Silver City Minerals First Lithium Explorer @Broken Hill Proactive - - PowerPoint PPT Presentation

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Silver City Minerals First Lithium Explorer @Broken Hill Proactive - - PowerPoint PPT Presentation

S ILVER C ITY M INERALS L IMITED ABN 68 130 933 309 ASX Code: SCI Silver City Minerals First Lithium Explorer @Broken Hill Proactive Investor Presentations (5-6 July 2016) S ILVER CITY M INERALS L IMITED 1 Important Disclaimer This


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SILVER CITY MINERALS LIMITED

SILVER CITY MINERALS LIMITED

ASX Code: SCI

Silver City Minerals First Lithium Explorer @Broken Hill

Proactive Investor Presentations (5-6 July 2016)

ABN 68 130 933 309

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SILVER CITY MINERALS LIMITED

Important Disclaimer

This presentation is provided to you for the sole purpose of providing background technical, financial and other information to enable you to review the business activities of Silver City Minerals Limited (“Silver City”. “SCI” or the “Company”). This presentation contains forward looking statements concerning Silver City Minerals Limited. Forward- looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward- looking statements are inherently subject to business, economic, competitive, political and social uncertainties and

  • contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or

implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Silver City’s beliefs, opinions and estimates of Silver City Minerals as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future

  • development. Nothing in this material should be construed as the solicitation of an offer to buy or sell SCI securities.

Competent Person Information in this document that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Christopher Torrey, who is the Managing Director and full-time employee and shareholder of Silver City Minerals Limited, and a Member of the Australian Institute of Geoscientists. Mr Torrey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Torrey consents to the inclusion in the report

  • f the matters based on his information in the form and context in which it appears.

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SILVER CITY MINERALS LIMITED

Attractive Investment proposition

  • Large tenement position at Broken Hill (≈1200 km2)
  • Extensive zones of pegmatite within tenements
  • Lithium is commonly found in pegmatites
  • Lithium is the metal of the future – used in next gen

battery technology

  • Broken Hill home to world largest Zinc-Lead-Silver
  • Deposit. Has long mining heritage – birthplace of BHP

Billiton and Rio Tinto

  • SCI has high quality Zinc projects close to Broken Hill - SCI

more than just a one-mineral explorer

  • Global zinc deficit expected from 2017 onwards

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SILVER CITY MINERALS LIMITED

Company snapshot

Key metrics Market cap (at 5 cents) $8.0m Cash on hand (at 30 June) $2.5m 52-week high 13¢ Top 20 shareholders 41.3% 52-week low 1.3¢ Shares on issue (No.) 158.6m 30-day average volume 2.9m Unlisted Options 10.5m Top 5 shareholders Sentient Group 13.0% Variscan Group 4.3% HSBC Custody Nominees 2.9% BNP Paribas Nominees 2.9% RHB Securities Singapore 2.7%

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0.02 0.03 0.04 0.05 0.06 0.07 0.08 April, 21 May, 11 May, 30 Jun, 8 Jun, 30

Silver City Minerals ASX:SCI

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SILVER CITY MINERALS LIMITED

Yanina Barila Alternate Non-Executive Director

Yanina is an investment manager with The Sentient Group. Yanina brings international experience in the review and evaluation of mining and energy projects and her areas of expertise include financial modelling and equity

  • research. She is a non-executive director of TSX-

list Tinka Resources Limited.

Ian Plimer Non-Executive Director

Ian Plimer was the inaugural Professor of Mining Geology (University of Adelaide) and Emeritus Professor of Earth Sciences at The University of

  • Melbourne. Ian is considered to be the world

expert on the geology of the Broken Hill orebody

  • n which he has worked and published

extensively for almost 50 years.

Chris Torrey Managing Director

Geologist with over 35 years experience in international mineral exploration. Senior management and consulting roles with Cyprus- Amax, ASX-listed Golden Cross Resources, US- listed Golden Minerals and Apex Silver. Past Chairman of Golden Cross Resources.

Board of Directors

Bob Besley Chairman

Geologist with over 40 years experience in mining and exploration. Founder and original Managing Director of CBH Resources Limited. Bob took that company from inception as a junior explorer to a large zinc, lead and silver producer with a peak market cap of $600m. Currently Non-Exec Director KBL Mining Limited.

Greg Jones Non-Executive Director

Greg is a geologist with 35 years exploration and mine operational experience. Senior management roles with Western Mining and Sino

  • Gold. He currently holds directorships with ASX-

listed companies; Moly Mines, Eastern Iron Limited and Thomson Resources. Greg is the Managing Director of Variscan Mines Limited.

Ian Hume Non-Executive Director

Ian was a founding partner of The Sentient Group, a private equity fund specialising in global investment in the resources sector. Long career of investing in international mining and telecommunications, primarily in North and South America, Russia and the Pacific Rim.

