Silver Mines Limited · ASX:SVL
Silver Mines — Investor Presentation (June 2017)
38 slides from Silver Mines's investor presentation, June 2017
Slide 1: Building the largest pure silver company in the Southern Hemisphere
“Building the largest pure silver company in the Southern Hemisphere” ASX:SVL Corporate Presentation June 2017
Slide 2: Disclaimer
Disclaimer The material in this presentation contains certain forecasts and forward-looking information, including regarding possible or assumed future performance or potential growth of Silver Mines Limited (“SVL”). Such information is not a guarantee of future performance and involve unknown risks
Slide 3: Silver Mines Limited Introduction
Silver Mines Limited Introduction • Largest undeveloped silver deposit in Australia • Feasibility Study almost complete - fast track to development • Successful drill campaign underway • Confirmed significant extensions to mineralisation • Discovered new high-grade zones at depth • Discovered gold a
Slide 4: Board of Directors
Board of Directors Keith Perrett, Chairman Mr Perrett has had a long involvement in agriculture as a producer and industry leader at local, state, national and international levels. He was formerly Chairman of the Grains Research and Development Corporation (GRDC), the National Rural Advisory Counci
Slide 5: Silver Mines Limited Structure
Silver Mines Limited Structure Shares on Issue 390.9m Current Share Price A$0.135 Undiluted Market Capitalisation A$52.7m Cash as at end March 2017 A$4.1m* Options Oct 2017 @ $0.30 23.4m Jun 2018 @ $0.30 10.7m Jun 2019 @ $0.30 8.0m * In addition, capital raising of $3.0m before costs completed April
Slide 6: New South Wales Silver Consolidation
New South Wales Silver Consolidation
Slide 7: Bowdens Silver Project – Brief History
Bowdens Silver Project – Brief History • Originally discovered by CRA, and drilled by Silver Standard • Purchased by Silver Mines in June 2016 from Kingsgate • The largest undeveloped silver deposit in Australia and one of the largest globally • Approximately A$60 million spent on the project to dat
Slide 8: Bowdens Silver Project Location and Title Package
Bowdens Silver Project Location and Title Package
Slide 9: Silver Mines Strategy
Silver Mines Strategy 1. Rapidly progress Bowdens Silver through Feasibility and Permitting • Feasibility Study works advanced • Environmental Impact Statement (“EIS”) works advanced • Feasibility Study and EIS targeted for completion end-2017 • Fast track to mine development 2. Aggressively explore
Slide 10: Silver Mines Limited Resource Inventory
Silver Mines Limited Resource Inventory (Refer to Appendices 1, 2 & 3) Deposit name Mt Ag (g/t) Ag Ag Eq Ag Eq Status (Moz) (g/t) (Moz) Bowdens Silver* 88.0 47.4 134 64 182 100% owned Webbs 1.5 245 11.7 345 16.5 100% owned Conrad 2.6 105.4 9.0 206 17.5 100% owned Total 155 216 * Bowdens Silver resou
Slide 11: Bowdens Silver Fast Track through Feasibility and Permitting
Bowdens Silver Project Bowdens Silver Fast Track through Feasibility and Permitting Mine plan to initially focus on high-grade / near surface
Slide 12: Bowdens Silver Project
Bowdens Silver Project • Resource of 134 Moz of silver (182 Moz of silver equivalent) • Feasibility Study complete end- 2017 • Environmental Impact Statement complete end-2017 • Flat lying deposit at surface – easy to mine and very low strip ratio • Classified as “State Significant Development” in N
Slide 13: Bowdens Silver Resource
Bowdens Silver Resource (Refer to Appendix 1 for further details) • Kingsgate resource based on 63,000 metres drilling (from CRA, Silver Standard, Golden Shamrock and Kingsgate) What’s new? • Identified structurally controlled high-grade zones along the eastern flank • Extensions beneath existing re
Slide 14: Drilling by Company
Drilling by Company Silver Mines drilling has focused on: • both infill and extensions • more diamond core holes – enabling a structural interpretation of high-grade zones • more holes intersecting basement Ordovician rocks resulting in new discoveries at depth • Drilling on-going with three rigs ac
Slide 15: Drilling: high-grade zones
Drilling: high-grade zones BGR162 BGR312 40m @ 322g/t Ag, 0.5% Zn, 37m @ 392gIt Ag, 0.2% Zn, O.8%Pb, 362git Ag Eq 0.6%Pb, 419git Ag Eq BGR271 BD16002 44m @ 254git Ag, 0.3% Zn, 20m @ 200g/t Ag, 0.3% Zn, 0.5% Pb, 281g/t Ag Eq 0.4%Pb, 217g/t Ag Eq BD16005 25m @ 184gIt Ag, 0.1% Zn, 0.1%Pb, 188g/t Ag Eq
Slide 16: Bowdens Silver Project: southern section
Bowdens Silver Project: southern section • High-grade zone on the eastern ‘Main Zone’
Slide 17: Bowdens Silver Project: northern section
Bowdens Silver Project: northern section • Highest grade zone at the northern end of the deposit
Slide 18: Bowdens Silver Project: central section
Bowdens Silver Project: central section • New depth extensions on the western ‘Bundarra Zone’ • New massive sulphide zone ^Massive sulphide discovery – next slide
Slide 19: New Massive Sulphide Discovery
New Massive Sulphide Discovery • Massive to semi-massive sulphide discovery made in Feb/Mar 2017 • ~ 100 metres below the existing resource. • Significant gold content • Results include 31.25m @ 23g/t Ag, 3.24% Zn, 1.88% Pb 0.3g/t Au (218g/t AgEq) • Massive sulphide zone within a significant interva
Slide 20: New Massive Sulphide Discovery
