1. No category

TSX-V COD
FRANKFURT CY41
The Hope BrookProjects
Gold Project,
Growing
Newfoundland
in
Canada
Path To Potential Underground
Development at Hope Brook
Corporate Presentation
June 2015
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POTENTIAL PATH TO EARLY
DEVELOPMENT
SIGNIFICANT PAST PRODUCER
INFRASTRUCTURE
EXPLORATION UPSIDE
STABLE MINING JURISDICTION
EXPERIENCED MANAGEMENT
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POTENTIAL PATH TO
EARLY DEVELOPMENT
PERMITTABLE PAST
PRODUCER
INFRASTRUCTURE
EXPLORATION UPSIDE
STABLE MINING
JURISDICTION
EXPERIENCED
MANAGEMENT
 Focused on high grade underground resource production scenario to expedite
cash flow, lower CapEx and increase overall IRR and shareholder return
 High grade underground resource of 5.5 Mt at 4.77g Au/t for 844,000
indicated ounces & 0.84Mt at 4.11g Au/t for 110,000 inferred ounces at a
cutoff grade of 3.0 g Au/t*
 Resource readily accessible by existing ramp and underground development
 Historical production (1987 –1997) of 752,163 ounces gold** with 135,000
ounces of inferred resource still remaining in tailings
 100% ownership in 1,056 claims covering approximately 26,400 ha
 Significant infrastructure with ramp to 350 m below surface, power, access by
sea and air, and a strong local labour force
 Drill targets already outlined to expand high grade mineral resource
 Very underexplored within 45 km long belt
 Property is located in mining-friendly southwest Newfoundland
 Backing of the local government and communities, which are supportive of
mining in the area
 Strong Board, Management and Technical Team committed to developing the
project
 Extensive National & International Mine Development & Finance experience
4 *Full details of the Mineral Resource can be found in the Press Release Dated January 12, 2015 **See Note 1 on page 2 of this presentation
 Ramp to 350m below
surface and vent raise
Power
Grid
Wharf
Air Strip
 Power from Provincial
Electrical Power Grid
Good Road Network
 Wharf on Tide Water
 Existing Tailings Ponds
Ramp Portal
 1.2km Long Air Strip
Airstrip
 Excellent Local Labour
Force
 Highly rated mining
jurisdiction in southwest
Newfoundland
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Tailings
Ponds
Wharf
High Grade Underground Mineral Resource Estimate for Gold at 3.0 g Au/t Cut-off
Hope Brook Gold Project as at January 12, 2015*
Resource
Category
Tonnes
(Rounded)
Gold Grade
(g Au/t)
Gold
(Oz)
Indicated
5,500,000
4.77
844,000
Inferred
836,000
4.11
110,000
Details of the Mineral Resource can be found in the Technical Report titled Mineral Resource Estimate Technical Report Hope Brook Gold
Project dated January 12, 2015 and authored by Michael Cullen, P.Geo and can be found on SEDAR and at the Company’s website.
“The new resource model provides a more accurate basis for determining the potential for
underground development. The grade of the indicated resource has increased to 4.77 g Au/t
compared to the previous estimate of 4.43 g Au/t. The new resource is designed to consider
the potential of mining the entire deposit from underground using the existing access.”
“In addition, underground development would facilitate follow-up drilling on potential high grade
target areas and deposit extensions already identified from our previous surface drilling,
including Hole HB11-023 which intersected 11.4 g Au/t over a true width of 20.9 metres”
Dr. Bill Pearson, President and CEO
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Zone just below cut-off of 2.5 g Au/t
Possible
Pillars
Lateral Extensions
(Possible Early Feed)
Deeper
Extensions
Deeper
Extensions
Interesting Deeper
Zone (Thick, Very
High Grade)
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 Focus on development of high grade underground
resource (4.77 g Au/t) using existing ramp, and include
recovery of unmined stopes, pillars or remnants (5+ g Au/t)
as well as extensions to resources laterally and to depth
 Utilize sorting technology to remove dyke material to
simplify mining
 Supplement feed with mineralized tailings (0.95 g Au/t)
 Investigate Copper co-product opportunities
 Potential for lower capital, faster development, better
operating margin per ounce.
 Significant exploration upside to increase resources
Note: The information above is for illustrative purposes only to indicate to investors the present focus for the project. Engineering studies have
commenced but have not yet been completed. The concept is not in compliance with NI 43-101 and the company has not done the work
necessary to validate the concept and hence this information should not be relied upon.
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 Very underexplored 45 km long
belt. Three major target areas
outside of Hope Brook mine area
already outlined.
 Deeper historic drill holes appear to
be mostly short of the target zone
 Now have very good understanding
of controls on mineralization, how
to efficiently drill resources & find
new deposits & extensions using
geology, geophysics,
lithogeochemistry & 3D modeling &
interpretation.
 Excellent highly skilled exploration
team already in place.
