Developing lithium and silver projects in Mexico Corporate - - PowerPoint PPT Presentation
Developing lithium and silver projects in Mexico Corporate - - PowerPoint PPT Presentation
Developing lithium and silver projects in Mexico Corporate Presentation May 2017 Arian Silver - Overview Strategy To generate capital growth by acquiring, exploring and advancing lithium and silver projects Six focus areas San Celso
Arian Silver - Overview
Strategy
- To generate capital growth by acquiring, exploring and advancing lithium and silver projects
Six focus areas
- San Celso silver project
high grade silver project with five significant veins identified to date
- Los Campos silver project
500 hectare project. Strike length of main vein evidenced to >3km
- La Africana silver project
high grade silver project with silver grades up to 1,195gt/t
- Three lithium projects
first soil samples confirmed lithium presence
Opportunity
- Low valuation compared to peers provides scope for significant revaluation
- Continued positive exploration results will justify increasing valuation
- Good indications to target future drilling campaigns
- Target metals significant contributors to renewable energy production and storage
- Benefit of uplift to silver price
- Benefit of uplift to lithium price
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The Heart of the Mexican Silver Belt
San Celso Project
- Concessions over 88 hectares
- Located in the historic mining district of
Pánfilo Natera-Ojocaliente
- Excellent infrastructure
- Five high-grade veins with grades up
to 395g/t Ag, 13,700ppm Pb, and 13,900ppm Zn identified to date
- Vein systems indicate similarities to the
Company’s previously owned and nearby San José mine, where historic mining exploited the San José vein down to approximately 300 metres.
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A schematic map of the area showing the various identified
San Celso – High Grade Vein Complex
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Original AutoCAD level plans for the San Celso and Las Cristinitas workings
San Celso Mine Las Cristinitas Mine
Los Campos Project
- 500 hectare project area
- encompasses the former Los Campos
mine, its satellite excavations and the San Rafael and Los Campos veins
- Opportunity to rehabilitate several of the
- ld mine shafts in this area to:
– ascertain the extent of historic mine workings; – identify potential highly mineralised zones for follow-up drilling; and – undertake further mapping to verify the presence of additional vein structures
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A schematic map of the Los Campos Project
La Africana Project
- Comprises a past-producing mine and
two known veins: the Africana and El Sastre veins.
- The Africana vein contains significant
zones of high-grade silver mineralisation
- ver respectable widths (up to 5 metres).
- Sampling delivered results of up to 824g/t
Ag (grab samples) and 1,195g/t Ag (underground sampling). The existing underground workings have been surveyed, it appears mining terminated at approximately 50 metres below surface, which coincides with the current water
- table. Evidence suggests that the
mineralisation extends below this level.
- Future drilling required to complete a
compliant mineral resource to be delineated.
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A schematic map of the old mine shafts and vein expression on surface
Donovan Project
- Located to the south-east of La Africana
project and in close proximity of the Bilbao Volcanic Massive Sulphide (“VMS”) deposit.
- Preliminary exploration identified base metal
mineralisation and the presence of copper skarn mineralisation.
- Additional exploration is planned with the
intention of identifying both skarn and VMS- style mineralisation.
- The Donovan 2 project is situated to the
south of La Africana, Donovan 1 and in close proximity to the well-known and world- class San Nicholas copper-zinc deposit.
- Preliminary exploration identified several
areas that exhibit pathfinder indicators of VMS-style mineralisation.
- Ground magnetic geophysics should
indicate any sub-surface VMS-style mineralisation.
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A schematic map of the Donovan 2 Project
Lithium Projects
- Option over three lithium projects covering in excess of
1,600 hectares in the central region of the altiplano, well-known for its lithium deposits.
- There are several deposits of sodium, lithium, boron,
and potassium salts currently under exploration.
- Each of the three lithium projects contain ‘salars’, which
are shallow ancient lakes and lagoons. These salars comprise brines formed by an accumulation of groundwater enriched with dissolved lithium and have the potential to contain significant lithium resources.
