Your SlideShare is downloading. ×
Corporate Presentation June 2013
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Corporate Presentation June 2013

401
views

Published on

Corporate Presentation June 2013

Corporate Presentation June 2013


0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
401
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Low Risk, Low Capital, High GrowthJUNE 2013TSX:USAOTCQX:USGIF
  • 2. Forward Looking Statement – Safe HarbourCertain information in this presentation may contain forward-looking statements. This information is based on current expectationsthat are subject to significant risks, assumptions and uncertainties that are difficult to predict. Actual results might differ materiallyfrom results suggested in any forward-looking statements. All statements, other than statements of historical fact, included in thepresentation, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and futureplans and objectives of U.S. Silver & Gold, are forward-looking statements. Words such as “expect”, “anticipate”, “estimate”, “may”,“will”, “should”, “intend”, “believe” and other similar expressions are forward-looking statements. Forward-looking statements are notguarantees of future results and conditions but rather reflect our current views with respect to future events and are subject to risks,uncertainties, assumptions and other factors, and actual results and future events could differ materially from those anticipated insuch statements. There can be no assurance that such forward-looking statements will prove to be accurate. U.S. Silver & Goldassumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from thosereflected in the forward looking-statements unless and until required by securities laws applicable to the U.S. Silver & Gold.Additional information identifying risks and uncertainties is contained in filings by U.S. Silver & Gold with the Canadian securitiesregulators, which filings are available at www.sedar.com.An additional Cautionary Note to Investors – In the event that we use certain terms in this presentation, such as “resource”,“measured resource”, “indicated resource” and “inferred resource”. U.S. investors are cautioned that, while such terms arerecognized and required by Canadian Securities Laws, the United States Securities and Exchange Commission does not recognizethem. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that themineralization could be economically and legally produced or extracted at the time the reserve determination has been made. U.S.investors should not assume that all or any part of measured or indicated resources will ever be converted into reserves. In addition,“inferred resources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally oreconomically. Accordingly, information concerning descriptions of mineralization in this presentation may not be comparable toinformation made public by companies that are subject to the SEC’s Industry Guide 7.Mr. Jim Atkinson, Vice President, Exploration and a Qualified Person under Canadian Securities Administrators guidelines hasapproved the applicable contents of this presentation.For further information on the Galena Complex, please refer to the technical report entitled “Technical Report, Galena Complex,Shoshone Idaho” dated March 22, 2013 and available on the U.S. Silver & Gold Inc. SEDAR profile at www.sedar.com.Some of the potential quantities and grades disclosed are conceptual in nature, there has been insufficient exploration to define amineral resource on all of the mineralization at the Galena Complex and it is uncertain if further exploration will result in certaintargets being delineated as a mineral resource.2
  • 3. U.S. Silver & Gold Highlights2012 Production: 2.6M oz Ag and 20,432 oz AuEstablished, Long-life Operating AssetStrong Operating Cash FlowSignificant Ongoing Brownfield ExpansionDominant Land Position in the Prolific Silver ValleyFavourable Environment for Accretive AcquisitionsProven Management & Board32013 Forecast2.6 - 3.0Moz Ag$16 - $18Ag Cash Costs/oz
