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    SilverCrest Mines February Corporate Presentation SilverCrest Mines February Corporate Presentation Presentation Transcript

    • Corporate PresentationFebruary 2013
    • DisclaimerThe information provided in this presentation is not intended to be a comprehensive review of all matters and developments concerning the Company. It should be readin conjunction with all other disclosure documents of the Company. The information contained herein is not a substitute for detailed investigation or analysis. Nosecurities commission or regulatory authority has reviewed the accuracy or adequacy of the information presented.FORWARD-LOOKING STATEMENTSThis presentation contains “forward‐looking statements” within the meaning of Canadian securities legislation and the United States Securities Litigation Reform Act of 1995. Suchforward‐looking statements concern the Company’s anticipated results and developments in the Company’s operations in future periods, planned exploration and development ofits 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 expectationsof future performance, including silver and gold production and planned work programs. Statements concerning reserves and mineral resource estimates may also constituteforward‐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 thoseexpressed or implied by the forward‐looking statements, including, without limitation: risks related to precious and base metal price fluctuations; risks related to fluctuations in thecurrency markets (particularly the Mexican peso, Canadian dollar and United States dollar); risks related to the inherently dangerous activity of mining, including conditions or eventsbeyond our control, and operating or technical difficulties in mineral exploration, development and mining activities; uncertainty in the Company’s ability to raise financing and fundthe exploration and development of its mineral properties; uncertainty as to actual capital costs, operating costs, production and economic returns, and uncertainty thatdevelopment activities will result in profitable mining operations; risks related to reserves and mineral resource figures being estimates based on interpretations and assumptionswhich 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 mayincrease costs of doing business and restrict our operations; risks related to mineral properties being subject to prior unregistered agreements, transfers, or claims and other defectsin 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’sstatus 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 andregulatory 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 describedin theforward‐looking statements. The Company’s forward‐looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. Forthe reasons set forth above, investors should not place undue reliance on forward‐looking statements. he information contained herein is nota a substitute for detailed investigationor 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 PersonUnder 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 Officerfor SilverCrest Mines Inc., who has reviewed and approved its contents. 2
    • Experienced Management Team J. Scott Drever, President (45 years experience) Strategic Planning, Mergers & Acquisitions. Management and operational experience with several production companies,FOUNDERS including Placer Dome and Blackdome Mining. Barney Magnusson, 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., COO (25 years experience) Operations, Project Evaluation & Management. Previously with Newmont Mining, Eldorado Gold, Pegasus Gold Corp. Involvement in construction and operations of 3 previous mines. Several major international discoveries. Brent McFarlane, 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. Graham C. Thody, 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, 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
