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 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 $1,200 per ounce gold and $25 for silver per ounce at a cut off grade of 0.35 g/t gold equivalent.
Few world class open pit mines have scalable development options. Metates benefits from its highest ore grade early in the mine life, a low strip ratio and close proximity to key existing infrastructure. Metates has the option to be an initial 30,000 tpd or 60,000 tpd mine that expands to full nameplate capacity. A pre-feasibility study ("PFS") by M3 Engineering indicates at the Phase 2 throughput rate of 120,000 tpd, annual production over 25 years would be 659,000 ounces of gold, 16 million ounces of silver and 143 million pounds of zinc at a gold equivalent cash cost of $490 per ounce, net zinc credits.