U.S. Silver Corporation     November 2011            TSX              : USA            US OTC Markets   : USSIF           ...
Forward Looking StatementsCertain statements contained in or incorporated by reference into thispresentation constitute fo...
Strong Silver Market TrendsIn 1980, when Nelson Bunker Hunt was asked as to why he haddeveloped a passion for silver, he s...
Strong Silver Market Trends                      	  6 0.00                                             	  100.00          ...
Company Overview2.4                                        Established producer                                        in ...
Located in Historic Silver ValleyOver 1 billion           British Columbia                        Albertaounces producedMo...
Company Overview•  100% interest in the producing Galena silver-copper-lead mine   –  High grade narrow vein mining operat...
Proven & Probable Reserves21.9Million oz Ag                                          Reserves provide a                   ...
Recent Results                                                 Q2	  2011	                                                 ...
Market Data                                       52 week high $0.83 –$150                                       low $0.41...
Galena Mine              Page	  11	  
Galena Mine – an impressive history2ndlargestPrimary silver producer                                           High grade,...
Galena – Past & Present179millionOunces produced                                   Focusing on higher                     ...
Mining Operations                                 LEGEND                                                                  ...
Galena Performance                            Silver Production                          (Actual and Forecast)3,000,0002,5...
Milling Operations                    Capacity                    Galena Mill 900 tons/day                    Coeur Mill 5...
Reserves Detail                                                     Tons Ag	  (oz/t) (MM	  oz) (MM	  lb) (MM	  lb)  Proven...
Coeur Redevelopment               Page	  18	  
Restarting The Coeur Mine5.9                                   •  No permitting or                                      ac...
Exploration Potential                  Page	  20	  
Exploration Potential14                             •  Dominant land position                             •  Under-explore...
Significant Reserve Growth                    Proven	  and	  Probable	  Silver	  Reserves	  25,000,00020,000,00015,000,000...
Surface and Underground Drill Targets  CDA “GAP”          Western            Argentine         Coeur Mine            Vein ...
Surface Drilling TargetsCommencing 12,000 foot surface drilling program•  CDA Gap•  Argentine VeinDrill ready targets iden...
Underground Drilling Targets•  Targets:       Western Coeur Mine       Deep Coeur Mine       Deep Silver Vein       Calada...
The Right People in Place                     Page	  26	  
Experienced and Stable Workforce260employees                               33 with over 20 years of                       ...
The Right Management TeamGordon E.           •  Thirty years of experience in international capital markets in New York, C...
The Right BoardJohn S. Brock     •  Geologist with over 40 years experience as an executive for 20 public, junior explorat...
SummaryIncreasedStrength                     Opportunity	  to	  Capitalize	                               on	  a	  proven	...
Summary•    Highly leveraged silver producer,     85% revenue from silver, strong cash flow•    Stable and consistent prod...
Contact Us:  us-silver.com      Corporate Office       Tel: 416.907.5501      info@us-silver.com    401 Bay St. Suite 2702...