  • 4. Darren BlasuttiPresident and CEO,Director• Former SVP Corporate Development and Investor Relations for Barrick Gold, reported to President and CEO• Led Barricks strategic development for over 13 years executing over 25 gold mining transactions including Sutton Resources,Homestake Mining, Placer Dome, consolidation of the Cortez property from Rio Tinto• Responsible for creation of Barrick Energy to hedge Barrick’s exposure to energy pricesBob TaylorCOO• Over 40 years of experience in operations, management, engineering, and exploration for underground and open-pit mines• Most recently VP and President North American Operations for Kinross Gold where he was responsible for all operationsand exploration• Former VP, Mine Operations at Stillwater Mining in MontanaWarren VargaCFO• Over 17 years of progressive financial leadership experience and brings extensive senior management expertise• Most recently CFO of RX Gold & Silver Inc. and former Senior Director, Corporate Development at Barrick Gold Corporation• Member of the Canadian Institute of Chartered Accountants and the Chartered Financial Analyst InstituteSteve LongSVP, Operations• Over 35 years experience in mine engineering and management• Senior manager for underground mining operations for Newmont Mining Corporation, Barrick Gold, Echo Bay andHomestake MiningJim AtkinsonVP, Exploration• Licensed Professional Geologist, over 40 years of experience in exploration geology• Completed more than a dozen exploration programs across North AmericaDaren DellVP, TechnicalServices• Over 20 years experience and brings extensive knowledge gained from evaluating mining assets around the globe• Formerly Director, Corporate Development and Director, Technical Evaluations at Barrick Gold. Prior to joining Barrick Gold,Mr. Dell was at Placer Dome for 15 yearsPeter McRaeVP, GeneralCounsel• Most recently VP Corporate Counsel of RX Gold & Silver Inc. and in private practice at Weil, Gotshal & Manges LLP, a majorinternational law firm based in NY with extensive experience on general corporate, securities law, and governance mattersManagement Team: Experienced + Proven4
  • 5. Board of DirectorsGordon PridhamChairman• Over 30 years of experience as a global finance executive• Serves on the public company boards of Newalta Corporation and Titanium Corporation, where he is Chairman of the BoardHugh AgroDirector• Retired in 2009 as EVP Strategic Development at Kinross Gold, where he oversaw corporate development and exploration• Held senior positions with Placer Dome Canada and Deutsche BankDarren BlasuttiDirector• President and CEOAlex DavidsonDirector• Retired in 2009 as EVP Exploration and Corporate Development at Barrick Gold• 2005 AO Dufresue Award to recognize exceptional achievement and distinguished contribution to mining exploration in Canada• In 2003 was named Prospector of the Year by PDAC for discovery of Alto Chicama in PeruLouis DionneDirector• Former Senior Vice President Underground Operations at Barrick Gold• Currently a director of Detour Gold Corporation and Aurizon Mining Ltd.Alan EdwardsDirector• Board of directors for AuRico Gold Inc., Entrée Gold Inc., Copper One Inc., Oracle Mining Corp. and AQM Copper Inc. (Chairman)• Senior management positions with Frontera Copper, Apex Silver Mines, Kinross, Cyprus Amax and Phelps DodgeTom RyleyDirector• Board of directors for Newalta Corporation, Tribute Resources and Benefuel Inc., where he is Chairman of the Board• Former Executive Vice President of Suncor Energy, where he worked for 25 years in a variety of rolesLorie WaisbergDirector• Former Senior Partner at Goodmans LLP and EVP, Finance and Administration of Co-Steel Inc.• Accredited with Institute of Corporate Directors and sits on Boards of Tembec and Chemtrade Logistics Inc 5
  • 6. Asset Overview6Galena Complex – 100% owned• High grade Ag-Cu and Ag-Pb• Produced over 240 M oz Ag historically• Over 23 M oz Ag in “Proven andProbable” Reserves, 13 M oz Ag in“Measured and Indicated” and 18 M ozAg in “Inferred” Resources*• Caladay Zone being assessed for highgrade conventional mining and bulkmining potential• Excess hoisting and milling capacityGalena Complex located inmining friendly Idaho• Ranked 6th in the US by The FraserInstitute in 2012/2013**• Supportive local communities• Established mining state• Experienced knowledgeable workforce6Drumlummon Mine – 100%• Transitioning to care & maintenance• High grade Au and Ag• Produced over 1 M oz Au and 12 M oz Ag• Extensive mining infrastructure* Descriptions of our mineral deposits are not comparable to similar information reported byU.S. companies which are subject to the reporting and disclosure requirements under theUnited States federal securities laws and the rules and regulations thereunder. See www.us-silver.com for NI 43-101 Technical Report.** See www.fraserinstitute.org for details.
