Wildcat Silver October Investor Presentation

Embed Size (px)

Text of Wildcat Silver October Investor Presentation

  • 1. Investor PresentationOctober 2012TSX:WS

2. Cautionary StatementsCautionary Note Regarding Forward-Looking InformationCertain information contained in this presentation constitutes forward-looking statements. All statements, other than statements of historical facts, are forwardlooking statements, including information concerning the Companys plans for its mineral property in Arizona. Forward-looking statements are often, but notalways, identified by the use of words such as may, will, seek, anticipate, believe, plan, estimate, budget, schedule, forecast, project, expect, intend, or similarexpressions.The forward-looking statements are based on a number of assumptions which, while considered reasonable by the Company, are subject to risks and uncertainties.In addition to the assumptions herein, these assumptions include the assumptions described in the Companys managements discussion and analysis for its yearended December 31, 2011 ("MD&A"). The Company cautions readers that forward-looking statements involve and are subject to known and unknown risks,uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed in or implied by suchforward-looking statements and forward-looking statements are not guarantees of future results, performance or achievement. These risks, uncertainties andfactors include general business, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economicevaluations; fluctuations in currency exchange rates; changes in project parameters; changes in costs, including labour, infrastructure, operating and productioncosts; future prices of silver and other minerals; variations of mineral grade or recovery rates; operating or technical difficulties in connection with exploration,development or mining activities, including the failure of plant, equipment or processes to operate as anticipated; delays in completion of exploration, developmentor construction activities; changes in government legislation and regulation; the ability to maintain and renew existing licenses and permits or obtain requiredlicenses and permits in a timely manner; the ability to obtain financing on acceptable terms in a timely manner; contests over title to properties; employee relationsand shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the exploration, development and mining business; and thefactors discussed in the section entitled "Risks and Uncertainties" in the MD&A.Although the Company has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions,events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties andother factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwiseindicated, forward-looking statements contained herein are as of the date hereof and the Company disclaims any obligation to update any forward-lookingstatements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.About Reserves and ResourcesThis presentation uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers arecautioned that: (a) mineral resources are not economic mineral reserves; (b) the economic viability of resources that are not mineral reserves has not beendemonstrated; and (c) it should not be assumed that further work on the stated resources will lead to mineral reserves that can be mined economically. In addition,inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of aninferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis offeasibility or pre-feasibility studies or economic studies except for certain preliminary economic assessments. Readers should also refer to the Companys AnnualInformation Form for the year ended December 31, 2011 and other continuous disclosure documents available at www.sedar.com, which is subject to thequalifications and notes set forth therein.All Dollars are United States Dollars. All project metrics are shown on a 100%-ownership basis. All tonnes are metric tonnes.TSX:WS 2 3. About Hermosa Stable, low risk jurisdiction80 km SE from Tucson, AZLocated in Santa Cruz County, Arizona- 154 acres of patented claims Arizona- approx. 6,000 acres of unpatented claims Large project:315M oz Ag Resource15.5M oz Ag Expected Production/yr Robust economics(1)N TucsonAfter-tax NPV (5%) of $658MAfter-tax IRR of 32%I10Santa Rita Near existing infrastructureMtnsPower, water, highways, labour82 I191. Based on $28.75/oz Ag, $1,575/oz Au and $3.50/lb Cu0 30 km Focused on developing thePatagonialargest silver mineNogalesHermosain the USATSX:WS3 4. 