    • Company OverviewGrowing Mexican Low Cost Silver & Gold Producer Nine Months Ended 2012 Revenue: $52.3 Million Cash Flow: $29.2 Million - $0.33 / share Earnings: $17.7 Million - $0.20 / share Santa Elena Mine, Est. Cash (Jan 30|13): $50 Million Operating Cash Cost: $7.16 / Ag Eq oz* Sonora Mexico 2012 Production: 2.37 Million oz Ag Eq* Resource Base (Jan 2012) Santa Elena Probable: 21.7 million oz AgEq* Cruz de Mayo Indicated: 9.2 million oz AgEq* La Joya Inferred: 222.6 million oz AgEq* La Joya Project Major Ag-Cu-Au Discovery & Growing * Silver Equivalency based on Ag:Au is 55:1 except for La Joya which is Ag:Au 50:1 and Ag:Cu 86:1 4
    • Capital Structure & Trading HistorySVL SHARE STRUCTURE TRADING SUMMARY TSX.V NYSE MKTIssued & Outstanding: 105,867,129Warrants & Options: 8,335,300 90 - Day Avg. Daily Volume: 331,064 99,290Fully Diluted Shares: 114,202,429 52 Week High / Low: $3.17 / $1.55 $3.05/$2.15Average Warrant Price: CAD $1.60 Share Price (January 30, 2013): CAD $2.57Average Option Price: CAD $1.31 Market Cap: CAD $272M Cash: $50 MMANAGEMENT & KEY SHAREHOLDERSFully DilutedJ. Scott Drever, President: 2,541,226Barney Magnusson, CFO: 2,720,727N. Eric Fier, COO: 2,457,027Sprott Asset Management: 8.0%Libra Advisors: 5.4%AGF & Wellington Mgmt: 3.0%Independent Directors: 1,560,500 5
    • Corporate Resources TONNE AU AG CU CONTAINED CONTAINED CONTAINED CONTAINED CATEGORY S GPT GPT % AU OZ AG OZ CU LBS AG EQ. OZ* SANTA ELENA OPEN PIT RESERVES** PROBABLE 3,459,200 1.96 87.3 217,800 9,713,600 21,694,900 SANTA ELENA UNDERGROUND RESOURCES*** INDICATED 991,100 1.83 109.1 58,330 3,476,960 6,685,110 INFERRED 1,879,000 1.53 86.9 92,470 5,250,190 10,336,040 CRUZ DE MAYO RESOURCES**** INDICATED 1,141,00 0.06 64.2 2,300 2,353,400 2,479,900 INFERRED 6,065,000 0.07 66.5 13,300 12,967,100 13,698,600 LA JOYA***** 126,700,00 533,200,000 INFERRED 0 0.17 23.5 0.19 716,200 95,900,000 198,600,000 TOTALS TOTAL PROBABLE 3,459,200 1.96 87.3 217,800 9,713,600 21,694,900 TOTAL INDICATED 2,132,100 1.88 85.1 60,630 5,830,360 9,165,010 134,644,00 533,200,000 TOTAL INFERRED 0 0.19 26.4 0.19 821,970 114,117,290 222,634,640*Silver Equivalency based on Ag:Au is 55:1 except for La Joya (see below). // **based on $1,000/oz of gold and $18/oz of silver, cut-off grade of 0.38 gpt gold equivalent with applied metallurgical recoveries.Estimated 1,336,000 ore tonnes mined at Santa Elena in 2010 and 2011 grading 1.50 gpt Au and 43.5 gpt Ag and subtracted from Probable Reserves. All numbers are rounded. Excludes potential metal inventoryfor leach pad re- treatment during Expansion. // ***based on $1,000/oz of gold and $18/oz of silver, cut-off grade is 1.77 gpt gold equivalent with applied metallurgical recoveries. // ****based on a silver cut-off gradeof 30 gpt, 100% metallurgical recovery is assumed. This is presented in the 2007 Fier and Stewart Technical Report. // ***** 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. 6
    • Mexico Properties Santa Elena Properties ♦ ♦ ♦ ♦ ♦ Existing Mines 7
    • Production Stages 1. SANTA ELENA HIGH GRADE OPEN PIT 2. CRUSHER FACILITY ON TIME, UNDER BUDGET 3. HEAP LEACH PAD AND RECOVERY 4. DORE PRODUCTION 2012: 33k oz Au, 579k FACILITY oz Ag 8
