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U.S. Silver Investor Presentation March 2011
 

U.S. Silver Investor Presentation March 2011

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U.S. Silver, through its wholly owned subsidiaries, owns and/or operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the ...

U.S. Silver, through its wholly owned subsidiaries, owns and/or operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver mine in US history. Total silver production from U.S. Silver's mining complex has exceeded 217 million ounces of silver production since 1953. U.S. Silver controls a land package now totalling approximately 14,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding the production from existing operations as well as exploring and developing its extensive Silver Valley holdings in the Coeur D'Alene Mining District.

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    U.S. Silver Investor Presentation March 2011 U.S. Silver Investor Presentation March 2011 Presentation Transcript

    • U.S. Silver CorporationMarch 2011 TSXV : USA US OTC Markets : USSIF
    • Forward Looking StatementsCertain statements contained in or incorporated by reference into thispresentation constitute forward-looking statements. The words "may","would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate","expect" and similar expressions as they relate to U.S. Silver or itsmanagement, are intended to identify forward-looking statements,however, other information may also constitute forward-lookingstatements. Such statements reflect the current views of U.S. Silver withrespect to future events and are subject to certain risks, uncertaintiesand assumptions. Many factors could cause the actual results,performance or achievements of U.S. Silver that may be expressed orimplied by such forward-looking statements to vary from those describedherein should one or more of these risks or uncertainties materialize.U.S. Silver does not intend, and does not assume any obligation, toupdate these forward-looking statements.
    • Strong Silver Market TrendsIn 1980, when Nelson Bunker Hunt was asked as to why he haddeveloped a passion for silver, he said; "Silver looked safer thanoverseas oil concessions, the way things were going. And preciousmetals were a good hedge against paper money". Silver Demand – Industrial and Investment
    • Strong Silver Market Trends Silver up 101% since January 1, 2010
    • Company Overview Established producer in prolific Silver Valley in Northern Idaho Low cost incrementalMillion oz Ag growth potential (excess capacity)Annual production85% of revenue from silver Revenue of $85 million at current prices
    • Located in Historic Silver ValleyOver 1 billion British Columbia Albertaounces producedModern and ample Spokaneinfrastructure Washington Missoulain place MontanaSafe and friendlyjurisdiction Oregon Boise Idaho
    • Company Overview• 100% interest in the producing Galena silver-copper-lead mine – High grade narrow vein mining operation• 100% interest in the Coeur Silver mine – Redevelopment plans underway• 2 mills (Galena and Coeur) – Both in use, excess capacity available• Dominant land position in the Silver Valley – Large under explored property• No historic environmental liability with EPA – Settled in 2001• Hedged 20% of production in 2011 to protect CapEx program • 80% unhedged, 100% unhedged in 2012 and after
    • Proved & Probable Reserves Provides a 7 year mine lifeMillion oz Ag Exploration consistently replaces annual99.8 Million lbs. lead production9.8 Million Lbs. copper
    • 2010 Results Cash costs of $13.50Million oz. Ag 5.6 million lbs. lead 1.0 million lbs. copper
    • Galena Mine
    • Galena Mine – an impressive history nd High grade, narrow vein, copper-silver & lead-silver minelargest Short term variability inPrimary silver producer operating results, longin the U.S. term proven producer No historic environmental liability
    • Galena – Past & Present Focusing on higher grade zones to increase head grade Examining productionmillion expansion options with high pricesOunces produced Continued exploration success and mine life extension
    • Mining Operations Callaway Shaft LEGEND Ag - Pb Veins Callahan Shaft Ag - Cu Veins No. 3 Shaft Galena Shaft Coeur Shaft 1200 2400 2800 3000 Sea Level 400 3400356 483 Silver 117-215 3700 Coeur Vein 4000 3700 4300 4600 4900 175 5200 72 5500
    • Galena Performance
    • Milling Operations Excess Capacity Galena Mill 900 tons/day and Coeur Mill 500 tons/ day = total capacity of 1,400 tons/day Ores 2 ore types (silver-copper and silver-lead) have separate crushing, milling and flotation circuits Recoveries Consistent mill recovery rates of 96% for silver-copper and 92% for silver-lead ores Smelters Silver-copper concentrates railed to Quebec and silver-lead cons trucked to Trail, BC
    • Reserves Detail• Current 43-101 based mine life of approximately 7 years• U.S. Silver continues to cost effectively add reserves well in excess of its production, continually extending mine life• Reserves have doubled since property acquired in 2005
    • Coeur Redevelopment
