Alien Metals Ltd · LSE:UFO
Alien Metals — Arian Silver — Investor Presentation (October 2015)
26 slides from Alien Metals's investor presentation, October 2015
Slide 1: Mexico's next silver mine. Corporate Presentation
Mexico’s next silver mine. Corporate Presentation October 2015
Slide 2: San José: an Overview
San José: an Overview • Large mineral resource estimate (Silver, Lead, Zinc) • Potential to increase our resource base • 10 year mine life based on current resources • Commissioning programme underway • Reached mechanical completion in January • First lead-silver concentrate produced in March • Firs
Slide 3: The Heart of the Mexico Silver Belt
The Heart of the Mexico Silver Belt PAGE 3
Slide 4: San José History
San José History 2006 – Acquired San José 2006 to 2009 – Drilling campaign of c.40km – Achieved significant NI 43-101 compliant resource 2010 to 2013 – Concept proved by trial production 2013 – Acquired processing plant – Commenced site preparation and a refurbishment programme 2014 – Construction o
Slide 5: US$32 Million Finance Package
US$32 Million Finance Package Convertible loan note • US$16.4 million convertible loan note @ C$0.7576 • 8% interest rate • Repayable by October 2017 • Three year term Base metals stream • US$15.6 million upon achievement of milestones • Stream of 78.2% of Pb & Zn output • US$0.25 per lb Pb and Zn p
Slide 6: First Lead-Silver Concentrate
First Lead-Silver Concentrate First silver-lead concentrate Loading first truck Concentrate in the thickening tank PAGE 6
Slide 7: Resources – Potential to Expand
Resources – Potential to Expand Resource Tonnes Average Grade Contained Metal Category (t) Ag (g/t) Pb (%) Zn (%) Ag (Moz) Pb (Mlbs) Zn (Mlbs) Indicated 5,350,000 141 0.59 1.08 24.30 69.40 127.10 Inferred 12,590,000 145 0.39 0.77 58.90 109.30 214.30 • Prepared by CSA Global (UK) and published in Oct
Slide 8: San José Resource Blocks
San José Resource Blocks West End Guanajuatillo Soledad Santa Ana San José PAGE 8
Slide 9: Exploration Potential
Exploration Potential • Completed a 5,000m drilling program at the Guanajuatillo area of the San José vein which returned some excellent intercepts. • Purchased our own termite drilling rig which can be mobilised underground and is a cost effective way to test the deeper extensions of the San José v
Slide 10: Guanajuatillo: Strong Continuity
Guanajuatillo: Strong Continuity GW-15-071, 072 GW-15-073 GW-15-069, 070 GW-15-067, GW-15-062, 068 064 GW-15-061, GW-15-065, GW-15-060 063 066 GW-15- TIRO CASUALIDAD 057,058 GW-15-056, 059 TIRO GUANAJUATILLO Drill Hole From to Interval True Width Ag Pb Zn Drill Hole From to Interval True Width Ag Pb
Slide 11: San José Long Section
San José Long Section ae WESTERN SECTION “B saa SAN JOSE MINE esse =| = = =| = =| eI =| = = =, = Te tan 8 bay? =. wi a —y = © = n= pen oe, n —— : 4 = =: = fxDD0 Es “ — — ae . LY = "fe Fe a me ee =. ae a = =| - EAST SECTION ts sim ee ee ss SAN JOSE MINE el | i = - - eo -—| =
Slide 12: Annual Production
Annual Production Mine Life (years) 10 Production – Annual Production targets Mill throughput (tonnes) 520,000 Silver grade (g/t) >160 Silver recovery 70% Silver production (M ounces) 1.9 Lead production (M pounds) 4.7 Zinc production (M pounds) 4.4 PAGE 12
Slide 13: Attractive Economics
Attractive Economics Economics – San José (Projected) Capex $30m Sustainable Capex $12m C1 Cash Cost per ounce $8.79 All-in Cost per ounce $14.15 Annual Revenue at $18.5/oz Silver $50m Annual Revenue at $25/oz Silver $64.3m Annual Revenue at $30/oz Silver $74.9m C1 Cash Cost is an Alternative Perfor
Slide 14: Modular Plant Layout