2012 Hermosa Project PEA Economic HighlightsAfter-tax NPV (5%) Base Case $900Project Economics Base Case1 Spot Case 2 $800After-tax NPV (0%)$1.027B $1.586BAfter-tax NPV (5%) $658M$1.048B$700After-tax NPV (7.5%) $528M $860M $600After-tax IRR31.9% 43.4% $500Project Payback1.7 years 1.4 years $400Silver Price ($/oz)$28.75$34.60$300Gold Price ($/oz)$1,525$1,773 $200Copper Price ($/lb) $3.50 $3.73 $100$--10% 0% +10%1.Base case is based on 60/40 pricing which is the weighted average of 60% ofthe three-year historical prices and 40% of two-year forward market prices. Change in Silver Price2.Spot case is based on spot prices. TSX:WS4 5. Large and Growing Silver Resource Base325Hermosa Silver Resource (Moz)2012 total resource base*235.6M315MMeasured & Indicated ResourceInferred Resourceoz275225 ~6x75% of total 2012 measured & indicated resource551%175125 from 2010 36.2M 75 84.9M 79.0M 2012 total resource base 487% 2553.6M-25 2007 20102012*from 2007* Does not include Sulfide zone of 4M oz Ag (3.8M tonnes of 30.84 g/t Ag)TSX:WS 5 6. Total resource project comparison 800 Total global silver resource (Moz) 700 Hermosa is one of the 10 largest undeveloped primary silver deposits* 600 500 400 300 200 100 0 Veta ColoradaCordero Escobal Malku Khota Navidad Santa AnaCandelaria San Agustin PitarrillaGC Project Sunrise LakeCorani Hermosa Diablillos Parrena Hackett River Maverick Springs JuanicipioBerenguela Challacollo San Juan Silver Joaquin Silvertip* Includes only projects with recent 43-101 compliant resource estimatesTSX:WS6 7. Upper Silver Zone Discovered Upper Silver Zone in early 2012 Open to the north, east and south for further expansion Total resource of 155 million ounces at average grade of 27.5 g/t Lies above and adjacent to the Manto Oxide Zone, located in the overlying volcanic rocks Previously considered as overburden Silver-only zone amenable to standard cyanidation and Merrill Crowe recovery Completed pilot plant test returning silver recoveries of up to 52% Optimized the grind size of the material and developed a silver grade/recovery curve forincorporating into future mine modeling activities Metallurgical testwork continues to optimize silver recoveriesTSX:WS 7 8. Hermosa Cross Section: A A AATSX:WS8 9. Cross sections: B B B BTSX:WS9 10. Resource Block ModelSection N167400East-West view looking North N Grades are in opt(In Feet)TSX:WS 10 11. Resource Block Model Section E1075500 North-South view looking West N Grades are in opt(In Feet) TSX:WS11 12. New Simplified Process Flow SheetUPPER SILVERMANTO OXIDE ZONESimplified process using proven technology ZONE Average recoveries in PEA:Metallurgical test work continues to optimizeCrushing upper silver zone and manto oxide recoveriesSilver (manto) 82%Gold (manto) 90% Upper SilverManto OxideSilver (upper silver) 40%Stockpile StockpileGold (upper silver) 90%CalciningCopper Sulfide PrecipitateLegendSolids Flow StreamSolution Flow Stream GrindingCyanide Recovery Cyanide LeachingMerrill Crowe Silver Recovery RefineryAg/Au Dor Leach Tails to Tailings Storage Facility orMetallurgical test work Cyanide DestructPotential Zn Flotation and/or Magnetic Separation continues for by-productrecoveriesTSX:WS12 13. Initial Pilot Plant Tests CompletedPilot plant test work completed by Hazen Completed in August 2012 Processed approx. six tonnes of ore (Manto and Upper Silver Zone)TSX:WS 13 14. 2012 Hermosa Project PEA Expected average annual silver production (first five years) 15M ozProduction Metrics2.5x increaseMining Rate 14,920 tpdAnnual Ag Production (first 5 yrs)15.5 M oz Ag6M ozAverage Ag Cash Costs1 (first 5 years)$8.29 per ozMine life 16 years2010 PEA2012 PEA1.Net of by-product credits based on gold price of $1,525/oz Au, and copper price of $3.50/lb Cu TSX:WS14 15. Production comparison Developing ProjectsEstimated average annual silver production (Moz) 20 18 First five years 16average 14 12 10 LOM Average8642 -EscobalNavidad Hermosa Malku Khota Juanicipio Cordero Corani Pitarilla La Preciosa Rock CreekSaucitoFuwan Santa Ana San LuisGuatemalaArgentinaUSAMexico Mexico PeruMexico Mexico USA MexicoChina Peru Peru Bolivia1. Hermosa based on first five yearsSource: Company Disclosure & Technical Reports, Hermosa 2012 PEA TSX:WS15 16. 2012 Hermosa Project PEA Capital CostsInitial CAPEX1Miningequipment Mine pre-Mining Equipment$29M developmentMine Pre-development$31MProcess Plant & Tailings$269M ContingencyOtherGeneral Site & Ancillary Facilities $43MGas & Power Supply$43MOwners costsEPCM$51MOwners Costs $38M EPCMOther $27MProcess plant Gas and& tailingsSub-total $531Mpower supplyContingency $96MTOTAL CAPEX $627MGeneral site & ancill