Kootenay Silver Inc. · TSXV:KTN
Kootenay Silver — Investor Presentation (November 2018)
32 slides from Kootenay Silver's investor presentation, November 2018
Slide 1: Silver in Mexico
TSX.V: KTN OTC: KOOYF SILVER IN MEXICO CORPORATE PRESENTATION I NOVEMBER 2018 TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPORATE PRESENTATION I NOVEMBER 2018
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation may contain “forward-looking statements” with the meaning of Canadian securities legislation. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms. Forward-looking statements are necessarily based upon
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS ✓ HIGH QUALITY ASSETS ▪ La Cigarra, Promontorio & La Negra…over 144moz Silver Eqv. (M&I)* ✓ FOCUSED ON ADDING OUNCES ▪ Future Drilling at La Cigarra to Focus on La Borracha, GAP within Resource and Las Carolinas Extension ✓ CARRIED TO PRODUCTION INTEREST ▪ Pan American Silver O
Slide 4: Capital Structure
CAPITAL STRUCTURE Exchange (Tier 1) TSX.V (“KTN”) Issued & Outstanding(1) 195,221,856 Options 11,088,500 Warrants (TSX.V: KTN.WT) 36,919,381 Fully Diluted(1) 244,989,737 Current Market Cap(1) ~C$23.4M KTN (shares 52-week High/Low) C$0.24.5/$0.11 Average Daily Volume(1) 149,671 (Average daily volume
Slide 5: Board & Management Team
BOARD & MANAGEMENT TEAM “FROM DISCOVERY TO PRODUCTION” FINANCE FINANCE MINE BUILDING & MARKETING EXPLORATION & LEGAL James McDonald, P. Geo Ken Berry, Chairman Raj Kang, CFO Dr. Tom Richards, BSc, Ph.D. President, CEO & Director President & CEO of (Formerly CFO Salares) V.P. Exp. (Formerly Alamos Go
Slide 6: Successful Track Record
SUCCESSFUL TRACK RECORD TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPORATE PRESENTATION I NOVEMBER 2018 6
Slide 7: Developing, Acquiring & Growing
DEVELOPING, ACQUIRING & GROWING DEVELOPING…ADVANCED PROJECTS LA CIGARRA ▪ Focus on New Discoveries & High Grade ▪ Successful 2018 Drill Program LA NEGRA/ ▪ Optioned to Pan American Silver PROMONTORIO ▪ Mapping & Sampling to define additional drill targets ACQUIRING…NEW PROJECTS COPALITO ▪ Undrilled
Slide 8: La Cigarra & Promontorio Assets
LA CIGARRA & PROMONTORIO ASSETS TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPORATE PRESENTATION I NOVEMBER 2018 8
Slide 9: La Cigarra - Parral Silver District
LA CIGARRA - PARRAL SILVER DISTRICT “ OVER 800M OZ SILVER PRODUCED” TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPORATE PRESENTATION I NOVEMBER 2018 9
Slide 10: La Cigarra Resource
LA CIGARRA RESOURCE “OPEN ON ALL SIDES” 3D view looking southwest of the San Gregorio/Las Carolina resource blocks (>35 gpt Ag) Whittle pit ($22 Ag/Oz) OPEN 2.4 km OPEN OPEN OPEN La Cigarra (2015)* Tonnage Grade Contained Resources • M&I 18.5 Mt 86.3 gpt Ag 51.5 Moz Ag • Inferred 4.5 Mt 80.0 gpt Ag
Slide 11: Targeting Over 100 Million Oz's
TARGETING OVER 100 MILLION OZ’s Rock Samples Silver gpt TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPORATE PRESENTATION I NOVEMBER 2018 11
Slide 12: Targeting Over 100 Million Oz's
TARGETING OVER 100 MILLION OZ’s Potential Silver Ounces Holes / Target Area 60 gpt S ilver 60 gpt S ilver 85 gpt S ilver 85 gpt S ilver Zone Meters Tonnes (50% tonnage) (100% tonnage) (50% tonnage (100% tonnage) GAP 24 / 6,590 18,404,620 17,753,653 35,507,305 25,151,008 50,302,016 Borracha High Grad
Slide 13: La Cigarra
LA CIGARRA “RESOURCE & POTENTIAL GROWTH AREAS” TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPORATE PRESENTATION I NOVEMBER 2018 13
Slide 14: La Borracha - Northern Extension
LA BORRACHA - NORTHERN EXTENSION “POTENTIAL TO EXTEND RESOURCE 2.3KM TO NORTH” TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPORATE PRESENTATION I NOVEMBER 2018 14
Slide 15: Las Carolinas - Southern Extension
LAS CAROLINAS - SOUTHERN EXTENSION “DRILLING OPEN DOWNDIP & SOUTH OF RESOURCE FOR 1.3KM” TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPORATE PRESENTATION I NOVEMBER 2018 15
Slide 16: New Acquisition – Columba Project
NEW ACQUISITION – COLUMBA PROJECT “Undrilled, High Grade Vein System” ▪ High grade silver discovery potential ▪ 8 kilometers of untested vein strike identified ▪ Veins to 6+ meters wide at surface ▪ Historic mine records indicate grades of 600 to 900 gpt silver • 1900 gpt silver over 4 meters • 679
Slide 17: Columba Silver Project
COLUMBA SILVER PROJECT ▪ Channel sampling at surface returned widths of 0.5 to 6 meters with grades up to 693 gpt silver ▪ Extensive underground workings include 4 shafts and 6 levels of drifts measuring over 1,000 meters in length (70k to 100k tonne estimated production). ▪ Increasing grades with i
