Transcript Slide 1

Cerro Grande Mining Corporation (CNSX: “CEG”)
Corporate Presentation
April 2015
www.cegmining.com
1
Disclosure Statement
This presentation contains certain “forward-looking statements”.
All
statements, other than statements of historical fact, that address activities,
events or developments that Cerro Grande Mining Corporation (“CEG” or the
“Company”) believes, expects or anticipates will or may occur in the future are
forward-looking statements. Forward-looking statements are often, but not
always, identified by the use of words such as “seek”, “anticipate”, “believe”,
“plan”, “estimate”, “expect”, and “intend” and statements that an event or
result “may”, “will”, “can”, “should”, “could”, or “might” occur or be achieved
and other similar expressions. These forward-looking statements reflect the
current internal projections, expectations or beliefs of CEG based on
information currently available to CEG. Forward-looking statements are
subject to a number of risks and uncertainties, including those detailed from
time to time in filings made by CEG with securities regulatory authorities, that
may cause the actual results of CEG to differ materially from those discussed
in the forward-looking statements, and even if such actual results are realized
or substantially realized, there can be no assurance that they will have the
expected consequences to, or effects on CEG. CEG expressly disclaims any
obligation to update or review any such forward looking statements.
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Table of Contents
4
Introduction
5
Corporate Overview
7
Chilean Assets Overview
8
Pimenton
11
Tordillo
13
Catedral Rino
14
Santa Cecilia
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Summary
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Introduction
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Existing gold and copper producer with targeted production of 12,000 oz. of gold and 350
tonnes of copper for 2015 from the Pimenton Mine
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Have completed an updated 43-101 reserve and resource report in December, 2013 for
Pimenton. 49,254oz gold and 1,656 Tonnes of copper in Proven and Probable
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Track record of continuously adding to Reserves through exploration and development
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Multiple Au and Cu vein targets at Pimenton and Tordillo
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Multiple porphyry exploration assets in ‘the right neighbourhoods’ at Pimenton, Tordillo and
Santa Cecilia
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Currently drilling for additional gold/copper veins at Pimenton. The company operates two
diamond rigs with 1,000 meter capacity and one with a capacity of 300 meters.
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Drilling porphyry targets at Pimenton with drilling planned through this up coming winter
season
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Proven exploration track record of Management and Board
Significant drop in costs at the mine. Tonnes through the mill has been increased.
This Presentation has been reviewed by Dr. David R.S. Thomson, EVP of Exploration and a QP
under NI 43-101.
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Corporate Overview
Capitalization Overview
Summary
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Existing production and cash flow
Four core assets located in a proven mining friendly
jurisdiction
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2 highly prospective and potentially sizable Au/Cu
porphyries
2 high grade vein systems
Drilling on core Pimenton property at present
Proven Board and Management - significant exploration
pedigree and track record of successful exploration
including:
•
El Indio, Pascua, Caserones, Maricunga (ex Refugio),
Mesquite, Agua Rica, Marte/Lobo, Santa Cecilia, Cerro
Lindo…
Pimenton Metrics
Symbols
CNSX: CEG.CAC
OTCQB: CEGMF
Shares Outstanding
(Basic)
174,977,010
Options, Warrants &
Converts
21,407,952
Shares Fully Diluted
196,384,962
Current Share Price¹
G$ 0.01
Market Cap
C$ 1,749,770
Note 1: Share price as of April 7, 2015
Reserves
Name
Tonnage
Grade
Gold
Grade
Copper
tonnes
Au g/t
Oz Au
Cu %
t Cu
11,1
Grade
12,3
0.43
49,254
Gold
64,070
540,192
1.20%
Grade
1.3%
0.37%
1,656
Copper
2,106
148,000
Prov/Prob.
2013
138,000
Resources
Tonnage
Inferred Veins
162,000
Inferred Porph. 40,000,000
Sales
2011
2012
2013
2014
2015
Gold
12,716 oz
13,576 oz
10,591 oz
9,220 oz
12,000 oz
Copper
377 t
410 t
314 t
287 t
350 t
US DOLLARS
US$24,289,000
US$25,549,000
US$18,677,000
US$14,064,000
Insider Shareholdings
1
David Thomson
30.12%
2
Mario Hernandez
31.38%
3
Fernando Saenz
3.62%
4
Stephen Houghton
1.64%
From last published 43-101 reserve December 2013.