    • Santa Elena Production Data - 2012 Santa Elena Mine Operating Highlights Q1 2012 Q2 2012 Q3 2012 Q4 2012 YTD 2012 Silver ounces produced 134,528 139,850 151,368 153,863 579,609 Gold ounces produced (3) 9,405 8,584 7,184 7,831 33,004 Silver equivalent ounces produced (1) 616,668 646,553 519,587 588,948 2,371,755 Silver ounces sold 139,771 124,739 152,088 171,714 588,312 Gold ounces sold 9,788 8,679 7,923 8,444 34,834 Silver equivalent ounces sold (1) 641,546 637,079 558,185 640,856 2,477,623 Tonnes ore mined 263,424 269,802 266,534 301,295 1,092,305 Tonnes waste mined 1,439,330 1,283,493 985,293 924,927 4,640,700 Waste / ore ratio 5.46 4.76 3.70 3.07 4.25 Ore tonnes crushed 264,977 317,958 265,598 308,693 1,157,226 Average ore tonnes crushed per day 2,912 3,494 2,887 3,355 3,162 Average silver ore grade (gpt) loaded on pad 44.13 39.45 48.41 59.59 47.95 Average gold ore grade (gpt) loaded on pad 1.61 1.35 1.37 1.42 1.43 Silver ounces delivered to pad 375,987 403,264 413,426 591,441 1,784,118 Gold ounces delivered to pad 13,762 13,764 11,681 14,089 53,296 Ag: Au Ratio (2) 51.2:1 59:1 51.2:1 55.6:1 54.3:1(1) Silver equivalence is a weighted volume average based on market spot prices per ounces of gold and silver at the quarter end dates.(2) (1) Silver equivalence is based on market spot prices per ounce of silver and gold at the quarter end dates. All numbers are rounded(3) Sandstorm Agreement: 20% gold stream at $350/oz 9
    • Santa Elena Production - Expansion PlansDevelop Underground Resource (2012 to 2023)2011-2013 Pre Feasibility, imminent2012-2014 Decline ramp, UG development and drilling2012-2013 Construct, 3,000 tonnes per day conventional millEarly 2014 Mill feed from Open Pit and UndergroundReprocess Leach Pad Material (2014 to 2023)Cruz de Mayo Production (2015 to 2017)Estimated Expansion Capex: $65M by Q1 2014Estimated Exploration Expenditures: $15M in 20132013 Estimated Funding (Cash, Cash Flow, Sandstorm): $92M2012: 2.37 million oz Ag Eq* 2014: 3.5 to 4.5 million ozAgEq* 10* Silver Equivalency based on Ag:Au is 55:1
    • Santa Elena Expansion - Mill Plan Underground Decline Portal Open Pit Waste Dump Future Crushing Circuit Leach Leach Pad Pad Phase 2 Phase 1 Future CCD Production Well Circuit , 3000 tpd Merrill Crowe Plant 11
    • Santa Elena Production ExpansionPreliminary Economic Assessment Parameters3,000 to 3,500 tpd: Average 4.0M to 5.0M oz Ag equivalent per year.Initial capital costs: $84M (25% contingency), reduction in PFS to $65MEst. cash operating costs: $9.70 per ounce of Ag equivalent (U/G).Expansion Plan – Silver and Gold Price Sensitivities Case Average Gold Average Silver Pre-Tax Net Cash Flow Pre=Tax NPV @ 5% Discount Price Price (millions) (millions) Low $800 $14 $47.5 $34.1 Base $1,000 $18 $169.5 $131.2 Current Prices (1) $1,450 $38 $620.6 $491.4 High $1,600 $50 $856.5 $680.1(1) At the time of the study, April 1, 2011: PEA for the Santa Elena and Cruz de Mayo Expansion Project – NI 43-101 Technical Report 12
    • Santa Elena Production Expansion Profile (3,000 tpd Mill) Based on PEA 2011 results. Revisions are anticipated in the 2013 Expansion Plan PFS La Joya & Santa Elena Potential Additions CURRENTLYOpen Pit = 2011 to 2014, Underground = 2014 to 2022, Cruz de Mayo = 2015 to 2017, Leach Pad Reprocess = 2014 to 2022. 13
    • Santa Elena In Fill & Expansion Drilling Plan Decline Portal A’ N A 100m Santa Elena Pit SE U/G RESERVE DRILLING (ONGOING) SE U/G SOUTH SE DEEP (ONGOING) 14
