Abrasilver Resource Corp. · TSX:ABRA
Abrasilver Resource — Investor Presentation (February 2022)
35 slides from Abrasilver Resource's investor presentation, February 2022
Slide 1: AbraSilver Corporate Presentation February 2022
www.abrasilver.com TSX-V: ABRA OTCQX: ABBRF February 2022
Slide 2: Disclaimers
Disclaimers This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regul
Slide 3: A Premier Silver & Gold Exploration Company
A Premier Silver & Gold Exploration Company Diablillos – A Stand-Out Open Pit Oxide Silver-Gold Project 90 Million oz Silver 1.0 Million oz Gold Robust PEA Study from 2021 After-tax NAV5% of US$364M (CAD$473M) with IRR of +30% (1) Avg production (first 5 yrs) of 11.4Moz AgEq at AISC of $10.41/oz Sig
Slide 4: Attractive Valuation Upside & Strong Shareholder Support
Attractive Valuation Upside & Strong Shareholder Support CAPITALIZATION MAJOR SHAREHOLDERS Shares issued 472M Eric Sprott 15% Warrants (average exercise price $0.24) 124M SSR Mining 9% Options (average exercise price $0.11) 21M Management & Board 3% Fully diluted shares 617M Institutional Investors
Slide 5: Significant Torque to Silver Prices
Significant Torque to Silver Prices Meaningfully outperformed silver producer and developer peers while demonstrating considerable leverage to the silver price SHARE PRICE PERFORMANCE Volume ABRA (C$) Relative Performance (Silver) Relative Performance (Producers)(1) Relative Performance (Developers)
Slide 6: Salta Ranked #1 for Investment Attractiveness
Salta Ranked #1 for Investment Attractiveness1 $US Billions in development projects surround Diablillos Salta = Home to some of the largest global mining companies: 1 Based on 2020 Fraser Institute Mining Survey 6 abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 6
Slide 7: Diablillos
__ *Diablillos » or
Slide 8: Large Scale, Open Pittable Silver & Gold Resources
Large Scale, Open Pittable Silver & Gold Resources Open Pit M&I Resources: +90Moz Silver & + 1Moz Gold (100% of tonnes in PEA plan in M&I) Including high-grade ‘Measured’ category contains: 8.2Mt @ 124 g/t Ag and 0.98 g/t Au Significant expansion potential currently being tested in Phase II drill pr
Slide 9: Robust PEA Results – With Significant Upside
Robust PEA Results – With Significant Upside PEA Study – Operation Metrics Mine Life / Throughput 16 years (7,000 tpd) Initial Capital Expenditures $255 million Avg Annual Production – First 5 years 8.0M oz silver, 44koz gold (11.4Moz AgEq) Avg Annual Production – Life-of-Mine (“LOM”) 4.2M oz silver
Slide 10: Attractive Production Profile With High Grades Upfront
Attractive Production Profile With High Grades Upfront Avg annual production in first five years of 11.4Moz AgEq with peak of 14.1Moz AgEq (Year 2) Avg grade in first five years of +175 g/t AgEq (130 g/t silver & 0.65 g/t gold) Avg EBITDA in first five years of +US$180M per year with peak of +US$245
Slide 11: Significant Exploration Potential Remains
Significant Exploration Potential Remains Phase II Drill Program Consistently Intersecting High-Grade Mineralization Key Objectives of Phase 2: Phase 2 Results To Date (Oxides): •109m @ 177 g/t Ag & 1.5 g/t Au 1) Expand resources beyond open •53m @ 33 g/t Ag & 2.5 g/t Au pit margin in Northeast Zone
Slide 12: Highly Successful Exploration Program
Highly Successful Exploration Program Multiple Top Intercepts Globally Phase I drilling program, resulted in industry-leading discovery cost of only US$9/oz gold- equivalent (or US$0.13/oz silver-equivalent) Market Cap Grade- Primary (C$ M) Reported Interval Grade Thickness Company (Project) Metal J
Slide 13: PEA – Multiple Opportunities For Further Upside
PEA – Multiple Opportunities For Further Upside Resource Expansion Throughput Expansion Ongoing exploration focused on Optimization studies advancing to determine expanding: Northeast, shallow gold zone & optimum throughput level high-grade Tesoro zone Initial analysis indicates higher net ass
Slide 14: Excellent Torque to Rising Silver & Gold Prices
Excellent Torque to Rising Silver & Gold Prices Based on updated PEA study, the Diablillos project has a base-case NPV5% of CAD$473 M or ~$1.00/sh. ABRA is currently trading at ~0.33x NPV. This is based on the existing resource, and does not include any value for the Phase II drill results which wil
Slide 15: Diablillos: A Stand-Out High Grade Oxide Project
Diablillos: A Stand-Out High Grade Oxide Project Diablillos contains an M&I resource totalling 2.2 Moz AuEq at 1.67 g/t AuEq making it one of the largest, highest-grade oxide projects in the Americas Select Comparable Oxide Projects in the Americas M&I Contained (Moz AuEq) 2.2 0.7 0.4 2.1 2.7 1.3 0.