New Massive Sulphide Discovery What is next for the deep sulphide zone: • Integration of deep electrical geophysics data (e.g. IP / EM) • Extensions likely to the south • Build a geological model based on metal zonation and structural geology • Target extensions and more high-grade base and precious
Slide 21: Bowdens Silver Current Programs to Development
Bowdens Silver Current Programs to Development • Project de-risked with ~90,000m drilling complete • Focus on fast-tracking feasibility and permitting • Significant work underway • Outstanding elements of Feasibility Study • Focus on capital cost-effective development and enhanced project economics
Slide 22: Bowdens Silver Development
Bowdens Silver Development • Primary Feasibility Study works by GR Engineering, AMC, ATC Williams and Jacobs. • Smaller, more robust lower impact development planned. • 2.0 million tonnes per annum ore. • Circa 34 million tonnes of ore and strip ratio of approximately 1.7:1. • Mine life minimum 17 y
Slide 23: Bowdens Silver Development
Bowdens Silver Development + “Ge z. =" Bowdens Silver Draft » Mine Site Layout. May 2017 BOWDENS SILVER ~y SILVER MINES LIMITED
Slide 24: Bowdens Silver – Extensional Exploration
Bowdens Silver Project Bowdens Silver – Extensional Exploration
Slide 25: Bowdens Silver Exploration Upside
Bowdens Silver Exploration Upside Extensional geology map and targets
Slide 26: Bowdens Silver Exploration Upside
Bowdens Silver Exploration Upside Schematic Cross-section A-B-C
Slide 27: Exploration Upside: Plines
Bowdens Silver Exploration Upside: Plines 800 x 600m geochemistry anomaly Extensional to Bowdens First drill results: • high-grade assays up to 190g/t Ag • Broad anomalous zones of zinc mineralisation • Drilling on-going. Hydrothermal breccia with high-grade Ag Volcanics < On excavating drill pads,
Slide 28: Exploration Upside: Regional
Bowdens Silver Exploration Upside: Regional • Regional exploration upside • Multiple target types • 60 kilometres of strike length of prospective rocks identified
Slide 29: Exploration Upside - Coomber
Bowdens Silver Exploration Upside - Coomber Coomber Prospect Drill Results From To Interval Silver (metres) (metres) (metres) (g/t Ag Eq) 0 58 58 88.8 0 50 50 42.8 18 100 82 31.2 34 48 14 85.1 16 26 10 73.7 • 40 drill holes for 2,645 metres • Drilling by CRA in early 1990’s, yet to be followed up •
Slide 30: Upcoming News Flow
Upcoming News Flow • Three drill rigs operational on site • Continued drill results from Bowdens in-fill and exploration • Continued drill results from massive sulphide discovery • Continued assessment of gold discovery under current resource • Exploration results from near-mine targets • Resource e
Slide 31: Since June 2016
Since June 2016 Corporate • Acquisition of 100% of Bowdens Silver Project • New Board of Directors and Management • ~A$40 million capital raised for acquisition and working capital Project • Feasibility Study commenced for completion end-2017 • Environmental Impact Statement commenced for completion
Slide 32: Summary
Summary Largest undeveloped silver deposit in Australia and one of the largest globally Latest drilling shows extensions to mineralisation Pending resource update with focus on high-grade Exemplary geometry for low-strip ratio open pit Development strategy focussing on high-grade / near su
Slide 33: Building the largest pure silver company in the Southern Hemisphere
“Building the largest pure silver company in the Southern Hemisphere” For further information please contact: Anthony McClure, Managing Director ASX:SVL Corporate Presentation June 2017
Slide 34: Appendix 1 – Bowdens Resource
Appendix 1 – Bowdens Resource Bowdens Mineral Resource Estimate (30g/t AgEq cut-off), November 2012 Resource Tonnes Silver Silver Lead Zinc Ag Eq Silver Ag Eq Category (Million) (g/t) (Moz) (%) (%) (g/t) (Moz) (Moz) Measured 23.6 56.6 43 0.31 0.41 74.5 43 57 Indicated 28.4 48.0 44 0.27 0.36 63.6 44
Slide 35: Appendix 2 – Conrad Resource Estimate
Appendix 2 – Conrad Resource Estimate Conrad Resource Estimate Resource Tonnes Silver Silver Copper Lead Zinc Tin Ag Eq Ag Eq Category (Million) (g/t) (Moz) (%) (%) (%) (%) (g/t) (Moz) Indicated 0.658 128.8 2.7 0.24 1.69 0.68 0.28 254 5.4 Inferred 1.994 97.6 6.3 0.19 1.21 0.48 0.21 190.2 12.2 Total
Slide 36: Appendix 3 – Webbs Resource Estimate
Appendix 3 – Webbs Resource Estimate Webbs Mineral Resource Estimates Resource Tonnes Silver Silver Copper Lead Zinc Ag Eq Ag Eq Category (Million) (g/t) (Moz) (%) (%) (%) (g/t) (Moz) Measured 0.194 364 2.3 0.29 0.75 1.67 470 2.9 Indicated 0.775 245 6.1 0.26 0.70 1.49 341 8.5 Inferred 0.522 201 3.4
Slide 37: Appendix 4 – Company Announcements
Appendix 4 – Company Announcements Refer to Company Announcements for full JORC details for drill results announced Date Headline Date Headline 07/06/2017 Impressive drill results from Bowdens Silver continue 28/12/2016 KCN: Chatree Gold Mine Now Debt Free 30/05/2017 Expiry of unlisted options 23/12
Slide 38: Competent Persons Statements
Competent Persons Statements Bowdens Silver Resource Estimation The information in this report that relates to the Bowdens Mineral Resources estimation is based on information compiled by Jonathon Abbott who is a full time employee of MPR Geological Consultants Pty Ltd and a Member of the Australian