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Us silver corporate presentation feb. 2012
 

Us silver corporate presentation feb. 2012

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    Us silver corporate presentation feb. 2012 Us silver corporate presentation feb. 2012 Presentation Transcript

    • U.S. Silver Corporation February 2012 TSX : USA US OTC Markets : USSID DB Frankfurt : QE2
    • 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. Page  2  
    • US Silver - Summary•  Annual silver production of 2.4 million ounces •  in production for 60 years •  excess hoisting and milling capacity•  85% of revenue from silver – pure play•  Located in Silver Valley, Northern Idaho •  most prolific in the US, safe, mining friendly•  14,000 acre, dominant under explored land position in the Silver Valley •  significant increase in exploration program•  Cash of approximately $30 million•  Market Cap $150 million•  TSX – USA •  trades actively Page  3  
    • Strong Silver Market Trends Page  4  
    • Company Overview2.4 Established producer in prolific Silver Valley in Northern Idaho Low cost incremental growth potential (excess mill capacity)Million oz Ag 2011 revenue approximately $95 millionAnnual production85% of revenue from silver Page  5  
    • Located in Historic Silver ValleyOver 1 billionounces produced British Columbia AlbertaModern andample Spokaneinfrastructure Washington Missoulain place MontanaSafe and friendlyjurisdiction Oregon BoiseRegion of Idahoincreasinginterest Page  6  
    • Company Overview•  100% interest in the producing Galena silver-copper-lead mine –  High grade narrow vein mining operation, opened in 1953•  100% interest in the Coeur Silver mine –  Redevelopment plans underway•  2 mills (Galena and Coeur) –  Both operating, excess capacity available•  Dominant land position in the Silver Valley –  Large under explored property•  No historic environmental liability with EPA –  Settled in 2001•  Fully un-hedged on silver and base metals Page  7  
    • Proven & Probable Reserves21.9Million oz. Ag Reserves provides a 7 year mine life Exploration consistently exceeds annual production 86 Million lbs. lead The Galena Mine has 11 Million lbs. copper produced for almost 60 years & ore continues to be found Page  8  
    • Recent Results Q3  2011   YTD Q3  2011 Q2  2011 Q1  2011 2010 2009Revenue 78.2 28.3 30.8 19.1                    62.4                    45.9Gross  profit 31.7 11.2 12.3 8.2                    10.4                        3.0Pre  tax  income 23.1 7.6 9.4 6.2                        4.9                        2.0Cash  from  Ops 24.8 5.3 12.3 7.2                    15.0                        8.3Silver  production  1,788,228        645,543        648,322        494,363  2,275,817  2,427,156Lead  production  4,911,214  1,916,795  1,717,218  1,277,201  5,613,689  6,446,656Copper  production        898,252        317,127        321,724        259,401  1,000,319  1,075,307Cash  cost  /  ounce  Ag 16.89                17.57                15.39                17.97                13.50                11.67 Page  9  
    • Market Data $2.10 per share 52 week high $4.15 – Low$130 $1.95 Graduated to TSX on Oct 3, 2011 61.8 million shares outstanding 68.2 million fully dilutedMillion TSX and OTCQX combined average daily volume 291 Thousand (post-consolidation) Current Market Cap Undervalued vs. peers on key (February 2012) metrics Page  10  
    • Galena Mine Page  11  
    • Galena Mine – an impressive history2ndlargestPrimary silver producer High grade, narrow vein, copper-silver & lead-silver mine Short term variability in operating results, long term proven producer No historic environmentalin the U.S. liability Page  12  
    • Galena – Past & Present182millionOunces produced Focusing on higher grade zones to increase head grade Examining production expansion options with high prices Continued exploration success and mine life extension Page  13  
    • Mining Operations LEGEND Caladay Shaft 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 Page  14  
    • Galena Performance Silver  ounces  produced  3,000,000  2,500,000 2.4 million oz forecast  2,000,000  1,500,000  1,000,000  500,000  -­‐ 2007  A ctual 2008  A ctual 2009  A ctual 2010  A ctual 2011  Forecast 2012  Forecast Page  15  
    • Milling Operations Capacity Galena Mill 900 tons/day Coeur Mill 500 tons/day Currently operating at 65% capacity 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 Page  16  
    • Reserves Detail Tons Ag  (oz/t) (MM  oz) (MM  lb) (MM  lb) Proven  &  Probable  Reserves 1,615,700           13.6   21.9 85.6 11.1 Measured  &  Indicated  Resources 560,600           15.6   8.7 14.4 4.8 Inferred  Resource 1,026,300           13.4   13.7 103.3 5.4•  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 increased by 115% since 2006 Page  17  