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Us silver corporate presentation november 2011

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Us silver corporate presentation november 2011

  1. 1. U.S. Silver Corporation November 2011 TSX : USA US OTC Markets : USSIF DB Frankfurt : QE2
  2. 2. 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  
  3. 3. 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 Page  3  
  4. 4. Strong Silver Market Trends  6 0.00  100.00 Silver  90.00 Gold/Silver  Ratio  5 0.00  80.00  70.00  4 0.00Silver Price $/oz. Gold/Silver Ratio  60.00  3 0.00  50.00  40.00  2 0.00 Silver up 110% since January 1, 2010  30.00  20.00  1 0.00  10.00  -­‐  -­‐ Page  4  
  5. 5. Company Overview2.4 Established producer in prolific Silver Valley in Northern Idaho Low cost incremental growth potential (excess mill capacity)Million oz Ag Expected full year revenue of $100 million at current metal pricesAnnual production85% of revenue from silver Page  5  
  6. 6. Located in Historic Silver ValleyOver 1 billion British Columbia Albertaounces producedModern and ample Spokaneinfrastructure Washington Missoulain place MontanaSafe and friendlyjurisdiction Oregon Boise Idaho Page  6  
  7. 7. 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•  Hedged 20% of production in 2011 to protect CapEx program •  100% unhedged in 2012 – Hedge now closed Page  7  
  8. 8. Proven & Probable Reserves21.9Million oz Ag Reserves provide 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  
  9. 9. Recent Results Q2  2011   YTD Q2  2011 Q1  2011 2010 2009Revenue 49.9 30.8 19.1                        62.4                        45.9Gross  profit 20.5 12.3 8.2                        10.4                            3.0Pre  tax  income 15.6 9.4 6.2                            4.9                            2.0Cash  from  Ops 19.5 12.3 7.2                        15.0                            8.3Silver  production      1,142,685            648,322            494,363      2,275,817      2,427,156Lead  production      2,994,419      1,717,218      1,277,201      5,613,689      6,446,656Copper  production            581,125            321,724            259,401      1,000,319      1,075,307Cash  cost  /  ounce  Ag                    16.50                    15.39                    17.97                    13.50                    11.67 Page  9  
  10. 10. Market Data 52 week high $0.83 –$150 low $0.41 308.9 million shares outstanding 342.2 million fully diluted TSX and OTCQXMillion combined average daily volume 1 Million Current Market Cap (October 2011) Undervalued vs. peers on key metrics Page  10  
  11. 11. Galena Mine Page  11  
  12. 12. 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  
  13. 13. Galena – Past & Present179millionOunces 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  
  14. 14. 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  
  15. 15. Galena Performance Silver Production (Actual and Forecast)3,000,0002,500,000 2.4 to 2.6 million forecast2,000,0001,500,0001,000,000 500,000 - 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Forecast Page  15  
  16. 16. 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  
  17. 17. 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  
  18. 18. Coeur Redevelopment Page  18  
  19. 19. Restarting The Coeur Mine5.9 •  No permitting or acquisition costs •  Existing excess mill capacity •  Examining alternative mining methods & scalemillion •  Additional drilling underway to better defineresource ounces deposittargeted •  Significant exploration upside Page  19  
  20. 20. Exploration Potential Page  20  
  21. 21. Exploration Potential14 •  Dominant land position •  Under-explored & accessible •  Strong cash flow funding all plans, 50% increase in drilling footage in 2011Thousand •  Identified 6 surface & underground targets that are ready for drillingacres of land •  Reserve replacement exceeds production Page  21  
  22. 22. Significant Reserve Growth Proven  and  Probable  Silver  Reserves  25,000,00020,000,00015,000,00010,000,000 5,000,000 - 2005 2006 2007 2008 2009 2010 Page  22  
  23. 23. Surface and Underground Drill Targets CDA “GAP” Western Argentine Coeur Mine Vein Deep Calady Mine Coeur Mine Deep Lead-Silver Silver Vein Page  23  
  24. 24. Surface Drilling TargetsCommencing 12,000 foot surface drilling program•  CDA Gap•  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 systems Page  24  
  25. 25. Underground Drilling Targets•  Targets: Western Coeur Mine Deep Coeur Mine Deep Silver Vein Caladay Lead-Silver•  Targets are extensions of known vein systems Page  25  
  26. 26. The Right People in Place Page  26  
  27. 27. Experienced and Stable Workforce260employees 33 with over 20 years of experience Additional 30 contract miners Page  27  
  28. 28. The Right Management TeamGordon E. •  Thirty years of experience in international capital markets in New York, Calgary, Toronto, Hong Kong in the energy andPridham minerals sector with Chemical Bank, National Bank, Merrill Lynch, Deutsche Bank, Research Capital and Raymond JamesExecutive •  Serves on the public company boards of Newalta Corporation, Norrock Realty Finance Corporation and Titanium Corporation,Chairman where he is Chairman of the BoardTom 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 ConocoSteven 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 Management •  Many long service management end employees provide knowledge and continuity •  New management bring new thinking and approaches Page  28  
  29. 29. 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. Page  29  
  30. 30. SummaryIncreasedStrength Opportunity  to  Capitalize   on  a  proven  and   established  asset     •  Produc5on  growth   •  Reserve  Growth   •  Explora5on  Expansion     Page  30  
  31. 31. Summary•  Highly leveraged silver producer, 85% revenue from silver, 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  31  
  32. 32. 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
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