• Why Ecuador and Why Cornerstone?

Ecuador: Back as a land of opportunity?


PROPERTIES

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CHILE100% - OWNED PROPERTIES

Miocene - Porphyry Au-Cu and Epithermal Au-Ag

JOINT VENTURED PROPERTIES Cascabel – Porphyry Cu –Au (SolGold)

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

PROJECT GENERATION GENEX program ENAMI EP agreement

CANADAHead Office: Ottawa, ON

ECUADOR

TSXV-CGP OTC-CTNXF F-GWN5

• Cornerstone Capital Resources Inc. (TSX-V:CGP)o Prospect Generatoro Focus on Ecuador and Chile

• Cornerstone Ecuador SA (CESA) – 100%o Since 2005o Investment: >$US 30M, >75% by partnerso Strategic Alliance (SA) and Joint Venture (JV) model o Approach: project Generation (GENEX) o Partners and projects (JVs and 100%-owned)o April-May 2016 Financing

• Exploraciones Novomining SA (ENSA) – 15%o Cascabel JV with partner SoGold plc

• Minera Cornerstone Chile Ltda (MCCL) – 100%o Prospect generatoro Miocene project

CORNERSTONE AND SUBSIDIARIES


ECUADOR UPS AND DOWNS

• 1997: New Mining Law attractive for mining companies

• 2006-07: Mineral exploration frenzy and discoveries

• 2008: Mining Mandate (Moratorium)o From approx. 50 to 5 foreign companies

• 2009 & 2010: New Mining Law and new Mining Regulations

• 2011: Back to work: Cornerstone 1st company to receive drill permit at Shyri-Gama. Acquisition of Cascabel

• 2013: Wood McKenzie retained to assist in reviewing regulations and taxation in the mining sector

• 2014: o Cornerstone-SolGold’s discovery hole at Cascabel o Ross Beatty acquires Odin Mining. o Lundin Gold acquires Fruta Del Norte (FDN) from Kinross


ECUADOR UPS AND DOWNS

• 2015: o Creation of the Ministry of Mining in Februaryo CODELCO starts drilling Junín (Llurimagua) world-class porphyry Cu-Mo deposito Construction phase started at Mirador Cu project

• 2016: o Lundin Gold signs the Term Sheet of its Exploitation Agreement for its 9.5 M Oz

gold (Ind. + Inf. resources) FDN world class deposit o March 1: Claim application process implemented o Successful financing for INV Metals, Salazar Resources and Cornerstoneo Lundin Gold announced a positive FS on FDNo Cornerstone and ENAMI EP sign definitive SA and JV agreement to jointly explore

in Ecuador. ENAMI has a preferential right to acquire any ground in the countryo INV Metals announced results of its PFS on its Loma Larga deposit (> 3 M oz gold

resource)o Ecuador’s government approves FDN change from exploration to exploitation

phase. Lundin seeking financingo Merge of Odin Mining with Ecuador Gold and Copper (EGC)o August 11: Start of construction of the medium scale Rio Blanco Au-Ag mine


MINING TAXATION REGIME

• Fiscal stability contracts 25 yrs, renewable. No premium• Accelerated depreciation, investor choice of 5 - 10 years• Windfall profits (extraordinary income) tax (70%) only applicable

when metal price exceeds 10 yr. rolling monthly average plus one standard deviation.

• Currency exportation tax (ISD) exemption for mining sector• VAT (12%) refunds starting in 2018 adds up to 1.5% to IRR• Limited applicability of capital gains tax

“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)

From a high taxation regime to a more competitive taxation regime


Ecuador’s tax burden is competitive compared with regional countries

MINING TAXATION COMPARISON

Source: Wood Mackenzie presentation at PDAC 2016


Projects with other cost structures yield different percentages, but do not alter the conclusion that Ecuador’s tax burden is in the competitive range

MINING TAXATION COMPARISON

Source: Wood MacKenzie presentation at PDAC 2016


Heavy infrastructure investment• Roads: New highways. 90% of

country’s 43.000 km roads improved. $8.2B

• Energy: 9 Hydroelectric plants being built. $6.6B.

