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SilverCrest Mines | Corporate Presentation | July 2013
 

SilverCrest Mines | Corporate Presentation | July 2013

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SilverCrest Mines Inc. (TSX‐V: SVL; NYSE MKT: SVLC) is a Canadian precious metals producer headquartered in Vancouver, BC. SilverCrest’s flagship property is the 100%‐owned Santa Elena Mine, ...

SilverCrest Mines Inc. (TSX‐V: SVL; NYSE MKT: SVLC) is a Canadian precious metals producer headquartered in Vancouver, BC. SilverCrest’s flagship property is the 100%‐owned Santa Elena Mine, located 150 km northeast of Hermosillo, near Banamichi in the State of Sonora, México. The mine is a high‐grade, epithermal silver and gold producer, with an estimated life of mine cash cost of US$8 per ounce of silver equivalent (55:1 Ag: Au). SilverCrest anticipates that the 2,500 tonnes per day open pit heap leach facility at the Santa Elena mine should recover approximately 625,000 ounces of silver and 33,000 ounces of gold in 2013. Major expansion and construction of a 3000 tonnes per day conventional mill facility is underway to significantly increase metals production at the Santa Elena Mine (open pit and underground) by 2014. Exploration programs continue to make new discoveries at Santa Elena and also have rapidly advanced the definition of a large polymetallic deposit at the La Joya property in Durango State with stated resources nearing 200 million ounces of Ag equivalent.

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    SilverCrest Mines | Corporate Presentation | July 2013 SilverCrest Mines | Corporate Presentation | July 2013 Presentation Transcript

    • Corporate Presentation July 2013
    • Disclaimer The information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning the Company. It should be read in conjunction with all other disclosure documents of the Company. The information contained herein is not a substitute for detailed investigation or analysis. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented. FORWARD-LOOKING STATEMENTS This presentation contains “forward‐looking statements” within the meaning of Canadian securities legislation and the United States Securities Litigation Reform Act of 1995. Such forward‐looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development of its properties, plans related to its business and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance, including silver and gold production and planned work programs. Statements concerning reserves and mineral resource estimates may also constitute forward‐looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed and, in the case of mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. Forward‐looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward‐looking statements, including, without limitation: risks related to precious and base metal price fluctuations; risks related to fluctuations in the currency markets (particularly the Mexican peso, Canadian dollar and United States dollar); risks related to the inherently dangerous activity of mining, including conditions or events beyond our control, and operating or technical difficulties in mineral exploration, development and mining activities; uncertainty in the Company’s ability to raise financing and fund the exploration and development of its mineral properties; uncertainty as to actual capital costs, operating costs, production and economic returns, and uncertainty that development activities will result in profitable mining operations; risks related to reserves and mineral resource figures being estimates based on interpretations and assumptions which may result in less mineral production under actual conditions than is currently estimated and to diminishing quantities or grades of mineral reserves as properties are mined; risks related to governmental regulations and obtaining necessary licenses and permits; risks related to the business being subject to environmental laws and regulations which may increase costs of doing business and restrict our operations; risks related to mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title; risks relating to inadequate insurance or inability to obtain insurance; risks related to potential litigation; risks related to the global economy; risks related to the Company’s status as a foreign private issuer in the United States; risks related to all of the Company’s properties being located in Mexico and El Salvador, including political, economic, social and regulatory instability; and risks related to officers and directors becoming associated with other natural resource companies which may give rise to conflicts of interests. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those describedi n the forward‐looking statements. The Company’s forward‐looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, investors should not place undue reliance on forward‐looking statements. he information contained herein is nota a substitute for detailed investigation or analysis. No securities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented. All monetary figures are expressed in United States dollars unless otherwise specified. Qualified Person Under National Instrument (NI 43-101) Standards of Disclosure for Mineral Projects, the Qualified Person for this presentation is N. Eric Fier, CPG, P.Eng. and Chief Operating Officer for SilverCrest Mines Inc., who has reviewed and approved its contents. 2
