Silver Mines Limited · ASX:SVL
Silver Mines — Investor Presentation (August 2017)
42 slides from Silver Mines's investor presentation, Aug 30, 2017
Slide 1: Building the largest pure silver company in the Southern Hemisphere
‘Building the largest pure silver company in the Southern Hemisphere’ Development, Extensions and Exploration ASX:SVL Corporate Presentation Aug-Sept 2017
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 involves unknown risk
Slide 3: Silver Mines Limited Introduction
Silver Mines Limited Introduction • Feasibility • Development of the largest undeveloped silver deposit in Australia and one of the largest globally. • Late stage Definitive Feasibility Study. • Exploration: • Confirmed significant extensions to mineralisation. • Discovered new high-grade zones at d
Slide 4: Silver Mines Limited Snapshot
Silver Mines Limited Snapshot Capital Structure Shares on Issue 390.3m Options Current Share Price A$0.10 Oct 2017 @ $0.30 23.4m Undiluted Market Capitalisation A$39.0m Jun 2018 @ $0.30 10.7m Cash as at end June 2017 A$3.5m Jun 2019 @ $0.30 8.0m Directors (refer to Appendix 4) Institutional Sharehol
Slide 5: Quality Jurisdiction
Quality Jurisdiction TAS Wy New South Wales > SILVER MINES LIMITED
Slide 6: Resource Inventory Bowdens Silver Resource Upgrade Due
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 Silver* 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 * Bowdens Silver resource estimation conduc
Slide 7: 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 completion early 2018. • Fast track to mine development. 2. Aggressively explore surrou
Slide 8: Bowdens Silver: The Largest Undeveloped Silver Project in Australia
Bowdens Silver The Largest Undeveloped Silver Project in Australia 8
Slide 9: Bowdens Silver Project – Brief History
Bowdens Silver Project – Brief History • Originally discovered by CRA, and drilled by Silver Standard. • Purchased by Silver Mines in June 2016 from Kingsgate. • The largest undeveloped silver deposit in Australia and one of the largest globally. • Approximately A$70 million spent on the project to
Slide 10: The Permian of Eastern Australia
The Permian of Eastern Australia • The Permian volcanics of eastern Australia contain high-grade, epithermal and porphyry related gold, copper, silver and base-metal deposits. • The Bowdens Silver Project is a SILVER rich system but has geological affinities to GOLD and COPPER rich deposits such as
Slide 11: Regional Geology
Regional Geology • Extensive tenement holding (1,654 km2 = 408,000 acres). • Northeast corner of Lachlan Fold Belt, coal bearing Sydney and Gunnedah basins to the east. • Wide range of prospective deposit types over different time periods (Siluro-Devonian, Carboniferous, Permian). • Bowdens Silver e
Slide 12: Bowdens Silver Resource
Bowdens Silver Resource (Refer to Appendix 1 for further details) • Kingsgate 2012 resource based on 63,000 metres drilling. What’s new? • Silver Mines resource upgrade due September 2017 based on 90,000 metres drilling. • Identified structurally controlled high-grade zones along the eastern flank.
Slide 13: Drilling
Drilling Silver Mines drilling has focused on: • Both infill and extensional drilling. • Oriented core drilling enabling a detailed structural interpretation of high-grade zones. • Drilling intersecting basement Ordovician rocks resulting in new discoveries at depth. • Metallurgical drilling complet
Slide 14: Drilling: Resource extensions at depth
Drilling: Resource extensions at depth 14
Slide 15: High Grade Resource extensions to Northwest
High Grade Resource extensions to Northwest • New coherent high-grade discovery within and north of existing deposit and beneath proposed pit. • Entirely open and to be followed up with next round of drilling. 15
Slide 16: Massive Sulphide Discovery – Bowdens Deeps
Massive Sulphide Discovery – Bowdens Deeps • Massive to semi-massive sulphide discovery made in Feb/Mar 2017. • ~100 metres below the existing resource. • Significant gold content. • Results include 31.25m @ 23g/t Ag, 3.24% Zn, 1.88% Pb 0.3g/t Au (218g/t AgEq). • Zoned hydrothermal system. • High le
Slide 17: Bowdens Silver Exploration Upside – Building a World Class Mineral Field
Bowdens Silver Exploration Upside ̶ Building a World Class Mineral Field Extensions and at Depth 17
Slide 18: Metallogenic Model
Metallogenic Model • Surface to ~200metres: – The Bowdens Deposit is a high-level epithermal system with a large foot print (182Moz Ag Eq and growing). • 200-400 metres – At depth we see rapid progression to a base- metal rich system at Bowdens Deeps. • > 300 metres – Gold (+Copper) is increasing in
Slide 19: Major IP Anomaly Identified - Undrilled
Major IP Anomaly Identified - Undrilled • New IP survey suggests a major accumulation of sulphide minerals beneath the deposit to the south. • Is there a deep Mt Leyshon equivalent (>3mOz Au) or better? • Massive sulphide intersections on northern edge of IP anomaly. • Spectral mineralogy indicates
Slide 20: Testing the Depth Potential
Testing the Depth Potential 20
Slide 21: Major IP Anomaly Identified - Undrilled