Modular Plant Layout Water Storage Fine Ore Bins Reagents Compressor Crushing Conditioning tanks Ag-Pb Flotation Milling Zn Flotation Concentrate Pads Coarse Ore Bins Thickeners Weighbridge PAGE 14
Slide 15: Site Preparations (October 2013)
Site Preparations (October 2013) PAGE 15
Slide 16: Plant Site Construction Progress
Plant Site Construction Progress Fine Ore Bins Flotation section Mills Constructing the flotation section PAGE Crushing section Conveying section 16
Slide 17: Processing Plant (March 2015)
Processing Plant (March 2015) Water reservoir Milling section Flotation section Tailings dam Concentrate pads Crushing section Crushing section Fine Fine ore ore bins bins Milling Milling section section Flotation section PAGE 17
Slide 18: San José Operations
San José Operations Mining Fleet 2 mining contractors engaged: Santa Cruz & Deminzac 12 haul trucks, 6 scoop trams, 3 jumbos Mining and ore Underground long hole stoping and sublevel caving Processing Conventional crushing and grinding Lead and zinc flotation circuits Processing Facilities
Slide 19: Infrastructure
Infrastructure Mineral Concessions (6,200 ha) Current 35Kv Power line to the plant – C.F.E. (utilities) Operational 13.5Kv Power line to the mine – C.F.E. (utilities) Operational Hoisting system In place 3 ramps for production and services (Santa Ana, Soledad, Guanajuatillo) In progress Tailings Pon
Slide 20: Why Invest in Silver Now?
Why Invest in Silver Now? • Tighter supply of silver as a result of: ‒ Reduction in mine production ‒ Lower scrap supplies ‒ No government sales • Increasing global demand: – Electronics (Batteries) – Automotive – Green technologies (solar) – Medical uses (antiseptics, disinfectant etc.) – Water pur
Slide 21: Mexico: World's #1 Silver Producer
Mexico: World’s #1 Silver Producer • Largest silver producing country in the World • Prolific mineral potential and mining history • Many mining service companies • Excellent availability of senior personnel and skilled labour • Part of NAFTA, low country risk and stable government Zacatecas • Reaso
Slide 22: Capital Structure
Capital Structure The Company’s Capital Structure Daily Share Price as at 30 September 2015 250 200 Issued share capital 33,907,448 150 100 Share options @ C$0.5762 to C$7.9000 50 2,106,000 Maturing January 2016 to May 2019 0 Aug‐13 Aug‐14 Jan‐13 Feb‐13 Apr‐13 May‐13 Jun‐13 Jul‐13 Sep‐13 Dec‐13 Jan‐
Slide 23: Directors and Senior Management
Directors and Senior Management Jim Williams Co-founder Director, President & CEO Tom Bailey Non Executive Director Experienced exploration & mining geologist with over 30 years’ experience Professional legal counsel with over 30 years’ experience. worldwide. Mr Williams co-founded Arian Silver in 2
Slide 24: Investment Highlights
Investment Highlights • Large resource base with significant expansion potential • Funded and permitted to date • Excellent operating team that constructed the processing plant and site infrastructure • Commissioning underway and first lead-silver concentrate produced • Production profile of up to 2
Slide 25: Disclaimer
Disclaimer All statements, other than statements of historical fact, contained in this presentation constitute “forward-looking statements” within the meaning of certain securities laws and are based on expectations, estimates and projections as of the date of this presentation. Such forward-looking
Slide 26: Contact
Jim Williams CEO +44 (0)20 7887 6599 [email protected] For additional information Fuad Sillem Corporate Development or enquiries, please contact +44 (0)20 7887 6599 [email protected] Dominic Barretto Yellow Jersey PR +44 (0)7768 537 739 [email protected]