Silver Mines Limited · ASX:SVL
Silver Mines — Shareholder Meeting (November 2020)
39 slides from Silver Mines's shareholder meeting presentation, Nov 27, 2020
Slide 1: Annual General Meeting
Annual General Meeting 27 November 2020
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 BOWDENS SILVER A MAJOR ASSET FOR DEVELOPMENT Feasibility complete for 2.0 Mtpa development. Submitted for Development Approval. One of the largest undeveloped silver deposits globally. Major Exploration Targets at Bowdens and surrounds: Confirmed significant high-gr
Slide 4: Silver Mines Limited Snapshot
Silver Mines Limited Snapshot Capital Structure ASX:SVL Shares on Issue 1,026.5m Options Current Share Price A$0.20 Sept 2021 @ $0.06 116.7m Undiluted Market Capitalisation A$205m Aug 2021 @ $0.10 4.65m Cash (end September 2020) A$9.1m 3 year milestone @ $0.20 5.0m Directors Institutional Shareholde
Slide 5: 2020 Year in Summary
2020 Year in Summary • Environmental Impact Statement completed and Development Application lodged for the development of the Bowdens Silver Project. • Expanded drilling program commenced at Bowdens Silver targeting high grade silver. • Three new licences granted at Tuena (total now 747 square kilom
Slide 6: Quality Jurisdiction - New South Wales, Australia
Quality Jurisdiction - New South Wales, Australia • New South Wales, Australia a quality jurisdiction. • Major minerals projects in the state include; Cadia/Ridgeway, Newcrest (650,000oz Au, 65,000t Cu pa). Cowal, Evolution (260,000oz Au pa). Northparkes, CMOC (60,000t Cu, 50,000oz Au pa). P
Slide 7: Bowdens Silver – A Major Asset
Bowdens Silver – A Major Asset • 100% owned. • Mineral Resource 275 Moz silver Eq (163 Moz silver). • The largest undeveloped silver deposits in Australia and one of the largest in the world. • Feasibility Study complete mid 2018. • Development Application and Environmental Impact Statement (EIS) su
Slide 8: Bowdens Silver Timeline
Bowdens Silver Timeline September 2017 Mineral Resource Complete (275 Moz Ag Eq) May 2018 Ore Reserve Complete (97 Moz Ag Eq) June 2018 May 2020 2020/21 Feasibility Study EIS Complete Approval Complete DA Submission Processes 8 & Optimisation
Slide 9: Bowdens Silver Feasibility Study
Bowdens Silver Feasibility Study Physical Metrics Unit Value Production Life Years 16.5 Ore Mined Mt 29.9 Waste Mined Mt 48.2 W:O Strip Ratio x 1.6 Ag Recovered in Concentrate Moz 52.91 Zn Recovered in Concentrate kt 108.0 Pb Recovered in Concentrate kt 79.3 Financial Metrics AUD M USD M Revenue 1,8
Slide 10: Gold : Silver Ratio
Gold : Silver Ratio Gold/Silver Price Ratio Since 2000 120 110 100 90 80 70 Average 66.6 60 50 40 30 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 10
Slide 11: Implied Silver Prices
Implied Silver Prices Implied Silver Price at US$2000 Gold 80 70 66.67 60 WE ARE 50.00 50 HERE Implied Silver Price Low 40.00 Au:Ag* US$/oz 40 33.33 28.57 30 25.00 22.22 20.00 Average 20 Au:Ag* 10 0 100 90 80 70 60 50 40 30 Gold : Silver Ratio *Average Gold: Silver = 66.6, Low = 32.0 since 2000 11
Slide 12: Silver Uses
Silver Uses Dentistry PHOTOGRAPHY DATITERIES Air-conditioners BURNS TREATMENT Jewellery AND WOUND DRESSING Water purification — silver Mobile Phones ions are replacing chlorine in water . . filtration in hospitals, schools and Washing machines public pools. . Highest electrical and thermal Mirrors c
Slide 13: : | | | me . — Samsung SMHIART TV
: | | | me . 7 — 7 Samsung SMHIART TV Thea FS Fa WATER PURIE | ICATION:
Slide 14: Silver Uses and Market
Silver Uses and Market • As an element, silver is the best electrical and thermal conductor among metals. • Demand for silver is currently benefiting from new applications in photovoltaic cells (for solar panels), water purification, electronics, electric vehicles, robotics, industrial automation, a
Slide 15: Bowdens Silver Exploration: A Major Silver System
Bowdens Silver Exploration A Major Silver System 15
Slide 16: Regional Geology
Regional Geology • The Ordovician Macquarie Arc/Lachlan Fold Belt of Eastern Australia contains preserved porphyry volcanic arc environments. • Macquarie Arc of NSW contains world-class; – Cadia/Ridgeway, – Cowal, – Northparkes and others. • The Bowdens portfolio demonstrates that the eastern limb o
Slide 17: Regional Geology
Regional Geology • Extensive tenement holding (2007 km2 = 496,000 acres) controlled by Silver Mines. • Northeast corner of Lachlan Fold Belt & Macquarie Arc. • Wide range of prospective deposit types over different time periods (Ordovician, Siluro-Devonian, Carboniferous and Permian). • Mineral depo
Slide 18: Site Geology
Site Geology 163 Moz Ag 275 Moz Ag Eq 18
Slide 19: Bowdens Silver Extensions – Gravity Survey