  • 7. Galena Complex7Galena and Coeur Areas• Galena 2012 production of 2.25M oz Ag @ ~$20/ounce; 2013 production estimates of2.6-3.0M oz Ag @ $16-$18/ounce• Production growth being realized with adoption of new shift scheduleimplemented in mid-Q1 2013• Production increase of 10% and cash cost reductions of 10-15% targeted for2013• Coeur re-development postponed to focus efforts on Caladay potential• Current M&I resource is 3.3M oz Ag with an additional 1.9M oz in Inferred• Option value of resource is preserved; mine ready for a relatively quick re-startwhen circumstances support a production decision• Two separate mills with combined capacity of 1,500 tons/day, currently operating atless than 60% of capacity• Mill recovery rates of 96% for silver-copper and 92% for silver-lead ores• Continued exploration success and mine life extension at Silver Halo and 350-370vein system• Discovery of 350-370 vein system, Silver Halo and Caladay Zone expected toallow for ramp-up to 1,500 tons per day of ore production over next 3-4 yearswith modest capital outlays starting in Q3, 2013.Large Reserve and Resource Base2ndlargestPrimary silverproducer inthe U.S.7
  • 8. Galena Complex – Long SectionOpportunities for Significant Brownfield Expansion
  • 9. Galena Complex – Caladay Zone9Supports Lower Cost Mining Techniques 9New HighGradeDiscovery* Some of the potential quantities and grades disclosed in this presentation areconceptual in nature. At the current stage of exploration, there is insufficientdrilling to determine the extent of continuity of the mineralization required todefine a mineral resource for all mineralization at the Galena Mine Complex andDrumlummon Mine. It is uncertain if further exploration will result in certainexploration targets being delineated as a mineral resourceThe Caladay Zone is a semi-continuous mineralized zone extendingfrom Galena into the Caladay Mine at depth• Currently 2,800-3,000 vertical feet with estimated strike length of1,200-3,600 feet and apparent widths of 200-400 feetGlobal tonnage target of 60-70 million tons and potential silverresource of 150-200 million ounces based on over 1100 historic drillholes and new drillingMining will commence in high-grade, silver-copper zones targeting100 tons per day in Q3 2013• Development will begin in wider, higher-grade silver lead stopesin late 2013A preliminary plan will be communicated in 2013• Phase 1 - “Fill the Mill” from high grade areas close toinfrastructure based on current resource• Phase 2 - Major expansion to be considered when supported bymarket conditions and resource expansion through explorationsuccess
  • 10. Caladay Zone (Illustrative View)AgCu ‐ Silver HaloAgPb ‐ Lead ZoneAgPb ‐ Higher Grade Silver ResourceMineralization
  • 11. Caladay Zone - 4900 Level PlanClose Proximity to Existing Mine InfrastructureBlock Model ResultsCaladay Zone
  • 12. Strategic Objectives12Grow earnings and cash flow per shareExecute on operational improvements andbrownfield expansions• Develop Caladay to fully utilize existingprocessing capacity• Continue exploration success to prove outbulk mining expansion caseSecure re-financing or line of credit to supportbrownfield initiativesAssess exploration, processing and capitalsynergies with geographically focused assetsAssess accretive per share acquisitionopportunities in North America123412Roadmap ForSuccessExceed 5.0 M oz Ag by end of 2015
  • 13. Share Price Performance & Capital Structure13Symbol: USA-TRecent Price*: $0.85Market Cap (CDN): $51 MCash Balance**: $11 MDebt**: $7.9 MShares Basic: 60 MOptions : 5.5 MWarrants: 2.0 MFully Diluted: 67.7 M* As of June 2013** As of March 31, 2013Volume(TSX&OTCQX)SharePrice0200,000400,000600,000800,0001,000,0001,200,0001,400,000$0.00$0.50$1.00$1.50$2.00$2.50$3.0015-08-2012 15-10-2012 15-12-2012 15-02-2013 15-04-2013
  • 14. Junior Silver Producer Resource Base14Quality Resources and GrowingAgoz(M)Reserves/Resources*As of June 13, 2013 and based on public disclosure documents.Market data and other statistical information used in this presentation may be based on independent industry publications, government publications, reports by market research firms,or other published independent sources. Some data is also based on U.S. Silver & Gold’s good faith estimates that are derived from its review of internal data and information, as wellas the sources listed above. Although U.S. Silver & Gold believes these sources are reliable, U.S. Silver & Gold has not independently verified the information and cannot guaranteeits accuracy or completeness.P&PM&I010203040506070GPR AXR AUMN SPM USA AUN