    • Experienced Management Team J. Scott Drever, BSc., Chairman & CEO (45 years experience) Strategic Planning, Mergers & Acquisitions. Management and operational experience with several production companies, including Placer Dome and Blackdome Mining. Barney Magnusson, CA, CFO (35 years experience) Served as an Officer and Director of 6 mining (Dayton Mines, High River Gold Mines) companies that developed, constructed or operated 8 precious metals mines in North and South America. N. Eric Fier, CPG, P.Eng., President & COO (25 years experience) Operations, Project Evaluation & Management. Previously with Newmont Mining, Eldorado Gold, Pegasus Gold Corp. Involvement in construction and operations of 4 successful mines, including Santa Elena. Several major international discoveries. Brent McFarlane, BSc., VP Operations (25 years experience) Managed all phases of open pit and underground mining projects and instrumental in leading Mexican and Int’l projects through feasibility, construction, and production while working for Minefinders, Kappes Cassiday, TVI Pacific, Marston, and Pegasus Gold. Marcio Fonseca, P.Geo., VP Corporate Development (20 years experience) Served as Division Director at Macquarie Metals & Energy Capital with focus on equity and debt financing for the mining sector over the last 9 years. Prior to that, he held corporate positions in business development, project development, operations and exploration with Vale and Phelps Dodge in Latin America. Graham C. Thody, CA, Director (30 years experience) Corp. finance and public company management. Director and President of UEX Corp., Chairman of the Board of Geologix. George W. Sanders, Director (30 years experience) Experience in mining and exploration finance. Previously with Canaccord Capital Corp., Richmont Mines Inc., Consolidated Cinola Mines Ltd., and Shore Gold Inc. Ross Glanville, P.Eng., CGA, Director (40 years experience) Experience in mining, exploration finance, valuations and fairness opinions. Director of Archon Minerals Limited, Clifton Star Resources Inc. and Starfield Resources Inc. 3 FOUNDERS
    • 4 Overview of SilverCrest Building The Next Mid-Tier Silver-Gold Producer • 2.37 million Ag Eq oz • 579K oz Ag | 33K oz Au 2012 Production • $ 7.39 per Ag Eq oz ($406 Au Eq) • $12.60 per Ag Eq oz (ALL IN) 2012 Cash Cost • $ 30.5 million • 43% 2012 Earnings & Margin • 19.7 million Ag oz • 327K Au oz Reserves (Santa Elena) •Santa Elena (Underground): •Indicated: 7.9 mill Ag oz, 116K Au oz •La Joya: •Inferred: 198.6 million Ag Eq oz Resources* • 1 Operating (Santa Elena) • 1 Development – PEA (La Joya) Asset Stages • 2013: 2.44 million Ag Eq oz • 2014: 3.5 – 4 million Ag Eq oz Estimated Production • Mexico: Sonora & Durango Geographic Location *Additional details on Resources on slide 10 & 11
    • Capital Structure & Trading History SVL SHARE STRUCTURE Issued & Outstanding: 108,593,205 Options: 6,575,000 Fully Diluted Shares: 115,168,205 Average Option Price: CAD $1.41 MANAGEMENT & KEY SHAREHOLDERS Fully Diluted (as of July 02, 2013) J. Scott Drever, President: 2,141,226 Barney Magnusson, CFO: 2,320,727 N. Eric Fier, COO: 2,057,027 Sprott Asset Management: 7.5% Wellington Management: 6.7% Libra Advisors: 5.7% AGF Investments: 3.7% J.P. Morgan Chase & Co: 1.3% Independent Directors: 1,360,500 TRADING SUMMARY TSX.V NYSE MKT 90 - Day Avg. Daily Volume: 265,565 163,838 52 Week High / Low: $2.96 / $1.19 $3.05/$1.13 Share Price (July 15, 2013): CAD $1.68 Market Cap: CAD $182 M Working Capital (March 31, 2013): $49 M 5
    • 6 Strong Financial Performance Revenue & Cash Flow Growth Strong Working Capital of $ 49 Million at March 31, 2013 ¹ The second quarter of 2011 was the first period whereby revenues and expenses were presented in the statement of operations. ² Higher grade areas were mined in this quarter. ¹ Higher working capital due to bought deal financing and cash flow from operations. - 5.00 10.00 15.00 20.00 25.00 USD($millions) Revenue Cash flow 0 10 20 30 40 50 60 USD($millions) Working Capital Working Capital
    • 7 Financial Performance on a per share basis Note: Earnings impacted by derivative losses 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Quarterly Earnings Per Share (Basic) - $ 0.00 0.02 0.04 0.06 0.08 0.10 0.12 0.14 0.16 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Quarterly Cash Flow Per Share - $ 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 2011 2012 Annual EPS and CFPS EPS CFPS
    • 8 Cash Operating Cost & ALL IN Cash Operating Cost 2013 EST 2012 Base Case Cash operating cost per income statement¹ $ 19,822,454 18,307,681 General and Admin expenses $ 7,273,798 5,568,582 Santa Elena Reserve & Resource definition drilling $ 4,705,000 5,644,469 Santa Elena Sustaining capital $ 901,540 1,703,919 All-in sustaining cash cost $ 32,702,792 31,224,651 Ag equivalent ounces sold 2,432,136 2,477,623 Cash Cost per silver equivalent ounce $ 8.15 7.39 ALL IN cash cost per silver equivalent ounce ² $ 13.45 12.60 ¹ 2013 EST does not reflect any inventory adjustments ² ALL IN” includes total direct costs + sustaining capital + corporate G&A expense (net of stock option expense) + exploration expense.
