SILVER MINES LIMITED ersonal use only
Precious Metals Summit, Zurich
Presentation
November 2021
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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 risks and uncertainties, as well as other factors, many of which are beyond the control of SVL. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.
No representation or warranty, expressed or implied, is made or given by or on behalf of SVL, any of SVL's directors, or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this presentation and no responsibility or liability is accepted by any of them for such information or opinions or for any errors, omissions, misstatements, negligent or otherwise, or for any communication written or otherwise, contained or referred to in this presentation.
Accordingly, neither SVL nor any of the SVL directors, officers, employees, advisers, associated persons or subsidiary undertakings shall be liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying upon the statement or as a result of any admission in, or any document supplied with, this presentation or by any future communications in connection with such documents and any such liabilities are expressly disclaimed.
Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.
Silver Mines Limited Introduction
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Key Assets
- The Bowdens Silver Project is located in central New South Wales, Australia.
- The consolidated project area comprises 2,007km2 (490,000 acres) of titles covering approximately 80km of strike of the highly mineralised Rylstone Volcanics.
- The Bowdens Silver Project is the largest undeveloped silver deposit in Australia and one of the largest in the world with substantial resources and a considerable body of high quality technical work already completed.
Share Register
- In February 2021, the Company concluded a successful equity placement to raise A$30 million.
- The placement was well supported by Australian and North American institutional investors and has resulted in several new funds joining the Silver Mines share register.
Capital Structure (ASX: SVL)
AUD | USD | |
Shares on Issue (m) | 1,291.8 | 1,291.8 |
Share Price ($) | 0.23 | 0.17 |
Undiluted Market Capitalisation ($m) | 297.1 | 222.8 |
Cash ($m, as at end September 2021) | 32.4 | 24.3 |
Enterprise Value ($m) | 264.7 | 198.5 |
Options | ||
3 Year Milestone @ A$0.20 | 5.0m | |
Directors | |
Keith Perrett | Non-Executive Chairman |
Anthony McClure | Managing Director |
Jonathan Battershill | Non-Executive Director |
Investment Highlights
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The largest silver development project in
Australia, and one of the largest globally, with a current JORC-compliant Resource base of 275 Moz Ag Eq (84% M+I Resource).
Bowdens well-advanced, with production expected in 2023-24- Feasibility Study completed and government applications submitted - received positive responses from regulators and various stakeholders.
Low initial capital requirement of A$246m /
US$185m to develop a 2Mtpa project, producing an average of 6Moz AgEq p.a. over the first 3 years of production at an average cash cost of US$9.15/oz, underpinning strong EBITDA and cash flow.
Single open-cut mine with uncomplicated mining, a low strip ratio and metallurgy with an initial mine life of 16 years.
Assets located in a low sovereign risk jurisdiction for mining development with ready
5 access to existing infrastructure. The COVID-19pandemic is contained in Australia, and the vaccine rollout is advanced.
Considerable exploration potential. Extensive drilling underway and has confirmed three new
6 high-grade discoveries underneath the current open-cut design. Scoping Study for a potential underground development has commenced.
7 | Committed and highly experienced technical |
and management team. | |
Strong fundamentals underpin a positive
8 outlook for the silver market over the medium
to long term.
Bowdens Silver Project: Overview
Highlights
The largest silver development project in Australia, and one of the largest globally, with a current JORC-compliantResource base of 275Moz AgEq.
only | 100% owned asset located in a low sovereign risk jurisdiction for mining | May 2018 | ||||||||||||||
development with ready access to existing infrastructure. | ||||||||||||||||
Ore Reserve complete (97 Moz AgEq) | ||||||||||||||||
| Bowdens well-advanced, with production expected in 2023-24 | |||||||||||||||
June 2018 | ||||||||||||||||
- Feasibility Study completed and government approvals submitted - | ||||||||||||||||
Feasibility Study complete | ||||||||||||||||
use | received positive responses from regulators and various | |||||||||||||||
stakeholders suggesting there is a clear pathway to development | ||||||||||||||||
approval. | May 2020 | |||||||||||||||
| Low initial capital requirement of A$246m / US$185m to develop a 2Mtpa | |||||||||||||||
EIS Complete, DA Submission | ||||||||||||||||
project, producing an average of 6Moz AgEq over the first 3 years of | ||||||||||||||||
production at an average cash cost of US$9.15/oz, underpinning strong | 2021 - 2022 | |||||||||||||||
EBITDA and cash flow. | ||||||||||||||||
Approval Processes & Optimisation | ||||||||||||||||
| Considerable exploration potential at the Bowdens Silver Project, with | |||||||||||||||
extensive drilling underway (30,000m program) and confirmed significant | ||||||||||||||||
high-grade extensions to mineralisation close to mine. | Reserves and Resources(1) | |||||||||||||||
Tonnes | Grade | Contained Metal | ||||||||||||||
Ag | Zn | Pb | AgEq | Ag | Zn | |||||||||||
Mt | g/t | % | % | g/t | Moz | kt | ||||||||||
Ore | 30 | 69 | 0.44 | 0.32 | 101 | 66 | 131 | 95 | ||||||||
Reserve | ||||||||||||||||
Mineral | 128 | 40 | 0.38 | 0.26 | 67 | 163 | 486 | |||||||||
Resource | ||||||||||||||||
5 | Not s: (1) Calculations have been rounded to the nearest 100,000 t, 0.1 g/t silver and 0.01% zinc and lead grades respectively. The Ore Reserve is reported by economic cut-off grade with appropriate consideration of modifying factors including costs, | |||||||||||||||
g ot chnical considerations, mining and process recoveries and metal pricing. Bowdens' silver equivalent: Ag Eq (g/t) = Ag (g/t) + 33.48*Pb (%) + 49.61*Zn (%) calculated from prices of US$20/oz silver, US$1.50/lb zinc, US$1.00/lb lead and metallurgical | ||||||||||||||||
r cov ries of 85% silver, 82% zinc and 83% lead estimated from test work commissioned by Silver Mines Limited. | ||||||||||||||||
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Silver Mines Limited published this content on 15 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2021 23:35:03 UTC.