Bowdens Silver Extensions – Gravity Survey 19
Slide 20: Bowdens Silver Extensions
Bowdens Silver Extensions • First target is Northwest Zone that contains high-grade silver with zones up to 15 metres thick, 200 metres wide and 250 metres down plunge. • Open in several directions. • Also to target buried porphyry source and structural control in the NW target corridor. • 10,000 me
Slide 21: Bowdens Silver Extensions
Bowdens Silver Extensions 21
Slide 22: Barabolar Project: Unlocking a Major Mineralised System
Barabolar Project Unlocking a Major Mineralised System Highly Altered and Mineralised Skarn 22
Slide 23: Unlocking a Major Mineralised System
Unlocking a Major Mineralised System • Barabolar Project area located 10 kilometres northwest of Bowdens. • 9000 x 2000 metre corridor of base-metal and precious metal soil anomalies. • Mineralised skarn mapped over 5000 by 800 metres. • Porphyry system type alteration assemblages. • Several high or
Slide 24: Unlocking a Major Mineralised System
Unlocking a Major Mineralised System MINERALISED SKARN 24
Slide 25: Geophysics and Drilling
Geophysics and Drilling • Induced Polarisation (IP) program (~30 line kms) completed. • Substantial gravity survey completed with interpretation being finalised. • Drilling program first half 2021 (subject to approvals). 25
Slide 26: Tuena Gold Project: Unlocking a New Mineralised System
Tuena Gold Project Unlocking a New Mineralised System 26
Slide 27: Tuena Gold Project
Tuena Gold Project • Located south of Blayney in New South Wales. • Historic goldfield with minimal exploration work in the modern era. • Clear geological analogies to the McPhillamys Gold Project (2.0 Moz gold). • Mineral system and old gold workings extend over at least 6 kilometres of strike. • R
Slide 28: Tuena
Tuena • Substantial gold in soil anomalism over a 5.4km by 1.5km corridor. • Peeks Reef Prospect 900m x 200m soil anomaly >25ppb gold with individual soil assays up to 268ppb gold and rock chip assays up to 76.4g/t gold. • Cooper & McKenzie Prospect with 850m x 200m soil anomaly > 25ppb with soil as
Slide 29: Tuena
Tuena • Gold anomalism northern area. Highly altered mineralised skarn 29
Slide 30: Tuena
Tuena • Substantial arsenic (a pathfinder element for gold) in soil anomalism. Highly altered mineralised skarn 30
Slide 31: Conrad & Webbs - Polymetallic Projects
Conrad & Webbs - Polymetallic Projects • Transaction announced 12th November 2020. • Sale of two non-core assets located in the New England region of New South Wales. • Purchaser Thomson Resources Limited (ASX : TMZ). • Sale price 75m fully paid ordinary share in Thomson plus 50m options (3 years at
Slide 32: Looking Forward
Looking Forward • Strong Market for Precious Metals. • Bowden Silver Development Application submitted with a clear pathway approvals. • Bowdens high-grade targets being addressed in expanded 10,000 metre drilling program o Drill results continuing through first quarter 2021. o High-grade results ad
Slide 33: Anthony McClure, Managing Director
Anthony McClure Managing Director Silver Mines Limited +61 2 8316 3997 33
Slide 34: Appendices
34 Appendices “a, SI / MINES LIMITED
Slide 35: Appendix 1 – Bowdens Silver Resource
Appendix 1 – Bowdens Silver Resource (as at September 2017) 30 g/t Ag Eq Cut Tonnes Silver Eq. Silver Zinc Lead Million Million (Mt) (g/t) (g/t) (%) (% ) Ounces Ounces 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 14
Slide 36: Appendix 2 - Bowdens Silver Resource
Appendix 2 - Bowdens Silver Resource (as at September 2017) Cut off g/t Ag Eq Tonnes Silver Eq. Silver Zinc Lead Million Million (Mt) (g/t) (g/t) (%) (% ) Ounces Ounces 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
Slide 37: Bowdens Silver Resource
Bowdens Silver Resource 200 180 160 140 Grade (g/t) 80 60 40 20 37 120 Bowdens Silver Project Grade Tonnage Curve September 2017 100 Cut Off Grade 2a 60 30 30 —eSilver Equivalent —Silver 20 40 60 80 100 120 Tonnes (Mt) 140 Y»y SILVER MINES LIMITED
Slide 38: Appendix 3 – Bowdens Silver Ore Reserve
Appendix 3 – Bowdens Silver Ore Reserve (as at May 2018) Tonnes Silver Silver Zinc Lead Silver Silver Zinc Lead (Mt) Eq. (g/t) (%) (% ) Eq. Million Kilo- Kilo- (g/t) Million Ounces tonnes tonnes Ounces Proved 28.6 102.2 69.75 0.44 0.32 93.85 64.05 125.11 91.43 Probable 1.3 84.4 53.15 0.43 0.29 3.60
Slide 39: Competent Persons Statements
Competent Persons Statements Ore Reserve The information in this report that relates to Ore Reserves within the Bowdens Silver Project is based on information compiled or reviewed by Mr Adrian Jones of AMC Consultants Pty Ltd who is a consultant to the Company. Mr Jones is a member of the Member of