    • 9 Mine Operating Earnings Per Tonne Per tonne of ore loaded on pads 2013E 2012 2011 Revenue $ 53 ³ $ 61 $ 42 ¹ Cash cost $ (17) $ (16) $ ( 9) ² Depletion, depreciation and accretion $ ( 6) $ ( 5) $ ( 3) Mine operating earnings per tonne $ 30 $ 40 $ 29 ¹ Footwall ore with a slower recovery cycle was placed on the pad initially in 2011. ² Low strip ratio in 2011 due to mining of footwall material. ³ Estimates of $1450 for Au and $26 for Ag were used.
    • CLASSIFICATI ON* TONNES AU GPT AG GPT CONTAINED AU OZ CONTAINED AG OZ PROBABLE 3,920,510 1.57 108.1 198,170 13,624,640 PROBABLE 1,426,710 1.52 66.8 69,830 3,062,200 PROBABLE 2,844,530 0.65 33.3 59,420 3,048,200 SANTA ELENA UNDERGROUND DILUTED AND RECOVERABLE RESERVES** SANTA ELENA OPEN PIT RESERVES*** INDICATED 2,142,820 1.69 114.9 116,000 7,919,000 INFERRED 1,489,750 1.50 155.6 72,000 7,453,000 SANTA ELENA UPDATED RESERVES AND RESOURCES 10 SANTA ELENA LEACH PADS RESERVES**** SANTA ELENA UNDERGROUND RESOURCES***** PROBABLE 8,191,760 1.24 74.9 327,430 19,735,050 TOTAL SANTA ELENA RESERVES Note: All numbers are rounded. Underground and Leach Pad Reserves and Resources are based on 3 year historic metal price trends of US$28/oz silver, US$1450/oz gold and metallurgical recoveries of 92% Au and 67.5% Ag with a metal ratio of Ag:Au at 70:1. All Mineral Resources and Reserves conform to NI 43-101, 43-101CP, and CIM definitions for Resources and Reserves. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Indicated Resources. *Open Pit and Leach Pad Probable Reserves were classified by SilverCrest. Underground Reserves and Resources were classified by EBA, a Tetra Tech Company. **Underground Probable Reserve is based on a cutoff grade of 1.47 gpt AuEq with an average 11% dilution and 90% mine recovery. Average true thickness of the designed stopes is 13.4 metres. ***Open Pit Reserve is based on a cutoff grade of 0.20 gpt AuEq in a constrained pit shell with applied capping of 8 gpt Au and 300 gpt Ag. ****Leach Pad Reserve based on production and drill hole data for volumetrics and grade model using a cutoff grade of 0.5 gpt AuEq. No capping was applied. *****Underground Resources are based on 1 gpt AuEq grade shell and cutoff grade of 1.4 gpt AuEq with applied capping of 12 gpt Au and 600 gpt Ag.
