Slide 1: Building A Responsible High-Margin Silver Mining Company
Building A Responsible High-Margin Silver Mining Company CSE: KUYA High Grade | Growing Silver Production | Peru OCTOBER 2020
Slide 2: Important Disclosures - Please Read Carefully
IMPORTANT DISCLOSURES - PLEASE READ CAREFULLY This presentation is being provided for information purposes only and does not constitute or form part of, and should not Such risks, uncertainties and other factors include, but are not limited in any manner to: risks inherent in exploration be construe
Slide 3: Kuya is a simplified form of the Quechuan word Qhuya which means a mine
KUYA IS A SIMPLIFIED FORM OF THE QUECHUAN WORD “QHUYA” WHICH MEANS A MINE This presentation does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securitie
Slide 4: Expanding and Optimizing the Bethania Silver Mine In Peru
Expanding and Optimizing the Bethania Silver Mine In Peru A Commitment to Low-Cost, Sustainable Silver Mining ✓Private company for past 3 years, now going ✓Acquisition of mine to be completed ✓RTO with Miramont Resources public on the CSE immediately after RTO • announced June 2020 ✓Earn-in agreemen
Slide 5: Well Run Silver Mines Command a Market Premium
WELL RUN SILVER MINES COMMAND A MARKET PREMIUM BETHANIA IS A GREAT FIRST ASSET Recent Past Present (2020-2021) Future Vision (2021+) + Producing silver mine until 2016 - on + RTO Q3 2020 (June-Sept) + Commission/Production care and maintenance + Raised C$12.3 mln (June-July) + Produce at industry lo
Slide 6: Share Structure
SHARE STRUCTURE Kuya (from PrivateCo) 13,041,985 June 2020 Subscription Other Receipt financing Institutional Miramont (PubCo) 5,577,323 • C$12.3 Million raised Investors Total Basic Shares 18,619,308 • C$1.65 perEric “old” Kuya shares • Split 1.835-to-1 Sprott Management • C$0.90 effective price (p
Slide 7: Silver Companies - Very Small Sector
SILVER COMPANIES - VERY SMALL SECTOR Pivoting to Gold • Lack of good investment choices drives valuations higher • Investible silver universe is very small • Significant value increase for production • Production and/or significant exploration projects valued at C$100 million+ Exploration Mining 7
Slide 8: What Do These Successful Silver Companies Have In Common?
WHAT DO THESE SUCCESSFUL SILVER COMPANIES HAVE IN COMMON? Start small Fortuna Silver (2006) First Majestic (2005) First Year Production: 0.5 Moz and grow First Year Production: 0.3 Moz Today: C$1.7 Bln mkt cap through Today: C$3.3 Bln market cap gold-focused production and Endeavour Silver (2005) Si
Slide 9: The Bethania Mine Will Launch the Market's Next Silver Mining Company
FOLLOWING A SUCCESSFUL PROVEN STRATEGY START with a great silver mining asset! ✓ 1. Identify a high-grade silver mine in either Peru or Mexico – the two most prolific silver mining countries in the world, benefitting from strong mining culture, and infrastructure ✓ 2. Acquire small-scale mines from
Slide 10: Leading Mining Jurisdiction
LEADING MINING JURISDICTION • Peru is one of the worlds largest producers of base and precious metal • According to EY Peru, of the world’s mineral production Peru ranks: • 2nd in silver production • 2nd in copper production • 2nd in zinc production • 4th in lead production • 6th in tin production •
Slide 11: Great Access and History
GREAT ACCESS AND HISTORY • Located in major silver-lead-zinc mining district in Central Peru • Access mine by road from Huancayo (major city) • Daily flights from Lima to Jauja (near Huancayo) • Mine located near mining village of Bethania • The Bethania Mine opened in 1977 after discovery of two ve
Slide 12: Leading Low-Cost Production
LEADING LOW-COST PRODUCTION $30.00 Low Cost Profile Silver industry comparables in Latin America (2019) • High grades, higher recoveries $22.50 • No royalties, streams • Mining near surface (lower haulage, mining costs vs. deep mines) $15.00 • Low non-discretionary Target sustaining capital, can inc
Slide 13: Proposed Expansion to Reduce Costs
PROPOSED EXPANSION TO REDUCE COSTS AISC Treatment/ NEW Refining Processing AISC - improved market - no toll milling Transport conditions costs Other - improved market - eliminate long - greater recoveries position with greater haul trucking production - addition of copper/gold circuit 2015 FY Post E
Slide 14: Simple Mining – Well Understood Orebody
SIMPLE MINING – WELL UNDERSTOOD OREBODY EXCELLENT EXPLORATION POTENTIAL • Drifting exploration/production adits from several adits on east and west side • Swarm of high-grade veins trending NE-SW • Mined by underhand cut and fill • 6 veins - source of historical production + non 43-101 resources • 1
Slide 15: Low-Risk Exploration
LOW-RISK EXPLORATION Bethania Mine Long Section Española 2 Historical workings Current Mine Area (no resources) N 7 sub-parallel veins with development Mercedes vein (surface showing) Vein sample Unexplored Vein sample Vein sample 31.2 oz/t Ag over 1.40 m 206 oz/t Ag over 0.12 m 52.3 oz/t Ag over 0.
Slide 16: Social Responsibility
SOCIAL RESPONSIBILITY Kuya Silver is actively engaged in building on a strong legacy of working cooperatively with the local Poroche community to develop a mutually beneficial, safe and sustainable mining business in the region The Company is committed to: 1. Providing a safe and sustainable work en
Slide 17: Management & Team
MANAGEMENT & TEAM Dr. Quinton Hennigh, Chairman (Nominee) Dr. Hennigh is an economic geologist with more than 25 years of exploration experience with major gold mining firms, including Homestake Mining, Newcrest Mining and David Stein, MSc (Geo), CFA – President and CEO, Director Newmont Mining. Cur
Slide 18: www.kuyasilver.com
www.kuyasilver.com @KuyaSilver KuyaSilverCorp 217 Queen Street, Suite 401 Follow Kuya Silver Toronto, Ontario, Canada M5V 0R2 Kuya-Silver