Strategic Metals Ltd. · TSXV:SMD
Strategic Metals — Investor Presentation (July 2011)
33 slides from Strategic Metals's investor presentation, July 2011
Slide 1: Strategic Metals Ltd. Corporate Presentation
Strategic Metals Ltd. Corporate Presentation July 2011 TSX.V - SMD
Slide 2: Forward Looking Statements
Forward Looking Statements Certain Certain information informationregarding regarding the the Company Company contained contained herein herein may may constitute constitute forward-looking forward-looking statements statements within within thethe meaning meaning ofof applicable applicablesecuritie
Slide 3: Management and Directors
Management and Directors Project Management Provided by Archer Cathro & Associates (1981) Limited, an in-house geological engineering and exploration firm and pre-eminent Yukon exploration consulting firm since 1965. Yukon discoveries and/or deposits made or advanced by Archer Cathro and management:
Slide 4: Capital Structure
Capital Structure STRATEGIC METALS LTD. TSX-V:SMD SHARES OUTSTANDING: 89,273,726 FULLY DILUTED: 92,872,851 WORKING CAPITAL1: ~$149 million Significant Holders Options/Warrants STRATEGIC MANAGEMENT2 18% OPTIONS $0.60 - $3.28 2,961,000 WARRANTS $1.50 - $3.35 638,125 Total 3,599,125 Institutional Holde
Slide 5: Investment Highlights
Investment Highlights • Exceptional property portfolio of 171 projects assembled prior to the current rush by accomplished Yukon exploration team • Working capital of ~$149 million, grown rapidly through project farm-outs and investments • Major shareholdings in ATAC Resources (9.8%), Rockhaven Reso
Slide 6: Silver Range Spin-Out
Silver Range Spin-Out • Proposed transaction whereby Strategic shareholders will receive: • One Silver Range unit for every 3 Strategic shares held • Each unit consists of one Silver Range share and one-half tradable Silver Range warrant priced at $0.85 CDN for 18 months • Strategic has transferred
Slide 7: Preeminent Yukon Explorer
Preeminent Yukon Explorer • Property positions established before current exploration rush • Interests in 171 properties • 86 properties under option • 8 properties subject to sales agreements • Royalty interests in 16 properties TSX.V - SMD
Slide 8: Major Shareholdings
Major Shareholdings Company Strategic Number of Market Value1 Ownership Shares ATAC Resources 9.8% 9,428,086 $80,515,854 Rockhaven Resources 26.1% 12,076,500 $15,457,920 Wolverine Minerals 19.9% 6,785,044 $4,545,979 Silver Predator Mines 7.5% 2,500,0002 $2,250,000 Other Companies - - $3,000,000 Tota
Slide 9: Stock Charts
$0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $0.00 500000 0 1000000 1500000 2000000 2500000 3000000 3500000 Jan-10 Jan-10 Feb-10 Feb-10 Mar-10 Mar-10 Apr-10 Apr-10 May-10 May-10 Jun-10 Jun-10 Jul-10 Jul-10 Aug-10 Aug-10 Sep-10 Sep-10 Volume Oct-10 Oct-10 SMD Daily Nov-10 Nov-10 Dec-10 Dec-10 Jan-
Slide 10: 2011 Exploration Expenditures
2011 Exploration Expenditures 2011 EXPLORATION ON STRATEGIC PROPERTIES1 Expenditures By: Amount: Strategic Metals $3-5 million Silver Range Resources $15 million Third Parties – Royalty Projects2 $10-20 million Third Parties – Optioned Projects $9-15 million Estimated Total3: $37-55 million 1 Includ
Slide 11: Royalty Interests
Royalty Interests Wolverine Deposit • Hold 1% NSR over substantial portion of high-grade VMS deposit1 • To commence production in 2011 for Yukon Zinc Casino Deposit • Hold 5% NPI over 1.7 billion tonne porphyry Cu-Au-Mo deposit • Positive prefeasibility by Western Copper updated in April 2011 Logtun
Slide 12: Midas Touch Project
Midas Touch Project • Extensive landholdings adjacent to ATAC Resources’ new Carlin-type discovery • More than 700 square kms of prospective carbonate rocks, overlying cap rocks, and regional thrust faults • Many claims have strongly elevated gold, silver and pathfinder geochemical signatures, sever
Slide 13: Midas Touch Conceptual Cross-Section
Midas Touch Conceptual Cross-Section TSX.V - SMD
Slide 14: Rod Property - Antimony
Rod Property - Antimony TSX.V TSX.V V - SMD SMD
Slide 15: Crag Project
Crag Project • Crag Project hosts the only occurrence of realgar and orpiment (arsenic sulphides) in the Rau Gold District other than ATAC Resources’ Osiris Discovery • Realgar and orpiment were observed in all four holes drilled at the Trent Zone by McIntyre Mines Limited in 1977, with long interva
Slide 16: Crag Property – Trent Zone
