Silver Mines Limited · ASX:SVL
Silver Mines — Shareholder Meeting (November 2016)
32 slides from Silver Mines's shareholder meeting presentation, Nov 29, 2016
Slide 1: Annual General Meeting
For personal use only Annual General Meeting 29 November 2016
Slide 2: Disclaimer
Disclaimer For personal use only 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
Slide 3: Silver Mines Limited 2016
Silver Mines Limited 2016 For personal use only • Acquisition of Bowdens Silver deposit – largest undeveloped silver deposit in Australia and one of the largest globally • New Board of Directors and Management • Capital Consolidation • A$35 million capital raising • Transaction and financing complet
Slide 4: Silver Mines Limited Structure
Silver Mines Limited Structure For personal use only Shares on Issue 340.5m Current Share Price A$0.18 Undiluted Market Capitalisation A$61.3m Cash as at end September 2016 A$9.1m Options May 2017 @ $4.30 0.06m Oct 2017 @ $0.30 23.4m June 2018 @ $0.30 10.8m June 2019 @ $0.30 8.0m
Slide 5: Project – Brief History
Bowdens Silver Project – Brief History For personal use only • The largest undeveloped silver deposit in Australia and one of the largest globally • Kingsgate purchased from Silver Standard for A$75 million • Approximately A$60 million spent on the project to date • Freehold land mostly purchased •
Slide 6: New South Wales Silver Consolidation
New South Wales Silver Consolidation For personal use only
Slide 7: Silver Mines Strategy
Silver Mines Strategy For personal use only 1. Rapidly progress Bowdens Silver through Feasibility and Permitting • Feasibility Study works advanced • Environmental Impact Statement (“EIS”) works advanced • Feasibility Study and EIS targeted for completion mid-2017 • Fast track to mine development 2
Slide 8: Silver Mines Limited Resource Inventory
Silver Mines Limited Resource Inventory (Refer to Appendices 1, 2 & 3) For personal use only Deposit name Mt Ag Ag Ag Eq Ag Eq Status (g/t) (Moz) (g/t) (Moz) Bowdens 88.0 47.4 134 64 182 100% owned Webbs 1.5 245 11.7 345 16.5 100% owned Conrad 2.6 105.4 9.0 206 17.5 100% owned Total 155 216
Slide 9: Project Location and Title Package
Bowdens Silver Project Location and Title Package For personal use only
Slide 10: Bowdens Silver: Fast Track through Feasibility and Permitting
Bowdens Silver Project For personal use only Bowdens Silver Fast Track through Feasibility and Permitting
Slide 11: Project
Bowdens Silver Project For personal use only • Resource of 134 Moz of silver (182 Moz of silver equivalent) • New drilling including resource, metallurgical and sterilisation drilling • Feasibility Study +80% complete (historic) • Environmental Impact Statement +80% complete (historic) • Flat lying
Slide 12: Resource
Bowdens Silver Resource (Refer to Appendix 1 for further details) For personal use only • Kingsgate resource based on 63,000 metres drilling (65% by Silver Standard, 20% by Kingsgate) • Eastern flank of resource presents high grade ore from surface vastly improving economics • Infill drilling will i
Slide 13: Previous Feasibility Works
Bowdens Silver Previous Feasibility Works For personal use only • Previous works managed by Ausenco • MPR Geological (Resources), AMC (Mining), Coffey (Tailings), RW Corkery (Environment), SKM (Water) and others • Halted in mid 2013 with silver price downturn • “Rolls Royce” approach to 4.0-4.5 mill
Slide 14: Current Programs to Development
Bowdens Silver Current Programs to Development For personal use only • Focus on fast-tracking feasibility and permitting • Significant work underway • Initial pit optimisation completed • Outstanding elements of feasibility work underway • Focus on capital cost-effective development with enhanced pr
Slide 15: Cross Section
Bowdens Silver Cross Section For personal use only
Slide 16: Cross Section