• 2 new airports and upgrading of 5 others

• 5 international seaports to be upgraded

• 60.000 km optic fiber installed • Multiple schools and medical

centers built all over the country• Large projects at design / financing

stage:o Oil refinery (USD$13B)o Aluminum smelter ($1.9B)o Copper smelter ($2.0B)

ECUADOR INVESTMENT IN INFRASTRUCTURES AND SERVICES


MINERAL ENDOWMENT AND EXPLORATION POTENTIAL

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ECUADOR CANNOT YET BE CONSIDERED AS A MINING COUNTRY BUT IS ON ITS

WAY TO BECOME…

FDN: 34.4 Mt @ 8.3 g/t Au, 12.2 g/t Ag

Inventory of mineral resources(Indicated and/or Inferred)

Llurimagua: 982Mt @0.89% Cu and 0.04% Mo

El Domo: 6.1Mt @ 2.33% Cu, 3 g/t Au, 56 g/t Ag

Rio Blanco: 2Mt @ 8.1 g/t Au 63 g/t Ag

Loma Larga: 17.9 Mt @ 4.4 g/t Au, 16.3 g/t Ag, 0.26% Cu

Gaby: 5.5M oz Au at 0.9 g/t Au

Chaucha: 216 Mt @ 0.46% Cu, 0.03% Mo

Mirador: 673Mt @ 0.58% Cu, O.19 g/t Au

Panantza-San Carlos: 678Mt @ 0,62% CuWarintza: 120Mt @ 0.53 %Cu, O.032% Mo

Note: Not all resources are NI 43-101 compliant

Cascabel: Maiden resources to be defined in Q4


CASCABEL HISTORY

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Cascabel: One of the most exiting and promising exploration play

• Acquisition (March 2011)• Early exploration • Cornerstone-Solgold JV (June 2012)• Systematic exploration

o Technical aspectso Environmental aspectso Social aspects

• Hole 5 world class intersection• Change in ownership and operatorship


• Early recognition of potential by SBGC • Cornerstone’s decision to acquire the project

o Due diligence work o Difficult financial times and exodus of companies from Ecuador after the

2008 Mining Mandate o Hard field work o Cornerstone’s business model

• Solgold’s decision to be part of ito Ecuador’s bad reputation vs metallogenic concepts and confidence o Capacity to raise significant money and carry-out state-of-the-art surveyso Dedication of technical and non-technical teams to make it happen in a

record time by any standard

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KEYS TO SUCCESS AT CASCABEL


• Cascabel project brought from a regional stream sediment anomaly to drilling stage in 17 months…and to discovery hole in less than 22 months

• Alpala deposit is outcropping and discovered by prospectingduring the first field sequence (May 2012)

• Environmental Impact Study (EIS) completed/approved in 7 months. Environmental license granted 24 hrs after EIS approval

• Very strong social license• Alpala target drill tested to date but only one of 14 porphyry (and

epithermal) targets to be tested on the 50 km² propertyo 18 holes drilled to date on the Alpala target:o 8 holes with world class copper-gold intersections: 5 holes

with > 1% CuEq over > 1 km intercepts and 3 more holes with > 1% CuEq over > 450m intercepts

• Partner SolGold is funding 100% of project to finalization of a bankable feasibility study

SUMMARY


CORNERSTONE’S PROJECTS

Cornerstone JV Projects

• Cascabel

Cornerstone 100%-Owned and optioned Projects

•Vetas Grandes• Bella Maria• Caña Brava*

* Option to earn 100%

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Epithermal (Au-Ag) & Porphyry (Au-Cu) Targets


CESA PROPERTIES

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Vetas Grandes & Bella Maria 100%-Ownedproperties

Caña Brava Optioned to earn 100% property


VETAS GRANDES (Au-Ag)

• Epithermal Low to Intermediate Sulphidation gold-silver prospect

• Extensive surface sampling, trenching and geophysical surveys completed

• Several large, 3m to 7m veins and quartz vein/vein breccia/stockwork forming swarm striking east-northeast 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 641.0 g/t Ag


VETAS GRANDES (Au-Ag)

• Excellent correlation between mapped veins, rock assay results and IP anomalies

• Modeling using multi-elements geochemical distribution and ratios, spectrometry work, quartz vein textures defined prospective precious metals horizons and drill targets