- Historic sampling returned grades of up to 500ppm Li.
- Preliminary sampling work has confirmed the presence
- f anomalous lithium at all three of the projects, and
further work is being carried out to ascertain the full extent of the deposit.
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A schematic map of the Projects west of the main Zacatecas – Saltillo highway (54)
Lithium Projects
Abundancia project 150 hectares in size and encompasses the Laguna Noria del Burro salar. Initial sampling has confirmed the presence of lithium at up to 158ppm (parts per million) Pozo Hondo The largest of the projects at almost 1,100 hectares in size and covers one salar, the Laguna El Salado. Initial surface sampling has confirmed the presence
- f lithium at up to 120ppm.
Columpio Almost 400 hectares in size, encompassing two salars, Laguna Tenango and Laguna La Virgen. Initial surface sampling has confirmed the presence
- f lithium at up to 87ppm.
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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 purification
- China, historically a major supplier
- f silver, is now a net importer.
- India has seen imports rise as a result
- f the restrictions on gold import.
- CRU, a leading business intelligence company
expects industrial use of silver to increase over the coming years.
Source: Metal Focus PAGE 11
Silver Physical Surplus / Deficit
Source: GFMS< Thompson Reuters
World Coin and Bar Demand
Why Invest in Lithium Now?
Source: RosKill PAGE 12
- Lithium-ion batteries driving demand:
‒ 20%+ annual growth since 2000 ‒ Currently 30% of global market
- Electric Vehicles and E-bikes
– Currently 3% of global lithium
market
– Accelerated growth expected from
2015
- Conventional applications
– Currently 70% of global market – Glass ceramics typically use
technical grade concentrate
Lithium Demand Growth
Mexico: Large Mineral Producer
- Largest silver producing country in the world
- Emerging lithium producer
- Prolific mineral potential and mining history
- Excellent availability of senior personnel and
skilled labour
- Part of NAFTA, low country risk and stable
government, despite the Trump administration
- Reasonable tax burden, permitting process,
community support
- Security and social issues are localised, not
pervasive
- Excellent transportation and energy
infrastructure
Zacatecas
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1 2 3
Daily Share Price
52 Week Share Price AIM: £0.005 -- £0.012 Major Shareholders Beaufort Nominees Limited – 7% directors and officers
2017 Q1 2,026,808 2016 Q4 1,443,787 2016 Q3 2,385,631 2016 Q2 4,209,850
Average Daily Trading Volumes
Capital Structure
The Company’s Capital Structure expected with effect from 9 June 2017 Issued share capital 303,694,941 Share options 9,275,000 Warrants 246,787,493 Fully diluted share capital 559,757,434
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Jim Williams Co-founder, Director & CEO
Experienced exploration & mining geologist with over 30 years’ experience
- worldwide. Mr Williams co-founded Arian Silver in 2005 and listed it on AIM
and TSXV in 2006.
Tom Bailey Non Executive Director
Professional legal counsel with over 30 years’ experience. Worked with Citibank and Chase Manhattan for a number of years.
Tony Williams Co-founder, Director, Chairman
Mining geologist with over 35 years’ experience in the international mining industry, having been involved in projects in the Americas, Australia, Africa and Europe and the former Soviet Union. Mr Williams co- founded Arian Silver in 2005.
James Cable Non Executive Director
Chartered Accountant with over 30 years’ experience. Significant international and commercial experience in several sectors. He is also Financial Director of Mantle Diamonds Limited.
Miguel Barahona Operations Director (Mexico)
Mining engineer with over 20 years’ experience internationally within various areas of the mining industry. He has also held senior positions for major mining operations, and designed mining processes for narrow-vein mining. He has been with Arian for over 3 years.
James Crombie Non Executive Director
Mining engineer with over 25 years’ experience. Former President & CEO
- f Palmarejo Silver and Gold Corporation until acquisition by Coeur d’Alene
Mines for US$1.1 Billion (December 2008).
