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Wildcat Silver Investor Presentation October 2012

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  • 1. Investor Presentation October 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 jurisdiction 80 km SE from Tucson, AZ  Located in Santa Cruz County, Arizona - 154 acres of patented claims Arizona - approx. 6,000 acres of unpatented claims  Large project:  315M oz Ag Resource  15.5M oz Ag Expected Production/yr  Robust economics(1) N Tucson  After-tax NPV (5%) of $658M  After-tax IRR of 32% I10 Santa Rita  Near existing infrastructure Mtns  Power, water, highways, labour 82 I191. Based on $28.75/oz Ag, $1,575/oz Au and $3.50/lb Cu 0 30 km Focused on developing the Patagonia largest silver mine Nogales Hermosa in the USA TSX:WS 3
  • 4. 2012 Hermosa Project PEA Economic Highlights After-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 IRR 31.9% 43.4% $500Project Payback 1.7 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% of the three-year historical prices and 40% of two-year forward market prices. Change in Silver Price2. Spot case is based on spot prices. TSX:WS 4
  • 5. Large and Growing Silver Resource Base325 Hermosa Silver Resource (Moz) 2012 total resource base* 235.6M 315M Measured & Indicated Resource Inferred Resource oz275225 ~6x 75% of total 2012 measured & indicated resource 551%175125 from 2010 36.2M 75 84.9M 79.0M 2012 total resource base 487% 25 53.6M-25 2007 2010 2012* 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 Cordero Escobal Malku Khota Navidad Santa Ana Candelaria San Agustin Pitarrilla GC Project Sunrise Lake Corani Hermosa Diablillos Parrena Veta Colorada Hackett River Juanicipio Maverick Springs Berenguela Challacollo San Juan Silver Joaquin Silvertip* Includes only projects with recent 43-101 compliant resource estimates TSX:WS 6
  • 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 for incorporating into future mine modeling activities Metallurgical testwork continues to optimize silver recoveries TSX:WS 7
  • 8. Hermosa Cross Section: A – A’ A’A TSX:WS 8
  • 9. Cross sections: B – B’ B B’TSX:WS 9
  • 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:WS 11
  • 12. New Simplified Process Flow SheetUPPER SILVER MANTO OXIDE ZONE Simplified process using proven technology ZONE Legend Crushing Average recoveries in PEA: Solids Flow Stream Silver (manto) – 82% Solution Flow Stream Gold (manto) – 90% Upper Silver Manto Oxide Stockpile Stockpile Silver (upper silver) – 40% Gold (upper silver) – 90% Calcining Copper Sulfide Precipitate Grinding Cyanide Recovery Cyanide Leaching Merrill Crowe Silver Recovery Refinery Ag/Au Doré Leach Tails to Tailings Storage Facility or Cyanide Destruct Potential Zn Flotation and/or Magnetic SeparationTSX:WS 12
  • 13. Initial Pilot Plant Tests CompletedTest 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 Metrics 2.5x increaseMining Rate 14,920 tpdAnnual Ag Production (first 5 yrs) 15.5 M oz Ag 6M ozAverage Ag Cash Costs1 (first 5 years) $8.29 per ozMine life 16 years 2010 PEA 2012 PEA1.Net of by-product credits based on gold price of $1,525/oz Au, and copper price of $3.50/lb Cu TSX:WS 14
  • 15. Production comparison – Developing ProjectsEstimated average annual silver production (Moz) 20 18 First five years 16 average 14 12 10 LOM Average 8 6 4 2 - Escobal Navidad Hermosa Malku Khota Juanicipio Cordero Corani Pitarilla La Preciosa Rock Creek Saucito Fuwan Santa Ana San Luis Guatemala Argentina USA Mexico Mexico Peru Mexico Mexico USA Mexico China Peru Peru Bolivia1. Hermosa based on first five years Source: Company Disclosure & Technical Reports, Hermosa 2012 PEA TSX:WS 15
  • 16. 2012 Hermosa Project PEA Capital CostsInitial CAPEX1 Mining equipment Mine pre-Mining Equipment $29M developmentMine Pre-development $31MProcess Plant & Tailings $269M Contingency OtherGeneral Site & Ancillary Facilities $43MGas & Power Supply $43M Owners costsEPCM $51MOwner’s Costs $38M EPCMOther $27M Process plant Gas and & tailingsSub-total $531M power supplyContingency $96MTOTAL CAPEX $627M General site & ancillary facilities1. Metrics on a 100%-basis TSX:WS 16
  • 17. Site view – PEA pit outline LOOKING SOUTHEAST PROPOSED OPEN PIT Tailings Facilities and Strip Ratio 2.8:1 Storage Area Plant Site Road AccessTSX:WS 17
