TSX-V:ASL Coyote Project High Grade Silver Jalisco State, Mexico Corporate Presentation July 2014
Disclaimer Some statements contained in this presentation or in documents referred to in it are or maybe forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of factors. Any forward-looking information contained in this presentation has been prepared on the basis of a number of assumptions which may prove to be incorrect, and accordingly, actual results may vary. Past performance of the Company cannot be relied on as a guide to future performance. This presentation does not constitute, or form part of or contain any invitation or offer to any person to underwrite, subscribe for, otherwise acquire, or dispose of any shares in Argentum Silver Corporation or advise persons to do so in any jurisdiction, nor shall it, or any part of it, form the basis or be relied on in any connection with or act as a inducement to enter into any contract or commitment therefore. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this document or on its completeness and no liability whatsoever is accepted for any loss howsoever arising from any use of this document or its contents otherwise in connection therewith. www.argentumsilvercorp.com TSX-V: ASL 2
Investment Highlights • Coyote Project – Epithermal Silver-Gold Exploration Project: Initial NI 43-101 Inferred Resource* of 3.88M AgEq*, grading 207 g/t AgEq* Extensive infrastructure and access in Jalisco State, Mexico Strong community relations ~7km combined Strike Length, 1052 Hectares, 100% Owned Initial metallurgical testing completed Small-scale production opportunity based on potential resource expansion *NI 43-101 Technical Report on the Resource Estimate on the El Tajo Zone, Coyote Project, completed by GeoVector Management Inc. on November 22, 2013; The report estimates an Inferred Mineral Resource of 583,000 tonnes grading 192 g/t Ag and 0.27 g/t gold (Au). This equates to a 207 g/t AgEq * grade. The mineral resource contains a total of 3,600,000 ounces silver and 5,053 ounces of gold. The resource is open along strike and down dip. (*Silver- equivalent was determined using a silver to gold ratio of 56.1:1, assuming a 100% recovery rate, plus no base metal values were included in the silver-equivalent.) www.argentumsilvercorp.com TSX-V: ASL 3
Jalisco & Oaxaca States • Mexico is world’s No. 1 silver producer • Mining Friendly States • Established Infrastructure • Experienced & Motivated Local Labour • Established Permitting Process • Significant Recent Discoveries and Mines San Jose Mine (Fortuna) El Aguila (Gold Resource Corporation) San Sebastian (Endeavour) www.argentumsilvercorp.com TSX-V: ASL 4
Jalisco State Projects Victoria Coyote www.argentumsilvercorp.com TSX-V: ASL 5
Jalisco Region & Properties www.argentumsilvercorp.com TSX-V: ASL 6
Coyote Ag / Au Project • Current NI 43-101 Resource* of 3.88M oz AgEq** 100% Owned, 1052 hectares property size Seven mineralized zones with a cumulative strike length > 7km Mineralized system within a 2.5KM x 2.0KM footprint 4,842m drilled; tested four mineralized zones to average depth of 85m ~2,800 m drilled at El Tajo Zone to develop current NI 43-101 resource*; open to depth and along strike Historic silver & gold production at turn of 19 th century Over 100 mined workings in property area Excellent infrastructure, water, power and roads Highway access to Manzanillo, deep water port, 3 hours Long term community access agreements * See technical disclosure on slide 3 of this corporate presentation. www.argentumsilvercorp.com TSX-V: ASL 7
Coyote Project Claim Map N www.argentumsilvercorp.com TSX-V: ASL 8
Coyote Project Mineralized Zones • 2.5KM by 2.0KM footprint N • 7 known mineralized vein zones • Cumulative strike length > 7km • 4 zones drill tested • Samples greater than 100 g/t Ag • Anomalous gold values up to 2 g/t • Gold / Silver ratios consistent • Potential gold credit www.argentumsilvercorp.com TSX-V: ASL 9
Coyote Project Trench/Drill Program • Extended El Tajo 400m to the south • La Valenciana confirmed 600m potential strike length • La Florida extended 300m to the south • 42 drill holes completed totalling 4,842 m • 2,800 m completed on El Tajo Zone Average drillhole depth 85m Drill tested to a depth of 120 m Open to depth and along strike • www.argentumsilvercorp.com TSX-V: ASL 10