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Management and Board of Directors
Paul J. DesLauriers (1,2,3,4)
Toronto, Canada
Chairman
A founder, EVP and Director of
LOM Limited. Past Chairman of
the Canadian Securities
Institute and Vice Chairman
and Governor of the Montreal
Exchange.
Stephen W. Houghton
New York, USA
CEO
Founder of Cerro Grande
Mining Corporation holds an
Economics degree from the
Wharton School of Finance and
Commerce and started his
career at Morgan Guarantee
Trust Company.
Juan Proaño (3)
Potomac, Maryland
Director
Graduated from the
Universidad Nacional de
Ingenieria in Lima with a
degree in Mining Engineering
and from Stanford University
with a degree in Geology and
has been active in Peru and
Chile as General Manager and
Director of various projects and
mines.
1
2
3
4
Mario Hernandez
Santiago, Chile
Director, EVP Claims & Land
Mgmt.
Mining engineer with a degree
from the Universidad del
Estado, La Serena, Chile. Has
been involved in numerous
projects as an investor and
explorer including El Indio,
Pascua Lama, Caserones and
Maricunga ex Refugio.
Richard Lachcik (3,4)
Toronto, Canada
Director
Partner in the law firm Norton
Rose Fulbright and specializes
in securities, corporate and
mining matters.
William Hill (1,3,4)
Rock wood, ON, Canada
Director
Holds a B.A.Sc. in Mining from
the University of Toronto. Very
active mining engineer with
experience with large copper
operations in Chile, Peru and
the Philippines
Fernando Saenz Poch
Haulpen, Chile
Director
Holds a M.Sc. In Operations
Management from the
University of Nottingham.
General manager of MADESAL,
a real estate and fitness center
operator.
Peter Hogg, CA
Toronto, Canada
CFO
President Palmer Services that
provides accounting support
for multinational corporations
which have a presence in
Canada but are without a local
accounting department.
Frederick Seeley (1,2,4)
New York, USA
Director
Graduated with a BA from
Princeton University and an
MBA from New York University.
Started his career at Schroder
Bank & Trust and went on to
be a founder and chairman of
Givens Hall Bank and Trust Co.
Dr. David Thomson
Santiago, Chile
Director, EVP Director of
Exploration
Holds a PhD from the Royal
School of Mines, Imperial
College and has a very
successful career as an
exploration Geologist and
investor in projects in Peru,
USA, Canada and Chile.
Member Audit Committee
Member Compensation Committee
Member Technical Committee
Member Corporate Governance and Nominating Committee
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Chilean Asset Overview
Properties
Pimenton Vein Mine
• High grade Au, Cu mine
• Operating at near 128 tpd 28 days
Pimenton Porphyry
• Cu, Au, Moly
• Geology similar to CODELCO’S El
a month
• Target 2015 production is 12,000
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oz. Au and 350 tonnes of Cu
2015 Target Au Eq. total cash cost
of US$900 oz versus US$1,191 oz
in 2014
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Teniente, ANGLO AMERICAN’S Los
Bronces, CODELCO’S Andina and
ANTOFAGASTA’S Pelambres mine
Inferred NI 43-101 resource:40Mt @
0.37% Cu & 0.42g/t Au
In 2006, Rio Tinto estimated the
potential for a resource of 400Mt at
0.40% Cu and 0.43g/t Au in one target
area alone.
Presently drilling with company’s own
diamond drill rigs.
Source: Technical Reports on the Pimenton Properties by WGM, Dated January 2011,
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CEG Will Concentrate its Exploration / Development
Activities Solely on Pimenton during the Fiscal Year
Ended Sept. 30 2015
PIMENTON – HIGH GRADE Au/Cu MINE
Summary
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Mine Overview
High grade polymetallic underground mine
• Exploration conducted via drifting and
underground sampling and diamond drilling
200 person mine and exploration camp
Existing water rights for production
Power from diesel generators
Calendar 2015 mine targets include:
• Increase throughput through exploration for
new veins
• Production target of 12,000 oz Au and 350
tonnes Cu
• Recoveries of approximately 95% Au and
90+% Cu
The mine is producing with a innovative and
proven narrow vein mining method resulting in 70
cm minimum width in working stopes `
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Underground mining on multiple levels via adits
• Six veins/vein systems known
• ‘Jackpot Stull Mining’ directly over
development drifts
• Company has three of its own diamond drills
working onsite
• Well equipped with all required underground
mining equipment on site.
