impact copper exploration with royalty hedge · the formula assumes a selling cost of us$1.14/lb...
TRANSCRIPT
chileanmetals.com TSX.V: CMX, OTCQB: CMETF, SSE:CMX, MILA:CMX, FRA: IVV1, BER : IVV1
Impact Copper Exploration with Royalty Hedge
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Disclaimer
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Forward Looking Statements
Except for historical information contained herein, this presentation may contain forward looking
statements including but not limited to comments regarding predictions and projections. Forward
looking statements address future events and conditions and therefore involve inherit risks and
uncertainties. Although Chilean Metals Inc. believes that such expectations are reasonable, there can
be no assurance that such expectations will prove to be correct, and therefore actual results may differ
materially from those currently anticipated in such statements. You are cautioned not to place undue
reliance on any such forward looking statements, whether made in this presentation or in any question
and answer period related to this presentation.
TSXV:CMX chileanmetals.com
Why Invest Now?
The discovery curve
Discovery Permitting/Construction Production
Sh
are
Pri
ce
Time
1-2 years 2-3 years 2 years 1-2 years
Speculators Sell
Construction “Orphan”
Period
Institutional Investors
Buy
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CMX
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Markets Have Turned
TSX Venture* from 1990 to Present – Bull & Bear Markets
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Normalized Data – Vancouver Stock Exchange, Canadian Venture Exchange, TSX Venture Source: palisadeglobal.com / palisade-research.com, Bloomberg
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Re
turn
(%
)
28% 251 Days
-26% 102 Days
266% 1,142 Days
-79% 408 Days
222% 573 Days
-80% 1,200 Days
-41% 422 Days
120% 80 Days
-73% 897 Days
106% 307 Days
-38% 245 Days
128% 814 Days
-31% 112 Days
88% 508 Trading Days
and Counting
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Why Invest Now?
Credibility of the Discovery Team
Massive Size Potential of Discoveries
Strong Copper Bull Market
Probability Teck Royalty Activated
Multiple Drill Programs in 2017
Hidden Assets
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Copper Market – 5 year Copper Spot
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Co
pp
er
Pri
ce (U
SD
/lb
)
1.5
2.0
2.5
3.0
3.5
4.0
Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17 Aug-17
3.19 USD/LB 26 Jan ‘18
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Copper: why its hot and getting
Copper Demand > Supply Imbalance is increasing
25M
20M
15M
10M
5M
0
Demand Production
Reuters
Renewable energy resources require four to 12-times as much copper as traditional
fossil fuel-based power generation. In Asia alone, technological factor together with
surging demographic growth is predicted to lead to an additional 30.8 million tonnes of
copper demand by 2030.
Copper demand from electric vehicles to be nine
times higher by 2027.
Mining.com
World is going electric
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Why Logic Drives Probability Teck Activates Copaquire Royalty – The Facts
Teck has advised Que Brada Blanca (QB1) supergene is depleted
Ore mining to stop 2018, production to seize by Mid Year 2019
Teck had peak sales of $696 Million( 2012) $229 Million (2016)
Teck is in midst of planning/building QB2 at cost of $4.7 Billion
Used life of mine estimated price of CuT of $3 and Molybdenum of $10
Operating costs of $12.78 per tonne/per year
QB 2 is targeted to go into production midway through 2022
There is forecast to be a 3-4 year gap in mining between wind up of QB1 an launch of QB2
QB has “take or pay” electrical contracts of $6.5 Million a month which it is incurring
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Teck Acquired Copaquire with two NI 43-101 Resources…10k’s away from QB1
The potential to generate significant cashflow, utilize power, retain labor would suggest this
is a compelling and sizeable opportunity for Teck
Sulfato South
Cu Eq. Tonnage Copper % lb Cu Moly % lb Moly % Cu Eq lb Cu Eq
Cutoff In Thousands Grade in Thousands Grade in Thousands Grade in Thousands
0.7 341 0.73 5,519 0.02 171.00 0.86 6,456
0.6 1,993 0.66 28,973 0.02 1024.00 0.79 34,606
0.5 7,565 0.57 95,460 0.02 3507.00 0.69 114,743
0.4 19,698 0.49 213,997 0.02 8410.00 0.6 260,254
0.3 43,508 0.41 393,051 0.02 16677.00 0.51 484,775
0.2 102,069 0.32 709,918 0.02 34972.00 0.4 902,263
0.1 159,000 0.26 910,755 0.02 53237.00 0.34 1,202,559
Quebrada Blanca Mine:
1.03 BT @ 0.5% Cu1.
Anglo Anglo
Codelco
Codelco
Codelco
Codelco
Free port
Freeport
Xstrata/Anglo
Xstrata/ Anglo
Xstrata/ Anglo
Xstrata/ Anglo
Xstrata/ Anglo
Xstrata/ Anglo
Teck
Teck
CMX Copaquire
Rio Tinto
10km
15km
Collahuasi Mine: 9.55
BT @ 0.82% Cu2.
