Abrasilver Resource Corp. · TSX:ABRA
Abrasilver Resource — Investor Presentation (September 2024)
35 slides from Abrasilver Resource's investor presentation, September 2024
Slide 1: Transforming Exploration into Value
September 2024 TSX-V: ABRA OTCQX: ABBRF Transforming Exploration into Value www.abrasilver.com
Slide 2: Disclaimers
Disclaimers This presentation, as supplemented or amended from time to time, is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. The information contained herein has been prepared for the purpose of providing interested parties w
Slide 3: A High-Growth Silver & Gold Explorer
A High-Growth Silver & Gold Explorer Diablillos: An Advanced-Stage Open Pit Oxide Industry-Leading Track Record of Silver-Gold Project Delivering Resource Growth P&P Reserves(1): 42.3Mt @ 91 g/t Ag & 0.81 g/t Au Since 2020, ABRA has grown Diablillos’ M&I resource by ~100%, at an avg discovery cost 1
Slide 4: Attractive Valuation Upside & Strong Shareholder Support
Attractive Valuation Upside & Strong Shareholder Support CAPITALIZATION (as of September 06, 2024) TOP SHAREHOLDERS Share Price (CAD) $2.23 Eric Sprott 10% Basic Shares Outstanding 125M Kinross Gold 4% Market capitalization C$280M Central Puerto 4% Net Cash (estimate at June. 30th) ~C$20M Management
Slide 5: Salta Ranked #1 for Investment Attractiveness in Latin America in 2023
Salta Ranked #1 for Investment Attractiveness in Latin America in 20231 Salta: Home to some of the largest global mining companies: 5 (1) Based on 2023 Fraser Institute Mining Survey abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 5
Slide 6: Diablillos
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Slide 7: Robust PFS Results – With Significant Upside
Robust PFS Results – With Significant Upside March 2024 PFS Study – Operation Metrics Mine Life / Throughput 13 years (9,000 tpd) Initial Capital Expenditures US$373 million Avg Annual Production – First 5 years 14.5M oz silver, 44koz gold (17.9Moz AgEq) @ AISC: US$9.97/oz AgEq Avg Annual Production
Slide 8: Attractive Production Profile With High Grades Upfront
Attractive Production Profile With High Grades Upfront Avg annual production in first five years of 17.9Moz AgEq with peak of 19.7Moz AgEq (Year 5) Avg grade in first five years of +209 g/t AgEq (peak of 226 g/t AgEq in Year 5) Avg after tax cash flow of +US$155M per year over first five-years 8 abr
Slide 9: Transforming Exploration Into Value
Transforming Exploration Into Value Updated Diablillos M&I Resource of 258 Moz AgEq represents an increase of 20% relative to the November 2022 resource – underpinned by the recently-discovered, high-grade JAC target Diablillos Resource Growth Since Acquisition (M&I Contained)(1)(2) +20% Phase IV
Slide 10: Diablillos Projected Mine Site Layout
Diablillos Projected Mine Site Layout Oculto 46.8 74 g/t 0.88 145 g/t (M&I) Mt Ag g/t Au AgEq JAC 5.3 202 g/t 0.13 g/t 212 g/t (M&I) Mt Ag Au AgEq Notes: Current Mineral Resources effective as of Nov. 22, 2024. abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 10 10
Slide 11: 20,000 Metre Exploration Campaign Underway
20,000 Metre Exploration Campaign Underway Multiple targets to expand high-grade Cerro zones around Oculto & JAC pit shells: Blanco 1. Continuity of high grades within Oculto pit shell 5 2. Connection of Alpaca to JAC Cerro Viejo 3. Cerro Bayo & targets east of Oculto 4. Alteration zone south of Ocu
Slide 12: Excellent Torque to Rising Silver & Gold Prices
Excellent Torque to Rising Silver & Gold Prices At spot prices, the Diablillos project has a Net Present Value (NPV) of +CAD$1.2 Billion or ~$10.00/sh. ABRA is currently trading at <0.25x NPV. NPV5% increases by C$106m for every change of US$1/oz Ag & US$100/oz Au PFS Study Spot Prices Spot Prices (
Slide 13: Incentive Regime for Large Investments (RIGI)
Incentive Regime for Large Investments (RIGI) A federal regime of fiscal incentives for large projects requiring an investment of over US $ 200 million in specified industrial sectors including mining Favourable Impacts on Key benefits of RIGI include: Diablillos PFS Economics1: Exempted from export
Slide 14: Diablillos – Large Scale Silver Resource With Significant Upside Potential
Diablillos – Large Scale Silver Resource With Significant Upside Potential Diablillos boasts a significant M&I Resource compared to other primary silver assets in Latin America Numerous smaller-scale assets are either being operated or developed by mid-tier silver producers Diablillos Compared to Se
Slide 15: Diablillos: A Stand-Out High-Grade Project
Diablillos: A Stand-Out High-Grade Project Diablillos contains an M&I resource totalling 3.2 Moz AuEq at 1.9 g/t AuEq making it one of the largest and highest-grade open pit assets utilizing conventional CIL/CIP/Leach processing in Latin America Select Comparable Open Pit Precious Metal Assets in La
Slide 16: La Coipita Project (San Juan, Argentina)
La Coipita Project (San Juan, Argentina) ABRA owns an option to acquire a large +70,000 ha project in one of the world’s most endowed Cu-Au belts (e.g. Filo del Sol, Los Azules, Pelambres) 16 abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 16
Slide 17: La Coipita – Partnership with Teck Resources
La Coipita – Partnership with Teck Resources Partnership with Teck to explore district-scale porphyry system Initial 2,600m drill program recently completed with assays now pending Teck has option to earn an 80% interest by (1) : Funding US$20M in exploration over 5 years Cash payments & equity plac