Slide 18: Columba Grades Increase at Depth
COLUMBA GRADES INCREASE AT DEPTH Note: The historic data is from plan maps of sampling across the veins in underground workings and from smelter reports reporting on tonnes and grade of material delivered which are consistent with the historic plan maps. Assays taken by the Company of surface tailin
Slide 19: Columba Underground Workings
COLUMBA UNDERGROUND WORKINGS Note: The Company cautions that a qualified person has not done sufficient work to verify the historical sampling data and has not substantiated any data as it pertains to the Project; therefore, the reader should not rely upon such historical grades. The information is
Slide 20: Promontorio Mineral Belt
PROMONTORIO MINERAL BELT ▪ Optioned to Pan American to earn 75% interest in 4 year deal (in 3rd) ▪ Spend $US 8 million in expenditures and pay $US 8 million in cash within 4 years & provide capital to production ▪ Hosts two major silver discoveries: Promontorio & La Negra ▪ Numerous additional targe
Slide 21: La Negra
LA NEGRA “HIGH GRADE SILVER DISCOVERY” ▪ Surface footprint of ~500m x 200m Promontorio 7 km ▪ Open Pit Low Cost Potential ▪ 17,000m over 87 holes drilled ▪ High-grade silver intercepts to 300m vertically from surface La Negra ▪ Metallurgy indicates potential for leach extraction in 80 to 90% range H
Slide 22: Prospect Generator Portfolio
PROSPECT GENERATOR PORTFOLIO PROPERTIES OPTIONED PROPERTIES Canada Copley SILVER FOX – ANTOFAGASTA PLC Spike’s Big Adventure MARK – ANTOFAGASTA PLC Meachem Bend 2X Fred Fox Mexico Guadalupe CERVANTES – AZTEC MINERALS Male LA MINA – CAPSTONE MINING Mecatona Copalito Continued Strategy Of Pursuing JV
Slide 23: 2018 Accomplishments
2018 ACCOMPLISHMENTS ▪ 2018 and prior drill results at LA CIGARRA clearly demonstrates targets to double resource ▪ 62-hole, 15,000 meter drill program designed to test LA CIGARRA resource potential of over 100 million ounces ▪ Adjusted strategy to capitalize on weak market conditions by acquiring t
Slide 24: Kootenay Silver – Why Invest?
KOOTENAY SILVER – WHY INVEST? ▪ QUALITY SILVER ASSETS ▪ ACQUIRING ASSETS AT FAVORABLE PRICES ▪ EXCELLENT DISCOVERY POTENTIAL ▪ GROWTH THROUGH NEW DISCOVERIES ▪ STRONG MANAGEMENT WITH TRACK RECORD OF SUCCESS ▪ SIGNIFICANT LEVERAGE TO SILVER PRICE ▪ POTENTIAL FOR VALUE RE-RATING TSX.V: KTN I TSX.V: KT
Slide 25: Contact Us
CONTACT US 1075 West Georgia Street, Suite 1650 Vancouver, BC, V6E 3C9, Canada Tel: (604) 601-5650 Fax: (604) 683-2249 Toll free: (888) 601-5650 E-Mail: info@kootenaysilver.com Website: www.kootenaysilver.com Twitter: https://twitter.com/KootenaySilver TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPO
Slide 26: Appendix: La Cigarra Silver Prospect
APPENDIX LA CIGARRA SILVER PROSPECT Sierra Madre General Map San Gregorio La Cigarra Resource Carolinas TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPORATE PRESENTATION I NOVEMBER 2018
Slide 27: La Cigarra Resource
LA CIGARRA RESOURCE In-Situ Grade Contained Metal Resource Category* Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (oz) Au (oz) Pb (lbs) Zn (lbs) Measured 3,620,000 88.9 0.074 0.14 0.19 10,340,000 9,000 10,920,000 15,510,000 Indicated 14,930,000 85.7 0.068 0.13 0.18 41,130,000 33,000 42,950,000 59,260,0
Slide 28: Promontorio Resource
PROMONTORIO RESOURCE TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPORATE PRESENTATION I NOVEMBER 2018 A 28
Slide 29: La Negra Cross Section
LA NEGRA CROSS SECTION La Negra Section 627500E TSX.V: KTN I TSX.V: KTN.WT I OTC: KOOYF I CORPORATE PRESENTATION I NOVEMBER 2018 A 29
Slide 30: Kootenay - Pan American Carried to Production Deal
KOOTENAY - PAN AMERICAN (PAAS) “CARRIED TO PRODUCTION DEAL” ▪ Provides pathway to production and future cash flow ▪ Augments and strengthens consolidation platform ▪ KTN carried interest mitigates project and finance risk ▪ To earn 75% PAAS invests: – US$16 million in work and cash payments; pay up
Slide 31: New Projects
NEW PROJECTS MALE COPALITO Commodity Gold Commodity Silver, Gold, Lead & Zinc Location Sonora, Mexico Location Sinaloa, Mexico Stage Advanced sampling Stage Drill Ready (Road accessible) Status Available for Option Status Available for Option Grab sampling of 260, 85.5, 81.2 gpt Au 4 Main veins, wid
Slide 32: Optioned Projects
OPTIONED PROJECTS CERVANTES LA MINA Commodity Gold Commodity Copper & Gold Location Sonora, Mexico Location Sonora, Mexico Stage Drilling completed in 2018 Stage Mapping and Sampling Status Optioned to Aztec Minerals Status Optioned to Capstone Mining 139m of 0.71 gpt gold incl. 20m of 2.1 Large lea
Kootenay Silver — Investor Presentation (November 2018) on 6ix