Southern Silver Exploration Corp. · TSXV:SSV
Southern Silver Exploration — Investor Presentation (May 2012)
32 slides from Southern Silver Exploration's investor presentation, May 2012
Slide 1: Corporate Presentation May 2012
SEG: FSE Corporate Presentation EXPLORATION CORP May 2012
Slide 2: Forward Looking Statement
Forward Looking Statement 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 stat
Slide 3: Southern Silver Exploration Corp.
Southern Silver Exploration Corp. Southern Silver is a junior exploration company with projects in Arizona, New Mexico and Mexico Cerro Las Minitas, Mexico • Silver-polymetallic • Skarn/carbonate replacement Dragoon, Arizona • Porphyry copper-moly • Optioned to Freeport McMoran Oro, New Mexico • Por
Slide 4: Mexico & Arizona
Mexico & Arizona Two of the most prolific metallogenic regions in the world Mexico • 144+ million oz annual silver production • Reserves, resources and past production of 3+ billion oz silver Arizona • $5+ billion annual copper production • Multiple 1+ billion tonne deposits 4
Slide 5: Mining Investment Opportunities in Mexico
Mining Investment Opportunities in Mexico Largest silver producer in the world • 144+ million oz/annum 2nd largest gold reserves in Latin America No limit of ownership of concession surfaces Favourable foreign investment policy and mining law Competitive cost structure for mineral exploration & prod
Slide 6: Mexico is the Top Silver Producer in the World
Mexico is the Top Silver Producer in the World Mexico produces 18% of the world’s silver Others 14% Mexico Argentina 18% 3% Russia 5% Poland 5% United States Peru 5% 16% Bolivia 6% Chile China 6% 14% Australia 8% Mexico silver production • 144 million oz/annum by the end of 2011 6
Slide 7: Faja de Plata – Belt of Silver
Faja de Plata – “Belt of Silver” Multiple world-class mineral deposits • 3+ billion oz silver Penasquito (Goldcorp Inc.) • 1.07B oz Ag, 18.2M oz Au, 7.8B lbs Pb and 17.8B lbs Zn La Preciosa (Orko Silver) • 185M oz Ag and 305,000 oz Au Santa Eulalia (Grupo Mexico) • 45M tonnes of 310 g/T Ag, 7.1% Zn
Slide 8: Cerro Las Minitas
Cerro Las Minitas Option Terms • Option to acquire 100% of 15,125 ha project in historic mining district • $900,000 paid • $3,100,000 left to pay by Dec. 31 2013 Mill Site • Surface rights for potential mill site were fully purchased for 50,000 shares and $40,000 in 2011 8
Slide 9: Cerro Las Minitas
Cerro Las Minitas Infrastructure 15,125 ha • Located just 70km NE of the city of Durango (population 631,712) • Highway, road access and power lines 9
Slide 10: Cerro Las Minitas
Cerro Las Minitas Airborne Magnetic Survey ● Completed in February 2011 ● Entire property surveyed (1,100 ln-Km) Current Target Area ● Suggests 6 additional targets along 25km strike length 3 1 2 4 5 6 10
Slide 11: Cerro Las Minitas
Cerro Las Minitas Looking North from the Autopista Blind Zone Mina Santo Nino Mina la Bocona (New Discovery) (Target) (Target) 11
Slide 12: Cerro Las Minitas
Cerro Las Minitas Known Mineralization Zone UNTESTED TARGETS • Drilling commenced in 2011 • 61 holes completed – 15, 276 m MINA SANTO NINO • 8 targets tested - New Blind NORTH SKARN MINA LA BOCONA geophysics target discovered EL SOL ZONE • Silver-enriched polymetallic and Copper-Gold polymetallic id
Slide 13: Cerro Las Minitas
Cerro Las Minitas Developing the Property North Skarn 11CLM-003 UNTESTED TARGETS • 2.1m of 100 Ag g/t, 1.4 Cu%, 0.2 Pb%, 3.1 Zn% Mina Santo Nino MINA SANTO NINO 11CLM-006 • 17.4m of 51 Ag g/t, 0.4 Cu%, 0.2 Pb%, 4.7 Zn% NORTH SKARN MINA LA BOCONA • Including 3.7m of 184 Ag g/t, 2.0 Cu%, 0.3 Pb%, EL S
Slide 14: Blind Zone Intercept Table
Cerro Las Minitas Blind Zone Intercept Table BLIND ZONE TARGET From To Interval Ag Au Cu Pb Zn AgEq Hole No. m m m g/t g/t % % % g/t 11CLM-008 74.5 75.1 0.6 166 0.0 0.3 5.9 7.9 560 168.4 171.4 3.0 895 0.2 0.0 13.8 11.6 1584 inc. 168.4 168.9 0.5 260 0.2 0.0 10.5 17.2 1004 and inc. 169.6 171.4 1.8 140
Slide 15: Blind Zone Intercept Table - Continued
Cerro Las Minitas Blind Zone Intercept Table - Continued BLIND ZONE TARGET From To Interval Ag Au Cu Pb Zn AgEq Hole No. m m m g/t g/t % % % g/t 11CLM-024 119.1 124.7 5.7 71 0.2 0.1 1.8 1.5 177 inc. 119.1 120.0 0.9 92 0.2 0.2 2.7 2.9 265 11CLM-025 NSV 11CLM-026 69.0 72.0 3 165 0.0 0.1 5.5 4.5 441 10
Slide 16: Non-Blind Zone Intercept Table
Cerro Las Minitas Non-Blind Zone Intercept Table OTHER ZONE TARGET From To Interval Ag Au Cu Pb Zn AgEq Hole No. m m m g/t g/t % % % g/t 11CLM-001 296.2 297.4 1.2 99 0.0 0.1 0.0 0.0 115 11CLM-007 178.2 178.8 0.6 71 0.1 0.0 0.9 0.1 103 LA BOCONA TARGET 11CLM-002 93.7 94.3 0.6 94 0.0 0.0 1.6 3.3 227 1
Slide 17: Cerro Las Minitas
Cerro Las Minitas Planned for 2012 • Drilling resumed in Jan 2012 with UNTESTED TARGETS two core rigs • +10,000 metres planned Q1-Q2 MINA SANTO NINO 5000 m completed Q1 NORTH SKARN MINA LA BOCONA • Delineation drilling - Blind Zone EL SOL ZONE • Additional geophysical and geological targets to be te
Slide 18: Planned for 2012 in CLM
Planned for 2012 in CLM • Proposed Exploration Expenditure: $4,040,000 • 20,000+ metres of drilling – definition drilling on the Blind Zone; identification of new mineral deposits • NI 43-101 Resource Estimate for Q4 • Preliminary Engineering - Metallurgy - Conceptual modeling/mine planning - Site p
Slide 19: Corporate Comparables in Mexico
Corporate Comparables in Mexico Company Deposit Stage Interest Au (Moz) Ag (Moz) Cu (Mlb) Pb (Mlb) Zn (Mlb) Mo (Mlb) AgEquiv (Moz) Total Resource Value* (M$) Market Cap (M$)** Soltoro Ltd. Las Bolas/Highway Resource 100% 58.3 58.3 $58.30 $51.20 Great Panther Silver Guanajuato Production 100% 0.08 7.
