Kootenay Silver Inc. · TSXV:KTN
Kootenay Silver — Investor Presentation (July 2016)
24 slides from Kootenay Silver's investor presentation, Jul 7, 2016
Slide 1: Creating a Leading Mexican Silver Consolidator
KTN – TSX.V CREATING A LEADING MEXICAN SILVER CONSOLIDATOR PROMONTORIO LA NEGRA LA CIGARRA July 7, 2016
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information in this presentation has been prepared as at June 21, 2016. This presentation contains “forward-looking statements” with the meaning of Canadian securities legislation. Such forward-looking statements concern the completion of the proposed combination (the
Slide 3: Creating a Leading Mexican Silver Consolidator
CREATING A LEADING MEXICAN SILVER CONSOLIDATOR Large diversified resource base with strong exploration upside Path to production – carried interest in Promontorio & La Negra (Pan American Silver) Platform for aggressive growth with continued pursuit of other acquisition/ consolidation opportunities
Slide 4: Capital Structure
CAPITAL STRUCTURE Pan American, 10% Exchange (Tier 1) TSX.V (“KTN”) Retail & Other,24% Issued & Outstanding(1) 158.9m Fully Diluted(1) 226.3m Current Market Cap(2) CAD ~$63.6m KTN (shares 52-week High/Low) C $0.495/ $0.165 KTN Institutions, 35% Condire , 6% Average Daily Volume(3) ~402,000 Cash Posi
Slide 5: Well Rounded Board and Management Team from Discovery to Operations
WELL ROUNDED BOARD AND MANAGEMENT TEAM FROM DISCOVEREY TO OPERATIONS MINE BUILDING • James McDonald - Alamos • Dick Whittington – Farallon • Andrea Zaradic - Diamet FINANCE & LEGAL FINANCE & MARKETING • Jon Morda - Alamos • Ken Berry - Northern Vertex • Joe Giuffre - Nevsun • Tony Reda - Kaminak Gol
Slide 6: Consolidation Thesis
CONSOLIDATION THESIS COMBINED ASSETS LOCATION Purchasing silver resources at less than finding costs provides an efficient LA NEGRA way to build a large resource base and LA CIGARRA leverage to silver price PROMONTORIO MEXICO Opportunity to consolidate silver exploration & development assets among a
Slide 7: Value Proposition for Consolidation
VALUE PROPOSITION FOR CONSOLIDATION PRECEDENT CONSOLIDATION OF ASSETS AT LOW SILVER PRICES HISTORIC SECTOR PERFORMANCE $5,000 $60 Pan American $4,500 First Majestic Pan American: $50 $4,000 Silver Standard $2.50/sh to $41/sh Market Cap (US$ Millions) Silver Price $3,500 Silver Price (US$/oz) Acquisi
Slide 8: Fully Integrated Consolidation/Development Platform
FULLY INTEGRATED CONSOLIDATION/DEVELOPMENT PLATFORM Kootenay’s assets across multiple development stages provide a three track platform for continued growth: 1. Acquisition/consolidation of silver resources to build leverage 2. Exploration and development of assets to provide organic growth 3. Conti
Slide 9: Share Price Performance
SHARE PRICE PERFORMANCE Since acquisition - KTN’s share price increased from $0.175 to a recent high of $0.495 Trading volume (30 /day) increased from 62K to 402K RELATIVE PERFORMANCE - SINCE JAN. 2015 60% Silver Px KTN 40% Northair Silver Acquisition 20% Total Return (%) 0% -20% -40% -60% Jan. 13,
Slide 10: La Cigarra Overview
LA CIGARRA OVERVIEW Located in Chihuahua State, Mexico, within the Historic Parral Silver District - over 18,000 hectares in size - 26 km from the city of Parral close to power, rail and highway 100% owned with surface rights obtained for mining operations Excellent relations with local community an
Slide 11: La Cigarra Resource
LA CIGARRA RESOURCE Resource Tonnage In-Situ Grade Contained Metal Category* 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,
Slide 12: La Cigarra Exploration Potential