Slide 16: Diablillos – Large Scale Silver Resource With Significant Upside Potential
Diablillos – Large Scale Silver Resource With Significant Upside Potential The Diablillos project has a significant M&I Resource base when compared to other primary silver assets located in Latin America Numerous smaller-scale assets are either being operated or developed by mid-tier silver producer
Slide 17: Diablillos – Excellent Access to Infrastructure
Diablillos – Excellent Access to Infrastructure Located in an established mining camp that includes multiple lithium and borate mining operations (e.g., FMC, Orocobre) Accessible by good all-weather gravel roads with nearby airstrip (~25 km) A natural gas pipeline built to supply mining projects lik
Slide 18: Consistent Stream of Catalysts Ahead
Consistent Stream of Catalysts Ahead H1 • Completed Phase I drill program (15,000m) P 2021 • Announced multiple high-grade silver and gold intercepts P • Updated Mineral Resource Estimate (M&I: 37% gold, 11% silver) P H2 • Updated PEA study results (after-tax NPV5% US$364M & IRR +30%) P 2021 • Expan
Slide 19: Other Projects
La Coipita, San Juan, Arcas Project, Argentina Antofagasta, Chile OTHER PROJECTS Aguas Perdidas, Chubut, Argentina 19
Slide 20: La Coipita Project (San Juan, Argentina)
La Coipita Project (San Juan, Argentina) La Coipita Project - Yareta target area Consolidated large +70,000 ha land package in one of the world’s most endowed Cu-Au belts (e.g. Pelambres, Los Bronces, El Teniente) 16 km north of McEwan Mining’s Los Azules deposit (M&I Resources of 962Mt @ 0.48% Cu)
Slide 21: Key Drivers for Investing
Key Drivers for Investing High Quality, Scarce Asset: NPV5% of US$364M with IRR of +30%. M&I Resource (+160 Moz AgEq, or 2.3Moz AuEq) expected to grow further with ongoing drilling Right Jurisdiction: 2021 Fraser Institute #1 most attractive jurisdiction in Latin America, with billions of dollars be
Slide 22: Additional Information
itic itional Informa
Slide 23: Management & Directors
Management & Directors Strong Team with Extensive Technical and M&A Expertise Management John Miniotis, Chief Executive Officer – Based In Toronto, Canada • 17+ years of experience in the mining industry (Lundin Mining, AuRico Metals, Barrick, BMO) focused primarily on mergers & acquisitions, equity
Slide 24: Diablillos Location Map
Diablillos Location Map 24 abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 24
Slide 25: PEA Study Results
PEA Study Results Metrics Units Results Mine life years 16 Total mineralized material mined M tonnes 37.4 Total contained silver M oz 86.9 Total contained gold k oz 939.8 Strip ratio Waste : ore 3.6 Throughput tpd 7,000 Head grade – silver (first 5 years / LOM) g/t 130.5 / 72.2 Head grade – gold (fi
Slide 26: PEA Capex Summary
PEA Capex Summary _ 2018 PEA eee Change tren b armel Study Soke 2018 PEA >> 2021 PEA (2021 PEA) $M $M % Change $ Change Surface Mining 93.3 51.6 -45% -41.7 Processing 69.2 76.9 11% ys Site Infrastructure 35.2 53.7 53% 18.5 Owners Costs & Indirect Costs 63.0 46.3 -27% -16.7 Contingency & Other Provis
Slide 27: PEA Operating Cost Assumptions
PEA Operating Cost Assumptions Operating Cost per Tonne Operating Cost per Ounce 27 27
Slide 28: Oculto Mineralization & Structures
Oculto Mineralization & Structures Recent surface mapping and drill data interpretation indicates that high grade mineralization is strongly correlated with steeply dipping, tabular, hydrothermal breccia bodies oriented along NE-trending faults 28 abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 28
Slide 29: Oculto Geological Model
Oculto Geological Model Epithermal Ag-Au Deposit with Cu-Au Porphyry Intrusive Diablillos property has multiple epithermal and porphyry targets Oculto Zone contains majority of the resources and has over 85,000 m of drilling, but only down to a depth of ~400 m Past drilling focused on the high sulph
Slide 30: Continuing to Add 'High Value' Near-Surface Ounces
Continuing to Add ‘High Value’ Near-Surface Ounces Near-surface gold-dominant Previous Block Model (2018): mineralisation expected to Limited Shallow Mineralisation generate substantial early cash flow Significant improvement in strip ratio, now 3.67:1 (including pre- strip) Near-surface drilling on
Slide 31: Drilling Continues to Extend Gold Zone Towards North-East
Drilling Continues to Extend Gold Zone Towards North-East Results from recent drill campaign 31 abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 31
Slide 32: Oculto - High Grade Copper Intercepts in Sulphides at Depth
Oculto - High Grade Copper Intercepts in Sulphides at Depth Results from recent drill campaign 32 abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 32
Slide 33: Diablillos District Potential
Diablillos District Potential 33 abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 33
Slide 34: Share Data
Share Data Potential Proceeds Outstanding (M) Price (CAD$ M) Expiry Warrants 37.6 $0.17 $6.4 July 9, 2022 30.9 $0.40 $12.4 Sept. 1, 2022 3.6 $0.27 $1.0 Sept. 1, 2022 24.0 $0.27 $6.5 Apr. 26, 2023 20.2 $0.15 $3.0 May 14, 2023 5.9 $0.10 $0.6 Apr. 8, 2024 2.2 $0.10 $0.2 Apr. 18, 2024 Total Warrants 124
Slide 35: To Find Out More, Contact
To Find Out More, Contact: John Miniotis – President & CEO john@abrasilver.com +1.416.306.8334 www.abrasilver.com
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