Codelco
Free port
Codelco
Why Logic Drives Probability Teck Activates Copaquire Royalty
Cerro Moly
Mo Eq. Category Tonnage Mo lb Mo Cu % lb Copper Re Mo Eq
Cutoff In Thousands (%) In Thousands Grade in Thousands PPM %
0.028 Indicated 229,474 0.039 197,000 0.11 561,000 0.104 0.069
0.028 Inferred 193,888 0.026 111,000 0.15 624,000 0.063 0.066
0.032 Indicated 181,374 0.042 168,000 0.12 472,000 0.116 0.074
0.032 Inferred 141,595 0.027 84,000 0.16 506,000 0.065 0.071
0.036 Indicated 141,848 0.045 141,000 0.13 394,000 0.013 0.079
0.036 Inferred 105,675 0.028 65,000 0.18 417,000 0.068 0.077
Molybdenum equivalent (MoEq) grades are calculated using the following formula: MoEq (%) = Mo(%) + 1.35*(Cu (%)*2.3 / (Mo(%)*12.65-1.14)) The formula assumes a selling cost of US$1.14/lb for Mo and metallurgical recoveries of 84% for Cu and 62% for Mo. Source Videla, 2009, corroborated by AMEC (2009) NI 43-101
Inferred Mineral resource estimate by Copper equivalent cut-off grades.These results are reported in metal equivalent data based on US$ 2.50/lb. copper and US$13.50/lb. molybdenum. In calculating copper equivalencies 100% metal recoveries have been assumed. Source Charchaflie, Jaramillo NI 43101 Jan 30 2012
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Looking For Giants – Bass River – Zulema
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Bass River JV
Signed LOI November 2016 with Tejas Gold (Texas based PE group)
CMX chairs technical committee and receives management fee
After $400,000 in expenditures on the Bass River (Castlereagh) VTEM target, Tejas earns 35% in the project
The Bass River (Castlereagh) VTEM target is largest airborne VTEM anomaly delineated from over 2000 line kilometers of data
Previous drilling to the southwest at Gamble Lake identified lead, zinc and silver mineralization at depth
Clearview Geophysics - completed Pulse EM in Q4 2017
Minotaur Exploration (Australia) completed data modeling, analysis and drill collar identification.
Drill Program (2000-3000M) to commence in February and continue through March.
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Bass River High Priority Targets CDI Results
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Bass River North PEM Grids over Vtem Targets
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Massive Geophysical Target Confirmed
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Next Steps – Bass River North
01
02
03
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Secure and Finalize Land Access & Permitting – (Completed)
Conduct ground based Pulse Electro-Magnetic (PEM) survey over multiple targets as recommended by Minotaur Exploration - (Completed).
Minotaur Australia to Process / Model Results & provide advice including drill collar coordinates. (Completed)
Commence Drill Program 2000-3000m (February - March 2018)
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Zulema Location
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30 km
Zulema
Palo Negro
Hornitos
Tierra de Oro
Tabaco
LEGEND
Chilean Metals Property
IOCG Mine
IOCG Belt
Fault
Copper Mine/ Deposit
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Candelaria is the Model
Candelaria is huge and profitable. It is the world’s second largest “IOCG” deposit (after Olympic Dam, Australia). Pre-mining reserves at Candelaria were 600Mt @0.95% Cu, 0.22 g/t Au, 3.1 g/t Ag2
Orebody is being exploited by low cost, open pit mining
Orebody does not outcrop. It is overlain by 100-200 metres of barren siliceous hornfels and calc-silicate skarn
Copper sulphides occur as stringers, disseminations, breccia in-fillings and mantos
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A Well-Mineralized System
Zulema Project
Reduced-to-pole Magnetic Anomaly
Magnetic High
IP Target
Western Target
Historic Holes
Intensely Skarned Hydrothermal Breccia
Programmed
Drilled
Historic Holes
Current Drilling Area
1
2
3
5 7
6
4
18
8
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Core Hole - 1.189% Cu, 0.99g/t Au, Skarn contact, Drill Hole “3”
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Drilling Highlights
DDH1 defined the extent of the eastern skarn, intersecting local Cpy between 107 and 126
DDH3 collared adjacent to historic copper workings on east flank of magnetic high
285 – 334 m, garnet magnetite skarn with multiple lenses of copper – magnetite mineralization
Within the skarn, copper ranged from 0.12 – 1.19% Cu, Au between 0.05 – 0.99 g/t Au
Mineralization was most intense at the upper skarn contact
DDH5 collared approximately 175m. north of DDH3
Starting at 146m +/-, large clots of Cpy to 5cm. appear in addition to potassic feldspar alteration
Below 182 m, magnetite becomes a significant component
179.00 – 218.50 – copper variable, individual assay sections up to 0.44% Cu and 0.27 g/t Au
322.00 – 375.20 – Hydrothermal breccia with extensive quartz veining at base accompanied by minor copper mineralization
DDH8 collared in the northerly magnetic high, intersecting a quartz, magnetite pyrite, chalcopyrite breccia.