    • CATEGORY TONNE S AU GPT AG GPT CU % CONTAINED AU OZ CONTAINED AG OZ CONTAINED CU LBS CONTAINED AG EQ. OZ INDICATED 1,141,00 0.06 64.2 2,300 2,353,400 2,479,900 CRUZ DE MAYO RESOURCES* INFERRED 6,065,000 0.07 66.5 13,300 12,967,100 13,698,600 LA JOYA RESOURCES** INFERRED : 15 gpt cut off 60 gpt cut off 126,700,00 0 27,900,000 0.17 0.28 23.5 57.5 0.19 0.48 716,200 258,800 95,900,000 51,600,000 533,200,000 288,400,000 198,600,000 100,800,000 Cruz de Mayo & La Joya Resources *Silver equivalency is based on Ag:Au is 55:1 and based on a silver cut-off grade of 30 gpt, 100% metallurgical recovery is assumed. This is presented in the 2007 Fier and Stewart Technical Report; PFS pending . ** Silver equivalency for La Joya includes silver, gold and copper and excludes lead, zinc, molybdenum and tungsten values. Ag:Au is 50:1, Ag:Cu is 86:1, based on 5 year historic metal price trends of US$24/oz silver, US$1200/oz gold, US$3/lb copper. 100% metallurgical recovery is assumed. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than indicated Resources. 11
    • Mexico Properties Santa Elena Properties 12 ♦ ♦ ♦ ♦ ♦ Existing Mines
    • Santa Elena Mine 1. SANTA ELENA HIGH GRADE OPEN PIT 13 CCD Circuit Construction Site 3-Stage Crusher Open Pit
    • Santa Elena Production Data (1) Silver equivalence is based on market spot prices per ounce of silver and gold at the quarter end dates. All numbers are rounded. (2) Sandstorm Agreement: 20% gold stream at $350/oz Santa Elena Mine Operating Highlights Q1 2013 Q4 2012 YTD 2012 Silver ounces produced 153,481 153,863 579,609 Gold ounces produced (2), before gold purchase stream 7,225 7,831 33,004 Silver equivalent ounces produced 556,667 588,948 2,371,755 Silver ounces sold 157,088 171,714 588,312 Gold ounces sold 7,370 8,444 34,834 Silver equivalent ounces sold 568,380 640,856 2,477,623 Tonnes ore mined 257,726 301,295 1,092,305 Tonnes waste mined 1,100,362 924,927 4,640,700 Waste / ore ratio 4.27 3.07 4.25 Ore tonnes crushed 252,830 308,693 1,157,226 Average ore tonnes crushed per day 2,809 3,355 3,162 Average silver ore grade (gpt) loaded on pad 62.09 59.59 47.95 Average gold ore grade (gpt) loaded on pad 1.54 1.42 1.43 Silver ounces delivered to pad 504,711 591,441 1,784,118 Gold ounces delivered to pad 12,536 14,089 53,296 Ag: Au Ratio (1) 55.8:1 55.6:1 54.3:1 14
    • 15 Santa Elena Mine Expansion Plan Capex Schedule ($ Millions) TOTAL 2013 (Revised EST) 2012 2011 Mill Complex 58.7 53.2 5.5 - Underground Development 12.6 8.1 3.5 1.0 Drilling & Pre-Feasibility 10.7 4.7 5.0 1.0 82.0 66.0 14.0 2.0  Pre Feasibility in Q2|2013  Decline ramp, UG development and drilling in process  Construct, 3,000 tonnes per day conventional mill by Q1 2014  Mill feed from Open Pit and Underground in 2014
    • Santa Elena Mine Expansion 1. SANTA ELENA HIGH GRADE OPEN PIT 16
    • 17 Potential Mill Feed Schedule 2013 - 2024 Source 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Open Pit (until August 2014) Underground (to commence Q3|2014) Heap Leach Reprocessing (to commence Q3|2014) Cruz de Mayo (1) (2) Note (1): Resources (hatched) Note (2): Open pit heap leach material still to be put on pad in 2013 (hatched) Reserves by January 2014
    • Santa Elena Expansion - Mill Plan (Ultimate Foot Print) Open Pit Leach Pad Phase 1 Leach Pad Phase 2 Merrill Crowe Plant Future Crushing Circuit Waste Dump Future CCD Circuit , 3000 tpd Underground Decline Portal 18 Production Well A A'
    • (*)Looking North – 2012 ultimate pit and U/G development: Indicated in solid pink; Inferred in grey. Drill holes: red dots 2005-2011, blue 2012-13 Santa Elena Production Expansion - Long Section * Expansion #2: Proposed Second Decline OPEN OPEN OPEN Current Decline
    • La Joya Project: Geological Model - Phase I & II Drill Program (completed) 20 Conceptual Starter Pit