Slide 18: Creating Shareholder Value Through Execution
Creating Shareholder Value Through Execution 2020 2025 Next Achievements 2024 In Progress Steps – ‘23 - ’26 Robust PFS Delivered Phase 4: 20,000m drill Definitive Feasibility Study and Phase 3: 22,000m drilled campaign & geophysical Updated NI 43-101 Updated Resource surveys underway testing
Slide 19: Additional Information
itic itional Informa
Slide 20: Additional Disclaimers
Additional Disclaimers NON-IFRS MEASURES: This news release contains certain non-IFRS measures, including all-in sustaining cash cost (“AISC”). AISC includes operating costs, royalties, sustaining capital, closure costs, and corporate G&A and is calculated based on guidance provided by the World Gol
Slide 21: Management & Directors
Management & Directors Strong Team with Extensive Technical and M&A Expertise Management John Miniotis, Chief Executive Officer • 20+ years of experience in the mining industry (Lundin Mining, AuRico Metals, Barrick, BMO) focused primarily on mergers & acquisitions, equity capital markets, IR & corp
Slide 22: Mineral Reserve Estimate (Mar. 07, 2024)
Large P&P Reserves: ~210M oz Silver-Equivalent Mineral Reserve Estimate (Mar. 07, 2024) Additional details of the Mineral Resources are available in a company news release dated Mar. 25, 22 2024. A NI 43-101 Compliant Technical Report will be filed within 45 days of Mar. 25, 2024 abrasilver.com | TS
Slide 23: Oculto Geological Model
Oculto Geological Model Epithermal Ag-Au Deposit with Cu-Au Porphyry Intrusive Diablillos property has multiple epithermal and porphyry targets Oculto Zone contains majority of the resources and has over 120,000 m of drilling, but only down to a depth of ~400 m Past drilling focused on the high sulp
Slide 24: Industry-Leading Drill Results
Industry-Leading Drill Results ABRA: 6 of top 13 best results globally over past 3 Years Top AgEq Intercepts – All Primary Silver Assets Globally (Jan. 2021 – Present) Source: Data from S&P Global, as of Jan 2023. Includes intercepts from primary silver assets. AgEq calculation includes Ag & Au valu
Slide 25: Long-Section of High-Grade Intercepts Oxides & Sulphides
Long-Section of High-Grade Intercepts Oxides & Sulphides Beneath the oxide gold zone, we’ve intersected several high-grade Cu/Au sulphide intercepts The sulphide zone currently extends for ~ 2 km, and remains largely untested Represents a significant exploration target which will be evaluated in fut
Slide 26: Summary High-Grade Results To Date
Summary High-Grade Results To Date 26 abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 26
Slide 27: Diablillos – Excellent Access to Infrastructure
Diablillos – Excellent Access to Infrastructure Located in an established mining camp that includes multiple lithium and borate mining operations Accessible by good all-weather gravel roads with nearby airstrip (~25 km) A natural gas pipeline built to supply mining projects like Diablillos is locate
Slide 28: Low Capital Cost
Low Capital Cost Initial upfront capex of US$373 million and sustaining capex of US$65 million ~80% of costs based on contractor quoted prices ~65% of total capital costs will be purchased domestically, and majority of local contractors to be hired from Salta, Catamarca and nearby provinces 28 abras
Slide 29: Conventional Process Flowsheet
Conventional Process Flowsheet Process design will consist of a conventional silver/gold oxide processing plant flowsheet: Crushing, grinding, gravity concentration and intense cyanidation circuit, cyanide leaching with oxygen addition, counter current decantation (“CCD”) washing thickeners and Merr
Slide 30: Excellent Metallurgical Testwork Results
Excellent Metallurgical Testwork Results Average LOM recoveries of 83%% for silver and 87%% for gold A significant increase over the avg recovery rates of 73.5% for silver and 86% for gold used in the 2022 Preliminary Economic Assessment (“PEA”). A substantial percentage of the silver and gold
Slide 31: Water Easements in Place
Water Easements in Place Abundant nearby fresh water with easements in place Easements already in place for several wells with applications being prepared for additional easements Adequate supply identified for up to a 9,000 tpd operation with plans to explore for additional water resources 31 abras
Slide 32: Diablillos District-Scale Exploration Potential
Diablillos District-Scale Exploration Potential Untested Porphyry Camp to the North 32 abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 32
Slide 33: La Coipita Option Payment Schedule
La Coipita Option Payment Schedule The Company has entered into two separate option agreements with arm’s length private owners to acquire a 100% interest in La Coipita. First agreement, announced on March 2, 2020: Timing Payments (US$) Paid upon signing $65,000 March 2021 (paid) $100,000 March 2022
Slide 34: Capital Structure (as of August 2024)
Capital Structure (as of August 2024) Potential Outstanding Proceeds (M) Price (CAD$ M) Expiry Basic Shares Outstanding 125.0 Total Warrants 2.7 $2.50 6.8 Dec. 6, 2024 Present – Feb. Total Options 4.9 $1.25 $6.1 ‘28 Fully Diluted Shares 132.6 34 abrasilver.com | TSX-V: ABRA | OTCQX: ABBRF 34
Slide 35: To Find Out More, Contact
To Find Out More, Contact: John Miniotis – President & CEO info@abrasilver.com +1.416.306.8334 www.abrasilver.com
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