Americas Gold And Silver Corporation · TSX:USA
Americas Gold And Silver — Investor Presentation (November 2020)
31 slides from Americas Gold And Silver's investor presentation, Nov 12, 2020
Slide 1: A High-Growth, Low-Cost Precious Metals Company in North America
A High-Growth, Low-Cost PRECIOUS METALS Company in North America GALENA COMPLEX RECAPITALIZATION PLAN 2020
Slide 2: Forward-Looking Statements and Other Disclosures
FORWARD-LOOKING FORWARD-LOOKING STATEMENTS STATEMENTS SAFE HARBOUR Safe Harbour ANDDisclosures and Other OTHER DISCLOSURES This presentation contains “forward-looking information” within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, Americas
Slide 3: Agenda
AGENDA • Galena Complex History • State of Galena Complex • Galena Complex Recapitalization Plan • Galena Complex Exploration • Near mine • Deeper Drilling • Longer Term Potential • Valuation discrepancy NYSE American USAS | TSX USA 3
Slide 4: Focus on Gold; Optionality to Silver
FOCUS ON GOLD; OPTIONALITY TO SILVER • Silver has recently outperformed gold and returned to historical multiples Value Disparity: Comparison of Key Operating Metrics • Americas produced 1.5 Moz in 2019 • Several development scenarios available to increase silver production • Up to 3 Moz/yr at the C
Slide 5: Coeur d'Alene Mining District
COEUR D’ALENE MINING DISTRICT NYSE American USAS | TSX USA 5
Slide 6: Galena Complex History
GALENA COMPLEX HISTORY 1887-89 • Killbuck Mining Co. digs trench on 3.5 - 6 meter wide vein and sinks winze 20 meters on vein averaging 1,303 grams per tonne (“g/t”) Ag and 44% Pb • Second 12 meter winze and six tunnels excavated • Shut down in silver crash of 1893 1907-20 • Chicago-Boston Mining Co
Slide 7: Galena Complex History Continued
GALENA COMPLEX HISTORY CONTINUED 1946 • American Smelting and Refining Co. tears old wooden Galena headframe out and replaces it with steel modeled after Butte, MT headframes 1953 • Silver Vein discovered on 3000 Level • Larger hoist, compressor plant installed 1955 • Galena Mine into production 195
Slide 8: Coeur d'Alene District Production
COEUR D’ALENE DISTRICT PRODUCTION1 NYSE American USAS | TSX USA 1. Production through December 2019 8
Slide 9: District Relative Mine Depths
DISTRICT RELATIVE MINE DEPTHS NYSE American USAS | TSX USA 9
Slide 10: State of Galena Complex
STATE OF GALENA COMPLEX • 2005: Coeur Mining had high-graded the operation and completed no development for many years • 2008: Mine restarted mining remnant stopes left by Coeur Mining with continued lack of development • 2012-2019: Limited capital/exploration allocated to Galena given falling silve
Slide 11: Galena Complex Recapitalization Plan
GALENA COMPLEX RECAPITALIZATION PLAN • New equipment • Equipment historically rebuilt multiple times • New equipment added to the mine – Hagby drill; 4yd scoop; two 3yd scoops; Jumbo; and Chiller – Galena hoist engineering underway • Mine rehabilitation and development • Drift repair and rail instal
Slide 12: Galena Complex Site Overview
GALENA COMPLEX SITE OVERVIEW Caladay Shaft Not to scale NYSE American USAS | TSX USA 12
Slide 13: Near Mine Exploration
NEAR MINE EXPLORATION • Targeting extensions of current known resources in the upper levels of the operation • Drilling on the 3200 level extended the strike and dip length of several veins • Successfully extended Upper Country Lead Zone (UCLZ) and 133 Vein adjacent to current production areas on th
Slide 14: Galena Complex Updated Resource
GALENA COMPLEX UPDATED RESOURCE • Exploration already paying dividends (June 2019 to June 2020) • M&I1 silver increased by 36% from 27.3 Moz to 37.3 Moz • Inferred1 silver resource increased >100% from 39.0 Moz to 78.5 Moz • Finding cost per silver ounce: ~$0.05/ounce • Reflects only 33% of planned
Slide 15: 3200 Level Drilling - UCLZ
3200 LEVEL DRILLING - UCLZ No. 3 Shaft Galena Shaft Callahan Shaft Legend 32-093 (2.6’/13/16.8%) %PB (2.3’/8.9/9.9%) 2019 RSC 3200 Lvl 2020 RSC 32-097 Mine (2.2’/17.3/19.9%) Workings 32-099 (3.2’/4.6/11.8%) Drillhole Drillhole Number (Comp Width/OPT Ag/%Pb) 4300 Lvl Not to scale Long Section Looking
Slide 16: 5200 Level Drilling - 360 Complex
5200 LEVEL DRILLING - 360 COMPLEX Not to scale NYSE American USAS | TSX USA 1. The intercepts shown were disclosed as part of the Company’s August 17, 2020 press release available 16 on our website at www.americas-gold.com