    • Santa Elena Production Expansion - Long Section 0M Hole ID Interval Au g/t Ag g/t (m) SE-12-54 30.7 1.61 169.6 SE-12-62 5.2 15.34 Pening*100 M Incl. 1.7 42.59 >1,000* SE-12-73 13 1.6 324.8 Incl. 1 5.1 2,840 SE-12-90 12.5 2.7 143.9 SE-12-91 15.6 23.97 307.9 2.3 157.3 1,610.50 SE-12-94 9.3 1.3 191.4 Incl. 4.1 2.45 368.8 Incl. 13.4 1.84 206.5 Incl. 6.6 3.15 363.9 SE-12-103 25.2 1.22 155.9 Incl. 9.5 2.11 244.9 Incl. 1.3 2.48 1,080 SE-12-106 16.7 3.02 213.7500 M Incl. 7.7 5.74 419.7 SE-12-110 7.5 1.4 308.6 Incl. 1 4.5 1,465 * Hole SE-12-62 Ag grades are pending due to overlimits of greater than 1,500 g/t Ag 15
    • Exploration - La Joya RegionalMap• Excellent access and infrastructure• Nearby operating mines• Purchase Agreement to acquire 100%, $4.18 million ($340K paid) over 3 yrs with 2% NSR• Historic work by Luismin (Goldcorp); 51 holes used in compilation• Similar geology and mineralization to nearby Sabinas Mine (Penoles)• 198.6 Million oz AgEq* (15 gpt cut-off) Inferred Resource 100.8 Million oz AgEq* (60 gpt cut-off): Inferred; Potential “Starter Pit”• 2012: Phase II, 80 core drilling program completed• Phase III core drilling program has commenced• PEA planned for 2013* Silver equivalency includes silver, gold and copper and excludes lead, zinc, molybdenum and tungsten values. Ag:Au is 50:1, Ag:Cu is 86:1 16
    • La Joya Geological Model - Phase I & II Drill Program Conceptual Starter Pit 17
    • La Joya NI 43-101 Resource Estimate - January 2013 Ag Eq* Resource Tonnage Au Ag Eq Ag Oz Au oz Ag Eq* Oz Cut-off Ag gpt Cu % Cu lbs (000) Category* (000) gpt gpt (000) (000) (000) gpt 15 Inferred 126,700 23.5 0.17 0.19 48.7 95,900 716.2 533,200 198,600 30 Inferred 71,200 34.4 0.22 0.28 69.8 78,700 524.8 436,800 159,800 60 Inferred 27,900 57.5 0.28 0.48 112.2 51,600 258.8 288,400 100,800* Silver equivalency 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$3/lb copper. 100% metallurgical recovery is assumed.**Classified by EBA, A Tetra Tech Company and conforms to NI 43-101, 43-101CP, and CIM definitions for resources. All numbers are rounded.***Inferred Resources have been estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources 18
    • La Joya Resource Sections A-A’ (Looking NE) 19
    • La Joya Phase II Drill Holes, Phase III Target Areas 2.5 km 2.5 km 20
    • La Joya Exploration Potential La Paloma 21
    • Investment Highlights• Strong Balance Sheet & Cash Flow• Steady Production Achieved• Low Cost Producer• Production Expansion Underway• Resource Base Expansion Underway• High Growth ProfileUpcoming Catalysts• Quarterly Production Data & Financial Statements• Revised Corporate Reserve & Resources• Revised Life of Mine Plan• Santa Elena Expansion Updates, incl. PFS late Q1|early Q2 2013• Santa Elena Exploration Results• Cruz de Mayo - PFS Q1|2013• La Joya Drilling Updates (Phase III)• La Joya moving to PEA status in 2013 22
    • Peer Comparables (Mexico Focused) - December 2012SilverCrest is undervalued compared to its peers on a P/NAV per share and Mkt. Cap/oz Ag Eq. basis P/NAV Mkt. Cap/Oz Ag Eq. ($/oz) Orko Silver 1.5x Great Panther $7.53 Endeavour Silver 1.1x Endeavour Silver $4.80 Great Panther 1.0x Fortuna $4.26 Fortuna 0.9x Primero $3.53 Timmins Gold 0.8x Timmins Gold $2.82 Primero 0.7x Aurcana $1.94 Aurcana 0.7x SilverCrest $1.76 SilverCrest 0.6x Scorpio Mining $1.28 SVL Re-rating Potential Orko Silver $0.87 Scorpio Mining 0.5x SVL Re-rating Potential Average = 0.9x Average = $3.38/oz Ag Eq. 23
    • Contact UsTel: (604) 694-1730Toll Free: 1-866-691-1730Fax: (604) 694-1761info@silvercrestmines.com SILVERCRESTMINES.COM MEDIA PRESENTATIONSwww.silvercrestmines.comSuite 501 - 570 Granville Street Scan the QR codes above for more info.Vancouver, BC V6C 3P1 Get the FREE mobile app: http://gettag.mobi 24