    • Coeur Redevelopment Page  18  
    • Restarting The Coeur Mine6.0 •  No permitting or acquisition costs •  Existing excess mill capacity •  Re-development started February 2012 •  First production expected bymillion end of 2012 •  Full production rates ofresource ounces 500,000 oz. per year by end oftargeted 2013 •  2012 Capital cost of approximately $5 million Page  19  
    • Exploration Potential Page  20  
    • Significant Reserve Growth Proved  and  Probable  Silver  Reserves  25,000,000 Reserve  addi6ons  consistently   replace  produc6on  20,000,00015,000,00010,000,000 5,000,000 - 2005 2006 2007 2008 2009 2010 Page  21  
    • Exploration Potential14 •  Dominant land position •  Under-explored & accessible •  Internally funded •  Identified 6 surface & underground targets that are ready for drillingThousand Exploration Drilling •  2012 – 100,000 feet (budgeted)acres of land •  2011 – 70,000 feet •  2010 – 49,000 feet •  2009 – 13,000 feet Page  22  
    • Surface and Underground Drill Targets CDA “GAP” Western Argentine Coeur Mine Vein Deep Calady Mine Coeur Mine Deep Lead-Silver Silver Vein Page  23  
    • Drilling TargetsSurface•  Commenced 12,000 foot surface drilling program targeting CDA Gap and Argentine VeinDrill ready targets identified by•  Surface and underground showings•  Geochemical profile matching that of Galena/Coeur•  Strong correlation between surface tetrahedrite showings and deeper silver vein systemsUnderground Exploration DrillingTargets: •  2011 – 70,000 feet (projected) •  Western Coeur Mine •  2010 – 49,000 feet •  Deep Coeur Mine •  2009 – 13,000 feet •  Deep Silver Vein •  Caladay Lead-SilverTargets are extensions of known vein systems Page  24  
    • The Right People in Place Page  25  
    • Experienced and Stable Workforce260employees 33 with over 20 years of experience Additional 30 contract miners Page  26  
    • The Right Management TeamGordon E. •  Over thirty years of experience as a Global Finance ExecutivePridham •  Extensive special committee and public board experience with a track record of creating value for shareholdersExecutive •  Serves on the public company boards of Newalta Corporation, NorRock Realty Finance Corporation and TitaniumChairman & Interim Corporation, where he is Chairman of the BoardCEO •  Formerly with Chemical Bank and National Bank in the energy and minerals sector in New York, Calgary, Toronto and Hong Kong •  Following Merrill Lynch Canada, he managed the Canadian Investment Banking groups at Deutsche Bank, Research Capital and Raymond JamesSteven Long •  Over 33 years experience in mine engineering and managementChief Operating •  Direct senior management of underground mining operations for Newmont Mining Corporation in Elko, Nevada and BarrickOfficer Gold, Echo Bay and Homestake MiningChris 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 •  Many long service management end employees provide knowledge and continuityManagement •  New management bring new thinking and approachesTom Ryley •  Over 35 years experience in the natural resources sectorDirector •  He sits on the boards of several public, private and charitable organizations •  Mr. Ryley graduated from York University with a Bachelor of Arts and from Carleton University with a Master of Arts in Public Administration. Page  27  
    • The Right BoardJohn 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 reengineeringAlan R. Edwards •  Board of directors for Gammon Gold Inc., Entrée Gold Inc., and Copper One Inc.Director •  President and Chief Executive Officer of Copper One Inc. •  Senior management positions with Frontera Copper, Apex Silver Mines, Kinross, Cyprus Amax, Phelps Dodge •  Mr. Edwards holds an MBA from the University of Arizona and a B.S. Mining Engineering also from the University of Arizona.Tom H. Parker •  Mining engineer with over 40 years experience in the mining industryDirector •  Retired as CEO of US Silver in January 2012 •  Former President and CEO of Gold Crest Mines and High Plains Uranium •  Worked for 10 years as an Executive VP of Anderson and Schwab, a New York based management consulting firm •  ARCO for 10 years where he was President of regional operations and VP for Engineering, Exploration and Business Development Page  28  
    • SummaryIncreasedStrength Opportunity  to  Capitalize   on  a  proven  and   established  asset     •  Produc6on  growth   •  Reserve  Growth   •  Explora6on  Expansion   •  Opportuni6es  outside  of   core  asset  base   Page  29  
    • Summary•  Highly leveraged silver producer, 85% revenue from silver, no hedges strong cash flow•  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 Page  30  
    • Contact Us: us-silver.com Corporate Office Tel: 416.907.5501 info@us-silver.com 401 Bay St. Suite 2702 Toronto, ON M5H 2Y4 Investor RelationsHeather Bailey-Foster, Manager 208-556-1535 Ex.2 hfoster@ussil.com