Silver Mines Limited · ASX:SVL
Silver Mines — Denver Gold Forum (X-Dev) 2017
37 slides from Silver Mines's conference presentation, September 2017
Slide 1: Denver Gold Forum (X-Dev) Presentation
Denver Gold Forum (X-Dev) Presentation September 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 involves unknown risk
Slide 3: Silver Mines Limited Introduction
Silver Mines Limited Introduction • Late Stage Feasibility for the development of one of the largest undeveloped previous metals deposits in Australia and one of the largest new silver developments globally. • Major resource upgrade with 275 Moz silver equivalent resource confirmed in Sept. 2017 inc
Slide 4: Silver Mines Limited Snapshot
Silver Mines Limited Snapshot Capital Structure ASX:SVL Shares on Issue 390.3m Options Current Share Price A$0.10 Oct 2017 @ $0.30 23.4m Undiluted Market Capitalisation A$39.0m Jun 2018 @ $0.30 10.7m Cash as at end June 2017 A$3.5m Jun 2019 @ $0.30 8.0m Directors (refer to Appendix 4) Institutional
Slide 5: Quality Jurisdiction
Quality Jurisdiction TAS Wy New South Wales > SILVER MINES LIMITED
Slide 6: Silver Mines Strategy
Silver Mines Strategy 1. Rapidly progress Bowdens Silver through Feasibility and Permitting • Definitive Feasibility Study (‘DFS’) works advanced. • Environmental Impact Statement (‘EIS’) works advanced. • DFS and EIS completion early 2018. • Fast track to mine development. 2. Aggressively explore s
Slide 7: Bowdens Silver: The Largest Undeveloped Silver Project in Australia
Bowdens Silver The Largest Undeveloped Silver Project in Australia 7
Slide 8: 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. • Approximately A$70 million (US$55 million) spent on the project to date. • Freehold
Slide 9: The Permian of Eastern Australia
The Permian of Eastern Australia • The Permian volcanics of eastern Australia contain high-grade, epithermal and porphyry related gold, copper, silver and base-metal deposits. • The Bowdens Silver Project is a SILVER rich system but has geological affinities to GOLD and COPPER rich deposits such as
Slide 10: Regional Geology
Regional Geology • Extensive tenement holding (1,654 km2 = 408,000 acres). • Northeast corner of Lachlan Fold Belt, coal bearing Sydney and Gunnedah basins to the east. • Wide range of prospective deposit types over different time periods (Siluro-Devonian, Carboniferous, Permian). • Bowdens Silver e
Slide 11: Drilling
Drilling Silver Mines drilling has focused on: • Both infill and extensional drilling. • Oriented core drilling enabling a detailed structural interpretation of high-grade zones. • Drilling intersecting basement Ordovician rocks resulting in new discoveries at depth. • Metallurgical drilling complet
Slide 12: Bowdens Silver Resource (as at September 2017)
Bowdens Silver Resource (as at September 2017) 30 g/t Ag Eq Cut Tonnes Silver Silver Zinc Lead Million Million (Mt) Eq. (g/t) (%) (% ) Ounces Ounces (g/t) Silver Silver Eq. Measured 76 72 45 0.37 0.25 111 175 Indicated 29 59 31 0.38 0.25 29 55 Measured & Indicated 105 68 41 0.37 0.25 140 230 Inferre
Slide 13: Bowdens Silver Resource (as at September 2017)
Bowdens Silver Resource (as at September 2017 ) Cut off g/t Ag Eq Tonnes Silver Silver Zinc Lead Million Million (Mt) Eq. (g/t) (%) (% ) Ounces Ounces (g/t) Silver Silver Eq. 60 46.1 106.3 69.1 0.51 0.36 102 158 80 25.1 135.5 93.4 0.57 0.42 75 109 100 15.1 163.7 117.5 0.62 0.47 57 80 120 9.6 192.3 1
Slide 14: Bowdens Silver Resource
Bowdens Silver Resource (Refer to Appendix 1 for further details) 14
Slide 15: Block Model
15 Block Model Bowdens Silver Project Mineral Resource Estimate 2017 — "> SILVER MINES LIMITED
Slide 16: Block Model
16 Block Model Bowdens Silver Project [ soma 2 =" Section 10450mN + 12.5m ~ F-tcomat (1 Recent dril hole 200m yp SIL ~ MINES Bowdens Silver Project Section 10525mN + 12.5m.
