Southern Silver Exploration Corp. · TSXV:SSV
Southern Silver Exploration — Investor Presentation (September 2022)
27 slides from Southern Silver Exploration's investor presentation, September 2022
Slide 1: Corporate Presentation
Corporate Presentation September, 2022 SSV: TSX-V SSVCL: SSEV www.southernsilverexploration.com www.southernsilverexploration.com TSX-V: SSV OTCQX: SSVFF SSVFF: OTCQX
Slide 2: Forward Looking Statements and Technical Disclosure
Forward Looking Statements and Technical Disclosure Some of the statements contained in this presentation may be deemed “forward-looking All mineral resources have been estimated in accordance with Canadian Institute of Mining and statements.” These include estimates and statements that describe the
Slide 3: Investment Highlights
Investment Highlights Focused on the Cerro Las Minitas (CLM) Ag-Cu-Pb-Zn project located in Durango, Mexico One of the Largest and Highest Grade Undeveloped PEA Highlights Corporate Highlights Company Catalysts (pending News Flow) Silver Projects in the World • 15yr Life-of-Mine • 100% ownership and
Slide 4: PEA Highlights
PEA Highlights Robust Project Economics High-Revenue Project • Base Case1: after-tax NPV5% of $349M (C$450M, C$1.55/share), • Base Case revenues: US$3.7B IRR of 17.9% • Balanced precious vs base metal revenues with silver representing 42% of revenues and zinc representing 39% of Excellent Silver and
Slide 5: Capital Markets Profile
Capital Markets Profile Capital Structure Share Price and Volume (Last 18 Months) Ticker TSX-V:SSV Share Price (Aug 25, 2022) C$0.20 Current Shares Outstanding 291.5M Options 28.3M1 2 Warrants 65.9M Fully Diluted Shares Outstanding 386M Market Capitalization (basic) C$58.3M Cash & Cash Equivalents C
Slide 6: Management Team and Board
Management Team and Board Experienced Mine Finders with a History of Success in Mexico Lawrence Page (LL.B, QC) • Director and Officer of a number of public prominent exploration and mining companies President, Director • Major Projects and Mines involvement: Penasquito, Mexico; Hemlo and Eskay Cree
Slide 7: Project Portfolio
Project Portfolio District Scale Exploration & Development Cerro Las Minitas, Durango, Mexico – Flagship • 100% owned • Silver-enriched Skarn/CRD deposits • +US$35M spent on acquisition and exploration since 2011 • NEW PEA RESULTS • Further Upside on both Exploration and Engineering basis Oro Projec
Slide 8: Cerro Las Minitas: One of the Largest and Highest Grade Undeveloped Silver Assets
Cerro Las Minitas One of the Largest and Highest Grade Undeveloped Silver Assets in the World EV/Oz AgEq Supports a Significantly Higher Stock Price 2021 Mineral Resource Estimate (as of Oct 27th, 2021 using a $60NSR/t cut-off)1; Indicated – 137Moz AgEq 42.1Moz Ag, 44Mlb Cu, 358Mlb Pb and 895Mlb Zn
Slide 9: Modelled Project Economics – Cash Flow
Cerro Las Minitas Modelled Project Economics – Cash Flow Higher Margin Mineralization Targeted in the First Eight Years of 15 Years of Mine Life Production Leading to Improved Economics. Base Case Cash Flow ($US) LOM gross revenues: $3,705M Pre-Tax cash flow: $1,124M Yrs. 1-8 Avg CF After-tax cash f
Slide 10: Mine Plan – LOM Production and AISC
Cerro Las Minitas Mine Plan – LOM Production and AISC Modelled LOM Production: 24.5 Mt @ 0.2% Cu, 1.1 % Pb, 2.6 % Zn, Robust AgEq Production which Peaks in Year 8 110 Ag, 0.09 g/t Au - Average NSR of $US 128 /t Modelled annual sales (net deductions, treatment and refining): ➢ 11.3 Moz AgEq (inc. 4.7
Slide 11: Infrastructure and Access
Cerro Las Minitas Infrastructure and Access Well Located in an Active Exploration and Development Jurisdiction Knowledgeable and Supportive Local Community with Superior Infrastructure • Safe jurisdiction, around non-narcotic related agriculture • Exploration permits in place • Located 70km NE of Du
Slide 12: Looking North from the Autopista (Highway)
Cerro Las Minitas Looking North from the Autopista (Highway) www.southernsilverexploration.com www.southernsilverexploration.com 12 TSX-V: SSV OTCQX: SSVFF
Slide 13: Site Geology and Deposit Distribution
Cerro Las Minitas Site Geology and Deposit Distribution A classic Ag-Pb-Zn CRD/Skarn system hosted in similar major Six deposits make up the current Mineral Resources polymetallic Mexican deposits • Mineralization is localized in sub-vertical structures and on dyke margins in • A Central Monzonite a
Slide 14: New Discoveries and Resource Expansion
