Kootenay Silver Inc. · TSXV:KTN
Kootenay Silver — Investor Presentation (April 2017)
25 slides from Kootenay Silver's investor presentation, April 2017
Slide 1: Silver Asset Development, New Discoveries, Consolidation
KTN – TSX.V SILVER ASSET DEVELOPMENT NEW DISCOVERIES CONSOLIDATION PROMONTORIO LA NEGRA LA CIGARRA CORPORATE PRESENTATION I APRIL 2017 KTN: TSX.V I CORPORATE PRESENTATION I APRIL 2017
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation may contain “forward-looking statements” with the meaning of Canadian securities legislation. These statements can be identified by the use of words such as "expected", "may", "will" or similar terms. Forward-looking statements are necessarily based upon
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS ESTABLISHED SILVER BANK OVER 140Moz SILVER EQV (M&I)* TOP TIER JUNIOR OWNED SILVER ASSETS RESOURCE GROWTH POTENTIAL FOR FUTURE CASH FLOW DISCOVERY UPSIDE STRONG CAPITAL STRUCTURE * Full Resource tables for La Cigarra and Promontorio can be found on pages 13 and 26
Slide 4: 2017 Strategic Objectives
2017 STRATEGIC OBJECTIVES 1. LA CIGARRA (GROWTH & DEVELOPMENT) UP TO 15,000 Meters Drilling Planned PRIORITIZE 11 Peripheral Targets for Drill Testing; DRILL Peripheral Targets including Ram and Soledad (up to 7,500 meters); DRILL along extension of La Cigarra Deposit (up to 7,500 meters)
Slide 5: Silver Resources & Growth
SILVER RESOURCES & GROWTH LA NEGRA LA CIGARRA PROMONTORIO MEXICO Resource Definition Project Development KTN: TSX.V I CORPORATE PRESENTATION I APRIL 2017 5
Slide 6: La Cigarra Resource Upside: Why We Think It Will Get Bigger
LA CIGARRA RESOURCE UPSIDE WHY WE THINK IT WILLWh GET BIGGER Under explored 18,000 hectare land package in the prolific Parral Mining Camp The Parral mining camp continues to discover and mine deposits after 500 years Two largest producers are only 5 and 20 kilometers south of La Cigarra and o
Slide 7: La Cigarra Resource Upside
LA CIGARRA RESOURCE UPSIDE 2.1 billion ounces silver 840Moz Ag resource historical production or resource 51M oz Ag (M&I) 11.5M oz Ag (Inf.) 531 Moz Ag production & resource 150Moz Ag historical production 281M oz Ag production & resource KTN: TSX.V I CORPORATE PRESENTATION I APRIL 2017 7
Slide 8: La Cigarra Resource
LA CIGARRA RESOURCE In-Situ Grade Contained Metal Resource Tonnes Ag Au Pb Zn Category* Ag (oz) Au (oz) Pb (lbs) Zn (lbs) (g/t) (g/t) (%) (%) Measured 3,620,000 88.9 0.074 0.14 0.19 10,340,000 9,000 10,920,000 15,510,000 Indicated 14,930,000 85.7 0.068 0.13 0.18 41,130,000 33,000 42,950,000 59,260,0
Slide 9: La Cigarra Resource Upside: Why We Think It Will Get Bigger
LA CIGARRA RESOURCE UPSIDE WHY WE THINK IT WILL GET BIGGER La Cigarra deposit is open in all three directions There are 11 targets outside of the resource Only four of these have any drilling KTN: TSX.V I CORPORATE PRESENTATION I APRIL 2017 9
Slide 10: La Cigarra Resource Upside: Why We Think It Will Get Bigger
LA CIGARRA RESOURCE UPSIDE WHY WE THINK IT WILL GET BIGGER La Cigarra Project showing size of anomalous area with 8 of 11 peripheral areas KTN: TSX.V I CORPORATE PRESENTATION I APRIL 2017 10
Slide 11: Las Carolinas Zone – Drill Plan
LAS CAROLINAS ZONE – DRILL PLAN KTN: TSX.V I CORPORATE PRESENTATION I APRIL 2017 11
Slide 12: Las Carolinas – Cross Section
LAS CAROLINAS – CROSS SECTION KTN: TSX.V I CORPORATE PRESENTATION I APRIL 2017 12
Slide 13: Potential for Higher Grade Deposit
POTENTIAL FOR HIGHER GRADE DEPOSIT Silver cut-off from 35 g/t to 50 g/t increases average grade of 86.3 g/t to above 100 g/t (Resource blocks shown below are modeled above a 50 gpt silver cutoff) La Cigarra Project 2015 Mineral Resource at 50 g/t silver cut-off* Category* Cut-off Tonnes Ag (g/t) Ag