Some 60% of gold production is in the form of
doré which is shipped to Switzerland
Subject to a 5-6% sliding scale NSR
Cash operating costs of approximately
US$900/oz. for the first quarter 2015.
PROVIDING POSTIVE CASHFLOW TO FUND
GROUP EXPLORATION ENDEAVOURS
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Pimenton Mine Drilling & Development
Diamond drilling in the mine production area amounted to
3,900 meters over the past year. Ongoing drilling is
dedicated to defining veins for subsequent exploration
and development and then production, as well as
providing solutions for problems related to mining and for
longer term production planning. At Pimenton we drill for
structure and drift for ore.
The Company has just completed a 600m ramp to access
higher grade ore, 60m below the main 3195 level. These
higher grade stopes are now being prepared for
production. Anticipated production from this area should
be within 2 months.
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Pimenton – Porphyry Exploration
Summary
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Contoured MMI Response Ratios
38 square kilometre property 120km NNE of Santiago
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Substantial potential to add significant tonnage through
further drilling
Multiple large Mobile Metal Ion Cu, Au and Moly anomalies
established
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Cerro Grande has to date drilled seven holes totalling 5,775
meters on porphyry exploration with Cerro Grande’s own drill
rigs
Best hole to date cut 204 meters with 0.372% Cu and 0.24g/t
Au
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Porphyry targets based on geology, assays and
geochemistry/geophysics in mine area to be drilled in the
coming winter of 2015
Pimenton lies in the same Miocene trend that hosts the mega
Chilean copper mines El Teniente, Andina, Los Bronces and
Pelambres
Rio Tinto Potential Resource¹
Historical
Name
Inferred
Tonnage
Grade
Gold
Grade
Copper
Mt
Au g/t
oz Au
Cu %
tons Cu
400,000,000
0.43
5,530,000
0.40%
1,600,000
+15
10-15
5-10
4 km
Copper
To date inferred 43-101 resource of 40 Mt at 0.37% Cu and
42g/t Au
In 2006, Rio Tinto disclosed potential for a resource at
Pimenton of 400Mt at 0.40% Cu and 0.43g/t Au in one target
area.
+15
10-15
5-10
4 km
Molybdenum
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Gold
4 km
Anglo American/Glencore West Wall project with 4.0 million
tons of Cu metal and 1.20 million ozs of gold in 750,000,000
tons of rock lies 17 km to the S.W. of Pimenton
Very large Cu/Au porphyry target at Pimenton
+15
10-15
5-10
Note 1: Based on 2006 Final Report by Rio Tinto available in [email protected]
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Tordillo – Porphyry and Vein Exploration
Summary
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Anglo American/Glencore West Wall Project
(4.0 M tons copper 1.20 M oz Au) Lies 10 km
to the West
Cu/Au/Mo porphyry target with narrow high
grade Au/Cu/Ag veins at Tordillo
Alteration zone 2 by 3 km. Cu/Au MMI
anomaly 1,700 by 350 meters
Copper float extends below ridge of altered
dioritic intrusive over 600 Mts
6 km access road up to 4200 Mt elevation
completed
Further exploration and development to
recommence when Pimenton reaches
average production of 150 -180 t/d at current
gold price
2.5 km
Gold
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A 66.3 square kilometre property 12 km
south of Pimenton which is 120 km NNE of
Santiago
+
15
10-15
5-10
2.5 km
Copper
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Contoured MMI Response Ratios
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10-15
5-10
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Tordillo– Assay Results From Surface Samples
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Catedral and Rino – Limestone
Summary
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Located 80km SE of Santiago (2 hour drive)
Inferred N.I. 43-101 resources of
approximately 86,100,000 tons ¹
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Grade~90% CaCO3
Accessible limestone for year round
mining
High grade limestone beds entirely within
lower grade limestone
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Contacts marked by gradation
Limestone zones of >200m thick
CaCO3 grade varies from 73% – 93%
High grade beds vary from 11m – >30m
Shortage of local lime production and
supportive demand
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Location Map
Deposit well suited for production of
both premium quality lime and Portland
cement production
Potential to build and operate >600tpd lime
plant and/or >1,300,000 ton per year cement
plant
NON-CORE ASSETS – DIVESTMENT/JV
Note 1: As determined by Watts Griffis and McOuat Limited, Dec 2010 Report available on CEG website
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Santa Cecilia – Porphyry Exploration
Summary
Location Map
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32.5 square kilometres property 180 km by road east of
Copiapo. Altitude 4400 Mts
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Maricunga Mine of Kinross Gold Corporation with 7.2 M
ozs Au lies 16 km to the North. Producing an average of
some 200,000 oz of gold per year
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Cerro Casale of Barrick Gold Corporation with 17.4 M
ozs Au lies 11.3 km to the south.