    • Restarting The Coeur Mine • No permitting or acquisition costs • Existing excess mill capacity • Examining alternativemillion mining methods & scale • Additional drillingresource ounces underway to bettertargeted define deposit • Significant exploration upside
    • Exploration Potential
    • Exploration Potential • Dominant land position • Under explored and accessible camp • Region of increasing interestThousand • Strong cash flow funding all plans internallyacres of land • Identified 8 immediate targets that are ready for drilling
    • Surface and Underground Drill Targets
    • Surface and Underground Drill Targets CA “GAP” Western Argentine Coeur Mine Vein Deep Calady Mine Coeur Mine Deep Lead-Silver Silver Vein
    • Additonal Medium Term TargetsHave developed several medium term targets withexpected launch of program in 2012Drill ready targets identified by Surface and underground showings Geochem profile matching that of Galena/Coeur Regional structure is the same host for several other mines in valley Strong correlation between tetrahedrite showings and deeper silver vein systems
    • The Right People in Place
    • Experienced and Stable Workforce 33 with over 20 years of experienceemployees
    • The Right Management TeamBobby E. Cooper • 42 years experience in the mining industryChairman • Served as Chairman of High Plains Uranium and former President and CEO of Kennecott Corporation • Formerly held executive positions with Thunder Basin Coal, RTZ (Rio Tinto), Shell Mining, Inspiration Consolidated (Huda), and Ridgeway Mining (Kennecott)Tom H. Parker • Mining engineer with over 40 years experience in the mining industryPresident , CEO & • Former President and CEO of Gold Crest Mines and High Plains UraniumDirector • Worked for 10 years as an Executive VP of Anderson and Schwab, a New York based management consulting firm • Former CEO of Contain Minerals which owned 22 coal mines, the Brewer gold mine, and Montana Talc • Worked for 10 years for ARCO where he was President of Beaver Creek Coal Mines, General Manager of Nevada Molly, President of Thunder Basin Coal and VP for Engineering, Exploration and Business Development • Former General Manager of Jacobs Ranch mine for Kerr McGee Coal and served as Project Manager for Conoco • Worked in potash, limestone and talc industries and has extensive experience in Niger, France and VenezuelaChris J. Hopkins • Chartered Accountant with over 25 years experience in financial management, strategic planning, mergers and acquisitions,CFO corporate finance and financing and management reporting • Formerly with Rio Algoma, Suncor, and several junior mining and oil & gas companiesMine Management • Many long service management end employees provide knowledge and continuity • New management bring new thinking and approaches
    • The Right BoardGordon E. • Over 25 years experience in investment banking, capital markets, and corporate bankingPridham • President and CEO of Edgewater Capital and Chairman of Titanium CorporationDirector • Serves as a Director for Newalta Income Fund • Formerly with Chemical Bank and National Bank, in the energy and minerals sector in New York, Calgary, and Toronto • Formerly with Merrill Lynch Canada and Midland Walwyn and managed the Investment Banking groups at Deutsche Morgan Grenfell, Research Capital, and Raymond JamesJohn S. Brock • Geologist with over 40 years experience as an executive for 20 public, junior exploration companiesDirector • Participated in 12 major mineral deposit discoveries in north and western Canada, Nevada, Mexico, and Ecuador • Served six years as governor of the Vancouver Stock Exchange (TSX Venture Exchange) and CDNX Exchange and 2 years on the TSX Venture Exchange Advisory Board • Currently CEO of Pacific Ridge Exploration and Senior Consultant to the Manex Resources GroupJames M. • Geologist and mining analyst with over 15 years experienceMacintosh • Served as an executive and a director of numerous public and private companies in Canada and the United StatesDirector • President and COO of Innovium Capital, a company that invests in innovative opportunitiesKevin D. Stulp • Served on the board of Aurora Oil & Gas since 1997Director • Worked as a consultant with Forte group, • Held various positions with Compaq Computer Corporation, including industrial engineer, new products planner, manufacturing manager, director of manufacturing and director of worldwide manufacturing reengineering
    • Summary• Highly leveraged silver producer, 85% revenue from silver• Stable and consistent production• Infrastructure in place with excess capacity• Dominant land position with significant exploration upside with in a highly prospective region• No debt, sufficient financial capacity to execute growth plan• No historic environmental liability
    • Market Data TSX-V: USA OTCQX: USSIF Frankfurt: QE2 52 week hi-low: $0.83 - $0.15 288.9 million shares outstanding 335.3 fully dilutedMillion TSX.V and OTCQX average daily volume 1 Current Market Cap Million Undervalued vs. peers on key metrics
    • Questions Contact Tom Parker Chief Executive Officer 208-752-0400 Christopher Hopkins Chief Financial Officer 416-907-9539 Patrick Piette TMX Equicom 416-815-0700 x267