Slide 17: 4300 Level Drilling - 360 Complex
4300 LEVEL DRILLING - 360 COMPLEX Not to scale • Drill intercepts1 from additional drilling since the current MRMR estimate NYSE American USAS | TSX USA 1. The intercepts shown were disclosed as part of the Company’s October 22, 2020 press release available 17 on our website at www.americas-gold.com
Slide 18: Deep Exploration
DEEP EXPLORATION • Drilling extensions of the known veins at depth below current infrastructure includes: • Down-dip projection of the 72 Vein (major contributor of ore during the peak silver production years of 2000-2004) • The “triple point”, where the high-grade 175, 185 and Silver veins are proj
Slide 19: Geology at Depth Galena Complex
GEOLOGY AT DEPTH GALENA COMPLEX • Depth potential not impacted by major fault systems NYSE American USAS | TSX USA 19
Slide 20: Deep Exploration Focus Areas
DEEP EXPLORATION FOCUS AREAS Not to scale NYSE American USAS | TSX USA 20
Slide 21: 5500 Level – 72 Vein
5500 LEVEL – 72 VEIN Not to scale • With the exception of 55-124, drill intercepts1 from additional drilling since the current MRMR estimate NYSE American USAS | TSX USA 1. The intercepts shown were disclosed as part of the Company’s October 17, 2020 and October 22, 2020 21 press release available o
Slide 22: 5500 Level – "Triple Point"
5500 LEVEL – “TRIPLE POINT” Not to scale • Drill intercepts1 from additional drilling since the current MRMR estimate NYSE American USAS | TSX USA 1. The intercepts shown were disclosed as part of the Company’s October 22, 2020 press release available 22 on our website at www.americas-gold.com
Slide 23: 5500 Level – 360 Complex/Caladay
5500 LEVEL – 360 COMPLEX/CALADAY Not to scale • Over 7,000m of planned drilling targeting zones down plunge • Potential to extend 550m below 4900 Level into more favorable host rocks • Discoveries could be accessed by new decline or Caladay shaft extension NYSE American USAS | TSX USA 23
Slide 24: Longer Term Potential Galena Complex
LONGER TERM POTENTIAL GALENA COMPLEX Long Section View Looking North Not to scale • Green represents digitized structural and lithological data • Several areas remain to be added to the data set • Structural analysis is advancing to identify the next orebody NYSE American USAS | TSX USA 24
Slide 25: Longer Term Potential Galena Complex
LONGER TERM POTENTIAL GALENA COMPLEX • Anticipate continued additions in June 2021 resource update on completion in H1-2020 of Phase 1 drilling • Phase 2 plans being refined as new data is received • Bring Galena and Silver Valley back to glory days • Company sees path to increasing production to 5
Slide 26: Silver Valuations
SILVER VALUATIONS1 • Consensus values Galena at US$47m (US$0.46/oz) • Average EV/oz multiple for the silver industry based on companies listed in chart is US$3.06/oz – 7x consensus valuation for Galena • Clearly a wide valuation gap exists Source: Company disclosure; Analyst estimates; Desjardins Ca
Slide 27: Appendix
APPENDIX NYSE American USAS | TSX USA 27
Slide 28: Galena Mineral Reserves
GALENA MINERAL RESERVES Proven and Probable Mineral Reserves - June 30, 2020 Silver Mineral Reserves Proven Probable Proven and Probable Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Property (kt) (g/t) (koz) (kt) (g/t) (koz) (kt) (g/t) (koz) Galena - Ag-Pb (60%) 135 253 1,100 344 247
Slide 29: Galena Mineral Resources
GALENA MINERAL RESOURCES Measured and Indicated Mineral Resources - June 30, 2020 Silver Mineral Resources - Exclusive of Mineral Reserves Measured Indicated Measured and Indicated Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Property (kt) (g/t) (koz) (kt) (g/t) (koz) (kt) (g/t) (koz)
Slide 30: Galena Mineral Resources
GALENA MINERAL RESOURCES Inferred Mineral Resources - June 30,2020 Silver Mineral Resources Inferred Tonnes Grade Ounces Property (kt) (g/t) (koz) Galena - Ag-Pb (60%) 2,637 377 31,979 Galena - Ag-Cu (60%) 643 733 15,156 Galena Total (60%) 3,280 447 47,135 Lead Mineral Resources Inferred Tonnes Grad
Slide 31: Notes for Mineral Reserves and Resources Estimates
NOTES FOR MINERAL RESERVES AND RESOURCES ESTIMATES CIM (2014) Definition and Standards were followed for Mineral Reserve and Mineral Resource Estimates. Mineral Reserves are estimated at a net smelter return (“NSR”) cut-off value of US$198/tonne at Galena. The NSR cut-off is calculated using recent
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