Cerro Las Minitas New Discoveries and Resource Expansion Over 15,000 metres of drilling have been completed along the northeast and northern targets in 2021-22 Drilling has now identified a 400 metre strike–length of mineralization connecting the Mina La Bocona to the Skarn Front Deposits ➢ 21CLM-17
Slide 15: Next Steps
Cerro Las Minitas Next Steps Work on the Cerro Las Minitas project over the coming months will continue to de-risk the project and add further value in preparation for the next stage of assessment ESG - Continuing on the Pathway to Production Technical Opportunities to Upgrade the Project • Establis
Slide 16: Oro and Hermanas Project
Oro and Hermanas Project Asset Overview US Exploration Southern continues to advance two earlier stage projects in southern New Mexico, giving the shareholder additional exposure to copper, gold and silver ➢ Oro Project • Large Laramide Cu-Mo-Au Porphyry system ➢ Hermanas • Widespread Au-Ag epitherm
Slide 17: Oro Project
Oro Project Asset Overview The Company has Identified Favorable Targets to Provide Investors an Exposure to Copper Oro Project, southern New Mexico Property Map • 100% owned by SSV • +$3 million spend in Acquisition and Exploration • 4000m core hole program in progress • 22.4 sq. km comprised of 8 m
Slide 18: Oro Project: Drill Targeting on Porphyry and Skarn Targets
Oro Project Drill Targeting on Porphyry and Skarn Targets • Large zone of Magnetic-destruction coincident with conductive zones and surface sericite alteration • Historic drillholes either terminated too early or drilled wide intervals of anomalous Cu-Au mineralization immediately adjacent to best Z
Slide 19: Hermanas Project
Hermanas Project Drill Targeting on Porphyry and Skarn Targets New Acquisition Provides Exposure to Large Au-Ag Vein System Hermanas Project, southern New Mexico Property Map • Newly optioned from Bud and Nick Hillemeyer and Perry Durning • Optioned by SSV to own 100% • Geology Favorable for Large E
Slide 20: Why Southern Silver
Why Southern Silver Diverse Assets Ongoing Ongoing PEA Results Property Package with CLM: ESG, Permitting, Oro: Greenfields Drilling Highlights Robust Asset Exposure to both Engineering upgrades Hermanas: Drill Value of the CLM Project Precious and Base Metals Fall’22 Permitting for Q1 ’23 1. The ex
Slide 21: Southern Silver Appendices
Southern Silver Appendices www.southernsilverexploration.com www.southernsilverexploration.com 21 TSX-V: SSV OTCQX: SSVFF
Slide 22: 2021 Resource Estimate
Cerro Las Minitas 2021 Resource Estimate • 2021 Mineral Resource Estimate (as of October 27, 2021 using a US$60/t NSR cut-off); • Indicated – 137Moz AgEq 42.1Moz Ag, 44Mlb Cu, 358Mlb Pb and 895Mlb Zn (347g/t AgEq; or US$130 NSR/t) • Inferred – 198Moz AgEq: 73.6Moz Ag, 98Mlb Cu, 500Mlb Pb and 1,009Ml
Slide 23: Mining Capital
Cerro Las Minitas Mining Capital Capital Expenditures Mine Plan - NSR Grade Distribution Plant and Infrastructure Capex of $275M is distributed on a 40% (Yr -2), 55% (Yr -1), 5% (Yr 1) basis Costing utilizes a mining contactor model Initial Capital: US$341M Total Capital: US$509M Plant and Infrastru
Slide 24: Mine Plan – Design Concept
Cerro Las Minitas Mine Plan – Design Concept Current Mine Plan Utilizes Efficient Bulk-Mining Processed Tonnages and Higher Grade Mineralization is Underground Methods Scheduled Forward LOM Production: 24.5 Mt @ 0.2% Cu, 1.1 % Pb, 2.6 % Zn, 110 Average Stope Width Ag, 0.09 g/t Au - Average NSR of $U
Slide 25: Sales – TCs and RCs
Cerro Las Minitas Sales – TCs and RCs The project is expected to produce three clean, high-quality concentrates with minimal penalty elements Modelled Metal Recoveries Item Pb Conc. Zn Conc. Cu Conc. Batch/Locked cycle testwork/variability testwork programs over Pb Recovery 88% four years have confi
Slide 26: Operations – Process Flowsheet
Cerro Las Minitas Operations – Process Flowsheet The Operating Costs Reflect Underground Mining of The Process Flowsheet Utilizes Conventional Sulphide Flotation Polymetallic Sulphide Mineralization and Produces Three Filtered Concentrates For Sale The Flowsheet Includes: Operating costs are broken
Slide 27: Opportunities
Cerro Las Minitas Opportunities The PEA has modelled robust annual average cashflow in the first eight years of production. New work will focus on increasing that value particularly in the later years of operation Mine Life Extension: Gold Upside: • New mineralization added in the North Felsite and
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