Slide 1: Springer Mine and Mill, Nevada
SPRINGER MINE AND MILL, NEVADA February 2016
Slide 2: Disclaimer
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Slide 3: Springer Mine & Mill
Springer Mine & Mill • Existing tungsten mine & mill • Originally constructed and operated by General Electric in late 1970s; • $38 MM spent on modernization, refurbishment and exploration since 2007(1); and • 2012 PEA estimated cash flow potential within 12 months of funding(2). • Plans for separat
Slide 4: Springer Mine & Mill
Springer Mine & Mill Project | Past producer, scheelite concentrate APT Property Size | 6,800 acres, including claims and fee lands Commodity | Tungsten (W) with by-product Molybdenum (Mo) Target | Tungsten rich skarn horizons Location | Nevada, USA Status | Mostly Permitted and refurbished to achie
Slide 5: Springer Tungsten Highlights
Springer Tungsten Highlights • PEA outlines a 47% IRR with $29.8 MM capital investment in restarting operations(2) • ~$89 MM in EBITDA over 5 years • +$20 MM spent since 2007 on modern refurbishments • Significant value remains onsite based on independent valuations (available with NDA) • Major reso
Slide 6: Springer – History/Development Timeline
Springer – History/Development Timeline 1914-1958: OP/UG operations produced over 1,786,138 STU of WO3 from ~3.1 Mt(2) 1970-1982: General Electric (“GE”) and BHP (Utah Intl.) spent over $71 MM acquiring property, constructing new mill and rehabilitating/expanding existing underground workings 1982:
Slide 7: Tungsten Overview
Tungsten Overview • Tungsten supply is ranked as having the most British Geological Survey Supply Risk Index(4) supply risk of any economic element(4) Top • China dominates supply (85%) and demand; Element Rating Producer Top Holder reduced export quotas(5) Tungsten 9.5 China China Rare Earth 9.5 Ch
Slide 8: Tungsten – A Unique Industrial Metal
Tungsten – A Unique Industrial Metal • Tungsten has unique properties that make it an essential component for a wide range of products(6) • Hardness (only diamonds are harder than tungsten carbide); • High melting point (>3400 C); • Very high density; and • Non-toxic. • 55% of tungsten is used in ma
Slide 9: Tungsten Supply and Demand
Tungsten Supply and Demand(7) • Supply constraints and rising demand have pushed prices upward • Global demand has risen by +65% since 2002, but Chinese exports have decreased by +9% • China accounts for 85% of mine production; and • Non-Chinese production has increased by less than 25% since 2002.
Slide 10: Tungsten – 2012 PEA Projections
Tungsten – 2012 PEA Projections(2) • 12 month time frame to cash flow • Robust economics based on current mine plan, based on sales price of $320 MTU • ~$89 MM in EBITDA over 5 years; 47% after-tax IRR • Avg. annual WO3 production of 134,960 MTU over 5 year mine life • Conversion of historic resourc
Slide 11: US Gov't Tungsten Stockpiles Decreasing
US Gov’t Tungsten Stockpiles Decreasing(5) • US gov’t forced to sell existing stockpiles to stabilize supply • Stockpiles have decreased by 53% since 2002 • Potential for US gov’t to purchase part of future production growth to replenish stockpiles US Government Stockpiles – Concentrates & Ores 35,0
Slide 12: Tungsten – 2012 PEA Cont.
Tungsten – 2012 PEA Cont.(2) • Operating cost of $185/MTU, represents a 42% operating margin based on $320/MTU • $17.8 MM/y in avg. EBITDA, minimal tax burden based on SMC’s carry-forward losses • Capital cost of $29.8 MM to fully restart production • EMC Metals spent +$20 MM on mill refurbishment &
Slide 13: Mining Methods
Mining Methods(2) • End slicing is proposed mining method • Shaft and portals to provide three access points • Ore can be transported from underground to crusher by skips or trucks • Stope drifting dimensions 10 ft. x 10 ft., will support 3.5 cubic yard LHDs and 15 ton trucks • On the average, two s
Slide 14: Tungsten Mill
Tungsten Mill Overview • 1,200 tpd gravity/flotation mill a partial APT plant and an updated proprietary process flowsheet; designed and tested for a +80% recovery rate, to produce +65% WO3 scheelite concentrate(2) • Mill automation is 90% complete • State of the art metallurgical lab on site with b
Slide 15: Tungsten Mill – Cont.