Bowdens Silver Cross Section For personal use only
Slide 17: Cross Section
Bowdens Silver Cross Section For personal use only
Slide 18: Bowdens Silver: Adding value through aggressive exploration
Bowdens Silver Project For personal use only Bowdens Silver Adding value through aggressive exploration
Slide 19: Current Exploration Programs
Bowdens Silver Current Exploration Programs For personal use only • First time all tenements in the region have been consolidated under one roof – very limited historical exploration outside of primary Bowdens Silver deposit • Excellent potential for further discoveries Programs • 15,000 metres diam
Slide 20: Long Section
Bowdens Silver Long Section For personal use only Deep Zone high grade zone in basement Ordovician shales. Peak assays of: 197g/t Ag 5.5% Pb 6.52g/t Au 0.3% Cu Untested Untested 9.0% Zn Potential Potential
Slide 21: Exploration Upside
Bowdens Silver Exploration Upside For personal use only • Outstanding regional exploration package ignored by previous operators (concentrating on Bowdens development) • ~ 80 kms of strike length of mineralised structures under-explored • Potential for: • Significant gold discovery at depth beneath
Slide 22: Exploration Upside
Bowdens Silver Exploration Upside For personal use only • More than 30 metal mineral occurrences within 8kms of Bowdens – largely untested Bara Targets • Large scale target areas untested in Bowdens NW Target Rylstone Volcanics including: • Bowdens North Bowdens North Target • Bowdens Northwest, Dua
Slide 23: Exploration Upside - Coomber
Bowdens Silver Exploration Upside - Coomber For personal use only Coomber Prospect Drill Results From (metres) To (metres) Intercept Silver g/t Ag Eq (metres) 0 58 58 88.8 0 50 50 42.8 18 100 82 31.2 34 48 14 85.1 16 26 10 73.7 • 40 drill holes for 2645 metres • Drilling by CRA in early 1990’s, yet
Slide 24: Drilling
Bowdens Silver Drilling For personal use only
Slide 25: Drilling
Bowdens Silver Drilling (refer to announcement of 22nd November 2016) For personal use only From To Interval Silver Zinc Lead Ag Eq Hole ID (metres) (metres) (metres) (g/t) (%) (%) (g/t)1 BD16001 90.3 186 95.7 109 0.27 0.40 126 including 90.3 99 8.7 540 0.34 0.73 568 107 112 5.0 143 0.39 1.01 179 16
Slide 26: Drilling
Bowdens Silver Drilling For personal use only
Slide 27: Drilling
Bowdens Silver Drilling For personal use only
Slide 28: Drilling
Bowdens Silver Drilling For personal use only
Slide 29: Appendix – Bowdens Resource
Appendix 1 – Bowdens Resource For personal use only Bowdens Mineral Resource Estimate (30g/t AgEq cut-off), November 2012 Resource Tonnes Silver Silver Lead Zinc Ag Eq Silver Ag Eq Category (Million) (g/t) (Moz) (%) (%) (g/t) (Moz) (Moz) Measured 23.6 56.6 43 0.31 0.41 74.5 43 57 Indicated 28.4 48.0
Slide 30: Appendix – Conrad Resource Estimate
Appendix 2 – Conrad Resource Estimate For personal use only Conrad Resource Estimate Resource Tonnes Silver Silver Copper Lead Zinc Tin Ag Eq Ag Eq Category (Million) (g/t) (Moz) (%) (%) (%) (%) (g/t) (Moz) Indicated 0.658 128.8 2.7 0.24 1.69 0.68 0.28 254 5.4 Inferred 1.994 97.6 6.3 0.19 1.21 0.48
Slide 31: Appendix – Webbs Resource Estimate
Appendix 3 – Webbs Resource Estimate For personal use only Webbs Mineral Resource Estimates Resource Tonnes Silver Silver Copper Lead Zinc Ag Eq Ag Eq Category (Million) (g/t) (Moz) (%) (%) (%) (g/t) (Moz) Measured 0.194 364 2.3 0.29 0.75 1.67 470 2.9 Indicated 0.775 245 6.1 0.26 0.70 1.49 341 8.5 I
Slide 32: Competent Persons Statements
Competent Persons Statements For personal use only Bowdens Resource Estimation The information in this report that relates to the Bowdens Mineral Resources estimation is based on information compiled by Jonathon Abbott who is a full time employee of MPR Geological Consultants Pty Ltd and a Member of