Growing the Hope Brook Gold Project May 2013 TSX-V: CT OTCQX: CTIIF FRANKFURT: CY4 Member of Forbes & Manhattan Group of Companies
Growing the Hope Brook Gold ProjectMay 2013
TSX-V: CTOTCQX: CTIIF
FRANKFURT: CY4
Member of Forbes & Manhattan Group of Companies
2
Forward Looking Statements and Technical Disclosures
The information presented contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; and limitations on insurance coverage.
Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.
Dr. Bill Pearson, P.Geo. who is a Qualified Person as defined by NI 43-101 and reviewed and approved the scientific and technical information contained in this presentation.
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources.
The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
In connection with the recently announced private placement financing, this presentation shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful. The securities that are subject to the recently announced private placement financing have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
3
Proposed Merger of Castillian Resources and Ridgemont Iron Ore
On May 3rd, Castillian Resources and Ridgemont Iron Ore signed the definitive arrangement agreement for Castillian to acquire all of the outstanding shares of Ridgemont. The details of the transaction are as follows:
Shareholders of Ridgemont will receive 0.593 of a Castillian common share for each common share of Ridgemont, representing a premium of approximately 67% to Ridgemont shareholders
On completion of the transaction, existing Castillian and Ridgemont shareholders will own approximately 57.8% and 42.2% of the combined company
Both Boards have unanimously approved the transaction; a Special Shareholders’ Meeting for Ridgemont shareholders will be held in order to vote on the transaction in June 2013
Customary regulatory approvals, including the approval of the TSX-V, will be required
“This transaction will allow the merged company to continue to advance its Hope Brook Gold project towards a production decision. We have identified areas within and adjacent to the existing mineral resource that have potential to expand the resource and increase the grade. In addition, drilling in late 2012 identified a major near surface target area in the 240 Connector Zone that extends for 1.2 km along strike that has the potential to substantially expand resources. We anticipate being able to continue to advance the technical and engineering work with the aim of completing a PEA by early 2014.”
Bill Pearson, President and CEO of Castillian Resources
“This transaction represents an opportunity for Ridgemont shareholders to gain access to an advanced asset with real upside potential. I am happy that we have found another opportunity in Newfoundland and Labrador which I view as a very favourable jurisdiction for mineral resource exploration and development.”
Mark Morabito, Chairman of the Board, Ridgemont Iron Ore
4
Overview
Castillian Resources Corp.TSX-V:CT, OTQX: CTIIF
Canadian mineral exploration company whose focus is growing the Hope Brook Gold project in Canada
Castillian's flagship property is the Hope Brook Gold Project in mining-friendly, southwestern Newfoundland
Updated NI 43-101 Mineral Resource released for Hope Brook in October 2012 only 8 months after initial estimate
Bulk of resource is within potentially open pittable constraining shell defined at $1400/oz gold and cutoff grade of 0.5 g Au/t
Completed a 6,000m Fall drilling program which outlined a major new near surface target zone that extends 1,200m along strike
Strong Board, Management and Technical Team committed to developing the project
5
Hope Brook Gold: The Flagship Project
100% ownership in 1,005 claims covering approximately 25,000 ha*
Historical production (1987 –1997) of 752,163 ounces gold intime of low gold prices (<US$400/oz)
Mine produced a copper concentrate from 1993-1997
No exploration drilling on property since 1996 until Castillian started diamond drilling in 2010
* Pending the exercise of the option for Castillian to re-acquire 10% interest from Ryan Gold as outlined in the press release dated February 6, 2013
6
Large Scale Mineralized System
High sulphidation gold deposit formed from a long lived magmatic- hydrothermal system
Mineralized zone open along strike and at depth
Alteration pattern similar to large scale epithermal systems
Considerable upside for outlining additional higher grade mineralization within extensive lower grade mineralization
Helicopter for scale
Open Pit (behind
hill)
Altered & Mineralized Shear Zone 500+m wide
Cinq Cerf Fault
7
2012 Fall Drill Program Results
Drill program has identified a major new near surface target zone in the “Connector Zone” that extends for 1,200m along strike
Mineralized silicified zones were intersected over a strike length of 3.4km demonstrating continuity of the system
Thickness and character of the Connector Zone alteration is interpreted to be similar to that of the former mine and 240 Zone
New Drill Results* include:
• Hole HB12-100: 1.51 Au g/t over 14m, 2.03 Au g/t over 8m, and 1.07 Au g/t over 18.1m
• Hole HB12-101: 1.04 g Au/t over 8.5m, 1.44 g Au/t over 2.9m, and 1.35 g Au/t over 5.6m
*For full technical details please refer to press release dated January 17, 2013
Major Near Surface Target Zone
8Information contained in this image is interpreted from the NI 43-101 Technical Report titled “Updated Mineral Resource Estimate Technical Report Hope Brook Gold Project Newfoundland and Labrador Canada’ by Pierre Desautels, P. Geo. Jay Melnyk, P. Eng. And Michael Cullen, P. Geo. dated November 19th. This report is available on the company website and on www.sedar.com
9
New Structural Model with Major Folds
Drilling and geophysics have identified a major fold structure that closes below surface in the Connector Zone. This explains why the silicified horizon doesn’t come to surface southwest of the existing mine where historical drilling failed to intersect the mineralized silicified zone.
