Silver Mines Limited · ASX:SVL
Silver Mines — Shareholder Meeting (November 2011)
35 slides from Silver Mines's shareholder meeting presentation, Nov 29, 2011
Slide 1: Annual General Meeting Presentation
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Slide 2: Introduction
Introduction This presentation contains forward looking statements that are subject to risk factors associated with mineral exploration. The For personal use only information contained in this presentation is based on interpretations made by SVL’s qualified professional technical staff and should b
Slide 3: Corporate Snapshot
Corporate Snapshot Silver Mines Limited SVL Average Enterprise Value For personal use only AUD 40 40,000,000 000 000 (ASX:SVL, (ASX SVL PLUS PLUS:SVLP) SVLP) AUD 35,000,000 136.1M Shares; 31.1m options AUD 30,000,000 on issue (Nov 2011) AUD 25 25,000,000 000 000 AUD 20,000,000 Market cap:
Slide 4: SVL vs Silver and Gold
SVL vs Silver and Gold* For personal use only 600 500 400 300 SVL Silver Gold 200 100 0 *Prices normalised
Slide 5: Silver Mines at a Glance
Silver Mines at a Glance Silver focused ASX listed exploration company – niche market For personal use only Flagship project is the Webbs Silver Project in northeast NSW Webbs is currently the highest grade undeveloped silver project in Australia Current Webbs resource is 1.2Mt at 256 g/t Ag
Slide 6: Silver Mines at a Glance - Exploration
Silver Mines at a Glance - Exploration Successful exploration strategy delivering results For personal use only Webbs W bb remains i maini ffocus ffor growth th 15,000 drilling program completed at Webbs during 2011 Pre-feasibility Pre feasibility metallurgical test work underway Resource
Slide 7: The Silver Story
The Silver Story Silver is both consumed as an industrial metal and hoarded as a precious For personal use only metal, t l with ith an approximately i t l 50/50 split lit b between t th the ttwo uses Investment in silver has shown a dramatic increase in the last 2 years and is seen as a majo
Slide 8: The Silver Price
The Silver Price For personal use only 60 US$/oz Average Year-on-year Year on year Intra-period Intra period 50 2010 20.19 37.6% 78.4% 1 Jan - 15 Nov 2011 35 70 35.70 87 9% 87.9% 10 9% 10.9% 40 $/oz US$ 30 20 10 0 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Source: Thomson Reuters GFMS
Slide 9: Gold / Silver Ratio 2000 – 2011 – To Date
Gold / Silver Ratio 2000 – 2011 – To Date (Basis Weekly Average Prices) For personal use only 90 80 70 Average g 60.5 60 50 40 30 1st Jan-15th Nov 2011 = 44.1 25th Nov 2011 = 53.1 20 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Thomson Reuters GFMS
Slide 10: World Silver Supply
World Silver Supply For personal use only Source: Thomson Reuters GFMS
Slide 11: World Silver Demand
World Silver Demand For personal use only Source: Thomson Reuters GFMS
Slide 12: World Silver Investment and Value
World Silver Investment* and Value For personal use only 300 12 250 Investment Value 10 200 8 US$ Milllion ounces $ Billions 150 6 100 4 50 2 - 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011F *World Investment is the sum of implied net investment and coins & medals Source: Thomson Reuters
Slide 13: Exploration
For personal use only Exploration
Slide 14: Project Map
Project Map For personal use only Silver rich polymetallic targets under explored p areas specially for silver
Slide 15: Our Projects
Our Projects New England region of NSW - 500 km2 - Prospective, under explored For personal use only especially for Webbs type deposits Exploration continues to deliver excellent results Other New England projects have high priority targets ready for follow up work, including drilling Pr
Slide 16: New England Projects
For personal use only New England Projects
Slide 17: EL 5674 and EL 7602 Webbs Silver
EL 5674 and EL 7602 Webbs Silver EL5674 (100% SVL) For personal use only 2,000m 2 000 corridor id contains i hihigh h grade d pods d with i h llower grade d hhalo l 12,039m RC drilling completed in 153 holes in 2011 2,824m Diamond drilling completed in 30 holes in 2011 Geochemistry, geolog