  • 18. Significantly Undervalued Market Capitalization per ounce (C$ per ounce)(1)18161412108 Average $6.7164 <$1 per oz20 (2) WS SSO OKR USA HL CDM THO FVI MAG EDR AXR GPR Wildcat represents a significant value proposition 1. Includes ounces across all categories (reserves, measured and indicated and inferred ounces) divided into market capitalization. Market cap valued as at September 28, 2012. Resource as reported by each Company in most recently completed reserve and resource statements 2. In US Dollars TSX:WS 18
  • 19. Future Exploration Potential Wildcat Silver Corp.  Completed airborne electromagnetic Hermosa Project High Potential Exploration Targets survey of the entire claim block  Surface sampling and geophysics has identified eleven new high potential targets on unpatented claims High Potential  Provides targets for continued Exploration exploration outside the currently Targets defined resource. Approx. Pit OutlineNTSX:WS 19
  • 20. Scorecard & MilestonesCompleted expanded drill program Conducted airborne EM survey , identified new drill targets on full claim block Increased total resource significantly, upgraded inferred resource Completed pilot plant Completed PEA demonstrating expanded productive capacity Optimize silver and by-product recoveries for additional project value UnderwayComplete pre-feasibility study Mid-2013 TSX:WS 20
  • 21. APPENDIXTSX:WS
  • 22. Capital StructureAugust 10, 2012Issued and outstanding 132.6MOptions 7.3MFully diluted 139.9MShare price (recent) C$1.28Market cap ~C$170MMgmnt/insider ownership ~30%Cash (June 30, 2012) ~C$6MDebt 0Trades on TSX WS TSX:WS 22
  • 23. Board of DirectorsExperienced Board in creating shareholder value Founder of the Augusta group of companies which include Augusta Resource Corporation (Executive Chairman), Wildcat Silver Corporation (Chairman and CEO), Riva Gold Corp (Chairman and CEO) and Plata Latina Minerals Corporation (Director). He was also the founder and Chairman of Ventana Gold Corp which was acquired forRichard W. Warke $1.5 billion. Richard has more than 25 years of experience in corporate finance and marketing in the globalChairman & CEO resource industry, and has been involved in raising over $1 billion dollars in equity for resource companies. Although his endeavours have primarily involved mineral resource operations, he has also been involved with oil and gas, forestry, technology and manufacturing operations. More than 25 years executive, finance, development and operations experience in the mining industry;Gil Clausen currently President, CEO and Director of Augusta Resource Corporation, Director of Jaguar Mining Inc. andVice Chairman Chairman of Plata Latina Minerals Corporation. Gil is a P.Eng. and holds B.Sc. and M.Sc. degrees in Mining Engineering from Queen’s University and is a graduate of the Queen’s executive business program.R. Stuart Angus Independent business advisor, past partner and head of global mining group at Fasken Martineau. Chairman ofDirector Nevsun Resources Ltd., Director of SouthGobi and previously Director of Ventana Gold.John R. Brodie Formerly a partner at KPMG LLP, elected a fellow for distinguished service to the profession by theDirector Institute of Chartered Accountants of British Columbia. Director of Western Coal and Silver Standard.Donald B. Clark 35 years experience in the finance industry; sits on the Board for two other natural resource companies includingDirector Augusta Resource Corporation and previously Ventana Gold. Professional geologist with more than 25 years experience in mineral exploration and research;Robert P. Wares Executive VP, COO and Founding Director of Osisko.Director TSX:WS 23
  • 24. Management Experienced management with solid track record of success Founder of the Augusta group of companies which include Augusta Resource Corporation (Executive Chairman), Wildcat Silver Corporation (Chairman and CEO), Riva Gold Corp (Chairman and CEO) and Plata Latina Minerals Corporation (Director). He was also the founder and Chairman of Ventana Gold Corp which was acquired for $1.5Richard W. Warke billion. Richard has more than 25 years of experience in corporate finance and marketing in the global resourceChairman & CEO industry, and has been involved in raising over $1 billion dollars in equity for resource companies. Although his endeavours