Southern Silver Exploration Corp. · TSXV:SSV
Southern Silver Exploration — Investor Presentation (October 2020)
21 slides from Southern Silver Exploration's investor presentation, October 2020
Slide 1: October, 2020
October, 2020 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 Transformative, Near-term Resource Growth Highest Grade Undeveloped Value-Creating Transaction Opportunity Silver Projects in the World • Indicated: 134Moz AgEq at 375g/
Slide 4: Capital Markets Profile
Capital Markets Profile Capital Structure Share Price and Volume (Last 12 Months) Ticker TSX-V:SVV $0.80 2.5 Share Price (October 16, 2020) C$0.59 2.0 Volume (millions) $0.60 Share Price (C$) Current Shares Outstanding 220.0M 1.5 Options 24.3M1 $0.40 1.0 Warrants 78.8M2 $0.20 0.5 Fully Diluted Share
Slide 5: 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) – Electrum shareholders approved the transaction at its
Slide 6: Comparable Company EV/Resource Analysis
Comparable Company EV/Resource Analysis Southern Silver is Undervalued • Southern Silver trades at C$0.46/oz AgEq, which is a 64% discount to the average of silver-focused developers of C$1.29/oz AgEq EV/Resource of Silver-Focused Developers with Key Projects in the Americas $12.38 $3.46 $3.16 $3.04
Slide 7: Comparable Project Analysis
Comparable Project Analysis Cerro Las Minitas is one the Largest and Highest Grade Silver Assets Silver Equivalent Resource (M oz) Silver Equivalent Grade (g/t) Cordero (Discovery) 1,363 RV Mine (Aurcana) 1,069 Corani (Bear Creek) 590 Velardena (Golden Minerals) 807 Sierra Mojada (Silver Bull) 354 B
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 • Advancing towards polymetallic production (zinc, silver, lead) backed by a team and partner with the proven ability to grow and develop major mining projects • US$25.5M spent on ac
Slide 10: Cerro Las Minitas (CLM) Flagship Asset Overview
Cerro Las Minitas (CLM) Flagship Asset Overview Overview Property Location • Located in the prolific Faja de Plata of North-Central Mexico with excellent infrastructure – Safe jurisdiction, around non-narcotic related agriculture • Social license initiatives – exploration access agreements in place
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. ~600,000) 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 Offset drilling at the Las Victorias and South Skarn – Bocona targets is underway, which management New Targeting: Area of the Cerro believes will provide a pathway to achieving the next resource milestone of 30-35Mt grading 80- 120 g/
Slide 16: New Targeting for 2020-21
Cerro Las Minitas New Targeting for 2020-21 • South Skarn - La Bocona – Drilling will test the continuity of previously identified high-grade intercepts to build new mineral resources – Individual drill intercepts up to 8m thick (est. TT) at equal or higher grades than that on the western side of th
Slide 17: Summary Intercepts from South Skarn and Bocona targets
Cerro Las Minitas Summary Intercepts from South Skarn and Bocona targets SOUTH SKARN/LA BOCONA SELECT ASSAYS Hole No. From To Interval Est. TT Ag Au Cu Pb Zn AgEq ZnEq m m m m g/t g/t % % % g/t % 11CLM-001 865.7 868.5 2.8 UNK 30 0.6 0.69 0.0 4.9 408 7.9 inc. 865.7 867.0 1.3 UNK 41 1.2 1.05 0.0 7.7 6
Slide 18: 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 19: Oro Property Asset Overview
Oro Property Asset Overview The Company has identified favorable targets to attract a J/V partner to fund future exploration programs Overview Property Map • Option exercised Aug’13 – 100% owned by SSV • Transitional from Faja de Plata to the Arizona Copper Belt – 22.4 sq. km comprised of 8 mineral
Slide 20: 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 21: 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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