David Taylor Company Secretary
Fellow of The Institute of Chartered Secretaries and Administrators ("ICSA") with over 10 years’ experience in senior roles for a number
- f multinational blue chip companies, and most recently for ICSA,
a leading authority on governance and compliance. .
Directors & Management
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- In excess of 3,000 hectares of exploration tenement
in Mexico’s premier silver producing district
- Exposure to silver and lithium price
commodities with favourable demand outlook
- Opportunity to benefit from positive exploration results
with exploration continuing on lithium projects and exploration targets for silver projects
- Excellent exploration team
proven track record of advancing exploration assets through to production
- Opportunity to benefit from any upwards shares revaluation
given lack of market favour, and low valuation compared to peers
- Debt-free and no pension deficit
Investment Highlights
Disclaimer
The information in this Presentation relating to Arian Silver Corporation (the “Company”) has been prepared by the Company and is for background purposes only and may be subject to change. It is being issued to certain persons on the basis that they fall within one of the exemptions contained in the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order"). The contents of this Presentation have accordingly not been approved by an authorised person for the purposes of section 21 Financial Services and Markets Act 2000 ("FSMA"). Such approval of this presentation would be required by section 21 FSMA if the exemptions referred to below, or some other exemption, did not apply to it. This presentation and its contents are exempt from the general restriction (in section 21 FSMA) on the communication of invitations or inducements to engage in investment activity on the grounds that it is being given only to (i) persons outside the United Kingdom (ii) persons who have professional experience in matters relating to investments who fall within the definitions of investment professionals as defined in Article 19 of the Order (iii) persons who fall within Article 43 of the Order, (iv) and persons who fall within Article 49 of the Order (high net worth companies and trusts and other persons of the kind to which Article 49(2) of the Order applies. Persons not falling within these categories should not rely or act upon this Presentation and in consideration of receipt of this Presentation each recipient warrants and represents that he or it is a person falling within that description. 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 statements include statements relating to increases in mineral resources and reserves, capital and operational expenditures and sustaining capital, cash costs per ounce, grades and recoveries, NPV and IRR, the Company’s results of
- perations, financial position, revenue, profit, silver production, liquidity, availability of finance, prospects, growth, strategies, the silver price and the silver industry.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements are not guarantees
- f future performance, are subject to significant risks and uncertainties, and actual results and future events may differ materially from those anticipated in such statements. The
Company does not intend to, and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law. A number of risks, uncertainties and other factors may cause actual results, performance and developments to differ materially from those expressed or implied by such forward- looking statements including, without limitation, the availability of mining, environmental or other operating permits; the failure of plant, equipment or processes to operate as anticipated; the speculative nature of mineral exploration and development; operating or technical difficulties in mineral exploration; development and mining activities; reliability
- f calculation of mineral reserves and resources and precious metal recoveries; availability, of and costs associated with, mining inputs and labour; accidents; requirement for
additional capital; the price of silver; general economic and business conditions; industry trends; competition; changes in regulation; taxation; controls and legislation; currency fluctuations (including the US dollar and Mexican Peso exchange rates); the Company’s ability to develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves; changes in its business strategy; changes in national and local governments; and political and economic uncertainties. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly readers should not place undue reliance on forward-looking statements or information. Mr Jim Williams, Eur Ing, Eur Geol, BSc, MSc, D.I.C., FIMMM, the Chief Executive Officer of Arian, is a "Qualified Person" as defined in the AIM guidelines of the London Stock Exchange, and a "Qualified Person" as such term is defined in Canadian National Instrument 43-101 ("NI 43-101"). This presentation has been prepared under Mr Williams'
- supervision. Mr Williams has verified the data disclosed in this presentation including sampling, analytical and test data underlying the technical information included herein, and
the mineral resource estimate disclosed herein.
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Jim Williams CEO
+44 (0)20 7887 6599 jwilliams@ariansilver.com
Dominic Barretto Yellow Jersey PR
+44 (0)7768 537 739 dominic@yellowjerseypr.com For additional information
- r enquiries, please contact