Mexico's Largest Undeveloped Gold and Silver Deposit
Chesapeake Gold Corp.
Chesapeake is focused on the exploration and development of precious metals projects in North America. Chesapeake's major project is its 100% owned Metates gold deposit located in Durango state, Mexico. Metates is one of the largest undeveloped gold and silver projects in the world.
Independent Mining Consultants of Tucson, Arizona reported NI 43-101 proven and probable reserves of 18.5 million ounces of gold, 526 million ounces of silver and 4.2 billion pounds of zinc. The metal prices assumed for the reserves are $1,350 per ounce gold and $25 for silver per ounce at a cut off grade of 0.35 g/t gold equivalent.
M3 Engineering & Technology of Tucson, Arizona completed a positive Pre-Feasibility Study ("PFS") on Metates. The PFS indicates a large 120,000 tpd open pit operation with a 25 year mine life. Average annual production during the first six years of full production is 845,000 ounces of gold, 25 million ounces of silver and 190 million pounds of zinc at a gold equivalent cash cost of $355 per ounce, net of zinc credits.
From opportunity, Chesapeake also recognizes that exploration success creates shareholder value. Our exploration is focused on gold projects that have the potential for district-scale success. Generative exploration has led to three potential bulk tonnage targets near the Metates project.
Chesapeake's management and technical team have an exceptional track record. With Francisco Gold Corp., this team discovered El Sauzal and Marlin, two robust world-class gold mines now owned by Goldcorp Inc. in Mexico and Guatemala.
Chesapeake is listed on the TSX Venture Exchange under the symbol CKG.