financing; operational risks associated with mining and mineral processing; ... projects; the absence of dividends; comp
Corporate Presentation May 2018
1 as Liberty Silver Corp. | LSL.C OperatingOperating as Liberty Silver Corp.| LSL.C
Forward Looking Statements Information set forth in this presentation may contain forward-looking statements. Forward-looking statements are statements that relate to future, not past events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: the risks associated with outstanding litigation, if any; risks associated with project development; the need for additional financing; operational risks associated with mining and mineral processing; fluctuations in gold and other commodity prices; title matters; environmental liability claims and insurance; reliance on key personnel; the potential for conflicts of interest among certain officers, directors or promoters with certain other projects; the absence of dividends; competition; dilution; the volatility of our common share price and volume; and tax consequences to U.S. Shareholders. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements. 2
Re-starting a Significant Past Producer in a Historic Mining Camp
3
•
Fully Permitted: Patented ground and signed EPA Agreement.
•
Historic SEC Proven & Probable Reserves and Resources*: 9.1M tons @ 5.08% Zn, 2.35% Pb, 1.29 opt Ag.
•
Past Producer – Proven Metallurgy: The Bunker Hill Mine produced over 35M tons of ore grading 8.76% lead, 3.67% zinc, and 155 g/t silver. Zinc and lead concentrates are very clean with no deleterious elements.
•
Developed: Near term access to +7 years of mineable material at 1,500 tpd.
•
High grade zones: > 20% combined Pb/Zn.
•
Experienced Management: operated the nearby Galena Mine.
•
Excellent Infrastructure/Geopolitical Risk: paved road access, low cost power, water, skilled labour, mining services, Idaho is mining friendly and a “Right to Work” state.
•
Exploration Potential: 3,400 DD holes show numerous high grade intercepts that were never followed up on.
*SEC Compliant Resource not to be considered NI 43-101 compliant
Corporate Overview Share Ownership
40%
44%
Capital Structure CSE symbol
BNKR
Shares O/S
33.0 million
Options
2.4 million
Warrants
4.3 million
Fully Diluted Shares O/S
39.7 million
Share Price (01/02/2018)
C$ 2.40
Market Capitalization
C$ 79.2 million
Cash (as of 12/31/2017)
C$ 5.3 million
16% Mgmt/Insiders Institutional Retail
Institutional Shareholders Valuestone Global Resources Fund 1 RBGAM EDE Value Fund 4
CSE: BNKR share price (1 year)
Proven and Probable Reserves*
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Source
Zone
P&P Reserves (tons)
Zinc (%)
Lead (%)
Silver (oz/ton)
Cominco Engineering Services Mine Plan (1989)**
Quill/Newgard
4,669,600***
5.01
2.87
1.61
Bunker Hill Mining Company Inc. (1991)
Quill/Newgard + others
9,141,109****
5.08
2.35
1.29
*SEC Compliant Resource but not to be considered 43-101 compliant ** Above the 9 Level *** approximately 8 years of production at a throughput rate of 1,500 tpd **** approximately 17 years of production at a throughput rate of 1,500 tpd
Project Setting/Geology
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Idaho – Excellent Jurisdiction •
Idaho is an excellent Jurisdiction for permitting and operating.
•
Location is 500 meters south of Interstate 90 and just south of the Town of Kellogg.
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•
Patented Ground – no impediments to development.
•
Town of Kellogg - 2,200 people, housing available.
•
Infrastructure Rich – Power, Water, Workers.
•
Experienced work force available.
Project Setting/Geology
•
•
•
8
Coeur D’Alene Mining District – World Class Production and Potential –
World class past production: Historically the 2nd largest silver producer in the world (> 1 billion ounces Ag)
–
Significant historical production of Zinc and Lead: equivalent to approximately 100Mt of ore grading 10% Zn/Pb combined.
Prolific host rock, Extensive Structural Preparation –
Mineralization (sphalerite, galena, tetrahedrite) hosted in the Revett Formation, part of the Belt Supergroup, which consists of alternating intervals of quartzite and siltite, together more than 1,200 metres thick.
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Mineralization at Bunker Hill is controlled by 2 major parallel faults (Osburn and Placer Creek), with numerous splays and tensional gashes.
Significant Exploration Potential –
All zones are open at depth.
–
Potential parallel zones (such as the South Newgard) represent further upside.
