VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 7, 2016) – Chesapeake Gold Corp. (“Chesapeake” or “Company”) (TSX VENTURE:CKG) is pleased to report the positive results from the completion of the Updated Pre-Feasibility Study (“Updated PFS”) on its 100% owned Metates project located in Durango State, Mexico. The Updated PFS evaluated a lower ore throughput development scenario compared to the original PFS titled “Metates Gold-Silver Project NI 43-101 Technical Report Preliminary Feasibility Study” dated March 18, 2013 (“2013 PFS”). The Metates project hosts one of the largest undeveloped gold, silver and zinc reserves in the world.
The Updated PFS is based on an initial ore throughput rate of 30,000 tpd (“Phase 1”) with a staged expansion up to 90,000 tpd (“Phase 2”) funded primarily from internally generated cash flow. Phase 1 will operate for the first four years of the mine life with Phase 2 production starting in year five. Active pit mining is planned for 27 years followed by 10 years of processing stockpiled low grade ore. The Company believes this scalable approach provides a viable alternative option to build Metates at a lower initial capital cost while maintaining key operating efficiencies and economies of scale. All costs are shown in US dollars.
A NI43-101 Technical Report will be prepared by M3 and filed on SEDAR within 45 days following the date of this release. The Report will consist of a summary of the Updated PFS. Dr. Art Ibrado, P.E. Project Manager with M3 is the qualified person responsible for the scientific and technical information in this news release in accordance with NI43-101. Mr. Michael Hester, FAusIMM, Vice President of IMC, is the qualified person responsible for the reserve estimate and mine planning in this news release in accordance with NI43-101. Mr. Gary Parkison, CPG, Vice President Development of Chesapeake, is the qualified person who supervised the preparation of the technical information in this release. All of the above qualified persons have reviewed and approved the data contained in this release.