Individual assay sections up to 0.60% Cu and 0.15 g/t Au
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Steps to Discovery
Drilling Confirmed the Presence of IOCG style Mineralization.
Complete Ground based Geophysics including Magnetics and Deep penetrating I.P. (MIMDAS).
Overlay the Geochemistry.
Overlay Geophysical data, Focusing on Areas of Coincident High Conductivity & Magnetic Response.
Prioritize then drill key Targets. 1
2
3
4
5
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Zulema – New Confirmed Geophysical Targets
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Next Steps - Zulema
01
02
03
04
05
Southern Rock Hired to Conduct “NEW” Geophysical Program – Q4 2017
Phase 1 Geophysics (MAG) Completed – Jan 2018
Minotaur Exploration (Australia) Processing Results, Provide Recommendations for Next Stage Drilling – Q1 2018
Commence Next Phase Drill Program – Q2-Q3 2018
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Phase 2 Geophysics (Gravity & IP) – Q1 2018
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Hidden Assets in Nova Scotia & Chile
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Experienced Team
Ian Pirie, Ex VP of Projects Inmet Mining
Terry Lynch Board Chairman
Patrick J Cruickshank,MBA President & CEO
Gary Lohman, P.Geo. VP Exploration
Dr. Chris Hodgson, P. Eng.
Dr. Tony Belperio, Executive Director, Business Development,
Minotaur Exploration Limited. (Australia)
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Technical Advisory Committee
Gary Lohman, B.Sc., P. Geo., Director, Committee Chair
Over 30 years of experience in both precious and base metal exploration within the Americas.
Tony Belperio, B.Sc. (Hons), Ph.D., FAusIMM, Committee Member
Executive Director of Business Development for Minotaur Exploration Limited, Australia.
Played a key role in the exploration program that led to the discovery of the Prominent Hill mine, 130 kilometers northeast of Olympic Dam, South Australia.
Awarded the University of Adelaide's Tate Memorial Medal, the Geological Society of Australia's Stillwell Award in 1993, AMEC's Prospector of the Year (jointly) in 2003.
and received the Bruce Webb Medal by the South Australian Division of the Geological Society of Australia in 2010 for his contributions to Earth Science.
Chris Hodgson, Ph.D. P. Eng. (B.C.), Consultant
Served as Vice President of Exploration at International PBX Ventures Ltd until April 6, 2016.
Previous positions included Chief Geologist Amax Exploration, Vice President of Exploration of Canamax Resources, Exploration Manager Canada Tungsten and Minera Inmet (Chile).
Mr. Hodgson is credited with the early recognition of the Santo Domingo IOCG (iron oxide-copper-gold) deposit in Chile.
Ian Pirie
Senior mining executive who held various positions including General Manager, Latin America for Inmet Mining Corporation.
Responsible for the acquisition and development of the Antamina project, Peru.
Responsible for the development of Cobre Las Cruces in Spain and the Cobre Panama project in Panama.
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Strategy - Execution
Objective CMX- Next Steps
01
02
03
04
05
Drill High Impact lower risk 100% owned targets with a view to discovery of resource that we would develop through Pre Feasibility unless we received a Pre Feasibility value offer in Discovery cycle.
Farm out High Impact medium risk projects. Operate exploration program.
Optimize Teck Resources Copaquire Royalty
Build a sustainable IR plan to insure market is aware of our plans and progress
Leverage our exploration and deal generation skills into multiple opportunities for our shareholders to benefit from impact Discoveries
Complete Financing for Current Programs
Zulema – GeoPhysics/Gravity – Feb 2018
Bass River – Drill- Q1 2018
Monitor Teck developments at Copaquire
Support IR – Get Analyst & Newsletter Coverage
Zulema – Geophysics – IP – End Q1 2018
02
03
04
05
07
06
01
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Zulema –Phase 2 Drilling – Q2/3 2018
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Capital Structure
Market Information (As of Jan 15, 2018)
Total Shares Issued 85,836,055
Fully Diluted 101,202,555
Warrants Issued 8,166,500
Options Issued 7,200,000
52 Week Low $0.06
52 Week High $0.33
Exchange Market Traded
Toronto (TSX-V) Symbol “CMX”
Santiago (SSE) Symbol “CMX”
USA (OTCQB) Symbol “CMETF”
MILA Symbol “CMX”
FRA Symbol “IVV1”
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chileanmetals.com
TSXV:CMX
Impact Copper Exploration with Royalty Hedge