Silver Mines Limited · ASX:SVL
Silver Mines — Investor Presentation (August 2012)
24 slides from Silver Mines's investor presentation, August 2012
Slide 1: Investor Presentation
Silver Mines Limited Investor Presentation Charles Straw MANAGING DIRECTOR David Hobby EXPLORATION MANAGER
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by Silver Mines Pty Limited (Silver Mines or the Company) from currently available public domain information to provide background information to enable recipients to review the business activities of Silver Mines. It is not intended as an offer, invita
Slide 3: The company
the company Silver Mines Limited (ASX: SVL, PLUS: SVLP) Highly prospective silver focused projects in NSW Fully owned Webbs Silver Project is the highest grade undeveloped silver project in Australia, 11.75Moz at 245g/t Ag Positive metallurgical results indicate >90% silver recovery to doré bars Hig
Slide 4: The Market: ASX SVL 12 Month Share Price
THE MARKET ASX SVL 12 Month Share Price 148.6 million shares Market capitalisation $10.4m @ A$0.07/share 52 week high: A$0.330 52 week low: A$0.042 4 Silver Mines Limited Investor Presentation l August 2012
Slide 5: The Market: 5 year Silver Price
THE MARKET 5 year Silver Price S trong industrial growth in the developing world has increased demand, particularly for silver Annual average price in 2011: A$35.12* A nnual average price in 2009: A$14.67* * Source: The Silver Institute’s World Silver Survey 2012 Silver Mines Limited Investor Presen
Slide 6: Competitor Comparison
COMPETITOR COMPARISON S VL Resource Grade is a standout amongst our competitors E xcellent chance of substantial resource increase at Webbs U nlocking value in emerging silver province 6 Silver Mines Limited Investor Presentation l August 2012
Slide 7: SVL Projects
SVL PROJECTS Reference Project Name Company Area (Km2) New England Projects EL 5674 Webbs SVL 100% 12 EL 7602 Webbs NW SVL 100% 38 EL 6114 Pyes Creek SVL 100% 18 EL 6771 Clive SVL 100% 74 EL 6239 Webbs Consols SVL 100% 12 Other Projects EL 7640 Boro SVL 100% 44 EL 7928 Leadville SVL 100% 274 Project
Slide 8: Webbs Silver Project
WEBBS SILVER PROJECT Well located 50km north of Glen Innes in northeast NSW Indicated and Measured resources of 969,000t at 269 g/t Ag for 8.4Moz Ag Inferred resources of 3.4Moz at 201g/t Ag also exist Exploration target within the range of 26-57Moz of Ag# (inclusive of resource) Positive metallurgi
Slide 9: History of Webbs
HISTORY OF WEBBS Mined in 1885-1901 and 1962-1965 and produced approx. 55,000t @ 700g/t Ag from the underground operation Previous work (1947-1970) includes 3,600m of drilling, surface - underground mapping and sampling, IP, EM and metallurgical test-work Work by Silver Mines since 2007 includes 28,
Slide 10: Geology
geology New England Orogen, a significant mineral province in Eastern Australia that hosts a variety of mineral deposits associated with granitic-porphyry intrusions, volcanics and surrounding rocks Webbs region is former large scale tin mining district, with some precious and base metals production
Slide 11: Resource
RESOURCE Current resource estimate for Webbs at 70g/t Ag cut-off Resource Class Tonnes Ag (g/t) Cu% Pb% Zn% Ag (oz) Measured 194,000 364 0.29 0.75 1.67 2,269,000 Indicated 775,000 245 0.26 0.70 1.49 6,102,000 Total M and I 969,000 269 0.27 0.71 1.53 8,371,000 Inferred 522,000 201 0.27 0.71 1.61 3,37
Slide 12: Webbs Resource (Grade x Tonnage)
WEBBS RESOURCE (Grade x Tonnage2) Ag and AgEQ Grade x Tonnage Curve (Ag cut-offs shown) 2 See Appendix 2 12 Silver Mines Limited Investor Presentation l August 2012
Slide 13: Webbs
webbs Silver Mines Limited Investor Presentation l August 2012 13
Slide 14: Selected Webbs Drilling Results
SELECTED WEBBS DRILLING RESULTS Selected intersections calculated using 50g/t Ag lower cut-off (with up to 3m downhole internal dilution @ <50g/t; no top cut-off). Hole ID From To Interval Ag Cu Pb Zn Est True Ag EQ Au EQ (m) (m) (m) g/t % % % Width g/t g/t RC076 146.0 171.0 25.0 1175 1.09 0.22 3.65
Slide 15: Webbs Long Section Looking West
WEBBS LONG SECTION Looking West ote high grade deeper intersections N (purple and red dots) Deposit completely open at depth 0.62Mt @ g/t Ag, % Cu,% Pb, % Zn 15
Slide 16: Drill Hole Sections Webbs South
DRILL HOLE SECTIONS WEBBS SOUTH Sections are 80m apart Cross Section 6751690N Cross Section 6751770N along strike Sections highlight depth potential, grade, width and planar nature of lode 16 Silver Mines Limited Investor Presentation l August 2012
Slide 17: Core Hole DDH016 Webbs South
CORE HOLE DDH016 Webbs South DDH016 intersection 83-97m down hole @ 1705g/t Ag incl. 83-86.5m @ 5802g/tAg, 5.3% Cu and 8.8% Zn, (shown right) Note: 85-86m assayed 11,125 g/t or 1.11% Ag Silver Mines Limited Investor Presentation l August 2012 17
Slide 18: Regional Silver Province
REGIONAL SILVER PROVINCE Unlocking a new silver province SVL tenement Mole granite Sediments Volcanics 50km buffer around Webbs Known silver occurance 18 Silver Mines Limited Investor Presentation l August 2012
Slide 19: Metallurgy
metallurgy Excellent results from metallurgical test work indicating >90% Ag recovery to doré SVL are testing a flow sheet incorporating the Albion ProcessTM Flow sheet utilises conventional grinding and bulk flotation followed by ultra-fine grinding and atmospheric oxidation (the Albion ProcessTM).
Slide 20: Metallurgy: Schematic Flowsheet
metallurgy Schematic Flowsheet 20 Silver Mines Limited Investor Presentation l August 2012
Slide 21: The Future
THE FUTURE Key Focus: further evaluation of SVL projects Additional drilling planned at Webbs to increase current resource 5,000m of RC drilling is prepaid 30,000m of drilling planned, 85% RC/15% DD Webbs project open pit scoping and conceptual underground studies planned, along with new resource es
Slide 22: Appendix 1
APPENDIX 1 AgEQ (equivalent) and AuEQ in this document are gross value equivalents utilising the following metal prices in $A : Ag $26.8/oz, Cu, $7500/t, Pb $1800/t, Zn $1800/t and Au $1540/oz. These are calculated by gross $ value of any Ag+Cu+Pb+Zn+Au in resources or drill intersections appearing
Slide 23: Appendix 2: Webbs Resource Estimate
APPENDIX 2 Webbs Resource Estimate Selected cut-off’s Webbs Resource Estimate at 40g/t Ag cut Webbs Resource Estimate at 100g/t Ag cut Resource Tonnes Ag Cu Pb Zn Ag Resource Tonnes Ag Cu Pb Zn Ag class (g/t) (%) (%) (%) (oz) class (g/t) (%) (%) (%) (oz) Measured 205,000 346 0.27 0.73 1.62 2,288,000
Slide 24: www.silverminesltd.com.au
P 61 2 9253 0900 F 61 2 9253 0901 E [email protected] L5 17-19 Bridge Street, Sydney NSW Australia 2000 www.silverminesltd.com.au