Chesapeake Strikes Gold on Two Fronts: Revitalized Large Deposit and Early-Stage High-Grade Discovery

• Chesapeake Gold has three key assets - the 19 million ounce Metates gold-silver deposit, proprietary technology to process refractory ore, and the new Lucy gold discovery
• The Metates deposit has strong economics but requires new technology to unlock the gold due to refractory ore; testing shows promising improved recoveries
• The Lucy discovery has very high-grade near-surface oxide mineralization that could be fast-tracked with low costs
• Chesapeake is well-financed to advance both Metates and Lucy without needing to raise additional capital soon
• The company aims to continue optimizing Metates while accelerating exploration and drilling at Lucy in 2024

The following article provides an investor-focused summary of a recent interview with Jean-Paul Tsotsos, CEO of gold exploration and development company Chesapeake Gold. The discussion covered updates across Chesapeake’s portfolio of assets in Mexico, most notably the large-scale Metates gold-silver deposit and the new high-grade Lucy gold discovery.

Metates Deposit and Proprietary Technology

The Metates deposit, located in Durango, Mexico, hosts over 19 million ounces of gold and 500 million ounces of silver. However, the mineralization is refractory, meaning the gold is locked in sulfide minerals and difficult to extract through conventional processing. “Back in September we put out this chart here...down here if I were not so this is basically the oxidation curve so our first conceptual project or conceptual test came out to here so that's about 20% oxidation on the Rock and right here we got 60% gold recovery and we got another 54% silver recovery," said Tsotsos.

Chesapeake has developed proprietary technology aimed at unlocking the trapped gold through pre-treatment oxidation before leaching. Test work has shown considerable improvements, with Tsotsos stating, “Just by the using the oxidation technology were able to double the recoveries and that's that's just the beginning.” Ongoing optimization continues, to reach even faster oxidation to maximize project economics.

Lucy Exploration Discovery Success

In addition to Metates, Chesapeake has seen early success from drilling at its Lucy gold project. Tsotsos highlighted exceptional near surface results: “We got about six grams over 25 meters right from surface on the whole to the furthest to the West...on the whole up here on the ridge whole 10 we got another um about two grams over 21 meters.

He added that such high grades starting at surface are rare, noting “There's a lot of companies that are mining these grades at depth and we have them right at surface."

With Lucy showing oxide mineralization that could be simple and low-cost to mine, Tsotsos identified the asset as a potential game-changer for fast-tracking value.

Path Forward for 2024 and Beyond

"First and foremost look out for new results on Lucy," Tsotsos responded when asked about Chesapeake's plans this year. The company aims to accelerate exploration and drilling to showcase Lucy's further potential.

Additionally, further optimization work and testing will continue on the Metates processing technology, while Chesapeake advances the project towards feasibility studies over the long term. With a recent financing, the company is fully funded for planned programs without needing to raise additional capital imminently.

“The next program will understand it's a lateral extension and it's an extension at depth too...that's the work that we're doing," concluded Tsotsos regarding plans at Lucy. The aim is to grow and provide a meaningful new discovery.

With both a large-scale deposit and a new high-grade discovery in a proven mining jurisdiction like Mexico, Chesapeake Gold offers investors significant upside potential. The company's proprietary metallurgical technology could also unlock significant value both at Metates and for the wider industry globally. With exploration accelerating and optimization ongoing, 2023 is positioned to demonstrate substantial progress across Chesapeake's dual gold opportunities.

The Investment Thesis for Chesapeake Gold

• New proprietary oxidation process proven to significantly boost the economics of 19Moz refractory Metates deposit
• Additional upside from new Lucy discovery showing exceptional +5 g/t gold mineralization at surface
• Exploration drilling can rapidly expand Lucy's size and scale before year-end
• Strong cash position funds all planned work without dilution; no capital raises needed
• Invest while dual asset progress is still under the radar before wider market recognition
• Chesapeake offers optimal risk/reward balance between de-risked deposit and high-upside discovery stories