A New Company Built For GrowthAUGUST 2012TSX:USA
Forward Looking Statement – Safe HarbourCertain information in this presentation may contain forward-looking statements. T...
USA – Today2.7M             Established Operating Assets                 Strong Operating Cash Flowoz Ag                 F...
Management Team Overview                     •   Former SVP Corporate Development and Investor Relations for Barrick Gold,...
Board of Directors Overview                  •   Over 30 years of experience as a global finance executiveGordon Pridham  ...
Asset Overview
Asset OverviewGalena Mine Complex – 100%•High grade Cu-Ag and Pb-Ag•Galena operating mine•Coeur mine under re-development ...
Galena Mine Complex2nd                         Galena Mine                         •Over 200 M ounces of Au produced to da...
Galena Mine Complex500,000             Coeur Mine                    •Historical production of 39 million ounces of Au    ...
Galena Mine ComplexSignificant      Caladay Lead Zone                 •Initial joint venture between Callahan Mining, ASAR...
Galena Mine Complex Exploration Upside       CDA      “GAP”               Western            Argentine              Coeur ...
Drumlummon Mine   Historical production of 1 million ounces of gold and 12 million ounces of silver   All required permits...
Drumlummon Mine – Underground Long Section                                    DDH12-567 : 0.973 oz/t Au over 4’           ...
14Drumlummon Mine – Claims and Property Boundaries
Near Term Operating GoalsUSA -Tomorrow         Maximize operating synergies of ~$6-7 million and                      corp...
Capital Structure and Key Metrics                                                            Pro-Forma U.S. Silver & Gold ...
Strategic Objectives
Strategic ObjectivesExceed                 1   Ensure an effective and efficient integration5.0M                   2      ...
Junior Silver Producer Multiples            EV / M&I Resources                                                            ...
Re-Rating Potential    U.S. Silver & Gold will be attractively positioned amongst its mid-tier silver    producer peers an...
Why USA?                 2nd largest primary silver producer in the U.S.We’re            Strong operating and market funda...
Contact          Darren Blasutti          President and CEO          dblasutti@rxgold.com          416-848-9503          w...
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Us silver gold corp pres aug 27 2012

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Us silver gold corp pres aug 27 2012

  1. 1. A New Company Built For GrowthAUGUST 2012TSX:USA
  2. 2. Forward Looking Statement – Safe HarbourCertain information in this presentation may contain forward-looking statements. This information is based on currentexpectations that are subject to significant risks, assumptions and uncertainties that are difficult to predict and the risk thatregulatory approvals may not be obtained or that conditions of closing will not be satisfied or waved within the timeframecontemplated. Additional potential risks include: that U.S. Silver & Gold may not achieve anticipated synergies; loss of keypersonnel; reduction in the anticipated cash levels; and, not achieving production goals stated. Actual results might differmaterially from results suggested in any forward-looking statements. All statements, other than statements of historical fact,included in the presentation, including, without limitation, statements regarding potential mineralization and reserves,exploration results, and future plans 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-lookingstatements. Forward-looking statements are not guarantees of future results and conditions but rather reflect our current viewswith respect to future events and are subject to risks, uncertainties, assumptions and other factors, and actual results andfuture events could differ materially from those anticipated in such statements. There can be no assurance that such forward-looking statements will prove to be accurate. U.S. Silver & Gold assume no obligation to update the forward-lookingstatements, or to update the reasons why actual results could differ from those reflected in the forward looking-statementsunless and until required by securities laws applicable to the U.S. Silver & Gold. Additional information identifying risks anduncertainties is contained in filings by U.S. Silver & Gold with the Canadian securities regulators, which filings are available atwww.