Slide 18: Drill Hole Collar Map
Drill Hole Collar Map For personal use only 90% of metres at Webbs are by SVL 17% of SVL metres are DDH
Slide 19: EL 5674 Webbs Silver Resources
EL 5674 Webbs Silver Resources For personal use only JORC Ag g Cu Pb Zn Tonnes Class ppm % % % Inferred 1 066 000 1,066,000 240 0 27 0.27 0 83 0.83 1 83 1.83 Indicated 167,000 360 0.32 0.55 1.91 TOTAL 1,233,000 256 0.28 0.79 1.84 NOTE: Resource-Gross Values in $AUD $A $32/oz Ag, $3.35/lb Cu, $0.91/l
Slide 20: Scoping Study
Scoping Study Scoping study of open pit mining and conventional 350,000 tpa flotation For personal use only using $31/oz Ag Two pits extracted 50% of resource ounces Ag Cu Pb Zn Tonnes (g/t) % % % 432,000 344 0.31 0.93 1.43 Plus 100,000t @ 71g/t Ag – low grade Indicative cash costs of $18/oz
Slide 21: Webbs Pit Shells
For personal use only Webbs Pit Shells
Slide 22: New Drilling
New Drilling Total of 23,820m RC and 4091m of DDH now drilled by SVL For personal use only 12,039m RC and 2824m of DDH to be fed into new resource estimate with some excellent intersections reported Focus on upper 130m and near surface exploration target with some deeper drilling New res
Slide 23: Webbs Main Shaft - 3D
Webbs Main Shaft - 3D For personal use only
Slide 24: Webbs Silver Long Section (gram x metre)
Webbs Silver Long Section (gram x metre) For personal use only AuEQ gxm Grid shows true thickness of zone x average grade at 40g/t Ag cut off, converted to Au gram x metres equivalent (see Appendix 1). Other holes piercing p g zone also included
Slide 25: Cross Section 6751770N
Cross Section 6751770N For personal use only
Slide 26: Webbs The Future
Webbs The Future Webbs mineralisation not closed off For personal use only Drilling to focus on high grade depth extensions and near surface ‘gaps’ Metallurgical testwork to PFS level underway Drill testing some regional targets in 2012 as well as additional exploration-target generation
Slide 27: Mole Project EL 6771 and 6114
Mole Project EL 6771 and 6114 Area hosts numerous silver occurrences For personal use only Rock chip sampling and IP completed at several prospects Work in south east identified high grade silver-base metal values in rock chips associated with IP chargeability zones Targets ready for drill
Slide 28: Mole River IP and Rock Chips
Mole River IP and Rock Chips For personal use only
Slide 29: Boro Project EL 7640
Boro Project EL 7640 50 km NE of Canberra For personal use only Demonstrated potential for silver-base metals High grade historical production 10km from Woodlawn base metal (Zn-Cu-Pb-Ag) deposit Previous explorers work requires follow-up Many Ag-base metal intersections in drilling by pr
Slide 30: Boro Location
For personal use only Boro Location
Slide 31: Boro Project - Targets
Boro Project - Targets For personal use only
Slide 32: Leadville ELA 4240
Leadville ELA 4240 Application Stage For personal use only Potential for silver rich base metal skarns and possible VHMS Historic grades around 600g/t Ag and 10% Pb Historical drilling recorded numerous intersections such as: From o To o Intt Cu Pb b Zn Ag g Au u H l Hole (m) (m) (m) % % % g
Slide 33: Walla Walla JV EL 6269
Walla Walla JV EL 6269 SVL entering into Joint Venture with AOM For personal use only SVL has earned a minimum of 50% to date Drilling by SVL delineated narrow zones of silver rich polymetallic Other areas require follow up, IP, mapping and sampling from to Int Ag Au Cu Pb Zn Sn ( ) ((m)) ((
Slide 34: The End
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Slide 35: Appendix
Appendix 1 For personal use only The following g applies pp to the Webbs Silver Long g Section on slide 24 AuEQ calculated using following $A commodity prices Ag $32/oz, Cu %3.35/lb, Pb $0.91/lb, Zn $0.86/lb and Au $1670/oz AuEQ calculated by gross $ value of Ag+Cu+Pb+Zn in each intersection d