Slide 17: Bowdens Silver: Fast Track through Feasibility to Development
Bowdens Silver Fast Track through Feasibility to Development Mine plan to initially focus on high-grade / near surface 17
Slide 18: Quality Jurisdiction
Quality Jurisdiction • New South Wales, Australia a first order jurisdiction. • Major minerals projects in the state include; • Cadia/Ridgeway, Newcrest (650,000oz Au, 65,000t Cu pa) • Cowel, Evolution (260,000oz Au pa) • Northparkes, CMOC (60,000t Cu, 50,000oz Au pa) • Plus coal mining exports (170
Slide 19: Bowdens Silver Project Development
Bowdens Silver Project Development • Definitive Feasibility Study works by GR Engineering, AMC and ATC Williams. • Smaller, more robust lower impact development planned. • 2.0 million tonnes per annum ore. • Production around 5 million ounces per year plus zinc and lead credits • Strip ratio less th
Slide 20: Bowdens Silver Project Development
Bowdens Silver Project Development • Development will focus on high grade proportion of the deposit being 46Mt @ 106 g/t Ag Eq. • Ore reserve by end 2017. • Flat lying deposit at surface – easy to mine and very low strip ratio. • Feasibility Study nearing completion. • Environmental Impact Statement
Slide 21: Bowdens Silver Development
Bowdens Silver Development 21
Slide 22: Exploration Upside – Building a World Class Mineral Field
Bowdens Silver Exploration Upside ̶ Building a World Class Mineral Field 22
Slide 23: Bowdens Silver High Grade Resource extensions NW
Bowdens Silver High Grade Resource extensions NW • New coherent high-grade discovery within and north of existing deposit and beneath proposed pit. • Entirely open and to be followed up with next round of drilling. 23
Slide 24: Drilling: Resource extensions at depth
Drilling: Resource extensions at depth 24
Slide 25: Massive Sulphide Discovery – Bowdens Deeps
Massive Sulphide Discovery – Bowdens Deeps • Massive to semi-massive sulphide discovery made in Feb/Mar 2017. • ~100 metres below the previous resource. • Significant gold content. • Results include 31.25m @ 23g/t Ag, 3.24% Zn, 1.88% Pb 0.3g/t Au (218g/t AgEq). • Zoned hydrothermal system. • High le
Slide 26: Major IP Anomaly Identified - Undrilled
Major IP Anomaly Identified - Undrilled 26
Slide 27: Major IP Anomaly Identified - Undrilled
Major IP Anomaly Identified - Undrilled • New IP survey suggests a major accumulation of sulphide minerals beneath the deposit to the south. • Is there a deep Mt Leyshon equivalent (>3mOz Au) or better? • Massive sulphide intersections on northern edge of IP anomaly. • Spectral mineralogy indicates
Slide 28: Upcoming Drill Program
Upcoming Drill Program • Initial 16 drill holes averaging 800 metres each for circa 13,000 metres planned. • Planning advanced for drill commencement in Sept./Oct. 2017. 28
Slide 29: Regional Targets
Regional Targets • Silver Mines developing regional intrusive phase mapping. • Identification of potential sites for caldera proximal deposits such as Bowdens Silver and Coomber. 29
Slide 30: Regional Targets
Regional Targets • Bowdens analogue targets: – Coomber – Gulgowra • Pb+Zn>Ag targets – Bara – Mt Laut • Au+Cu basement targets – Bara Deeps – Mt Laut Deeps 30
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 early 2018. • Environmental Impact Statement commenced for comp
Slide 32: For further information please contact: Anthony McClure
For further information please contact: Anthony McClure, Managing Director Denver Gold Forum (X-Dev) Presentation September 2017 32
Slide 33: Appendix 1 - Silver Mines Resource Inventory
Appendix 1 - Silver Mines Resource Inventory Deposit name Tonnes Silver Eq. Silver Silver Silver Eq. Status (Mt) (g/t) (g/t) (Moz) (Moz) Bowdens Silver 128 67 40 163 275 100% owned Webbs1 1.5 345 245 11.7 16.5 100% owned Conrad1 2.6 206 105.4 9.0 17.5 100% owned Total 184 309 1. For further informat
Slide 34: Appendix 2 – Bowdens Silver Resource
Appendix 2 – Bowdens Silver Resource 30 g/t Ag Eq Cut Tonnes Silver Silver Zinc Lead Million Million (Mt) Eq. (g/t) (%) (% ) Ounces Ounces (g/t) Silver Silver Eq. Measured 76 72 45 0.37 0.25 111 175 Indicated 29 59 31 0.38 0.25 29 55 Measured & Indicated 105 68 41 0.37 0.25 140 230 Inferred 23 60 31
Slide 35: Appendix 3 - Bowdens Silver Resource
Appendix 3 - Bowdens Silver Resource Cut off g/t Ag Eq Tonnes Silver Silver Zinc Lead Million Million (Mt) Eq. (g/t) (%) (% ) Ounces Ounces (g/t) Silver Silver Eq. 0 397.2 30.7 17.6 0.18 0.12 225 392 10 261.7 43.7 25.2 0.26 0.17 212 368 20 185.2 54.6 31.7 0.32 0.21 189 325 30 127.9 66.8 39.6 0.38 0.
Slide 36: Appendix 4 – Board of Directors
Appendix 4 ̶ 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 Ad
Slide 37: Competent Persons Statements
Competent Persons Statements Bowdens Silver Resource Estimation The information in this report that relates to mineral resources is based on work compiled by Mr Arnold van der Heyden who is a Director of H & S Consultants Pty Ltd. Mr van der Heyden is a member and Chartered Professional (Geology) of