Kootenay Silver Inc. · TSXV:KTN
Kootenay Silver — The Silver & Gold Summit 2016
24 slides from Kootenay Silver's conference presentation, Nov 14, 2016
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 THE SILVER & GOLD CONFERENCE 2016 KTN: TSX.V I CORPORATE PRESENTATION I THE SILVER & GOLD SUMMIT 2016
Slide 2: Forward Looking Statements
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
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS LARGE DIVERSIFIED RESOURCE BASE +144 Moz AgEq M&I with 35Moz Ag Eq Inf. – provides strong leverage to silver price CAPITAL STRUCTURE $7.0M cash to execute business plan over next 12 to 18 months Strategic shareholders: Pan American, Coeur, Agnico, Gold 2000, Sprott PATH T
Slide 4: Milestones - Past 36 Months
MILESTONES - PAST 36 MONTHS 2013Q2 - UPDATED RESOURCE CALCULATION ON PROMONTORIO - 92Moz AgEq in M&I categories with 24.3Moz AgEq INF. 2014Q3 - DRILLING CONFIRMS 2nd NEW SIGNIFICANT SILVER DISCOVERY ON PROMONTORIO MINERAL BELT – (La Negra Silver Discovery) 2015Q1 - ACQUIRES 52 Moz Ag M+I and 11 Moz
Slide 5: Goals - Next 18 Months
GOALS - NEXT 18 MONTHS RESOURCE EXPANSION – with drilling underway at La Negra and La Cigarra testing 12 targets in total INITIAL RESOURCE CALCULATION on La Negra RESOURCE UPDATE & ECONOMIC ASSESSMENT on La Cigarra RESOURCE ADDITION via acquisition/consolidation ATTAIN new high impact earl
Slide 6: Capital Structure
CAPITAL STRUCTURE Exchange (Tier 1) TSX.V (“KTN”) Issued & Outstanding(1) 174.39m Pan American, 10% Options 9.66m Warrants 57.11m Retail & Other,24% Fully Diluted(1) 244.16m Current Market Cap(2) CAD ~$76.52m KTN Institutions, 35% Condire, 6% KTN (shares 52-week High/Low) C $0.60/ $0.165 Average Dai
Slide 7: Board and Management Team
BOARD AND MANAGEMENT TEAM FROM DISCOVEREY TO OPERATIONS MINE BUILDING • James McDonald - Alamos • Dick Whittington – Farallon • Andrea Zaradic - Diamet FINANCE & LEGAL FINANCE & MARKETING • Jon Morda - Alamos • Ken Berry - Northern Vertex • Joe Giuffre - Nevsun • Tony Reda - Kaminak Gold • Raj Kang
Slide 8: Consolidation Strategy
CONSOLIDATION STRATEGY CONSOLIDATION THESIS CONSOLIDATION PRECEDENT Purchasing silver resources at less HISTORIC SECTOR PERFORMANCE than finding costs provides an efficient $5,000 Pan American $60 $4,500 way to build a large resource base and First Majestic $50 $4,000 Silver Standard leverage to s
Slide 9: Projects Provide Opportunities for Discovery, Development & Consolidation
PROJECTS PROVIDE OPPORTUNITIES FOR DISCOVERY, DEVELOPMENT & CONSOLIDATION LA NEGRA LA CIGARRA PROMONTORIO MEXICO DISCOVERY in prospect generator portfolio RESOURCE DEVELOPMENT at La Cigarra PATH TO PRODUCTION with carried interest at Promontorio & La Negra Resource Definition Project Developme
Slide 10: La Cigarra Overview
LA CIGARRA OVERVIEW Located in Chihuahua State, Mexico, within the Historic Parral Silver District - over 18,000 hectares in size - 26 Km from the city of Parral close to power, rail and highway 100% owned with surface rights obtained for mining operations Excellent relations with local commun
Slide 11: La Cigarra Resource
LA CIGARRA RESOURCE Resource estimate incorporates data from 156 of 173 drill holes Pit constrained, potentially surface minable area comprised of the San Gregorio and Las Carolinas mineralized zones Significant expansion potential; open along strike at both ends and at depth La Cigarra Tonnag
Slide 12: La Cigarra Exploration Potential