Coyote Project El Tajo Long Section www.argentumsilvercorp.com TSX-V: ASL 11
Coyote Project El Tajo Cross Section www.argentumsilvercorp.com TSX-V: ASL 12
Coyote Project El Tajo Cross Section www.argentumsilvercorp.com TSX-V: ASL 13
Coyote Project El Tajo Cross Section www.argentumsilvercorp.com TSX-V: ASL 14
Coyote Project El Tajo Cross Section www.argentumsilvercorp.com TSX-V: ASL 15
Coyote Project San Rafael Longitudinal View * In early 2013 a Phase III drill program consisting of ~1,500 (8 holes) was designed to test at depth and along strike. This program never commenced. www.argentumsilvercorp.com TSX-V: ASL 16
Coyote Project Valenciana – Longitudinal View * In early 2013 a Phase III drill program consisting of ~1,500 (8 holes) was designed to test at depth and along strike. This program never commenced. www.argentumsilvercorp.com TSX-V: ASL 17
Coyote Project Coyote vs. San Sebastian (EDR) El Tajo Vein ASL – COYOTE *EDR – San Sebastian • Current resource • Initial Inferred 31 M oz Ag over Resource Estimate Hole 1: 6.0m @ 128 g/t Ag Hole 3: 2.5m @ 131 g/t Ag 68,000 m drilling NI 43-101 (Geovector) Hole 3 : 2.9m @ 1,470 g/t Ag Hole 1: 6.6m @ 506 g/t Ag • Drilled to a depth of 365m • ~3.88 M oz AgEq** Hole 4 : 3.0m @ 312 g/t Ag Hole 4: 4.9m @ 235 g/t Ag Inferred Resource ~ 2,800 m drilling Hole 17 : 10m @ 117 g/t Ag Hole 2: 9.2m @ 168 g/t Ag • Drilled to an Hole 23 : 5.2m @ 438 g/t Ag Hole 5: 4.8m @ 295 g/t Ag average depth of 85m Hole 28 : 11m @ 288 g/t Ag Hole 44 : 11.5m @ 420 g/t Ag Hole 42 : 2.9m @ 449 g/t Ag Hole 6: 1.3m @ 389 g/t Ag • EDR News release dated June 11, 2013. In February 2013, EDR released a initial mineral resource estimate that included an indicated resource of 11.4M oz silver and 69,300 gold and inferred resource containing 19.5M oz silver and 138,100 gold. Average silver grades were 193 g/t. • ** See slide 3 of this corporate presentation for technical disclosure related to 43-101 mineral inferred resource www.argentumsilvercorp.com TSX-V: ASL 18
Coyote Project Previous Phase III Drilling Proposal (2013)* * In early 2013 a Phase III drill program consisting of ~1,500 (8 holes) was designed to test at depth and along strike. This program never commenced. www.argentumsilvercorp.com TSX-V: ASL 19
Going Forward • Corporate Raise sufficient funds for ongoing resource development of projects & general working capital Build out team to focus on becoming small scale producer • Coyote Project Expand Resource at El Tajo Zone Raise funds to complete a focused 7,000 m (infill, to depth, along strike) resource development drill program Continue metallurgical studies Internal engineering studies re: small scale mining Drill Test San Rafael Zone Evaluate potential 1,000 m exploratory drill program Continue property-wide reconnaissance exploration program and continue to evaluate other zones; review Victoria project La Valenciana, La Colorada, La Florida, Bocancha – advance to drill targets www.argentumsilvercorp.com TSX-V: ASL 20
Share Structure As at July 18, 2014 Symbol TSX-V: ASL Share Price $0.015 52 Week High/Low $0.085 – $0.015 Shares Issued and Outstanding ~46.0 M Options ~4.6 M Warrants - Shares Fully Diluted ~50.6 M www.argentumsilvercorp.com TSX-V: ASL 21
Pro Forma Share Structure Proposed Consolidation 5:1 Current Issued & Outstanding: 46.0 M Post Consolidation: 9.2 M Pro-Forma Share Structure and Concurrent Financing: Issued Shares: 9.2 M New Unit Offering Price: $0.10 New Shares Issued: 5.0 M Warrants: 2.5 M Total Issued Post Financing: 16.7 M Proposed Financing Details: $0.5 Million : 5.0M Units at $0.10 and ½ Warrant at $0.15 (Yr 1) and $0.20 (Yr 2) www.argentumsilvercorp.com TSX-V: ASL 22
Use of Proceeds Evaluate Coyote Drill Program & Project $250K General Working Capital $210K Financing Fees $40K Total: $500K www.argentumsilvercorp.com TSX-V: ASL 23
Management and Directors Management: Peter A. Ball President & COO D. Barry Lee CFO Juan Lopez Country Manager - Mexico Directors: Andrew Thomson Ben Whiting Geoff Balderson Mike Petrina David Bo Board Technical Advisor (Mining): Ralf Kleine www.argentumsilvercorp.com TSX-V: ASL 24
Contact Information For further information please contact: Argentum Silver Corp. Suite 1200 – 570 Granville Street Vancouver, B.C. V6C 2T5 Peter A. Ball, President & COO Email: peter@argentumsilvercorp.com www.argentumsilvercorp.com TSX-V: ASL 25
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