Slide 14: La Cigarra Development Initiatives
LA CIGARRA DEVELOPMENT INITIATIVES Remodel Resource with objective to improve grade and define higher silver grade drill targets DRILL along extension of La Cigarra deposit (up to 7,500m) DRILL Peripheral Targets (up to 7,500m) Update Resource Estimate; and Set timeline of Preliminary Econ
Slide 15: Promontorio Mineral Belt
PROMONTORIO MINERAL BELT Optioned to Pan American Silver (PAAS) Hosts two major silver discoveries: Promontorio & La Negra New high-grade La Negra silver discovery Numerous additional targets within a 6.5km x 15km area, including the Promontorio (2013)* Tonnage Grade Contained Cameron-Vania
Slide 16: La Negra High Grade Discovery
LA NEGRA HIGH GRADE DISCOVERY 6,500 meters planned for 2017 Promontorio with June start up 7 km 6,800 meters over 31 holes drilled to date by PAAS High-grade silver intercepts to La Negra 300m vertically from surface Open Pit Low Cost Potential Surface footprint of ~500m x 200m High-grade
Slide 17: La Negra Cross Section
LA NEGRA CROSS SECTION La Negra Section 627500E KTN: TSX.V I CORPORATE PRESENTATION I APRIL 2017 17
Slide 18: Kootenay - Pan American Carried to Production Deal
KOOTENAY - PAN AMERICAN (PAS) CARRIED TO PRODUCTION DEAL Provides pathway to production and future cash flow Augments and strengthens consolidation platform KTN carried interest mitigates project and finance risk To earn 75% PAAS invests: – US$16 million in work and cash payments; pay up fro
Slide 19: Prospect Generator Portfolio
PROSPECT GENERATOR PORTFOLIO Exploration Properties Optioned Properties Canada Copley Silver Fox – Antofagasta Spike’s Big Adventure 2X Fred, Fox – Theia Resources Walter the Water Buffalo Connors Creek Exploration Properties Optioned Properties Mexico Santa Lucia Cervantes – Aztec Metals Guadalupe
Slide 20: Capital Structure
CAPITAL STRUCTURE Exchange (Tier 1) TSX.V (“KTN”) Issued & Outstanding(1) 174.69m Pan American, 10% Options 15.99m Warrants 45.76m Retail & Other,24% Fully Diluted(1) 236.44m Current Market Cap(2) CAD ~$53.3m KTN Institutions, 35% Condire, 6% KTN (shares 52-week High/Low) CAD$0.60/$0.265 Average Dai
Slide 21: Board and Management Team
BOARD AND MANAGEMENT TEAM FROM DISCOVERY TO OPERATIONS MINE BUILDING • James McDonald - Alamos • Andrea Zaradic - Diamet FINANCE & LEGAL FINANCE & MARKETING • Raj Kang - Salares • Ken Berry - Northern Vertex • Jon Morda - Alamos • Tony Reda - Kaminak Gold • Joe Giuffre - Nevsun EXPLORATION • Tom Ric
Slide 22: 2017 Strategic Objectives and Catalysts
2017 STRATEGIC OBJECTIVES AND CATALYSTS La Cigarra Drill Program La Cigarra drilling on La Cigarra Resource focused on Deposit peripheral targets RAM Update Expansion (up to 7,500m) and Soledad etc. (up to 7,500m) Q2 2017 Q3 2017 Q4 2017 Q1 2018 La Negra Drill Program by Pan Set timeline f
Slide 23: Kootenay – Why Invest?
KOOTENAY – WHY INVEST? STRONG POTENTIAL FOR VALUE RE-RATING SIGNIFICANT LEVERAGE TO SILVER PRICE TOP TIER JUNIOR OWNED SILVER ASSETS 3 DRILL PROGRAMS TO EXPAND SILVER RESOURCES RESOURCE UPDATE AT LA CIGARRA SILVER DEPOSIT PATH TO PRODUCTION AT PROMONTORIO & LA NEGRA PROJECTS LARGE PORT
Slide 24: Contact Us
CONTACT US KOOTENAY SILVER INC. 1055 West Hastings Street, Suite #1820 Vancouver, BC, V6E 2E9, Canada Tel: (604) 601-5650 Fax: (604) 683-2249 Toll free: (888) 601-5650 E-Mail: [email protected] Website: www.kootenaysilver.com Twitter: https://twitter.com/KootenaySilver KTN: TSX.V I CORPORATE P
Slide 25: Appendix – Promontorio
APPENDIX – Promontorio KTN: TSX.V I CORPORATE PRESENTATION I APRIL 2017 25