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 notrecognize them. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has beenmade that the mineralization could be economically and legally produced or extracted at the time the reserve determinationhas been made. U.S. investors should not assume that all or any part of measured or indicated resources will ever beconverted into reserves. In addition, “inferred resources” have a great amount of uncertainty as to their existence and as towhether they can be mined legally or economically. Accordingly, information concerning descriptions of mineralization in thispresentation may not be comparable to information 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. 2
  3. 3. USA – Today2.7M Established Operating Assets Strong Operating Cash Flowoz Ag Focused on Organic and Brownfield Expansion Dominant Land Position in the Silver Valley25,000 Favourable Environment for Accretive Acquisitionsoz Au Proven Management & Board 5M oz Ag by 2014 3
  4. 4. Management Team Overview • Former SVP Corporate Development and Investor Relations for Barrick Gold, reported to President and CEODarren Blasutti • Led Barricks strategic development for over 13 years executing over 25 gold mining transactions including Sutton Resources,President and CEO, Homestake Mining, Placer Dome, consolidation of the Cortez property from Rio Tinto. Responsible for creation of Barrick EnergyDirector to hedge Barrick’s exposure to energy prices • Over 35 years of experience in operations, management, engineering, and exploration for underground and open-pit minesRobert Taylor • Most recently VP and President North American Operations for Kinross Gold where he was responsible for all operationsCOO and exploration • Former VP, Mine Operations at Stillwater Mining in Montana • Over 15 years of progressive financial leadership experience and brings extensive senior management expertiseWarren Varga • Most recently Senior Director, Corporate Development at Barrick Gold CorporationCFO • Member of the Canadian Institute of Chartered Accountants and a member of the Chartered Financial Analyst InstituteSteve Long • Over 33 years experience in mine engineering and management • Senior manager for underground mining operations for Newmont Mining Corporation, Barrick Gold, Echo Bay andSVP, Operations Homestake MiningJim Atkinson • Licensed Professional Geologist, over 40 years of experience in exploration geologyVP, Exploration • Completed more than a dozen exploration programs across North AmericaPeter McRae • Most recently at Weil, Gotshal & Manges LLP, a major international law firm based in NYVP, General • Focused on private equity funds, public and private companies acquisitions and divestituresCounsel 4
  5. 5. Board of Directors Overview • Over 30 years of experience as a global finance executiveGordon Pridham • Extensive special committee and public board experience with a track record of creating value for shareholdersChairman • Serves on the public company boards of Newalta Corporation and Titanium Corporation, where he is Chairman of the BoardLorie Waisberg • Former Senior Partner at Goodmans LLP, and EVP of Finance and Administration of Co-Steel Inc.Director • Accredited with Institute of Corporate Directors and sits on Boards of Tembec and Chemtrade Logistics Inc • Former EVP Strategic Development at Kinross Gold, where he oversaw corporate development and exploration until hisHugh Agro retirement in 2009Director • Held senior positions with Placer Dome Canada and Deustche Bank • Geologist with over 40 years experience as an executive for 20 public, junior exploration companiesJohn Brock • Participated in 12 major mineral deposit discoveries in north and western Canada, Nevada, Mexico, and EcuadorDirector • Currently CEO of Pacific Ridge Exploration