Silver Mines Limited · ASX:SVL
Silver Mines — Investor Presentation (November 2016)
32 slides from Silver Mines's investor presentation, November 2016
Slide 1: Building the largest pure silver company in the Southern Hemisphere
“Building the largest pure silver company in the Southern Hemisphere”
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 involve unknown risks
Slide 3: Silver Mines Limited Introduction
Silver Mines Limited Introduction • The only primary silver focused company of substance in the Asia-Pacific region • Acquisition of Bowdens Silver deposit – largest undeveloped silver deposit in Australia and one of the largest globally • Regional consolidation circa 1,600km2 • Fast tracking to dev
Slide 4: 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 5: Silver Mines Limited Structure
Silver Mines Limited Structure Shares on Issue 340.5m Current Share Price A$0.20 Undiluted Market Capitalisation A$68.1m Cash as at end September 2016 A$9.1m Options May 2017 @ $4.30 0.06m Oct 2017 @ $0.30 23.4m May 2018 @ $0.30 7.5m June 2019 @ $0.30 8.0m
Slide 6: Bowdens Silver Project – Brief History
Bowdens Silver Project – Brief History • 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 • Consolidated 80kms of
Slide 7: New South Wales Silver Consolidation
New South Wales Silver Consolidation
Slide 8: Silver Mines Strategy
Silver Mines Strategy 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. Aggressively explore
Slide 9: Silver Mines Limited Resource Inventory
Silver Mines Limited Resource Inventory (Refer to Appendices 1, 2 & 3) 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 10: Bowdens Silver Project Location and Title Package
Bowdens Silver Project Location and Title Package
Slide 11: Bowdens Silver Fast Track through Feasibility and Permitting
Bowdens Silver Project Bowdens Silver Fast Track through Feasibility and Permitting
Slide 12: Bowdens Silver Project
Bowdens Silver Project • 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 deposit at surface – e
Slide 13: Bowdens Silver Resource
Bowdens Silver Resource (Refer to Appendix 1 for further details) • 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 increase resource • Res
Slide 14: Previous Feasibility Works
Bowdens Silver Previous Feasibility Works • 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 • Circa A$30 million expenditure (including drilling) • “Rolls
Slide 15: Current Programs to Development
Bowdens Silver Current Programs to Development • 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 project economics • Robu
Slide 16: Cross Section
Bowdens Silver Cross Section
Slide 17: Cross Section
Bowdens Silver Cross Section
Slide 18: Cross Section
Bowdens Silver Cross Section
Slide 19: Adding value through aggressive exploration
Bowdens Silver Project Bowdens Silver Adding value through aggressive exploration
Slide 20: Current Exploration Programs
Bowdens Silver Current Exploration Programs • 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 diamond drilling currently
Slide 21: Long Section
Bowdens Silver Long Section 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 22: Exploration Upside
Bowdens Silver Exploration Upside • 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 Bowdens – targeting ‘f
Slide 23: Exploration Upside
Bowdens Silver Exploration Upside • 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, Duagh Target • Bowdens So
Slide 24: Exploration Upside - Coomber
Bowdens Silver Exploration Upside - Coomber 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 to be followed up • Ci
Slide 25: Drilling
Bowdens Silver Drilling yy SILVER — MINES LIMITED
Slide 26: Drilling
Bowdens Silver Drilling mm: \. wel Fp — ar - + ow yp SILVER _ MINES LIMITED
Slide 27: Drilling
Bowdens Silver Drilling ~~ MINES LIMITED
Slide 28: Conclusion
Conclusion • Management proven strategy of significant shareholder wealth creation • Creation of Company with world-class development project and highly prospective exploration upside • Well advanced on execution of strategy • Timing ‘sweet spot’ with macroeconomic trends
Slide 29: Appendix 1 – Bowdens Resource
Appendix 1 – Bowdens Resource 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 44 0.27 0.36 63.6 44
Slide 30: Appendix 2 – Conrad Resource Estimate
Appendix 2 – Conrad Resource Estimate 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 0.21 190.2 12.2 Total
Slide 31: Appendix 3 – Webbs Resource Estimate
Appendix 3 – Webbs Resource Estimate 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 Inferred 0.522 201 3.4
Slide 32: Competent Persons Statements
Competent Persons Statements 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 the Australian Instit