Hope Brook Gold Resource Model
548,000 inferred and 590,000 indicated ounces of gold are located within this model*
open
open
open240 Zone
open
Mine Zone
Newly Identified Major Near Surface Target Zone
*For full Mineral Resource Estimate, please refer to the table and technical disclosures found on slide 11
11
Updated NI 43-101 Mineral Resource
Constraining shell incorporates essentially all of the remaining historic resources in the former Hope Brook mine in addition to new areas of resource as defined by Castillian, including the Pit Zone, Hanging Wall Zone and Mine Zone Extension.
There is a possible copper credit that is not included in the mineral resource due to missing copper assays in historical drill holes.
NI 43-101 MINERAL RESOURCE ESTIMATE, HOPE BROOK GOLD PROJECT *as at October 1, 2012
Within constraining shell
@ 0.50 g Au/t cutoffBelow constraining shell
@ 2.0 g Au/t cutoffTotal
Category
Tonnes(millions)
Gold(g/t)
Gold(oz)
Tonnes(millions
)
Gold(g/t)
Gold(oz)
Tonnes(millions
)
Gold(g/t)
Gold(oz)
Indicated
10.6 1.24 422,000 1.7 2.99168,00
012.3 1.48
590,000
Inferred 06.4 1.91 397,000 1.8 2.62151,00
008.3 2.07
548,000
* Full Technical details and notes to the NI 43-101 Mineral Resource Estimate can be found in the technical report titled “Updated Mineral Resource Estimate Technical Report Hope Brook Gold Project Newfoundland and Labrador Canada’ by Pierre Desautels, P. Geo. Jay Melnyk, P. Eng. And Michael Cullen, P. Geo. dated November 19th. This report is available on the company website and on www.sedar.com
12
Growing the Resource
Indicated Mineral Resource
February 2012
October 2012
290,000 oz
590,000 oz
Change in NI 43-101 Indicated Mineral Resource
February 12, 2012 to October 1, 2012
102 %
740,000 oz548,000oz
Inferred Mineral Resource
13
Hope Brook’s Infrastructure Advantages
Power from ProvincialElectrical Power Grid
Wharf on Tide Water
Existing Tailings Ponds
1.2km Long Air Strip
Ramp to 350m below surface
Excellent Local Labour Force
Highly rated mining jurisdiction
Good Road Network
Air Strip
Wharf
Ramp Portal
WharfTailings Ponds
Power Grid
Airstrip
14
What’s Next at Hope Brook?
Complete reinterpretation using new structural model and updated geological information
Plan and execute next drill program to expand and increase grade of the existing potentially open-pittable resource and focus on the major near surface target zone
Drill test 1,200m long major near surface target zone
Continue engineering and technical work to support the development of a Preliminary Economic Study (PEA) targeting early 2014 for completion
15
Corporate Summary
CAPITALIZATION*
Symbol TSX-V: CT OTCQX: CTIIFFrankfurt: CY4
52 Week Trading Range $0.04-0.25
Price (May 2, 2013) $0.07
Average Volume (1 month)
306,116
Market Cap $4.73 Million
Shares Issued 67.5 Million
Fully Diluted 71.2 Million
MAJOR SHAREHOLDERS
MAJOR SHAREHOLDERS
Management and Insiders
Pyramis Canada
RBC Asset Management
Schärer Meier Partners
TD Asset Management
Source: Bloomberg, Big Dough, TSX Infosuite
52 Week Price(post-consolidation)
*Figures in this chart reflect a 5:1 share consolidation implemented on February 19th, 2013.