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SILVER CITY MINERALS LIMITED

Lithium @ Broken Hill

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SILVER CITY MINERALS LIMITED

  • Electric vehicle sales growing

rapidly and will account for 35% of all new car sales by 2040 (Bloomberg)

  • Powerwall & growth of mobile

devices also fuelling demand for batteries

  • Lithium is a key component in

next gen battery technology

Why Lithium is the metal of the future

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SILVER CITY MINERALS LIMITED

Source: Fox Davis Capital

Global Lithium demand

8 50,000 100,000 150,000 200,000 250,000 300,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Rechargeable batteries Metallurgical Ceramics and Glass Other

10%py 11%py

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SILVER CITY MINERALS LIMITED

Pegmatite: key source of Lithium

  • A half of global supply of lithium comes from

pegmatite

  • NSW Geological Survey documents the presence
  • f lithium in pegmatite @ BH
  • SCI holds title to 10 granted exploration licences

with 3 licence applications in place

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View from Silver City tenement

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SILVER CITY MINERALS LIMITED

Silver City minerals projects

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SILVER CITY MINERALS LIMITED

Lithium

  • 1200 square kilometres

tenure

  • 100 square kilometres
  • f outcropping

pegmatite

  • Lithium minerals known
  • No lithium exploration

undertaken

  • Euriowie & Kantappa

tin fields host lithium minerals

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SILVER CITY MINERALS LIMITED

What is known about lithium @ BH

  • Lithium minerals occur in tin fields at Euriowie and

Kantappa

  • Spodumene, amblygonite, petalite, and lepidolite
  • Indicator minerals: lithium-rich muscovite, caesium beryl,

beryl, tourmaline, cassiterite, tantalite-columbite, fluorite and topaz

  • Unique chemistry enriched in lithium, tantalum, niobium,

caesium, beryllium, tin, rubidium and boron

  • Preferentially associated with pegmatites intruded into

rocks of low metamorphic grade (Sundown and Paragon Groups)

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SILVER CITY MINERALS LIMITED

What is known about lithium @ SCI tenements

  • Same geology as Euriowie and Kantappa
  • Same tin fields
  • Same indicator minerals
  • Extensive tracts of preferential host rocks with intrusive

pegmatites

  • No exploration for lithium ever undertaken

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SILVER CITY MINERALS LIMITED

Adapted by Silver City from from Fitzherbert 2015, Cerny 1991 and Breaks el al 2003

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SILVER CITY MINERALS LIMITED

Project highlights

A Lithium Discovery at Broken Hill

  • Ideal for low capital, low-cost open pit mining
  • Well established mining centre
  • Ready workforce
  • Easy access to infrastructure (i.e. power,

rail, etc.)

  • SCI projects less than 25 km from town

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SILVER CITY MINERALS LIMITED

Peer comparison

Explorers ASX Code Market cap Primary Mineral 12-month return

Silver City SCI $8.0m Li & Zn 117% Ardiden ADV $21.3m Li, C & Sn 285% Metalicity MCT $30.1m Li & Zn 250% Dakota Minerals DKO $31.7m Li only 426% Pioneer Resources PIO $33.3m Li & Au 106% Lithium Australia LIT $57.7m Li only 198%

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SILVER CITY MINERALS LIMITED

Next steps

Work Program: Search for Spodumene

Item Comment Cost ($) Geophysics Airborne multispectral survey exists already; use to identify spodumene in pegmatite 30,000 Geochemistry Regional multi-element soil and rock surveys 150,000 Geology Regional mapping fractionated pegmatites 100,000 Mineralogy Field and XRD identification spodumene 50,000 Target Definition Detailed prospect scale sampling 100,000 Drilling First pass RC and diamond drilling. 450,000 Total 880,000

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SILVER CITY MINERALS LIMITED

Milestones next 12-months Lithium

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Jul-Sept Nov July-Aug

  • Access to Waukeroo Tin

Field for detailed lithium evaluation; sampling, geological and mineral evaluation

  • Drill

assessment lithium

  • Results of

pegmatite sampling

  • Identification of

spodumene concentrations

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SILVER CITY MINERALS LIMITED

Zinc @ Broken Hill

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A new zinc discovery of typical high grade Broken Hill ore (+15% Zn+Pb) will fill a significant part of the shortfall

Global Zinc demand supply forecast (Mt)

5 10 15 20 25 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20

4% Mt of Zinc

The ‘Zinc Gap’

World Zinc Demand (Mt) World Zinc Supply (Mt)

Increasing demand-supply gap forecast for Zinc

  • Demand

increasing

  • Mines closing
  • Limited new

mine capacity to fill the gap

Source: HDR | Salva

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SILVER CITY MINERALS LIMITED

Silver City zinc projects

  • Razorback West
  • Stephens Trig
  • Balaclava
  • Yalcowinna West

All large zinc + lead anomalies All under alluvial and soil cover

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SILVER CITY MINERALS LIMITED

Zinc project highlights

  • Large focused land tenure position
  • Potential for high grade, giant base metal and silver-rich
  • rebodies
  • Focus on Razorback , Stephens Trig and Balaclava
  • New round of drilling scheduled (Razorback West)
  • Geophysical surveys and follow-up drilling at Balaclava

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SILVER CITY MINERALS LIMITED

Future program snapshot Zinc

Project Program Timing Razorback West Drill-testing geophysical and geology targets August-September Balaclava Geophysics and follow-up drilling September Stephens Trig Geological Modelling July Balaclava Geophysics and follow-up drilling September

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SILVER CITY MINERALS LIMITED

Summary

  • Strong potential for new resources of lithium in

spodumene-bearing pegmatites in Broken Hill district

  • Silver City tenements highly prospective for spodumene
  • Broken Hill: ready access to infrastructure and workforce
  • Company-making opportunity in Zinc
  • SCI attractively priced compared to other explorers
  • Multiple milestones in next 12-months

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SILVER CITY MINERALS LIMITED

SILVER CITY MINERALS LIMITED

ASX Code: SCI ABN 68 130 933 309

Level 1, 80 Chandos Street St Leonards NSW 2065 Australia +61 2 94371737

www.silvercityminerals.com.au

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