have primarily involved mineral resource operations, he has also been involved with oil and gas, forestry, technology and manufacturing operations.Donald R. Taylor Professional geologist with more than 25 years successful experience in the exploration and miningPresident & COO of base and precious metals.Paul J. Ireland Extensive financial experience in mining and forestry; Chartered Accountant; was previously also CFO ofChief Financial Officer Ventana Gold Corp.William J. Pennstrom, Jr. More than 35 years experience in the management and engineering aspects of mineral processing; holds a BachelorVice President, Technical of Science degree in Metallurgical Engineering and a Masters of Arts degree in Business Management; QualifiedServices Professional (QP) in Process Metallurgy as defined under Canadian National Instrument 43-101Charles J. Magolske 25 years experience in marketing, operations management, business management, joint venturesVice President, Corporate and acquisitions in both domestic and international venues; degrees in Law, Business and EngineeringDevelopment (Professional Engineer); also VP of Corporate Development for Augusta Resource Corporation.Gregory F. Lucero More than 20 years of management experience in both the public and private sector, as well as an extensiveVice President, Sustainable background in the executive government working for local, state, and federal elected officials; holds a Bachelor ofDevelopment Arts degree in Political Science from the University of Arizona.Letitia Cornacchia Ten years experience in finance and investor relations; holds Bachelor of Commerce degree in Finance from theVice President, Investor University of British Columbia and is a CFA charterholder; also VP of Investor Relations and CorporateRelations & Corporate Comm. Communications for Augusta Resource Corporation, Riva Gold Corporation and previously Ventana Gold Corp.Purni Parikh More than 22 years experience in business administration including more than 17 years experienceVice President, Corporate with public companies in the areas of communications, investor relations and legal administration;Secretary also Corporate Secretary for Augusta Resource Corporation and previously Ventana Gold Corp. TSX:WS 24
  • 25. 2012 Resource EstimateNI 43-101 Resource Estimate* dated August 2012 Tonnes Ag Au Mn Zn Cu Contained Silver Zone Type (000) (g/t) (g/t) (%) (%) (%) Ounces (000s)Measured Mineral Resource*Manto Oxide 36,744 66.64 0.09 7.12 1.81 0.07 78,725Upper Silver Mixed 57,038 29.64 0.07 0.85 0.12 0.02 54,360Total Measured 93,782 44.14 0.07 3.31 0.78 0.04 133,085Indicated Mineral Resource*Manto Oxide 39,713 41.52 0.06 5.69 1.66 0.06 53,008Upper Silver Mixed 60,685 25.36 0.06 0.95 0.16 0.02 49,481Total Indicated 100,398 31.75 0.06 2.83 0.75 0.04 102,489Measured and Indicated Mineral Resource*Manto Oxide 76,457 53.59 0.07 6.38 1.73 0.06 131,733Upper Silver Mixed 117,722 27.44 0.06 0.90 0.14 0.02 103,841Total Measured & Indicated 194,180 37.73 0.07 3.06 0.77 0.04 235,574Inferred Mineral Resource* Tonnes Ag Au Mn Zn Cu Contained Silver Zone Type (000) (g/t) (g/t) (%) (%) (%) Ounces (000s)Manto Oxide 21,747 39.56 0.06 7.03 2.79 0.10 27,662Upper Silver Mixed 57,764 27.65 0.06 0.85 0.17 0.02 51,346Total Inferred 79,510 30.91 0.06 2.54 0.89 0.04 79,008• The mineral resource is constrained within a Whittle optimized pit shell based on the following metal prices and recoveries: (Metal/Price/Recovery): Silver/$25.76 per oz/90%; Manganese/$0.60 per lb/95%; Zinc/$0.93 per lb/80%; Copper/$3.21 per lb/90%). The mineral resource is based on processing costs of US$27.55/tonne for the Manto Zone. The Upper Silver Zone mineral resource is tabulated using a silver cut-off grade of 8.57 g/t. Previous mineral resources did not include a resource for gold as no metallurgical test work had been completed to prove its recovery or economic viability. As a result of recent test work the expected recovery included in the above table has been used and gold has been included in the total mineral resource. This resource does not include the sulfide mineral resource of 4M oz Ag (3.8M tonnes of 30.84 g/t Ag) TSX:WS 25
  • 26. Head Office 400-837 West Hastings St Vancouver, BC V6C 3N6 tel (604) 484-3597 Investor Relations Letitia Cornacchia tel (416) 860-6310TSX:WS lcornacchia@wildcatsilver.com