Slide 1: Building the largest pure silver company in the Southern Hemisphere
For personal use only “Building the largest pure silver company in the Southern Hemisphere” ASX:SVL Corporate Presentation May 2017
Slide 2: Disclaimer
Disclaimer For personal use only 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
Slide 3: Silver Mines Limited Introduction
Silver Mines Limited Introduction For personal use only • Largest undeveloped silver deposit in Australia • Feasibility study and fast track to development • Successful drill campaign underway • Confirmed extensions to mineralisation • Discovered new high-grade zones at depth • Concurrent exploratio
Slide 4: Board of Directors
Board of Directors For personal use only 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
Slide 5: Silver Mines Limited Structure
Silver Mines Limited Structure For personal use only 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
Slide 6: Project – Brief History
Bowdens Silver Project – Brief History For personal use only • 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
Slide 7: New South Wales Silver Consolidation
New South Wales Silver Consolidation For personal use only
Slide 8: Project Location and Title Package
Bowdens Silver Project Location and Title Package For personal use only
Slide 9: Silver Mines Strategy
Silver Mines Strategy For personal use only 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
Slide 10: Silver Mines Limited Resource Inventory
Silver Mines Limited Resource Inventory (Refer to Appendices 1, 2 & 3) For personal use only 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 •
Slide 11: Bowdens Silver: Fast Track through Feasibility and Permitting
Bowdens Silver Project For personal use only Bowdens Silver Fast Track through Feasibility and Permitting Mine plan to initially focus on high-grade / near surface
Slide 12: Project
Bowdens Silver Project For personal use only • Resource of 134 Moz of silver (182 Moz of silver equivalent) • Feasibility Study complete 2nd half 2017 • Environmental Impact Statement complete 2nd half 2017 • Flat lying deposit at surface – easy to mine and very low strip ratio • Classified as “Stat
Slide 13: Resource
Bowdens Silver Resource (Refer to Appendix 1 for further details) For personal use only • Kingsgate resource based on 63,000 metres drilling (65% by Silver Standard, 20% by Kingsgate) What’s new? • Identified structurally controlled high-grade zones along the eastern flank • Extensions beneath exist
Slide 14: 2016/2017 Drilling: Focussed on High-Grade Core
Bowdens Silver Project 2016/2017 Drilling: FOCUSSED ON HIGH-GRADE CORE For personal use only • Drilling overall confirming and exceeding expectations. Pit outline Grade thickness map showing 2016/17 drill results for Bowdens style mineralisation only. Massive sulphide intersections not show.
Slide 15: 2016/2017 Drilling: Top Ten Drill Results
Bowdens Silver Project 2016/2017 Drilling: FOCUSSED ON HIGH-GRADE CORE For personal use only Top Ten Drill Results From the Project to highlight high-grade zones Pit outline Grade thickness map showing the top ten highest grade zones drilled on the project to date.
Slide 16: 2016/2017 Drilling
Bowdens Silver Project 2016/2017 Drilling For personal use only • Significant depth extensions yet to be factored into resource estimate • Results pending from 37 holes
Slide 17: New Massive Sulphide Discovery
Bowdens NEW MASSIVE SULPHIDE DISCOVERY For personal use only • 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 zon
Slide 18: New Massive Sulphide Discovery
NEW MASSIVE SULPHIDE DISCOVERY For personal use only
Slide 19: New Massive Sulphide Discovery
NEW MASSIVE SULPHIDE DISCOVERY For personal use only • New drilling just received confirms not an isolated intersection • 16m @ 29g/t Ag, 3.24% Zn, 1.38% Pb, (182g/t Ag Eq) • Extends the new base-metal zone north by 25m • Open in several directions Silver Mines is targeting for multi-million tonne h
Slide 20: New Massive Sulphide Discovery: What is next
NEW MASSIVE SULPHIDE DISCOVERY For personal use only 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-g
Slide 21: Current Programs to Development
Bowdens Silver Current Programs to Development For personal use only • Focus on fast-tracking feasibility and permitting • Significant work underway • Initial pit optimisation completed • Outstanding elements of feasibility work underway • Focus on capital cost-effective development and enhanced pro
Slide 22: Bowdens Silver – Extensional Exploration
Bowdens Silver Project For personal use only Bowdens Silver – Extensional Exploration
Slide 23: Exploration Upside: Extensional geology map and targets
Bowdens Silver Exploration Upside For personal use only Extensional geology map and targets
Slide 24: Exploration Upside: Schematic Cross-section A-B-C
Bowdens Silver Exploration Upside For personal use only Schematic Cross-section A-B-C
Slide 25: Exploration Upside: Plines
Bowdens Silver Exploration Upside: Plines For personal use only • Ag, Zn, Pb soil geochemistry ~800m by 600m • Historic rock chip samples > 30g/t Ag • On excavating drill pads, a hydrothermal breccia discovered with preliminary XRF ranging from 0.5% to 7% Zn and 150g/t to 250g/t Ag Hydrothermal brec
Slide 26: Exploration Upside: Regional
Bowdens Silver Exploration Upside: Regional For personal use only • Regional exploration upside • Multiple targets • Multiple target types • 60 kilometres of strike length of prospective rocks identified
Slide 27: Exploration Upside - Coomber
Bowdens Silver Exploration Upside - Coomber For personal use only Coomber Prospect Drill Results From (metres) To (metres) Intercept Silver g/t Ag Eq (metres) 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 2645 metres • Drilling by CRA in early 1990’s, yet
Slide 28: Upcoming News flow
Upcoming News flow For personal use only • Three drill rigs operational on site • Continued drill results from Bowdens in-fill and exploration • Continued drill results from massive sulphide discovery • Exploration results from near-mine targets including Gumarooka, Plines and Walkers Meadow • Resou
Slide 29: Summary
Summary For personal use only Largest undeveloped silver deposit in Australia 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 surface zone
Slide 30: Building the largest pure silver company in the Southern Hemisphere
For personal use only “Building the largest pure silver company in the Southern Hemisphere” For further information please contact: Anthony McClure, Managing Director ASX:SVL Corporate Presentation May 2017
Slide 31: Appendix – Bowdens Resource
Appendix 1 – Bowdens Resource For personal use only 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
Slide 32: Appendix – Conrad Resource Estimate
Appendix 2 – Conrad Resource Estimate For personal use only 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
Slide 33: Appendix – Webbs Resource Estimate
Appendix 3 – Webbs Resource Estimate For personal use only 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 I
Slide 34: Appendix – Company Announcements
Appendix 4 – Company Announcements For personal use only Refer to Company Announcements for full JORC details for drill results announced 15/05/2017 Appointment of Director 12/05/2017 Base Metals Rich Semi-Massive Sulphide Zones Extended 28/04/2017 Quarterly Activities & Cashflow Report 27/04/2017 R
Slide 35: Competent Persons Statements
Competent Persons Statements For personal use only Bowdens 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