Slide 20: Dragoon
Dragoon Arizona Option Terms • Option agreement signed in 2007 to acquire 100% of the property • $390,000 US paid • $300,000 US left to pay by August 28, 2012 - payable by FMEC Freeport McMoRan Exploration Corporation (FMEC) • FMEC signed option agreement in 2009 with SSV • FMEC has spent $1,300,000
Slide 21: Dragoon Property
Dragoon Property Targeting deep high-grade copper-molybdenum mineralization Contiguous 12.8 sq km block Drilling • Exposed Laramide intrusive; geothitic leached capping and local quartz-stockworks • Drill indicated Cu-Mo mineralization in gravel covered areas 12DS-03 Current drill hole • 4 holes dri
Slide 22: Dragoon
Dragoon Schematic Cross-Section Target: High-grade 1+% enriched Cu deposit DS-12-3 (projected 200 m from the north) Approx.. location 402m grading 0.05% Cu New Cu-Mo Porphyry discovery 527m grading 0.06% Cu Inc. 85m of 0.1% Cu and 12m of 0.2% Cu 22
Slide 23: Model Mine for Dragoon
Model Mine for Dragoon Resolution Mine, Arizona Deep High-grade Porphyry Cu-Mo • Location: 150km NW of Dragoon • Tonnage: 1.624B tonnes of 1.47% Cu, 0.037% Mo • Discovery: 1,500+ m below surface • Underground Mining Scenario: 2100m development shaft under construction • Socio-Economic Impact: Projec
Slide 24: Oro
Oro New Mexico Transitional from Faja de Plata to the Arizona Copper Belt • Historic mining district from the early 1900s; multiple high-grade targets Southern Silver’s Oro property claims patents and leases • 17.2 sq. km comprised of: • 8 mineral patents • 2 state leases Infrastructure • Road acces
Slide 25: Oro Property
Oro Property 2012 Target: Bulk Tonnage Gold Deposit types • New bulk tonnage, near surface OR11-009 gold target (Stock Pond Gold) Stock Pond Gold Target • Copper porphyry/skarn potential at depth King Geophysics Airborne Vein Magnetic Target National • 5 sq. km target area Mine OR11-007 • Surface IP
Slide 26: Southern Silver: 2012
Southern Silver: 2012 Cerro Las Minitas - $6 million • Continued drilling: 20,000+ metres, 30+ holes • Blind Zone definition drilling and new targeting Dragoon - $0.15 million • Monitoring FMEC progress • $1.7 M to be spent by FMEC • 4 holes permitted, 5 holes pending Oro - $1 million • Down hole IP
Slide 27: Corporate Information
Corporate Information Contact: Share Ownership Liana Shahinian VP Corporate Development Management & Close Associates liana@mnxltd.com • 13% Tel: 604.641.2773 Head Office: Libra Advisors, LLC Southern Silver Exploration • 10.7% Suite 1100-1199 West Hastings St. Vancouver, BC, V6E 3T5, Canada Sprott
Slide 28: Capitalization
Capitalization Market Cap as of May 1, 2012 Warrants Outstanding • $5.4 Million @ $0.04/share • 72,047,946 Cash Finder’s Warrants • $1.5 Million • 3,990,392 Debt Options Outstanding • $0 • 6,340,000 Shares Outstanding Fully Diluted • 128,240,913 • 210,646,251 28
Slide 29: Warrants & Finder's Warrants
Warrants & Finder’s Warrants Finder’s Warrants 29
Slide 30: Management & Directors
Management & Directors Directors Senior Management Lawrence Page, QC, Director Lawrence Page, QC, President, R. Dale Janowsky, QC, Director Maheseh Liyanage, CFO Roger Scammell, Director, VP Exploration Robert Macdonald, General Manager, Exploration Terrence E. Eyton, Director Adrian Robles, Senior
Slide 31: Management & Directors
Management & Directors • Lawrence Page – As the principal and founder of the Manex Resource Group, Lawrence Page brings over 45 years of experience in corporate and securities law, and has been a director and officer of public companies which have discovered and brought mines such as Eskay Creek, Ma
Slide 32: Notes
Notes 4 SouthernSilver SSV.TSX-V EXPLORATION CORP 32 SEG: FSE
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