Tungsten Mill – Cont. Process • Flotation circuit removes scheelite in conventional three stage process • Potential for molybdenum as a by-product • Scheelite concentrate filtered and dried to produce dry concentrate ready for shipment • Concentrate may be pelletized with new existing equipment; • O
Slide 16: Springer Mill Photos
Springer Mill Photos Grinding Circuit Conveyer Flotation Hoist House SILVER PREDATOR CORP. | TSX.V:SPD 16
Slide 17: Metallurgical Lab Photos
Metallurgical Lab Photos Analytical Laboratory New Fire Assay Furnaces New Fume Hoods New Assay Equipment - XRF SILVER PREDATOR CORP. | TSX.V:SPD 17
Slide 18: Current Tungsten Resources
Current Tungsten Resources • Tier 1 deposit in terms of grade, infrastructure and jurisdiction • Weighted average grade of all non-Chinese deposits is 0.11% WO3(8) • 43,891 meters of modern drilling (GE from 1973-1978 and EMC from 2007-2008)(2) • Shallow drilling; avg. down-hole depth of ~116 meters
Slide 19: Springer Geology
Springer Geology • W and Mo mineralization associated with skarns related to Springer & Olsen stocks • Mo grade increases at depth; potential for future recovery • 12 limestone beds identified with varying levels of skarn development • Sutton Bed is the primary focus of resource estimate • Strike le
Slide 20: Mineralization Proximal to UG Development
Mineralization Proximal to UG Development • More than 4 miles of underground development at the Sutton Beds (1&2) spanning 8 levels to a vertical depth of ~1,060 ft (shaft is 1,360 ft) • Workings for more than 3,700 ft along strike • Mineralization is continuous and open at depth with increasing Mo
Slide 21: Historic Resources
Historic Resources • GE spent over $70 MM at Springer, their 1984 historic resource estimated 10.72 Mt of 0.45% WO3(3)* • Key variances between GE historic resource and 2012 PEA includes: • Sutton Zone was 2x larger; • George Zone was 14x larger; and • Stank, Humboldt and Mill Zones included 4.5 Mt
Slide 22: Permitting & Infrastructure
Permitting & Infrastructure(2) • Existing vertical shaft, mine workings and mill on-site • Located primarily on private fee lands • All major permits in place; minor permits and minor permit amendments needed • Water rights in place for up to 672 gallons/min • 420 gallons/min required for production
Slide 23: Gold Toll Milling Opportunity
Gold Toll Milling Opportunity • Gold circuit could be installed after removal of APT circuit or on adjacent site • Crushers and ball mill rehab along with processing circuit and tailings impoundment construction are key expenditures remaining • Low marginal cost for construction of gold circuit • Po
Slide 24: Summary
Summary • 2012 PEA estimated 12 month time frame to cash flow • Potential for off-take agreement with Kennametal smelter 120 miles away • Potential to expand mine life beyond 5 years • Tungsten has compelling supply/demand fundamentals • Only viable source of US tungsten production in the near-term
Slide 25: Contact Information
Contact Information For Joint Venture inquiries please contact: William M. Sheriff Michael Maslowski Chairman Interim Chief Executive Officer 972-333-2214 208-719-0133 wms@silverpredator.com mmaslowski@silverpredator.com SILVER PREDATOR CORP. | TSX.V:SPD 25
Slide 26: References
References 1. EMC Metals Corp. Management Discussion and Analysis for Quarter Ended September 30, 2009. 2. NI 43-101 Preliminary Economic Assessment, Springer Mine, Pershing County, Nevada, USA by Associated Geosciences Ltd. Dated August 20, 2012. 3. 1984 GE/Utah International Historic Resource, Int
Slide 27: Silver Predator Corp. | TSX.V:SPD
Silver Predator Corp. | TSX.V:SPD Corporate Office 34 King Street West, Suite 1200 Toronto, Ontario M5C 2X8 Investor Relations T: 208-635-5415 | F: 208-635-5465 E: info@silverpredator.com www.silverpredator.com