  • 15. Junior Silver Producer Multiples15Undervalued Relative to PeersEV/Resources($/ozAg)EV / Resources*As of June 13, 2013 and based on public disclosure documents.Market data and other statistical information used in this presentation may be based on independent industry publications, government publications, reports by market research firms,or other published independent sources. Some data is also based on U.S. Silver & Gold’s good faith estimates that are derived from its review of internal data and information, as wellas the sources listed above. Although U.S. Silver & Gold believes these sources are reliable, U.S. Silver & Gold has not independently verified the information and cannot guaranteeits accuracy or completeness.0246810GPR EXN AUN AXR USA SPM AUMN
  • 16. 2013 Estimated Silver Production per $1,000 InvestedHighest Leverage to Silver Prices16Buy Assets Leveraged to the Silver PriceProductionper$1kInvested(oz)*As of June 13, 2013 and based on public disclosure documents.Market data and other statistical information used in this presentation may be based on independent industry publications, government publications, reports by market research firms,or other published independent sources. Some data is also based on U.S. Silver & Gold’s good faith estimates that are derived from its review of internal data and information, as wellas the sources listed above. Although U.S. Silver & Gold believes these sources are reliable, U.S. Silver & Gold has not independently verified the information and cannot guaranteeits accuracy or completeness.13.016.520.322.727.636.356.60.010.020.030.040.050.060.0AUMN EXN GPR AXR SPM AUN USA
  • 17. Re-Rating Potential17Attractively Positioned Among PeersEnterpriseValue($M)*As of June 13, 2013 and based on public disclosure documents.Market data and other statistical information used in this presentation may be based on independent industry publications, government publications, reports by market research firms,or other published independent sources. Some data is also based on U.S. Silver & Gold’s good faith estimates that are derived from its review of internal data and information, as wellas the sources listed above. Although U.S. Silver & Gold believes these sources are reliable, U.S. Silver & Gold has not independently verified the information and cannot guaranteeits accuracy or completeness.2013 Production Guidance (M oz Ag Eq.)Junior Silver ProducersUSAAUNGPREXNAXRSPMAUMNCompanies included: AUMN – Golden Minerals Company; AUN – Aurcana Corporation; AXR – Alexco Resource Corp.; EXN – Excellon Resources Inc.; GPR – Great PantherSilver Limited; SPM – Scorpio Mining Corporation0.0020.0040.0060.0080.00100.00120.00140.000.0 1.0 2.0 3.0 4.0 5.0 6.0
  • 18. 2013 MilestonesQ1 2013 Q2 2013 Q3 2013 Q4 2013 Completed -Reserve &ResourceUpdate IncludingFirst ResourceEstimate forCaladay Silver-Lead ZonePreliminaryEconomicAssessment on“Fill The Mill” andCaladay Silver-Lead ZoneFirst productionfrom high-gradeAg-Cu zone(Silver Halo)Initialdevelopment ofwider, high-gradestopes for 2014productionNear-termCatalystsDelivering on Caladay’s Potential
  • 19. Invest in U.S. Silver & GoldExecuting onoperationalimprovements andlow risk brownfieldexpansion100% owned, royalty freeFully permittedNear existing infrastructureAvailable mill capacityIncreasing production and reducing costsExperienced management teamCatalysts in place for improved valuationHigh leverage to silver pricesFocused on Unlocking Value 19
  • 20. ContactDarren BlasuttiPresident and CEOdblasutti@us-silver.com416-848-9503www.us-silver.com
  • 21. Appendix
  • 22. Galena Complex Long SectionGalenaShaftCaladayShaftCoeurShaft2400Sea Level37005500CallahanShaft49002800300034001200SilverVein5200460043004000Ag - Pb Veins Ag - Cu Veins Major Production Areas0 2500feetNo. 3Shaft
  • 23. Galena Caladay Silver-Lead Zone(Illustrative View)3000 Level4000 Level5500 LevelNo. 3ShaftGalenaShaft0 1000feetSilverVeinCaladay Silver-Lead ZoneCaladayShaft