Southern Silver Exploration Corp. · TSXV:SSV
Southern Silver Exploration — Investor Presentation (June 2021)
28 slides from Southern Silver Exploration's investor presentation, June 2021
Slide 1: June 2021
June, 2021 SSV: TSX-V SSVCL: SSEV SSVFF: OTCQB
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the statements contained in this presentation may be deemed “forward-looking statements.” These include estimates and statements that describe the Company’s future plans, objectives or goals, and expectations of a stated condition or occurrence. Forward-looking sta
Slide 3: Investment Highlights
Investment Highlights Focused on the Cerro Las Minitas (CLM) Ag-Cu-Pb-Zn project located in Durango, Mexico One of the Largest and Near-term Resource Growth Highest Grade Undeveloped Value-Creating Transactions Opportunity Silver Projects in the World • Acquisition of Electrum’s 60% • 20,000m drill
Slide 4: 2020-21 Exploration Highlights
Cerro Las Minitas 2020-21 Exploration Highlights New High-grade Results Continue to Add Value to the Project • 6.7 metres averaging 625g/t Ag, 11.8% Pb and 7.5% Zn (1,298g/t AgEq; 30.0% ZnEq) (November 12, 2020) • 10.4 metres averaging 172g/t Ag, 3.8% Pb and 3.7% Zn (458g/t AgEq; 10.7% ZnEq) (Decemb
Slide 5: Capital Markets Profile
Capital Markets Profile Capital Structure Share Price and Volume (Last 12 Months) Ticker TSX-V:SSV Share Price (June 22, 2021) C$0.45 Current Shares Outstanding 278.6M 1 Options 17.4M 2 Warrants 70.6M Fully Diluted Shares Outstanding 366.8M Market Capitalization (basic) C$125.3M Cash & Cash Equivale
Slide 6: Transformative, Value Creating Transaction
Transformative, Value Creating Transaction • Southern Silver has completed an agreement with Electrum Global Holdings (Electrum) to acquire Electrum’s 60% interest in the Cerro Las Minitas (CLM) Project in Durango, Mexico (Electrum Transaction) • Low acquisition price of US$15.0 million in total cas
Slide 7: One of the Largest and Highest Grade Undeveloped Silver Assets
Cerro Las Minitas One of the Largest and Highest Grade Undeveloped Silver Assets in the World Top Ten in size: 272Mozs AgEq – Highest Grade: 354g/t AgEq 2019 Mineral Resource Estimate (as of May 9th, 2019 using a 175g/t AgEq cut-off); Indicated – 134Moz AgEq 37.5Moz Ag, 40Mlb Cu, 303Mlb Pb and 897Ml
Slide 8: Management Team and Board
Management Team and Board Experienced Mine Finders with a History of Success in Mexico Lawrence Page (LL.B, QC) • Director and Officer of a number of public prominent exploration and mining companies President, Director • Major Projects and Mines involvement: Penasquito, Mexico; Hemlo and Eskay Cree
Slide 9: Project Portfolio
Project Portfolio District Scale Exploration & Development Cerro Las Minitas, Durango, Mexico – Flagship • 100% owned • US$27.0M spent on acquisition and exploration since 2011 • 20,000m drill program targeting a 30% increase resource expansion started September 2020 • Next resource milestone: (+350
Slide 10: Permitting and Community Relations
Cerro Las Minitas Permitting and Community Relations An Active Exploration and Development Area with Superior Infrastructure and Community Support • Safe jurisdiction, around non-narcotic related agriculture • Environmental permits in place • Social license initiatives – exploration access agreement
Slide 11: Superior Location and Infrastructure
Cerro Las Minitas Superior Location and Infrastructure Neighboring several large companies (Fresnillo, Silver Standard, Coeur, Hecla and Avino) • Located 70km NE of Durango (pop. ~650,000) with highway/road and power access • CLM West claims added in 2017; On trend with nearby Avino or La Preciosa A
Slide 12: Looking North from the Autopista (Highway)
Cerro Las Minitas Looking North from the Autopista (Highway) Blind Zone/El Sol Skarn Front Zone Zone/Las Victorias (Mineral Resource) Zone (Mineral Resource) Mina La Bocona South Skarn Extension (Target) (Target) www.southernsilverexploration.com 12 TSX-V: SSV
Slide 13: Exploration and Discovery
Cerro Las Minitas Exploration and Discovery Transitioning exploration targets into additional mineral resources CLM is a Ag-Pb-Zn CRD/Skarn system hosted in similar Components of Discovery major polymetallic Mexican deposits like: • A Central Monzonite Intrusion acts as the heat pump to the minerali
Slide 14: 2019 Resource Estimate
Cerro Las Minitas 2019 Resource Estimate • 2019 Mineral Resource Estimate (as of May 9th, 2019 using a 175g/t AgEq cut-off); – Indicated – 134Moz AgEq 37.5Moz Ag, 40Mlb Cu, 303Mlb Pb and 897Mlb Zn – Inferred – 138Moz AgEq: 45.7Moz Ag, 76Mlb Cu, 253Mlb Pb and 796Mlb Zn Indicated Tonnes Ag Cu Pb Zn Au
Slide 15: Further Resource Expansion planned for 2020-21