Potential: 1Moz + gold and high grade Ag

Never has been drilled…and is both, drill-ready and JV-ready

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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


BELLA MARIA (Au-Cu)

• Newmont drilled thirteen holes on porphyry gold type mineralized zones 0-3km south of concession: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:o Hole #47: 405m @ 0,66 g/t Au, 0,09% Cu ( 0.82 g/t AuEq)o Hole #51: 344.4m @ 0,67 g/t Au, 0,10%cu (0,83 g/t AuEq)Both holes with higher grade, 50-100m thick, zones grading 1.5 to 2 g/t AuEq

Bella Maria 3D Topo, district geology, mineralization and exploration results


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 in-soil anomaly identified in central part of property

• Strong gold-copper mineralization found by drilling just south of property (Odin Mining)

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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

• Seven (7) mineralized Au-Cu prospects have been identified


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



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

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RTP ground magnetic data and interpretation



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Rock and soil Gold (Au) assay results

Rock and soil Silver (Ag) assay results

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 Copper (Cu) assay results

Rock and soil Molybdenum (Mo) assay results

Geochemical signature:• Porphyry style at Soroche and Q. Cana Brava with strong Cu-Mo-Au correlation• Peripheral and intermediate sulphidation at Soroche Norte• Highly anomalous Mo +/- Cu values

Results strongly suggest that a porphyry system(s) lies at shallow depth below

Q.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 (3200m) is proposed

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GENERATIVE PROGRAM

Example: BLOCK 2 – GOLD

• Several datasets: > than 50.000 samples

• First-phase data processing completedwith 93 anomalous areas defined

• Operational structure in place


GENEX & TARGETING

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• Second-phase, detailed compilation program completed as well• 4 Zones, 5.55 M Has • 100 gold and/or copper exploration targets defined

Targeting program: Cornerstone properties, main deposits, prospects, areas investigated, targets defined and concessions applied for

Several target areas applied for (60.000 Has) under the ENAMI EP JV

and on our own

More could be done with a JV partner or partners


STRATEGIC ALLIANCE WITH ENAMI

On June 14, 2016, Cornerstone Ecuador SA (CESA) signed the definitive Strategic Alliance and Joint Venture agreement State Mining Company, ENAMI EP

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

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Cornerstone has applied for approx.15,000 Has on its own under the public bid process


News concessions

• Reservation process started in Marc 2016

• Public bid process in ongoing

• Applications to date:o > 300o > 1.3M Has

• Granting of titles

Renewed interest for Ecuador and… Cornerstone not alone

this time as it has been for years


WHY ECUADOR?

In addition to being the last Andean nation that is largely unexplored, Ecuador has the advantages of abundant water and electrical power (and low power costs), excellent highway and port infrastructure, and already is known to host world class deposits. The discovery of the Cascabel high grade copper-gold porphyry at surface by prospecting clearly demonstrates the underexplored nature of the country and its high potential to host easier-to-find deposits compared to its more mining-mature neighbor countries. Recent changes in the tax regime makes the country more competitive with Chile, Colombia, Brazil, Mexico and Peru.

Cornerstone has an experienced team of geologists who have been continuously active in Ecuador since 2005, and is one of the most successful exploration companies active there.

Potential partners can significantly de-risk their investment in the country by operating through a JV or Strategic Alliance with Cornerstone, acquiring a first mover advantage in one of the last mining frontiers in the Andes.

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Ecuador’s bad reputation and bad image. Still?Ecuador: Back again as a mining destination?


WHY CORNERSTONE?

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• 15% interest in Cascabel financed to Bankable Feasibility Study• Cornerstone well financed to carry out generative work •Timely opportunity for entering Ecuador

• Underexplored country hosting world class precious and base metals deposits • Operational structure in place since 2005: Expertise and databases• 3 crews currently in the field• 3 Drill-ready and JV-ready projects• Thorough 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 is a good example of Cornerstone approach and capacities.

Cornerstone has a strong capability to generateand successfully explore new projects.


www.cornerstoneresources.com

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Thanks on behalf of

ecuador: back as a land of opportunity? · 2020. 10. 19. · o trinchera and paloma targets: seven...

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