Chesapeake announces updated mineral resource estimate 15.8% increase in gold grade of intrusive and intrusive breccia zone

The updated MRE is described in Table 1 below and includes:

• 77 million ounces of gold at 0.57 grams per tonne (“g/t”) and 423.2 million ounces of silver at 14.3 g/t within 921.2 million tonnes in the Measured and Indicated Mineral Resource category.

• 13 million ounces of gold at 0.47 g/t and 59.0 million ounces of silver at 13.2 g/t within 139.5 million tonnes in the Inferred Mineral Resource category.

• Analytical results from 23 recently drilled PQ (85mm diameter) holes completed since March 2021

• 81 million ounces of gold at 0.76 g/t and 83.8 million ounces of silver at 13.3 g/t within 195.7 million tonnes in the Measured and Indicated Mineral resource category for intrusive-hosted material.

• Completed umpire duplicate check assaying on historic assay results increasing confidence in the accuracy of the analytical results.

Alan Pangbourne, CEO, commented “We are very pleased to announce our updated MRE for Metates following the addition of assay results for 5 metallurgical and 18 infill drill holes to the existing drill hole database. Particularly encouraging is the confirmation of an increase of 15.8% higher gold grade for the intrusive and intrusive breccia portions of the measured and indicated category of the MRE. The grade increase together with the previously released metallurgical results of our proof of concept further support the PEA development case.” 

This updated MRE together with on-going metallurgical work will form the basis of a new Pre-Feasibility Study. 

Updated Mineral Resource Estimate

The updated MRE incorporates an additional 23 holes drilled by Chesapeake since the previous MRE statement was provided in a NI 43-101 technical report effective August 30, 2021 titled “Metates Sulphide Heap Leach Project Phase I”, as amended December 15, 2022 (2021 MRE”)..  In total, the updated MRE comprises a total of 245 drill holes.  For the updated MRE, assays were composited to a regular length of 3 metres (m) as approximately 95% of the assays are originally sampled on that interval length.  A total of 29,786 composites resulted from the compositing process with 19,012 composites located within a gold equivalent grade envelope at a 0.2 g/t AuEq cut-off.  

A new geologic model incorporating interpreted controls on mineralization associated with each of the lithologies (intrusive, intrusive breccia, and sediments) was also developed for this update.

High-grade gold and silver outliers from composited assays were examined and capped based on various statistical utilities (probability plots, cutting statistics and decile analysis). The capping thresholds selected are as follows: mineralized intrusive: 10 g/t Au, 150 g/t Ag; mineralized intrusive breccia: 6 g/t Au, 200 g/t Ag; mineralized sediments: 10 g/t Au, 500 g/t Ag.

Further Information is attached

Forward-looking Statements

This news release contains “forward-looking statements” within the meaning of Canadian securities legislation. These include, without limitation, statements with respect to the updated MRE, the strategic plans, timing and expectations for the Company’s exploration and drilling programs at the Metates Property, including metallurgical testing,  mineralization estimates and grades for drill intercepts, permitting for various work, and optimizing and updating the Company’s resource model and preparing a pre-feasibility study; information with respect to high grade areas and size of veins projected from underground sampling results and drilling results; and the accessibility of future mining at the Metates Property. Such forward looking statements or information are based on a number of assumptions, which may prove to be incorrect. Assumptions have been made regarding, among other things: the reliability of mineralization estimates, metallurgical recovery estimates, the conditions in general economic and financial markets; the price of gold and silver; availability and costs of mining equipment and skilled labour; timing and amount of expenditures related to drilling programs; and effects of regulation by governmental agencies. The actual results could differ materially from those anticipated in these forward-looking statements as a result of risk factors including: the timing and content of work programs; results of exploration activities; the interpretation of drilling results and other geological data; receipt, maintenance and security of permits and mineral property titles; environmental and other regulatory risks; project cost overruns or unanticipated costs and expenses; and general market and industry conditions. Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made. The Company undertakes no obligation to update or revise any forward-looking statements included in this news release if these beliefs, estimates and opinions or other circumstances should change, except as otherwise required by applicable law.