Major IP Anomaly Identified - Undrilled 21
Slide 22: Upcoming Drill Program
Upcoming Drill Program • Initial 16 drill holes averaging 800 metres each for circa 13,000 metres planned. • Planning advanced for drill commencement in September 2017. 22
Slide 23: Bowdens Silver Exploration Upside: Regional
Bowdens Silver Exploration Upside ̶ Building a World Class Mineral Field Regional 23
Slide 24: Regional Targets
Regional Targets • Silver Mines developing regional intrusive phase mapping. • Identification of potential sites for caldera proximal deposits such as Bowdens Silver and Coomber. 24
Slide 25: Regional Targets
Regional Targets • Bowdens analogue targets: – Coomber – Gulgowra • Pb+Zn>Ag targets – Bara – Mt Laut • Au+Cu basement targets – Bara Deeps – Mt Laut Deeps 25
Slide 26: Other Bowdens Extensional Targets
Other Bowdens Extensional Targets • Walkers Meadow – broad geochemistry anomalism • Copper anomalism associated with Gum Ridge extrusive centre >85 percentile anomalism surface mineralisation from Plines 26
Slide 27: Coomber
Coomber • Located ~20 km south of Bowdens Silver. • Rylstone Volcanics hosted epithermal system. • Drill results including 32m @ 117g/t Ag Eq. • Exploration plan – IP Survey – Drilling 27
Slide 28: Bara
Bara • Located 7 km north of Bowdens Silver. • Ordovician Coomber and Adaminaby formations. • Mineralised porphyry outcropping (chalcopyrite). Historic Mine Spoil, Select Samples • Porphyry Au-Cu at depth. returned up to 75ppm Ag, 0.1% Cu, 3.2% Pb and 2.4% Zn • Zoned Ag, Cu, Pb geochemistry. • Explo
Slide 29: Bowdens Silver: Fast Track through Feasibility to Development
Bowdens Silver Fast Track through Feasibility to Development Mine plan to initially focus on high-grade / near surface 29
Slide 30: Since June 2016
Since June 2016 Corporate • Acquisition of 100% of Bowdens Silver Project. • New Board of Directors and Management. • ~A$40 million capital raised for acquisition and working capital. Project • Feasibility Study commenced for completion early 2018. • Environmental Impact Statement commenced for comp
Slide 31: Bowdens Silver Current Programs to Development
Bowdens Silver Current Programs to Development • Project de-risked with ~90,000m drilling complete. • Focus on fast-tracking feasibility and permitting. • Significant work underway. • Outstanding elements of Feasibility Study. • Focus on capital cost-effective development and enhanced project econom
Slide 32: Bowdens Silver Project
Bowdens Silver Project • Resource of 134 Moz of silver (182 Moz of silver equivalent). • Feasibility Study nearing completion. • Environmental Impact Statement nearing completion. • Flat lying deposit at surface – easy to mine and very low strip ratio. • Classified as “State Significant Development”
Slide 33: Bowdens Silver Development
Bowdens Silver Development • Primary Feasibility Study works by GR Engineering, AMC and ATC Williams. • Smaller, more robust lower impact development planned. • 2.0 million tonnes per annum ore. • Strip ratio less than 2:1. • Mine life minimum 17 years (likely to be much longer). • Development capit
Slide 34: Bowdens Silver Development
Bowdens Silver Development 34
Slide 35: Summary
Summary Largest undeveloped silver deposit in Australia and one of the largest globally - extensive exploration play. Massive IP anomaly directly beneath major silver deposit. New high-grade massive sulphide discovery. Drilling shows extensions to current resource. Resource upgrade pending
Slide 36: Building the largest pure silver company in the Southern Hemisphere
‘Building the largest pure silver company in the Southern Hemisphere’ For further information please contact: Anthony McClure, Managing Director ASX:SVL Corporate Presentation Aug-Sept 2017 36
Slide 37: Appendix 1 – Bowdens Silver Resource
Appendix 1 – Bowdens Silver Resource Bowdens Silver Mineral Resource Estimate (30g/t AgEq cut-off), November 2012 Tonnes Silver Silver Lead Zinc Ag Eq Silver Ag Eq Resource 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
Slide 38: 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 39: Appendix 3 – Webbs Resource Estimate
Appendix 3 – Webbs Resource Estimate Webbs Mineral Resource Estimates Tonnes Silver Silver Copper Lead Zinc Ag Eq Ag Eq Resource Category (Million) (g/t) (Moz) (%) (%) (%) (g/t) (Moz) 470 Measured 0.194 364 2.3 0.29 0.75 1.67 2.9 341 Indicated 0.775 245 6.1 0.26 0.70 1.49 8.5 Inferred 0.522 201 3.4
Slide 40: Appendix 4 – Board of Directors
Appendix 4 ̶ 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 Ad
Slide 41: Appendix 5 – Company Announcements
Appendix 5 – Company Announcements Refer to Company Announcements for full JORC details for drill results announced Date Headline Date Headline 28/08/2017 Change of Director's Interest Notice 26/04/2017 Update on Bowdens Silver Drilling Program 21/08/2017 Change in Substantial Shareholding 11/04/201
Slide 42: Competent Persons Statements
Competent Persons Statements Bowdens Silver Resource Estimation The information in this report that relates to the Bowdens Silver 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 Aus