and an advisor to the Manex Resources Group • Retired in 2009 as EVP Exploration and Corporate Development at Barrick GoldAlex Davidson • 2005 AO Dufresue Award to recognize exceptional achievement and distinguished contribution to mining exploration in CanadaDirector • In 2003 was named Prospector of the Year by PDAC for discovery of Alto Chicama in PeruLouis Dionne • Former Senior Vice President Underground Operations at Barrick GoldDirector • Currently a director of Detour Gold Corporation and Aurizon Mining Ltd.Alan Edwards • Board of directors for AuRico Gold Inc., Entrée Gold Inc., Copper One Inc., Oracle Mining Corp. and AQM Copper Inc. (Chairman)Director • Senior management positions with Frontera Copper, Apex Silver Mines, Kinross, Cyprus Amax and Phelps DodgeTom Ryley • Board of directors for Newalta Corporation, Tribute Resources and Benefuel Inc., where he is Chairman of the BoardDirector • Former Executive Vice President of Suncor Energy, where he worked for 25 years in a variety of rolesDarren Blasutti 5 • President and CEODirector
  6. 6. Asset Overview
  7. 7. Asset OverviewGalena Mine Complex – 100%•High grade Cu-Ag and Pb-Ag•Galena operating mine•Coeur mine under re-development with initialproduction in Q4 2012•Caladay Lead Zone provides significantbrownfield expansion opportunity•Excess hoisting and milling capacityDrumlummon Mine – 100%•High grade Au and AgExtensive infrastructure•Recently acquired adjacent Belmont mine•Focus on resource expansion Geographic Concentration Of Assets 7 7
  8. 8. Galena Mine Complex2nd Galena Mine •Over 200 M ounces of Au produced to date •Reserves - 23.2 M oz Ag @ 14.30 oz/tlargest •M&I Resources - 11.9 M oz Ag @ 13.7 oz/t • First half 2012 production - 1.08 M oz Ag @ $20.20/ounce from 25Primary silver production stopesproducer in •Two operating mills Galena and Coeur •1,400 tons/day capacity currently at 65%the U.S. •Consistent mill recovery rates of 96% for silver-copper and 92% for silver-lead ores •Continued exploration success and mine life extension on 2400, 4300 and 5200 levels •1,434 oz/t silver over 1.6’ and 112.1 oz/t silver over 2.8’ extending silver vein down dip •110 oz/t silver extension of 350 vein •Resource development in lead zone at 4900 level •Continue to increase reserves and extend mine life Large Reserve and Resource 8 8
  9. 9. Galena Mine Complex500,000 Coeur Mine •Historical production of 39 million ounces of Au •3.3 million oz of M&I Ag resources at average grades ofoz Ag Targeted 16.6 oz/t Ag and 0.72% Cu •Targeting 6.0 M oz Ag Resource from 2012 and 2013 drill programproduction •Drilling commenced; 2,500 feet of 17,000 foot program completed •Re-development started February 2012 •Estimated development costs of $5 million •First production expected in Q4, 2012 with full production estimate of 500,000 oz Ag per year by end of 2013 •Increased production •Will reduce fixed cost base immediately Initial Production Q4 2012 9 9
  10. 10. Galena Mine ComplexSignificant Caladay Lead Zone •Initial joint venture between Callahan Mining, ASARCO and Day MinesBrownfield sank a 5,100 foot shaft in the 1960’s •Drilling in the 1980’s by Coeur d’Alene Mines located a silver-lead depositExpansion •Re-habilitation completed and drilling commenced in the 3rd quarter •Appears to contain a mineable resource between the 4900 and 5500 levels, readily accessible from existing workings •Mineralization comprises broad areas of Au and Pb mineralization often associated with high grade veins •Zones appear much wider (up to 25 to 30 feet) with grades in the range of 7 to 9 oz Ag and 7% to 10% Pb •Area supports lower cost bulk mining methods •Update expected by year-end on economic potential of mineralized area Bulk Mining Opportunity 10
  11. 11. Galena Mine Complex Exploration Upside CDA “GAP” Western Argentine Coeur Mine Vein Deep Calady Mine Coeur Mine Deep Lead-Silver Silver VeinExploration budget of 93,700 feet has been approved for 2012 11