Cerro Las Minitas Further Resource Expansion planned for 2020-21 Step-out drilling on the Las Victorias and South Skarn – Bocona targets provide a pathway to New Targeting: Area of the Cerro achieving the next resource milestone of: 30-35Mt grading 80-120 g/t Ag, 4-8% Pb/Zn (+350Mozs AgEq)1 • Las Vi
Slide 16: Exploration Update – Mina La Bocona Zone
Cerro Las Minitas Exploration Update – Mina La Bocona Zone Mina La Bocona Target A. Sulphide/Oxide Zone B. Muralla Chimney C. La Bocona Chimney New Drilling underway 2020-21 Highlights 20CLM-125: 30.9m of 131g/t AgEq (oxide) 21CLM-136: 4.2m of 681g/t AgEq (oxide) 20CLM-125: 33.2m of 435g/t AgEq 20CL
Slide 17: Exploration Update - New Assays for 2020-21
Cerro Las Minitas Exploration Update - New Assays for 2020-21 South Skarn Target • 400m x 300m Mineralized zone outlined • More holes to be drilled in 2021 2020-21 Highlights 20CLM-119: 6.7m of 1,298g/t AgEq 20CLM-120: 2.7m of 835g/t AgEq 20CLM-124: 5.8m of 749g/t AgEq 20CLM-130: 1.0m of 960g/t AgEq
Slide 18: Exploration Update – Mina La Bocona Zone
Cerro Las Minitas Exploration Update – Mina La Bocona Zone 2020-21 Exploration Mina La Bocona Target Area - looking west • Successfully tested +650 metre strike-length on the Mina La Bocona and South Skarn targets • Shallow high-grade identified within 300m of surface • Shallow oxide Au-Ag mineraliz
Slide 19: Select Assays from 2020-21
Cerro Las Minitas Select Assays from 2020-21 Hole # From To Interval Est Tr Thck Ag Au Cu Pb Zn AgEq ZnEq Notes (m) (m) (m) (m) (g/t) (g/t) (%) (%) (%) (g/t) (%) Mina La Bocona - Muralla Chimney 20CLM-125 23.8 80.6 56.8 30.9 24 0.87 0.02 0.6 0.4 131 3.3 Oxide inc. 31.4 34.1 2.8 1.5 72 5.09 0.08 1.0
Slide 20: Select Assays from 2020-21
Cerro Las Minitas Select Assays from 2020-21 Hole # From To Interval Est Tr Thck Ag Au Cu Pb Zn AgEq ZnEq Notes (m) (m) (m) (m) (g/t) (g/t) (%) (%) (%) (g/t) (%) Mina La Bocona - Bocona Chimney 20CLM-131 280.5 280.9 0.4 0.2 469 0.18 0.02 11.3 32.1 2101 53.3 and 299.9 315.0 15.1 8.0 1072 0.61 0.39 18
Slide 21: Select Assays from 2020-21
Cerro Las Minitas Select Assays from 2020-21 Hole # From To Interval Est Tr Thck Ag Au Cu Pb Zn AgEq ZnEq Notes (m) (m) (m) (m) (g/t) (g/t) (%) (%) (%) (g/t) (%) South Skarn Assay Results 20CLM-118 170.1 177.0 6.9 4.0 109 0.14 0.02 1.8 2.1 259 6.6 27.5% dilution inc. 174.2 175.4 1.2 0.9 412 0.14 0.0
Slide 22: Select Assays from 2020-21
Cerro Las Minitas Select Assays from 2020-21 Hole # From To Interval Est Tr Thck Ag Au Cu Pb Zn AgEq ZnEq Notes (m) (m) (m) (m) (g/t) (g/t) (%) (%) (%) (g/t) (%) South Skarn Assay Results (con't) 20CLM-124 475.0 490.6 15.6 10.4 172 0.08 0.15 3.8 3.7 458 11.6 31.1% dilution inc. 475.0 483.7 8.7 5.8 2
Slide 23: Metallurgical Test work
Cerro Las Minitas Metallurgical Test work Metallurgical test work has successfully separated saleable copper, lead and zinc concentrates from the Skarn Front and Blind - El Sol composites • Blind – El Sol Zone: – Lead Concentrate (avg of 2): 82% Ag, 90% Pb and 4% Zn recoveries assaying 2880ppm Ag, 6
Slide 24: Engineering Studies
Cerro Las Minitas Engineering Studies Engineering work continues to de-risk the CLM project NSR Model • Incorporation of metallurgical results into the resource model to produce an NSR model of the deposit. • The NSR model shows the distribution of the highest value mineralization within the deposit
Slide 25: Oro Property
Oro Property Asset Overview The Company has identified favorable targets to Provide Investors an Exposure to Copper Oro Project, southern New Mexico Property Map • 100% owned by SSV • +$3 million spend in Acquisition and Exploration • Permitting 6 hole 4000m core hole program to start in September 2
Slide 26: Oro Property: Regional scale targets for drill testing
Oro Property Regional scale targets for drill testing • Large zone of Magnetic-destruction coincident with conductive zones and surface sericite alteration • Historic drillholes either terminated too early or drilled wide intervals of anomalous Cu-Au mineralization immediately adjacent to best ZTEM
Slide 27: Oro Property: Drill Targeting on Porphyry and Skarn Targets
Oro Property Drill Targeting on Porphyry and Skarn Targets • Six Drill Sites – 4000m Proposed Core Drilling program • Targeting porphyry systems in the NW part of the sericite-clay alteration zones (A-B-E-G) and Skarn targets in the SE part of the zone (C-D-F-H) • Porphyry Targets: one hole for each
Slide 28: Why Southern Silver?
Why Southern Silver? Transformative, value Cerro Las Minitas is creating transaction one of the largest and Near-term exploration with Electrum creates highest grade target expected to an attractive entry undeveloped silver grow resource by ~30% point for investors projects in the world 1. The explo
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