LA CIGARRA EXPLORATION POTENTIAL Numerous targets provide potential to increase resource and grade Mineralized structure over 6 km of strike Deposit remains open along strike to the NW and SE, and at depth Undrilled targets include: – RAM Zone – La Soledad Zone – La Navidad Zone – La Colorada Zone –
Slide 13: La Cigarra E-W Cross-Section
LA CIGARRA E-W CROSS-SECTION 13
Slide 14: La Cigarra Priority Drill Targets
LA CIGARRA PROIRTY DRILL TARGETS • Widespread anomalous silver in soil define target areas within large hydrothermal system • Largely untested - only three holes drilled outside of Las Carolinas, San Gregorio, and La Borracha target areas • Mineralized zone outcrops with higher grades in surface sam
Slide 15: High Grade Potential
HIGH GRADE POTENTIAL Geological modeling to evaluate potential for higher grade zones to improve grade. (Resource blocks shown below are modeled above a 75 gpt silver cutoff) La Cigarra Project 2015 Mineral Resource at 50 g/t silver cut-off* Resource Cut-off Tonnes Ag (g/t) Ag (oz) Au (g/t) Pb (%) Z
Slide 16: RAM Zone Drill Targets
RAM ZONE DRILL TARGETS 3D Inversion Model at 200 Meters Depth • 14 samples taken along a 35m length at the RAM Fault returned an average grade of 258 g/t Ag over an average width of 1.5m. Surface trenching above the area returned 67 g/t Ag over a width of 35m of disseminated in wallrock trench sampl
Slide 17: Promontorio Mineral Belt
PROMONTORIO MINERAL BELT Optioned to Pan American Host to two major silver discoveries: Promontorio & La Negra New high-grade La Negra silver discovery Numerous additional targets within a 6.5km x 15km area, including the Cameron-Vania trend Promontorio (2013)* Tonnage Grade Contained In-Pit Resourc
Slide 18: La Negra Discovery
LA NEGRA DISCOVERY High-grade silver intercepts to Promontorio 300m vertically from surface 7 km Open Pit Low Cost Potential Surface footprint of ~500m x 200m 41 Holes to Date La Negra Metallurgy Indicates Potential for Leach Extraction in 80 to 90% Range 3,400m diamond drill program High-grade dril
Slide 19: Kootenay - Pan American (PAS) Carried to Production Deal
KOOTENAY - PAN AMERICAN (PAS) 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% PAS Invests: – US$16 million in work and cash payments; pay up front C$350k
Slide 20: Prospect Generator Portfolio
PROSPECT GENERATOR PORTFOLIO Exploration Properties Optioned Properties Canada Copley Silver Fox – Antofagasta Spike’s Big Adventure 2X Fred, Fox – Theia Resources Walter the Water Buffalo Connors Creek Exploration Properties Optioned Properties Mexico Santa Lucia Guadalupe Cervantes – Aztec Metals
Slide 21: Forward Plan & Catalysts
FORWARD PLAN & CATALYSTS Near Term Mid Term Conduct 3,000 m drill program Update Resource Calculation La Cigarra Prioritize 14 additional exploration targets PEA for larger follow-up drill program Under Option to Pan American Silver Promontorio / Pan American Silver to evaluate 3,400m of drilling un
Slide 22: Silver Explorers Peer Group
SILVER EXPLORERS PEER GROUP Kootenay Silver Canasil Tinka Silver bull OREX Minerals Golden Arrow Silvercrest Resources Resources Resources 22
Slide 23: Kootenay Silver
KOOTENAY SILVER Leading Mexican silver consolidator & development company Platform for aggressive growth through: – Resource Development at La Cigarra – Path to Production with carried interest at Promontorio & La Negra – Discovery in prospect generator portfolio Continuation of Acquisition / Consol
Slide 24: Contact Us
CONTACT US KOOTENAY SILVER INC. 1055 West Hastings Street, Suite #1820 Vancouver, BC, V6E 2E9, 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 2424