  12. 12. Drumlummon Mine Historical production of 1 million ounces of gold and 12 million ounces of silver All required permits in place under small miners exemption 2012 Plan estimates 110,000 tons of ore at 0.25/t Au and 4 oz/t Ag First half 2012 production of 12,100 oz Au and 216,200 oz Ag First half 2012 mill recoveries averaged 91% for Au and 84% for Ag Continued resource expansion and mine life extension success at Drumlummon and the recently acquired Belmont mine •$5.5 million exploration budget approved for 2012 •106,000 feet of drilling to date •Exploration success at the Frankie Vein, Sampson area of the Drumlummon Vein and the New Years Vein, discovered in the foot wall of the Charly Vein •Discovery of high grade silver veins in the Neenan area near Bald Butte moly projectPotential synergies through excess milling capacity at Galena 12 12
  13. 13. Drumlummon Mine – Underground Long Section DDH12-567 : 0.973 oz/t Au over 4’ 1.116 oz/t Au over 1’ DDH12-569 : 0.416 oz/t Au over 2’ 0.319 oz/t Au over 14’ DDH12-601 : 0.504 oz/t Au over 6’Resource Expansion and Mine Life Extension 13 Success 13
  14. 14. 14Drumlummon Mine – Claims and Property Boundaries
  15. 15. Near Term Operating GoalsUSA -Tomorrow Maximize operating synergies of ~$6-7 million and corporate synergies of ~$3-4 million per year5.0M Deliver Coeur re-development on-time and on-budget in Q4, 2012oz Ag by 2014 Prepare preliminary analysis of the Caladay lead/silver zone for future bulk mining development Assess the Belmont property for mid to late 2013 development Build and communicate to the investment community the 1-year, 3-year and Life of Mine operating plan Unlocking value of existing operating assets 15 15
  16. 16. Capital Structure and Key Metrics Pro-Forma U.S. Silver & Gold Symbol/Exchange USA-T Market Cap (CDN$ MM) – close August 21, 2012 123.0 Shares Basic (MM) 59.4 ITM Options & Warrants (MM) 8.5 OTM Options & Warrants (MM) 3.5 Shares FD ITM (MM) 67.9 Cash (US$ MM)* $ 21.1 Working Capital (US$ MM)* $ 33.0 Debt (US$ MM)* $ 8.2 First half Production oz (Ag) 1,295,300 First half cash costs per oz (Ag) $ 20.36 First half Production oz (Au) 12,100 Recoveries (Ag) 90.0% Recoveries (Au) 91.0% 16* As at June 30, 2012
  17. 17. Strategic Objectives
  18. 18. Strategic ObjectivesExceed 1 Ensure an effective and efficient integration5.0M 2 of the two organizations Assess exploration, milling and capital synergies with geographically focused assetsoz Ag by 2014 Growth through exploration and accretive 3 acquisitions in North America 4 Secure line of credit to support future growth initiatives 5 Increase visibility within the investment community Experience with more than 100 transactions 18 18
  19. 19. Junior Silver Producer Multiples EV / M&I Resources EV / 2013E EBITDA Average: $2.95 Average: 3.37xLegend: HL – Hecla Mining Co., EDR – Endeavour Silver Corp., SVM – Silvercorp Metals Inc., FVI – Fortuna Silver Mines Inc., SPM – Scorpio Mining Corp., RVM – Revett Minerals Inc 19
  20. 20. Re-Rating Potential U.S. Silver & Gold will be attractively positioned amongst its mid-tier silver producer peers and could potentially experience a significant re-rating $1,200 Mid-Tier Silver Producers Enterprise Value (US$ MM) $900 EDR SVM $600 FVI $300 U.S. Silver & Gold $0 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 2012 Production Guidance (MM oz Ag Eq.)Companies Included: FVI – Fortuna Silver Mines Inc.; SVM – Silvercorp Metals Corp.; EDR – Endeavour Silver Corp.1Enterprise Value is calculated on a fully-diluted ITM basis2Silver equivalent based on Cormark research 2012 metal prices of US$1,800/oz Au, US$32.50/oz Ag, US$0.90/lb Pb, US$0.89/lb Znand US$3.71/lb Cu3U.S. Silver & Gold production guidance is sum of RX Gold Q1 results annualized and latest U.S. Silver production guidance Attractively Positioned Among Peers
  21. 21. Why USA? 2nd largest primary silver producer in the U.S.We’re Strong operating and market fundamentalsbuilt for Executing on brownfield expansion opportunitiesgrowth Large land package with significant exploration upside Experienced management team Disciplined strategy for targeted acquisitions Catalysts in place for improved valuation Focused on Execution 21
  22. 22. Contact Darren Blasutti President and CEO dblasutti@rxgold.com 416-848-9503 www.us-silver.com

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