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2010 - Quantec Geoscience CSAMT survey.
Encountered massive central anomaly with matching
Au and Cu MMI anomalies
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2012 – 3,336 meters of diamond drilling on central
anomaly split between two holes
CDM002 869 meters 0.08g/t Au, 0.18% Cu &
0.016% Moly
CDM003 1,048 meters 0.20g/t Au, 0.25% Cu & 0.008%
Moly
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2013 – Quantec Geoscience ORION 3D DC/IP/MT survey
completed over entire altered area
Quantec recommends 23 drill targets associated with
five Au/Cu MMI anomalies
Four drill holes are planned 1,000 meters southwest of
EXETER Resources Caspiche orebody (contained gold
of planned pit is 19.3 million ounces Au, 2.1 million
tons of Cu metal and 41.5 million ounces of Ag
according to Exeter Resources) Further 2 holes
planned in central zone and another to the south
Anglo American sampled 142 meters of a drift
which gave 0.66 g/t gold and 18.46 g/t silver near a
diamond drill hole intercept that assayed 11.26 g/t
gold over 12 meters
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Santa Cecilia Drill Results
Diamond drill holes CDM 002 and 003 were put down on a strong and very large
central CSAMT Quantec anomaly with closely coinciding gold and copper Mobile
Metal Ion anomalies. Both holes encountered strong but uneconomic gold, copper and
molybdenum mineralization beneath the Santa Cecilia silica cap as summarized
below.
CDM 002: Drilled due south at - 60 degrees and starting at 870 meters below
the surface:
Intercept
Length
GOLD
COPPER
MOLY
Meters
meters
g/t
%
ppm
90
0.14
0.26
107
1,084 -1,556
472
0.10
0.23
155
1,556 -1,716
160
0.05
0.13
241
1,716 -1,863
Total
147
869
0.03
0.08
0.03
0.18
43
147
994 -1,084
CDM 003: Drilled due south at minus -60 degrees and starting at 540 meters
below the surface depth:
Intercept
Length
GOLD
COPPER
MOLY
Meters
meters
g/t
%
ppm
550 -760
210
0.14
0.16
59
760 -1,060
300
0.19
0.26
41
1,060 -1,140
80
0.23
0.27
49
1,140 -1,260
120
0.28
0.34
70
1,260 -1,390
130
0.25
0.28
174
1,390 -1,598
208
0.20
0.25
114
1,048
0.20
0.25
80
Total
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Summary
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Existing gold and copper producer with production target for
Pimenton of 12,000oz. of gold and 350 tonnes of copper for
2015
•
43-101 Technical Review of reserve and resource for
Pimenton completed in Dec 2013
•
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Multiple Au/Cu vein targets at Pimenton and Tordillo
•
•
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Currently drilling porphyry targets at Pimenton
Multiple porphyry exploration assets in ‘the right
neighbourhood’ at Pimenton, Tordillo and Santa Cecilia
Proven exploration track record of Management and Board
Cash flow from production at Pimenton finances CEG’s
activities
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