SECTION FACING WEST i) 100 —— metres , . , 0 50 mmm Arsenic Sulphide Minerals (realgar & orpiment)* LJ Carbonates ————— metres mmm |ead-Zinc Sulphide Minerals C_] “Intervals of "occasional arsenic sulphide minerals" as marked on cross- sections prepared by McIntyre Mines Limited in 1977. Fine Clasti
Slide 17: Midas Touch - 2011 Exploration
Midas Touch - 2011 Exploration Comprehensive 2011 exploration program underway: • Drilling at Crag and Rod properties • Systematic geological mapping, prospecting, and geochemical surveys on other properties to rapidly advance new discoveries • Minimum $3 million project expenditures TSX.V - SMD
Slide 18: Silver Range Project
Silver Range Project TSX.V - SMD
Slide 19: Silver Range - Local Infrastructure
Silver Range - Local Infrastructure • Faro District is former site of largest open-pit lead-zinc-silver mining operation in Canada • Region still has excellent but under-utilized infrastructure • Property is located 10 km from 2 wheel drive road and power TSX.V - SMD
Slide 20: Regional Geology
: S FARO MINE | 120.1 MT Averaging H 9.3% lead-zinc ls sm Land Holdings . * Mineralized Areas [| Selwyn Suite Granites | South Fork Volcanics | | Slide Mountain Terrane | Selwyn Basin | | Yukon-Tanana Terrane —— High angle fault a Thrust fault 5 L d im~ Ee Owl Zone | V 4 —A Jf - BS = ES sea) ‘eg Zon
Slide 21: Six Large-Scale Anomalies
Pb (ppm) 2 1,000 2500 < 1,000 2 200 < 500 2100< 200 » 260<100 * 20<50 = KEG ANOMALY & 2010 DRILL AREA DREX ANOMALY SNAP ANOMALY Silver Range Project LEAD SOIL GEOCHEMISTRY MARKS ANOMALY
Slide 22: Keg Zone - Lead
Keg Zone - Lead TSX.V TSX.V - SMD SMD
Slide 23: Encouraging Initial Drill Results
Encouraging Initial Drill Results Silver Range Project – Keg Zone From To Length+ Ag Zn Pb Cu Sn* In* Hole No. (m) (m) (m) (g/t) (%) (%) (%) (ppm) (ppm) Keg-10-01 59.30 185.00 125.70 50.09 1.20 0.65 0.14 217 9.55 Keg-10-02 7.62 139.00 131.38 28.10 1.39 0.21 0.22 534 5.94 Keg-10-03× 150.75 231.70 80.
Slide 24: Keg Zone Cross Section
Keg Zone Cross Section TSX.V - SMD
Slide 25: Keg Zone Cross Section
SECTION LOOKING WSW > =, KEG-10-02 Strongly anomalous soil values 131.38m @ 28.10 git Ag 1.39% Zn 0.21% Pb i Axis of 1967 0.22% Cu magnetichigh Axis of 1967 electromagnetic conductor —— To be drill tested in 2011 Mineralized Zone | i 100 metres —
Slide 26: Grid Drilling
Grid Drilling Mineralized Mineralized Intercept Intercept 2010 2010Drill DrillHole Hole 2011 2011Proposed Proposed Drill DrillHole Hole
Slide 27: Silver Range - Target
Silver Range - Target • Target: large-scale, bulk mineable silver-zinc-lead-copper mineralization • Initial drilling at Keg Zone confirmed broad mineralized intervals over 550m strike length, within geochemical and geophysical anomalies extending for 4 km and several hundred meters wide • Five addit
Slide 28: Six Large-Scale Anomalies
Pb (ppm) 2 1,000 2500 < 1,000 2 200 < 500 2100< 200 » 260<100 * 20<50 = KEG ANOMALY & 2010 DRILL AREA DREX ANOMALY SNAP ANOMALY Silver Range Project LEAD SOIL GEOCHEMISTRY MARKS ANOMALY
Slide 29: Silver Range - Drex Zone
Silver Range - Drex Zone TSX.V - SMD
Slide 30: Silver Range - 2011 Exploration
Silver Range - 2011 Exploration Comprehensive 2011 exploration program underway: • Up to 25,000 m of drilling and $14 million in expenditures • All six target areas to be drill tested • Systematic geological mapping and prospecting over 700 sq kms • Property-wide geochemical surveys • Additional geo
Slide 31: Mint Project
Mint Project • Newly-recognized porphyry gold-copper target in southwest Yukon • Encouraging Au-Cu-Mo soil geochemistry over 400m by 1200m area • Coincident potassic radiometric and magnetic anomalies • 2011 work will include IP surveying to further define drill targets TSX.V - SMD
Slide 32: Summary
Summary • Exceptional property portfolio of 171 projects assembled prior to the current rush by accomplished Yukon exploration team • Working capital of ~$149 million, grown rapidly through project farm-outs and investments • Major shareholdings in ATAC Resources (9.8%), Rockhaven Resources (26.1%)
Slide 33: Contact Information
Contact Information Strategic Metals Ltd. 1016-510 West Hastings Street Vancouver, BC, V6B 1L8 Phone: 604-687-2522 Toll Free: 1-888-688-2522 E-mail: info@nordacres.com Web: www.strategicmetalsltd.com Investor Relations: Richard Drechsler Phone: 604-687-2522 Toll Free: 1-888-688-2522 E-mail: rdrechsl