10
8Km Gold Mineralized
Structure
11
$0.06
$0.05
$0.04
$0.03
$0.02
$0.01
$0.00
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 Average adjusted market capitalization (AMC) for junior gold companies
 Coastal Gold adjusted market capitalization (AMC)
$16/oz
$1-2/oz
AMC/OZ
$80
$70
$60
$50
$40
$30
$20
$16
$10
$1
$-
JR. Golds – Explorers and Developers, AMC/oz Valuations, Bloomberg, January 16, 2015
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Bill Pearson, Ph.D., P.Geo., President & CEO, Director
– Over 40 years of exploration experience from grassroots through to advanced
projects and mine development; former VP Exploration for Desert Sun Mining (now
Yamana Gold) and Executive VP Exploration for Central Sun (now B2Gold).
Allan Polk, P.Eng., Project Manager, Hope Brook PEA
– Mining Engineer with more than 20 years of experience in mine operations,
consulting, feasibility studies, and construction projects for both underground and
open pit mines around the world.
Dave Copeland, M.Sc., P. Geo., Chief Geologist: Hope Brook
– Newfoundland-based exploration geologist with more than 20 years experience in all
aspects of exploration including advanced project development.
Greg Duras, CGA, CPA, CFO
– Over 20 years of corporate and project finance experience in the resource sector.
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.
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David Gower, P.Geo., Interim Chairman of the Board
– Over 20 years’ experience with Falconbridge & Noranda (now
Xstrata) and formerly GM of Global Nickel & PGM Exploration.
Bill Pearson, Ph.D., P.Geo., President & CEO, Director
Brian Penney, P.Eng., Director
– 20 years of experience in the mining sector including senior operating and
environmental positions in the gold industry, currently COO of Alderon Iron
Ore Corp.
Adrian Bray, P.Geo., Independent Director
– 25 years of experience on national and international projects, currently an
independent consultant.
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Additional Information
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 Management focus on early
development of the high grade
portion of the existing resource
 100% ownership in 1,056 claims
covering approximately 26,400
ha
 Historical production (1987 –
1997) of 752,163 ounces gold in
time of low gold prices
(<US$400/oz)
 Major infrastructure for early
development in place – power,
port, air strip, roads, tailings,
production ramp
 No drilling on property from 1996
until Coastal Gold started
diamond drilling in 2010
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 High sulphidation
gold deposit formed
from a long lived
magmatichydrothermal system.
 Gold mineralization in
extensive, thick(1580m) silicified zones.
 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.
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Helicopter
for scale
Historic
Open Pit
(behind hill)
Altered &
Mineralized
Shear Zone
500+m wide
Near-Surface
Target Zone
240 Zone and Mine Zone
are part of the same
extensive gold mineralized
system
<0.5% Na surface
marking zone of Nadepletion
Gold Resource
0.5 g Au/t cut-off
 Intense alteration zone outlined between the Mine Zone and 240 Zone.
 Alteration zone tracks SW towards the 240 Zone and it’s up dip extension.
 Suggests a large untested, near-surface exploration target.
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 73 Vibracore drill holes were completed to test
gold mineralization within the tailings ponds
 Selected Results include:
Tailings Pond 1 (all widths are true thickness)
1.73 g Au/t and 0.12% Cu over 2.39m from Hole P8
1.31 g Au/t and 0.18% Cu over 4.20m from Hole P13
1.20 g Au/t and 0.15% Cu over 3.55m from Hole P6
Tailings Pond 2
1.40 g Au/t and 0.08% Cu over 3.29m from Hole P47
1.12 g Au/t and 0.08% Cu over 3.77m from Hole P52
1.08 g Au/t and 0.05% Cu over 2.73m from Hole P56
1.20 g Au/t and 0.15%
Cu over 3.55m from
Hole P6
1.73 g Au/t and
0.12% Cu over 2.39 m
from Hole P8
Tailings Pond 1
1.31 g Au/t and 0.18%
Cu over 4.20m from
Hole P13
1.12 g Au/t and 0.08%
Cu over 3.77m from
Hole P52
1.40 g Au/t and 0.08%
Cu over 3.29m from
Hole P47
Tailings Pond 2
 An NI 43-101 Mineral Resource estimate has
been completed for 4.9 million tonnes at 0.86
g Au/t for 134,500 ounces and 0.09% Cu for
9.5 million lbs.**
*Details of the drill program can be found in the Press Release dated November 27, 2013
**Full Details of the mineral resource can be found on page 26
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1.08 g Au/t and 0.05%
Cu over 2.73m from
Hole P56
New Structural Model with Major Folds
240 - Connector Zone
Target extends for
1,200m along strike
Shallow historic holes
missed targets
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.
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For more information on Enhanced Exploration Targeting
at Hope Brook and how multi-disciplinary
Industry/Academic Interpretation have provided new
ideas and approaches for exploration please see Coastal
Gold’s presentation at:
http://coastalgold.ca/English/investors/Presentations/PresentationDetail
s/2013/Enhanced-Exploration-Targeting-at-Hope-Brook-Newfoundland
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