30-A
pr-1
2
23-M
ay-1
2
15-J
un-1
2
8-Ju
l-12
31-J
ul-12
23-A
ug-1
2
15-S
ep-1
2
8-Oct
-12
31-O
ct-1
2
23-N
ov-1
2
16-D
ec-1
2
8-Ja
n-13
31-J
an-1
3
23-F
eb-1
3
18-M
ar-1
3
10-A
pr-1
3$0.00
$0.05
$0.10
$0.15
$0.20
$0.25
CT Undervalued with Tremendous Upside Potential
16
Average adjusted market capitalization (AMC) for junior gold companies$27/ozCastillian adjusted market capitalization (AMC) $5/oz
JR. Golds – Explorers and Developers, AMC/oz Valuations, Bloomberg, April 29, 2013. Companies over $200/oz have been removed from this chart.
Pre
mie
r G
old
Bel
o S
un M
inin
g
Rom
arco
Min
eral
s
Det
our
Gol
d
Guy
ana
Gol
dfie
lds
Rai
ny R
iver
Res
ourc
es
Nor
ther
n G
old
Exp
lore
co A
vg
Mau
dore
Min
eral
s
Mid
way
Gol
d
Rye
Pat
ch G
old
Am
arill
o G
old
Tem
ex R
esou
rces
Pro
be M
ines
Che
sape
ake
Gol
d
Mag
ella
n M
iner
als
Rio
Nov
o
Vic
toria
Gol
d
Car
lisle
Gol
dfie
lds
Cas
tillia
n R
esou
rces
Aur
vist
a G
old
Gry
phon
Gol
d
Meg
a P
reci
ous
Met
als
San
dspr
ing
Res
ourc
es
$0
$25
$50
$75
$100
$27
$5
AM
C/o
z,
17
Management
Bill Pearson, Ph.D., P.Geo., President & CEO, Director– Over 37 years of exploration experience from grassroots through to advanced projects
and mine development; former VP Exploration for Desert Sun Mining.
Greg Duras, CGA, CPA, CFO– Over 14 years of corporate and project finance experience in the resource sector.
Colinda Parent, CFA, Corporate Development– Extensive capital markets experience having spent more than 15 years in institutional
equity sales and five years in investment banking.
Josh Van Deurzen, JD, MBA, Corporate Secretary– Corporate and securities lawyer who works as a legal consultant to various public and
private companies in the resource-based sectors.
Dave Copeland, M.Sc., P. Geo., Chief Geologist: – Exploration geologist with more than 20 years experience.
Chris Hale, Ph.D., P.Geo., Chief Geophysicist– Exploration geophysicist with more than 35 years experience worldwide.
18
Board of Directors
Justin Reid, MBA, Executive Chairman– Experienced geologist and capital markets executive with over 20 years of experience
focused exclusively in the mineral resource space.
Bill Pearson, Ph.D., P.Geo., President & CEO, Director
David Gower, P.Geo., Director– Over 20 years’ experience with Falconbridge & Noranda (now Xstrata), most recently as
GM of Global Nickel & PGM Exploration.
Mike Hoffman, P.Eng., Director– Professional mining engineer with over 25 years of experience in mine operations,
projects, engineering and corporate development.
Brian Penney, P.Eng., Director– Twenty years of experience in the mining sector also includes senior operating and
environmental positions in the gold industry, current COO of Alderon Iron Ore Corp.
David S. Warner, MBA, Independent Director– Accounting professional with 30 year career spent at KPMG LLP, most recently as
Partner.
19
Contact Information
Bill PearsonPresident & [email protected] +1 416 861 2968www.castillian.ca
Member of Forbes & Manhattan Group of Companies
Rob Hopkins Manager, Investor
[email protected] +1 416 861 5899www.castillian.ca