Southern Silver Exploration Corp. · TSXV:SSV
Southern Silver Exploration — Investor Presentation (June 2024)
23 slides from Southern Silver Exploration's investor presentation, June 2024
Slide 1: Developing the Cerro Las Minitas Project into the Next Major Silver Mine in Mexico
Developing the Cerro Las Minitas Project into the Next Major Silver Mine in Mexico Corporate Presentation June, 2024 SSV: TSX-V SSVFF: OTCQX www.southernsilverexploration.com www.southernsilverexploration.com TSX-V: SSV OTCQX: SSVFF
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 developing the Cerro Las Minitas (CLM) Ag-Cu-Pb-Zn project located in Durango, Mexico One of the Largest and Highest Grade Undeveloped 2024 PEA Highlights Corporate Highlights Company Catalysts (pending News Flow) Silver Projects in the World Mineral Resource Update
Slide 4: 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 2023 Mineral Resource Estimate (as of March 20nd, 2024 using a $60NSR/t cut-off)1; Indicated – 116Moz AgEq 43Moz Ag, 32Kozs Au, 49Mlb Cu, 374Mlb Pb and 921Mlb Zn Inferred – 186Moz AgEq: 83Moz Ag, 111Mlb Cu,
Slide 5: Capital Markets Profile
Capital Markets Profile Capital Structure Share Price and Volume (Last 24 Months) Ticker TSX-V:SSV Share Price (May 30, 2024) C$0.30 Current Shares Outstanding 292M Options 24.3M1 2 Warrants 51.2M Fully Diluted Shares Outstanding 367M Market Capitalization (basic) C$88M Cash & Cash Equivalents C$1.0
Slide 6: PEA Highlights
PEA Highlights • Robust Project Economics - Base Case1: after-tax NPV5% of US$501M (C$682M) and IRR of 21.2%; • Excellent Silver and Zinc Price Leverage - Base-case +20%2: after-tax NPV5% of US$875M (C$1,193M) and IRR of 30.2%; 1. Base Case Metal Prices ($US): Ag- $23.00/oz, Au - $1850/oz, Cu – $3.9
Slide 7: PEA Comparison to Earlier Economic Model
Cerro Las Minitas PEA QPs and Due Diligence In comparison to the earlier 2022 economic model, the updated PEA now: • Increases the Life of Mine (LOM) production by 5Mt, representing an approximate 20% increase; • Increases daily mine production to up to 5300tpd, representing an approximate 18% incre
Slide 8: Management Team and Board
Management Team and Board Experienced Mine Finders with a History of Success in Mexico Lawrence Page (LL.B, KC) • 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 9: 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 • UPDATED ECONMICS (June-2024) • Further Upside on both Exploration and Engineering bas
Slide 10: 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 11: Looking North from the Autopista (Highway)
Cerro Las Minitas Looking North from the Autopista (Highway) www.southernsilverexploration.com www.southernsilverexploration.com 11 TSX-V: SSV OTCQX: SSVFF
Slide 12: Site Geology and Deposit Distribution
Cerro Las Minitas Site Geology and Deposit Distribution A classic Ag-Pb-Zn CRD/Skarn system similar to major polymetallic Seven deposits make up the current Mineral Resources Mexican deposits • Mineralization is localized in sub-vertical structures and on dyke margins in • A Central Monzonite acts a
Slide 13: 2024 Resource Estimate
Cerro Las Minitas 2024 Resource Estimate 2024 Mineral Resource Estimate (as of March 22, 2023 using a US$60/t NSR cut-off); • Indicated – 116Moz AgEq: 43Moz Ag, 49Mlb Cu, 374Mlb Pb and 921Mlb Zn (272g/t AgEq; or US$132 NSR/t) • Inferred – 186Moz AgEq: 83Moz Ag, 111Mlb Cu, 582Mlb Pb and 1,106Mlb Zn (
Slide 14: Project Economics
Cerro Las Minitas Project Economics Higher Margin Mineralization Targeted in the First Eight Years of PEA Highlights – Effective June 10, 2024 Production Leading to Improved Economics. 17yr Mine Life Robust Project Economics • Base Case1: after-tax NPV5% of US$501M (C$686M, C$2.35/share), IRR of 21.
Slide 15: Project Economics – Sensitivities
Cerro Las Minitas Project Economics – Sensitivities Economics are most sensitive to metal prices • Base Case NPV5% = $501M • The project NPV5% shows greatest sensitivity to silver and zinc metal prices • “Spot” metal prices in late May underscore increasing value in the project in a potential precio
Slide 16: Project Economics: Modelled LOM Production
Cerro Las Minitas Project Economics Modelled LOM Production: 29.5 Mt @ 104 g/t Ag, 0.11g/t Au, 0.19 Robust AgEq Production which Peaks in Year 6 % Cu, 1.06 % Pb, and 2.41 % Zn - Average NSR of $US 131/t Large-Scale Underground Mining Operation Yr 6: 18.0Mozs • LOM Production: 29.5 Mt @ 104 g/t Ag, 0
Slide 17: Potential Economic Updates
Cerro Las Minitas Potential Economic Updates The PEA has modelled robust annual average cashflow particularly in the first eight years of mine-life. Further work could enhance the profitability of the project Further Opportunities: • Mine life extension: Mineralization on the eastern and northern si
Slide 18: Potential Resource Expansion
Cerro Las Minitas Potential Resource Expansion New Drill Targeting Highlights a Pathway to Expand Resources on the Eastern Side of the Cerro • Up to 25,000m of new Drilling is identified which would target Resource Expansion in the Eastern Deposits • Potential Staged Program: • 5000m to test the Nor
Slide 19: Next Steps
Cerro Las Minitas Next Steps Work continues to otherwise de- risk the project in preparation for an eventual developmment decision ESG - Continuing on the Pathway to Production • Permitting parameters - established • Environmental/Hydrology baseline studies – in progress • Social engagement – ongoin
Slide 20: Oro and Hermanas Projects
Oro and Hermanas Projects Assets 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 epithe
Slide 21: Oro and Hermanas Projects: Assets Overview
Oro and Hermanas Projects Assets Overview The Company has Identified Favorable Targets to Provide Investors an Exposure to Copper, Gold and Silver Oro Property Hermanas Project, Southern New Mexico • 100% owned by SSV • Newly optioned from Bud and Nick Hillemeyer and Perry Durning • +22.4 sq. km pro
Slide 22: Why Southern Silver
Why Southern Silver Diverse Assets Catalysts Ongoing Property Package with PEA Results Updated PEA for Q2 ’24 CLM: Surface Exploration Exposure to both Highlights Robust Asset CLM: New Drilling and Targeting Precious and Base/EV Value of the CLM Project Hermanas: Drilling 2024 Oro: New Targeting Met
Slide 23: Southern Silver Notes
Southern Silver Notes www.southernsilverexploration.com www.southernsilverexploration.com 23 TSX-V: SSV OTCQX: SSVFF
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