Alien Metals Ltd · LSE:UFO
Alien Metals — Arian Silver — Investor Presentation (April 2015)
22 slides from Alien Metals's investor presentation, April 2015
Slide 1: Mexico’s Next Silver Mine
Corporate Presentation April 2015 Mexico’s Next Silver Mine
Slide 2: Disclaimer
Disclaimer This document includes statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “inte
Slide 3: Arian Silver: an Overview
Arian Silver: an Overview • Significant mineral resource estimate (Ag, Pb, Zn) • 10 year mine life based on current resources • Plant reached mechanical completion • Commissioning program underway • First lead-silver concentrate produced • First zinc concentrate expected in May • Maximum capacity: 1
Slide 4: San José History
San José History 2006 • Silver price at acquisition @ $5/oz • No mineral resources 2006 to 2009 • Drilling campaign of c.40km • Achieved significant NI 43-101 compliant resource (see appendix) 2010 to 2013 • Concept proved by trial production 2013 • Acquired processing plant • Commenced refurbishmen
Slide 5: First Concentrate
First Concentrate Concentrate in the thickening tank First silver-lead concentrate PAGE 5
Slide 6: US$32 Million Finance Package
US$32 Million Finance Package Convertible loan note • US$16.4 million convertible loan note @ C$0.7576 • 8% interest rate • Repayable by October 2017 • Three year term Base metals stream • US$15.6 million upon achievement of milestones • Stream of 78.2% of Pb & Zn output • US$0.25 per lb Pb and Zn p
Slide 7: Zacatecas Silver District, Mexico
Zacatecas Silver District, Mexico PAGE 7
Slide 8: Mexico: World’s #1 Silver Producer
Mexico: World’s #1 Silver Producer • World’s largest silver producer • Long history of mining • Many mining service companies • Excellent availability of senior personnel and skilled labour • Well-established judicial system • Stable government • Excellent transportation and energy infrastructure •
Slide 9: San José Resource Blocks
San José Resource Blocks West End Guanajuatillo Soledad Santa Ana San José PAGE 9
Slide 10: San José Mine in Sections
San José Mine in Sections PAGE 10
Slide 11: La Tesorera Processing Plant: Projected Low Cost Production
La Tesorera Processing Plant Projected Low Cost Production • Scale: 1,500 tonne per day with capacity to expand • Recoveries: Projected up to 80% once optimised • Design: Mill was originally designed to process ore from San José mine and stopped working in working order (c. 2000) • Location: On site
Slide 12: La Tesorera Project Cost Information
La Tesorera Project Cost Information Projected La Tesorera Plant Capacity (tpd) 1,500 Ore Transportation ($/tonne) US$2.0 Processing ($/tonne) ~US$12 Flotation Recovery Rates >60% Production Cost C1 cash cost per ounce Ag ~US$11 All in cost per ounce Ag ~US$14 NPV 8% at US$18.5/oz Ag US$32m NPV 8% a
Slide 13: La Tesorera Processing Plant
La Tesorera Processing Plant Water reservoir Milling section Flotation section Tailings dam Concentrate pads Crushing section Crushing section Water reservoir Milling section Flotation section Fine Fine ore ore bins bins Concentrate pads Milling Milling section section Flotation section PAGE 13 Crus
Slide 14: San José Project Management
San José Project Management Task Mining contractors engaged (x2) Environmental permits Water for 750tpd* Plant refurbishment completed Operational team engaged Soledad decline Installed power infrastructure** Tailings dam & plant installation Commissioning In progress First lead-zinc
Slide 15: Exploration Potential
Exploration Potential • Commenced a 5,000m drilling program at the Guanajuatillo area of the San Jose Vein. • Area is believed to host around 1M tonnes which is likely to feed directly into the mine plan. • Purchased our own termite which can be mobilised at underground locations to test the deeper
Slide 16: Global Demand for Silver
Global Demand for Silver • Current silver to gold valuation ratio Silver Demand for New Industrial Uses discounted from historical average • Increasing global demands for silver: – Green technologies – Medicine (antiseptics, disinfectant etc.) – Nanotechnology – Electronics • China, historically a m
Slide 17: Investment Highlights
Investment Highlights • Large resource base with significant expansion potential • Fully funded and permitted • Excellent operating team that delivered and built the processing plant • Commissioning underway and first lead-silver concentrate produced • Initial production profile of 2.2 million oz Ag
Slide 18: Appendices
Appendices
Slide 19: Mineral Resources: Potential to Expand
Mineral Resources: Potential to Expand Resource Tonnes Average Grade Contained Metal Category (t) Ag (g/t) Pb (%) Zn (%) Ag (Moz) Pb (Mlbs) Zn (Mlbs) Indicated 8,000,000 119 0.38 0.85 30.61 67.02 149.91 Inferred 24,500,000 110 0.38 0.76 86.65 205.25 410.50 • Prepared by CSA Global (UK) and published
Slide 20: Directors and Senior Management
Directors and Senior Management . Jim Williams Co-founder, Director, President & CEO Tom Bailey Non Executive Director Exploration & mining geologist with over 25 years’ experience worldwide. Professional legal counsel with over 30 years’ experience. He co-founded Arian Silver in 2005 and listed it
Slide 21: Capital Structure
Capital Structure The Company’s Capital Structure Daily Share Price as at 25 February 2015 Comprised: 250 Issued share capital 33,907,448 200 150 Share options @ C$0.5762 to C$7.9000 100 2,106,000 Maturing January 2016 to May 2019 50 0 Convertible 8% loan note @ C$0.7567 Nov‐13 Jan‐13 Feb‐13 Mar‐13
Slide 22: For additional information or enquiries, please contact
For additional information or enquiries, please contact Jim Williams CEO +44 (0)20 7887 6599 jwilliams@ariansilver.com Fuad Sillem Corporate Development +44 (0)20 7887 6599 fsillem@ariansilver.com Dominic Barretto Yellow Jersey PR +44 (0)7768 537 739 dominic@yellowjerseypr.com