Project Setting/Geology
9 9
Bunker Hill Mine Project Timeline* Development Area
2018 Q1
Q2
2019 Q3
Q4
Q1
UTZ South Newgard
Q2
2020 Q3
Q4
Q1
Q2
Q3
Q4 Est. 0.4M tons**
Est. 1.4M tons**
Kellogg Tunnel Rehabilitation Quill Zone
Est. 2.4Mt+tons**
Processing
1,500 tpd
Legend Access, resource estimate, development, mill construction Mining Processing
* Based on internal studies and not to be considered NI 43-101 compliant 10
**Collectively over 8 years of production at 1,500 tpd.
Location of Newgard, Quill and UTZ Ore Bodies (mine plan in green and red*)
UTZ South Newgard
NW Newgard
Kellogg Tunnel & 9 Level Quill Ore Zones from 1991 Bunker Hill Reserves
Mined Out
15 Level Quill Drill Indicated Resource
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* Based on internal studies and not to be considered NI 43-101 compliant
Total funding requirements over a 2 year period (US$M) SOURCES
4
Offtake debt financing/project debt financing/equity
90 Total
90
USES Mine Acquisition Buy out of Purchase Payments
15
Mine Development (includes 20% contingency) Resource Estimate (UTZ, Newgard, Upper Quill) Underground Repair & Development Kellogg Tunnel Rehabilitation Surface Building Construction Process Plant & Tailings Facility
4 10 6 5 40
Working Capital (mine & head office)
10 Total
12
90
Historical Lead & Zinc concentrate specifications (Quill and Newgard zones circa 1979)
Lead Concentrate
Zinc Concentrate
troy oz/ton
31 – 34
2 – 3
troy oz/ton
Nil
Nil
%
65 – 69
1 – 2
Zinc
%
5 – 7
55 – 58
Cadmium Copper Antimony Arsenic Mercury Sulfur Tin Nickel Bismuth Iron Insoluble
%
0.01 – 0.03
0.10 – 0.22
%
0.5 – 1.0
0.10 – 0.15
%
0.25 – 0.35
0.01 – 0.03
%
0.01 – 0.10
0.10 – 0.16
ppm
10 – 40
100 – 200
%
15 – 17
27 – 30
%
Trace
0.001 – 0.002
%
Trace
Trace
%
0.001 – 0.005
0.001 – 0.003
%
4.0 – 5.5
4.5 – 6.5
%
1.0 – 1.5
2.5 – 3.0
Silver Gold Lead
Moisture content of the concentrates is 8-10 percent.
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Site Infrastructure The Number 2 Hoist
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The Number 1 Hoist
Management: Technical and Capital Markets background and a Proven Track Record in the Silver Valley •
•
•
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Bruce Reid, President and Chief Executive Officer –
Geologist (University of Toronto)
–
Former President and CEO of Carlisle Goldfields Limited : Sold to Alamos Gold for 209% premium to market.
–
Founder and former CEO of US Silver: Put the Galena mine back into production in 2008.
–
Former Executive Director of Patricia Mining, Founder of Western Goldfields,Founder of High Plains Uranium.
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Analyst and Investment Banker for over 15 years with firms such as Nesbitt Thomson, Loewen Ondaatje McCutcheon, and Yorkton Securities.
Mark Hartmann, Chief Operating Officer –
Mining Engineer (University of Minnesota)
–
Former COO of US Silver.
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Former Mine Manager of the Sunshine Mine.
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Former Western Missouri Operations Manager at Lafarge, and Port Inland Mining Production Manager at Chemical Lime.
Julio DiGirolamo, Chief Financial Officer –
CPA, CA
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Former CFO of Carlisle Goldfields Limited.
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Former Vice President and Corporate Secretary at Greenstone Resources.
Directors •
Bruce Reid – Former President and CEO of Carlisle Goldfields Limited; Founding Shareholder of US Silver.
•
John Ryan – 25 years experience as a Mining Engineer with extensive knowledge of the Coeur d'Alene mining district, Founder US Silver.
•
Howard Crosby – +25 years experience as an executive in the mining industry, having served as an officer and director of public companies listed in Canada, USA and UK.
•
Roy Shipes – Former General Manager of Ok Tedi Mining Limited, Managing Executive Southern Peru Copper.
•
Jennifer Boyle – Head of Global Corporate Finance for Velocity Trade Group of Companies, Founder and former CEO Satori Resources, and Takara Mining.
•
Dickson Hall – Partner in Valuestone Advisory Limited and Manager of Valuestone Global Resources Fund 1
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Re-starting a Significant Past Producer in a Historic Mining Camp
17
•
Fully Permitted: Patented ground and signed EPA Agreement.
•
Historic SEC Proven & Probable Reserves and Resources*: 9.1M tons @ 5.08% Zn, 2.35% Pb, 1.29 opt Ag.
•
Past Producer – Proven Metallurgy: The Bunker Hill Mine produced over 35M tons of ore grading 8.76% lead, 3.67% zinc, and 155 g/t silver. Zinc and lead concentrates are very clean with no deleterious elements.
•
Developed: Near term access to +7 years of mineable material at 1,500 tpd.
•
High grade zones: > 20% combined Pb/Zn.
•
Experienced Management: operated the nearby Galena Mine.
•
Excellent Infrastructure/Geopolitical Risk: paved road access, low cost power, water, skilled labour, mining services, Idaho is mining friendly and a “Right to Work” state.
•
Exploration Potential: 3,400 DD holes show numerous high grade intercepts that were never followed up on.
*SEC Compliant Resource not to be considered NI 43-101 compliant
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Contact Information
Bruce Reid President & CEO 647.500.4495
[email protected]
Nicholas Konkin Marketing & Communications 416.567.9087
[email protected]
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