    • La Joya Resource Sections A-A’ (Looking NE) 21 “Potential Starter Pit Parameters”:  8-10 year mine life  Low strip ratio  5,000 – 7,000 tpd throughput  Est. 4 to 5 million Ag Eq oz
    • La Joya Exploration Potential La Paloma 22
    • La Joya NI 43-101 Resource Estimate & Preliminary Metallurgy 23 ZONE Ag Eq* Cut-off gpt Tonnage (000) Ag gpt Au gpt Cu % Ag Eq gpt Ag Oz (000) Au oz (000) Cu lbs (000) Ag Eq* Oz (000) Total 15 126,700 23.5 0.17 0.19 48.7 95,900 716.2 533,200 198,600 30 71,200 34.4 0.22 0.28 69.8 78,700 524.8 436,800 159,800 60 27,900 57.5 0.28 0.48 112.2 51,600 258.8 288,400 100,800 **Classified by EBA, A Tetra Tech Company and conforms to NI 43-101, 43-101CP, and CIM definitions for resources. All numbers are rounded. Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources. Mineralization boundaries used in the interpretation of the geological model and resource estimate are based on a cutoff grade of 15 gpt Ag Eq using the metal price ratios described below. Note: all the metal grades are based on weighted average values. * Silver equivalency (Ag Eq) includes silver, gold and copper and excludes lead, zinc, molybdenum and tungsten values. Ag:Au is 50:1, Ag:Cu is 86:1, based on 5 year historic metal price trends of US$24/oz silver, US$1200/oz gold, US$3/lb copper. ** Contact composite was collected and analyzed to target tungsten and molybdenum recoveries. Batch Cleaner Flotation Test Results – Baseline Current Resource Estimate (PEA focus on 60 gpt cut-off) Composite Head Assay 3rd Cleaner Concentrate Assay Recovery (%) Cu % Ag gpt Au gpt Ag Eq* gpt Mo % Cu % Ag gpt Au gpt Ag Eq* gpt Mo % Cu Ag Au Mo Manto 0.34 45.0 0.15 81.7 0.004 36.3 4,700 3.40 7,991 0.27 86.7 84.3 18.2 59.6 Structure 0.46 58.0 0.25 110.0 0.003 34.3 3,980 9.45 7,402 0.17 82.7 76.7 42.4 59.7 Contact** 0.07 4.0 0.10 15.0 0.011 16.7 670 17.40 2,976 2.02 83.6 63.7 66.4 65.4
    • Investment Highlights  Unhedged High Grade, Low Cost Producer  Excellent Profit Margins  Strong Earnings And Cash Flow  Significant Increase In Production by 2014  Good Organic Growth Opportunities  Expanding Resources & Reserves  Building The Next Mid-Tier Silver-Gold Producer  Personnel In Place For Future Growth Upcoming Catalysts 2013  Quarterly Production Data & Financial Statements  Santa Elena Expansion Pre-Feasibility Study  Revised Life of Mine Plan  Santa Elena Expansion Updates  Santa Elena Exploration Results  La Joya moving to PEA status in 2013 24Santa Elena CCD Tank Construction
    • 25 Institutional Holdings Analyst Coverage Institutional Investors  Sprott Inc  Wellington Management  Libra Advisors  AGF Investments  JP Morgan Chase  Global X Management  I.G. Investment Management  Tocqueville Asset Management  Great West Life  US Global Investors Firm Analyst  Canaccord Genuity Nicholas Campbell  Cormark Securities Graeme Jennings  Dundee Capital Chris Lichtenheldt  Euro Pacific Capital Inc. Heiko Ihle  Global Hunter Securities Jeff Wright  Haywood Securities Benjamin Asuncion  Jennings Capital Kwong-Mun Achong Low  PI Financial Corp Philip Ker  Raymond James Chris Thompson  Stonecap Securities Christos Doulis
    • 26 Peer Comparables – Market Capitalization & Earnings Source: Company disclosure and Bloomberg 7.1 10 5.5 30.5 42.1 36.1 31.5 66.5 76.5 110.5 182.3 327.1 351.6 418.5 Scorpio Minng Aurcana Silver Great Panther SilverCrest Endeavour Silver Timmins Gold Fortuna Silver Peer Comparables – July 03 , 2013 Market Capitalization 2012 Earnings
    • Contact Us Tel: (604) 694-1730 Toll Free: 1-866-691-1730 Fax: (604) 694-1761 info@silvercrestmines.com www.silvercrestmines.com Suite 501 - 570 Granville Street Vancouver, BC V6C 3P1 SILVERCRESTMINES.COM MEDIA PRESENTATIONS Scan the QR codes above for more info. Get the FREE mobile app: http://gettag.mobi 27