Silver Mines Limited · ASX:SVL
Silver Mines — Shareholder Meeting (November 2018)
46 slides from Silver Mines's shareholder meeting presentation, Nov 28, 2018
Slide 1: Annual General Meeting
Annual General Meeting Sydney, Australia 28th November 2018
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 UNLOCKING A MAJOR MINERALISED SYSTEM THROUGH EXPLORATION SUCCESS • Major Exploration Targets: • Confirmed significant extensions to mineralisation close to mine. • Discovered new base-metal massive sulphide including gold. • Discovered porphyritic felsic intrusion u
Slide 4: Silver Mines Limited Snapshot
Silver Mines Limited Snapshot Capital Structure ASX:SVL Shares on Issue 633.1m Options Current Share Price A$0.04 Sept 2021 @ $0.06 64.1m Undiluted Market Capitalisation A$25.0m Jun 2019 @ $0.30 9.0m Cash end September 2018 A$2.3m 3 year milestone @ $0.20 5.0m Directors Institutional Shareholders Ke
Slide 5: 2018 Financial Year in Review
2018 Financial Year in Review Corporate • Second year of Bowdens Silver ownership and new management. • A$7.1 million capital raised. Bowdens • 7,300 metres of drilling completed. Silver • Initial Mineral Resource (September 2017) Project • Maiden Ore Reserve (May 2018) • Feasibility Study complete
Slide 6: Quality Jurisdiction – New South Wales, Australia
Quality Jurisdiction – New South Wales, Australia 6
Slide 7: 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; o Cadia/Ridgeway, Newcrest (650,000oz Au, 65,000t Cu pa). o Cowal, Evolution (260,000oz Au pa). o Northparkes, CMOC (60,000t Cu, 50,000oz Au pa). o P
Slide 8: Barabolar Project: Unlocking a Major Mineralised System
Barabolar Project Unlocking a Major Mineralised System Highly Altered and Mineralised Skarn 8
Slide 9: 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 Barabolar discovery demonstrates that the eastern limb
Slide 10: Regional Geology
Regional Geology • Extensive tenement holding (2007 km2 = 496,000 acres) controlled by Silver Mines. • North east corner of Lachlan Fold Belt & Macquarie Arc. • Wide range of prospective deposit types over different time periods (Ordovician, Siluro-Devonian, Carboniferous and Permian). • Mineral dep
Slide 11: 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. BARABOLAR • Barabolar is an outstanding new discovery currently being drilled. 11
Slide 12: Unlocking a Major Mineralised System
Unlocking a Major Mineralised System 163 Moz Ag 275 Moz Ag Eq 12
Slide 13: 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 14: Unlocking a Major Mineralised System
Unlocking a Major Mineralised System MINERALISED SKARN 14
Slide 15: Unlocking a Major Mineralised System
Unlocking a Major Mineralised System 15
Slide 16: Unlocking a Major Mineralised System
Unlocking a Major Mineralised System 16
Slide 17: Unlocking a Major Mineralised System
Unlocking a Major Mineralised System Bara area rock chip sample 10.3% zinc 6.39% lead 0.19% copper 252g/t silver 0.16g/t gold Sulphide breccia (Zn+Pb+Cu+Ag+Au) 17
Slide 18: Recently Discovered Cringle Prospect
Recently Discovered Cringle Prospect • Recent mapping and sampling discovers high-grade gold bearing structures at the Cringle Prospect within the Barabolar Project area. • >400 metres of strike length inferred from mapped gossanous outcrop. • Both gold and silver-rich structures identified. • Gold-
Slide 19: Geophysics Program
Geophysics Program • Induced Polarisation (IP) program (~30 line kms) completed July 2018. • Full interpretation completed early August 2018. • 3D magnetic modelling. • Potential gravity survey. Highly altered mineralised skarn 19
Slide 20: Chargeability – Initial view
Chargeability – Initial view Highly altered mineralised skarn 20
Slide 21: Chargeability – Initial view
Chargeability – Initial view • Chargeability anomalies inferred to represent sulphide accumulations. • Very high chargeability responses beneath zones of significant copper – zinc – silver in soils. • Coincident with surface mineralisation and mapped skarn and quartzolite units. • From surface to be
Slide 22: Bowdens Silver Project
22 Bowdens Silver Project “a, SI / MINES LIMITED
Slide 23: 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. Company DD RC Total CRA, Silver
Slide 24: Bowdens Silver Resource
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 0.25 140 230 Inferre
Slide 25: Bowdens Silver Resource
Bowdens Silver Resource (Refer to Appendix 1 and 2) 25
Slide 26: Block Model
26 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 27: Bowdens Silver Reserve
Bowdens Silver 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 2.27 5.74 3.91 To
Slide 28: Feasibility Study
Feasibility Study September 2017 Mineral Resource Complete (275 Moz Ag Eq) May 2018 Ore Reserve Complete (97 Moz Ag Eq) June 2018 2019/2020 Feasibility Study Complete EIS and Approvals 28
Slide 29: Bowdens Silver Mine Development
Bowdens Silver Mine Development Bowdens Silver Draft Mine Site Layout October 2018 29
Slide 30: Feasibility Study Complete
Feasibility Study Complete (as at June 2018) Physical Metrics Unit Value Production Life Years 16 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 R
Slide 31: Historical Silver Prices US$ per Ounce
Historical Silver Prices US$ per Ounce 31
Slide 32: Near Mine Mineralised System
Near Mine Mineralised System 32
Slide 33: Near Mine Mineralised System
Near Mine Mineralised System 33
Slide 34: Near Mine Mineralised System – Current Drilling
Near Mine Mineralised System – Current Drilling • High-grade silver and base metal mineralisation between 10 and 30 metres • Currently defined over a strike length of 150 metres and open in several directions. • Potential for the development of underground mining tonnages. 34
Slide 35: Potential Resource Extensions at Depth
Potential Resource Extensions at Depth 35
Slide 36: Major IP Anomaly Identified – Mostly Undrilled
Major IP Anomaly Identified – Mostly Undrilled • IP survey suggests 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 the d
Slide 37: Massive Sulphide Discovery – Bowdens Deeps
Massive Sulphide Discovery – Bowdens Deeps • Massive to semi-massive sulphide discovery. • ~100 metres below the Mineral Resource. • Mineralised zone over 315 metres. • Significant gold content. • Results include: • 31.25m @ 3.24% Zn, 1.88% Pb, 23g/t Ag, 0.4g/t Au (218g/t AgEq) including; • 18.25m @
Slide 38: Discovery of Porphyritic Intrusion – Bowdens Deeps
Discovery of Porphyritic Intrusion – Bowdens Deeps • Significant discovery of porphyritic felsic intrusion beneath the Bowdens Silver deposit. • The intrusion is associated with strong metal zonation consistent with potential porphyry associated gold-copper mineralisation. • Highly anomalous molybde
Slide 39: Looking Forward
Looking Forward • Barabolar is an outstanding exploration play – drilling commenced o Geological and structural to expand to the west. o Soil program highlighting extensive Cu-Mo-Zn-Ag-Au anomalism to be expanded to the west. o Induced Polarisation (IP) program (~30 line kms) complete. o Full interp
Slide 40: Anthony McClure, Managing Director
Anthony McClure Managing Director Silver Mines Limited +61 2 8316 3997 40
Slide 41: 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 42: 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 43: Appendix 3 - Silver Mines Resource Inventory
Appendix 3 - 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 44: Appendix 4 – Bowdens Silver Reserve
Appendix 4 – Bowdens Silver 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 2.27
Slide 45: Board of Directors
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 Advisory Counci
Slide 46: 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