Alien Metals Ltd · LSE:UFO
Alien Metals — Arian Silver — Investor Presentation (December 2009)
24 slides from Alien Metals's investor presentation, December 2009
Slide 1: An Emerging Silver Producer
An Emerging Silver Producer December 2009 1
Slide 2: Disclaimer
Disclaimer The information contained in this presentation (“Presentation”) has been prepared by Arian Silver Corporation (the “Company”). The Presentation has not been independently verified and the information contained within it may be subject to updating, revision and further amendments. The Pres
Slide 3: Share Structure
Share Structure Stock Exchanges: TSX V / AIM : AGQ FSE: I3A Shares Outstanding: 165 million (post‐Grafton redemption and pre‐new placing) Share Price: $ 0.06 Market Capitalization: $ 10 million Good share liquidity on the TSXV and AIM 3
Slide 4: Board of Directors
Board of Directors JIM WILLIAMS ‐ President & CEO Geologist with over 20 years experience worldwide Put a silver operation into production in Mexico within 12 months, both on‐time & within budget TONY WILLIAMS ‐ Chairman Geologist and Ex‐Yorkton Securities corporate finance Chairman of the UK based
Slide 5: Arian Silver Objectives
Arian Silver Objectives • Production – San Jose : – San Jose Mine expected to commence production of silver and base metals imminently – subject to $3 million financing – ‘PEA’ by A.C.A. Howe indicated a CAPEX requirement of < US$1 Million giving an undiscounted NPV of US$17 M and an IRR of 159% – 5
Slide 6: Arian's Core Assets
Arian’s Core Assets SILVER San Jose Project ‐ near‐term production expected • Past producing mine (closed 2001) with substantial infrastructure. > 12 km of strike • ~80 M Ag‐Eq (43 M Ag) ounces, 43‐101 compliant from Phase 1 drill program , incl. 43 M oz Ag, 120 M lbs Pb and 250 M lbs Zn • Phase‐2 d
Slide 7: Focus in Mexico
Focus in Mexico In the heart of the Mexican Silver Belt Tepal 7
Slide 8: Time Line
Time Line 2007 2008 2009 2010 San Jose Tepal Calicanto Phase 1 drilling Pre‐Feasibility Study Phase 2 drilling – Feasibility Study awaiting finance Resource Estimations Production (Contract Mining/Toll Milling) 8
Slide 9: Arian Projects Zacatecas State
ARIAN PROJECTS Zacatecas State Initial focus on past producing “Brownfield” sites… Zacatecas Calicanto Group Ojo Caliente San Jose ~80M oz AgEq Major roads Total area: ~8,300 ha 9
Slide 10: San Jose General
San Jose GENERAL San Jose Project covers ~65 square kilometres • Initial contract mining and toll milling production anticipated in the near‐term • 100% owned by Arian through exclusive option agreement • Past production ~30 million ounces Ag‐Eq. from <10% of the San Jose Vein (SJV) • Mine operated
Slide 11: San Jose – Initial Production Sites
San Jose – Initial Production Sites Production outlined in PEAR Historical Mining >30 million AgEq Oz Guanajuatillo 1.15M oz Ag Unexplored Santa Ana Portion of 19.4M oz Ag SJV Solidad 32.5M oz Ag Un‐explored Vein systems Block 450 14.4M oz Ag 11
Slide 12: San Jose Near Term Production
San Jose NEAR TERM PRODUCTION Substantial infrastructure • Long‐hole stoping and full mechanization, accessible via either the San José West or East ramp • Modern main haulage ramp (5m wide, 4m high) extends 3 km along the SJV • 500 TPD vertical shaft exploited SJV to ~ 400m depth • Multiple mining
Slide 13: San Jose Long Section
San Jose Long Section San Jose Project - Project Update j 5 F ixexts a Stockwork Area) © Proposed Phase 2 hole ° Phase 2 hole - assays reported Nov 2008 Biter @ Phase 2 hole - completed “~ Vein Trace eeeinstes @ Phase 1 hole [1 __Ni.43-101 complaint resource area 13
Slide 14: San Jose Production
San Jose Production • Initial contract mining and toll milling production anticipated in the near‐term (Q1‐2 2010) on 3 of 7 currently demarcated resource blocks • Cumulative cash flow (undiscounted) approximately $17M on $14/oz Ag (forecast to be around $20 in the near‐term) • Revenues generated fr
Slide 15: Calicanto
Calicanto The Calicanto Project comprises ~80 hectares • 100% owned by Arian • Located in the Heart of the Zacatecas Mining District adjacent to Capstone’s San Roberto Property • Arian completed a Phase‐1 (3,200m) diamond drill program in April 2007 • 4 high‐grade vein systems discovered, • Average
Slide 16: Calicanto Main Vein
Calicanto Main Vein Historic ‘bonanza’ grade workings Oxide Zone Sulphide Zone ‘Splay’ vein, minimal historical mining Bonanza Au‐Ag grades Avg. 4m wide vein with stockwork 16
Slide 17: Tepal Project
Tepal Project An Emerging Exploration District Tepal 17
Slide 18: Tepal
Tepal • Covers ~140 sq km in Michoacán State • Porphyry‐style mineralisation • Past‐explored by Hecla, Teck and Inco • Pending JV entered into with Geologix (TSX‐V : GIX) • Arian completed a Phase‐1 (7,200 m) diamond drill program in March 2008 • 80 MT @ 0.50 g/t Au and 0.25% Cu • Initial NI 43‐101
Slide 19: Tepal Resources – Plan View
Tepal Resources – Plan View North Zone Resource Area 1.52M oz AuEq Core Group South Zone Property Resource Area Boundary 1.06M oz AuEq Exploration Target 19
Slide 20: Tepal Resources – Long Section
Tepal Resources – Long Section North Zone South Zone Resource Area Resource Area 1.52M oz AuEq 1.06M oz AuEq 20
Slide 21: Tepal Peer Group – Au Grades
Tepal Peer Group – Au Grades Tonnage Au Cu Au Cu Project Name Country (Mt) (g/t) (%) (Moz) (billion lbs) San Martin* Honduras 15 0.79 0.4 Marigold* Nevada, USA 95 0.70 2.20 Round Mountain* Nevada, USA 114 0.64 2.30 Fort Knox* Alaska, USA 70 0.61 1.4 Alumbrera* Argentina 330 0.59 0.51 6.22 3.77 Coppe
Slide 22: Peer Group Comparison
Peer Group Comparison Company Shares Share Market NI 43‐101 Compliant Market Outstanding Price Capitalization Silver Resource Capitalization per in Millions in Millions (AgEq oz) ounce of Silver (AgEq oz) MAG Silver 49.3 $5.41 $266.4 104 million $2.56 Endeavour Silver 51.9 $1.89 $98.2 49.9 million $
Slide 23: Investment Highlights
Investment Highlights • PEA / Scoping Study on San Jose complete • Robust results qualifying initial contract production moving towards independent mining after three years of 500 TPD throughput • Ready for production. All permits in place • NI 43‐101 compliant indicated & inferred resource of 42.78
Slide 24: For More Information
For More Information Jim Williams Alison Tullis President and CEO Senior Account Manager Arian Silver Corporation CHF Investor Relations t. +44 20 7529 7511 t. +1 416 868 1079 x233 e. jimwilliams@btinternet.com e. alison@chfir.com w. www.ariansilver.com w. www.chfir.com 24