LA CIGARRA EXPLORATION POTENTIAL Numerous targets provide potential to increase resource and grade Mineralized structure over 6 km of strike – Hosts La Cigarra Resource Deposit remains open along strike to the NW and SE, and at depth Undrilled targets include: – RAM Zone – La Soledad Zone –
Slide 13: High Grade Potential
HIGH GRADE POTENTIAL Geological modeling to evaluate potential to expand higher grade zones and improve grade (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 (oz) Measured >
Slide 14: High Grade Potential
HIGH GRADE POTENTIAL Higher cut offs show continuity of blocks and potential for expansion. (Resource blocks shown below are modeled above a 75 gpt silver cutoff) 2.4 kilometres ? 200 metres ? ? ? ? ? ? ? Note: * Values in this table are reported in relation to a conceptual pit shell at a $22/oz sil
Slide 15: Promontorio Mineral Belt
PROMONTORIO MINERAL BELT Optioned to Pan American Silver 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 Cameron-Vania trend Promontorio (2013)* Tonnage Grade Contained I
Slide 16: La Negra Discovery
LA NEGRA DISCOVERY High-grade silver intercepts to Promontorio 300m vertically from surface 7 km Open Pit Low Cost Potential Surface footprint of ~500m x 200m Metallurgy indicates potential La Negra for leach extraction in 80 to 90% Range 5,400m diamond drill program underway by Pan Americ
Slide 17: La Negra Recent Drill Results
LA NEGRA RECENT DRILL RESULTS Drill hole From (m) To (m) Interval (m) Ag gpt Drill hole From (m) To (m) Interval (m) Ag gpt LN-42-16 16.7 138.85 122.15 124 LN-46-16 151.80 212.55 60.75 76 Incl. 178.40 192.00 13.60 137 Incl. 35.65 41.90 6.25 693 LN-47-16 165.20 182.25 17.05 65 Incl. 46.45 51.10 4.65
Slide 18: La Negra Cross Section
LA NEGRA CROSS SECTION LA NEGRA - 627,500 DRILL HOLE SECTION LN-42-16 250m LN-42-16 (16.70 - 138.85m) 122.15m @ 124 g/t Ag LN-43-16 Inc. (35.65-41.90m) 6.25m @ 693 g/t Ag Inc. (46.45-51.10m) 4.65m @ 671 g/t Ag LN-44-16 Inc. (69.75-73.20m) 3.45m @ 631 g/t Ag LN-58-16 200m LN-43-16 (102.40 - 140.40m)
Slide 19: 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% PAS invests: – US$16 million in work and cash payments; pay up fron
Slide 20: Prospect Generator Portfolio
PROSPECT GENERATOR PORTFOLIO Exploration Properties Optioned Properties Canada Copley Silver Fox – Antofagasta Spike’s Big Adventure 2X Fred, Fox – Theia Resources Walter the Water Buffalo Connors Creek Exploration Properties Optioned Properties Mexico Santa Lucia Cervantes – Aztec Metals Guadalupe
Slide 21: Forward Plan & Catalysts
FORWARD PLAN & CATALYSTS Near Term Mid Term 3,000m drill program underway Update Resource Calculation La Cigarra Three phase drill plan to test undrilled PEA targets and strike of La Cigarra Resource Pan American Silver to evaluate Under Option to Pan American Silver Promontorio / projec
Slide 22: Silver Dev. / Exp. Peer Group
SILVER DEV. / EXP. PEER GROUP Market Cap. (C$M) (as at Nov. 11, 2016) $250 $211 $190 $200 $150 $96 $100 $67 $61 $54 $42 $50 $27 $0 Bear Creek Alexco SilverCrest Kootenay Silver Golden Arrow Orex Minerals Silver Bear Canasil Mining Resource Metals Resources KTN: TSX.V I CORPORATE PRESENTATION I THE S
Slide 23: Kootenay's Key Take-Aways
KOOTENAY’S KEY TAKE-AWAYS LEADING MEXICAN SILVER CONSOLIDATOR & DEVELOPMENT COMPANY • Combined 144Moz AgEq M&I with 35Moz AgEq Inf. …with more to come LARGE CAPITAL MARKETS PRESENCE • GREATER LIQUIDITY for shareholders PLATFORM FOR AGGRESSIVE GROWTH through: • RESOURCE DEVELOPMENT at La Cigarr
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