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Corporate Presentation October 2012


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Corporate Presentation October 2012

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Corporate Presentation October 2012

  1. 1. Developing Silver Resources in Mexico Q4 2012TSX VENTURE: OAG OTCQX: ORAGF FRANKFURT: OSI
  2. 2. Forward Looking Statement• This presentation is prepared by Oremex Silver Inc. (OAG – TSX.V) and Oremex Gold Inc. (OAU – TSX.V). Management of Oremex are solely responsible for content and format. Management has compiled this presentation from industry information and 43-101 reports and news releases with specific underlying Qualified Persons as set out in the Releases and reports. Industry Information has been compiled from publically available sources and may not be complete, up to date or reliable.• This presentation contains forward-looking statements within the meaning of Canadian and U.S. securities laws. Such forward looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, the Company’s ability to raise capital to fund development and exploration, changes in general economic conditions or financial markets, changes in metal prices, general cost increases, litigation, legislative, environment and other judicial, regulatory, political, competitive developments in Mexico, technological and operational difficulties or inability to obtain permits encountered in connection with The Company’s exploration activities, community and labour relations matters and changes in foreign exchange rates, all of which are described in more detail in the Company’s filings with the Canadian Securities Regulators.• This presentation is for information purposes only and is not a solicitation. Please contact the Company for complete information and consult a registered investment representative / advisor prior to making any investment decision.• Investors are urged to consider closely the disclosure in Oremex’s annual and quarterly reports and other public filings, accessible through the Internet at• Although the Company believes many of its properties have promising potential, its properties are in the early stages of exploration. None have yet been shown to contain proven or probable mineral reserves. There can be no assurance that such reserves will be identified on any property, or that, if identified, any mineralization may be economically extracted. TSX VENTURE: OAG 2
  3. 3. Company Overview Focus on the exploration and development of silver projects along the highly productive mineralized belt that made Mexico the largest silver-producing country in the world • Oremex Resources Inc. was renamed Oremex Silver Inc. in Q3, 2011 to reflect pure silver focus • Spin-out of gold projects was listed as Oremex Gold Inc. (OAU – TSX.V) • Portfolio of silver projects includes mineral resource of 50.8M oz. of silver (22 Mt at 69 g/t Ag) with P.E.A. at the Tejamen project • All projects are in mining and capital-friendly jurisdictions • Declared a dividend-in-kind of 14M common shares of Oremex Gold • Experienced board and management team • Successful track record of mine development in Mexico with seasoned ability for new project evaluation and acquisition3 TSX VENTURE: OAG 3
  4. 4. Management TeamMICHAEL R. SMITH, R.G. – PRESIDENT AND CEOMr. Smith is a geologist with significant international mining operations experience.Previously, Mr. Smith served as Chief Mine Geologist for Barrick Gold Corp. at the GoldstrikeMine in Nevada. He subsequently became General Manager of Exploration andDevelopment for Barrick Gold in South America. Mr. Smith also managed design andoperational aspects of engineering geology and has been involved in all aspects of orereserve calculations, parameters and block modelingPAUL HABER, CA, CPA, C.DIR – CHIEF FINANCIAL OFFICERMr. Haber is both a CA and CPA with significant amount of public company experience. Overthe last decade, Mr. Haber assisted in building a number of companies at the CFO level. Healso sits on several board of directors within the resource industryCARLOS E. PACHECO – GENERAL MANAGERMr. Pacheco is a geologist with 20 years of experience in exploration, development andoperation with major Mexican and Canadian junior mining companies. Carlos has extensiveexperience in community relations and business development TSX VENTURE: OAG 4
  5. 5. Board of DirectorsJOHN CARLESSO – EXECUTIVE CHAIRMANMr. Carlesso is the President of Cervello Capital Inc., a Toronto-based private merchantbank. He has extensive experience as a founder, director and an executive with severaljunior resource companies throughout Latin America and internationallyDAVID PRINS – DIRECTORMr. Prins is an engineer with 12 years experience with Placer Dome Latin America where heplayed a significant role in the Feasibility Studies for the Cerro Casale and Pueblo Viejoprojects. David has an outstanding record in the areas of Mine Safety and the EnvironmentDAVID A. TERRY, PH.D., P.GEO. – DIRECTORMr. Terry is a geoscientist with over 20 years of international experience in the mining sectorand has held positions with a number of senior mining companies including Hemlo GoldMines, Cominco and Gold Fields. He specializes in advanced project evaluation, acquisitionsas well as design and implementation of exploration programs TSX VENTURE: OAG 5
  6. 6. Share Capitalization (May 25, 2012)Basic Shares Issued . . . . . . . . . . . 122.8 millionStock Options Outstanding . . . . . . . . 8.9 million1.95 million @ $0.100.6 million @ $0.153.1 million @ $0.320.25 million @ $0.263.0 million @ $0.19Warrants Outstanding . . . . . . . . . . . . 13.3 million0.7 million - Exercisable @ $0.17 expiry Dec. 20122.3 million - Exercisable @ $0.16 expiry May 20126.7 million - Exercisable @ $0.14 expiry Sept. 20123.6 million - Exercisable @ $0.14 expiry Oct. 2012Fully Diluted Shares . . . . . . . . . . . . . 145 million * All prices expressed in C$ TSX VENTURE: OAG 6
  7. 7. Silver Project Portfolio TEJAMEN (Durango State) Oremex Silver Portfolio OREMEX SILVER INC. • Flagship property with 50.8M oz. Ag TEJAMEN (Durango State) (22Mt at 69 g/t Ag), 43-101 mineral Project locations • Flagship P.E.A. resource withproperty with 50.8M oz., 43-101 mineral • Potential to expand resource resource with P.E.A. • Potential to expand resource CHALCHIHUITES (Zacatecas State) • Skarn and carbonate replacement CHALCHIHUITES (Zacatecas State) deposits (CRD) manto system with past • Skarn and carbonate replacement San Lucas production of(CRD) mantosilver-zinc-lead deposits high-grade systemTejamen • Grades up to productionAg, 0.99 g/t Au, with past 3,800 g/t of high-grade silver-zinc-lead + 1.6% Pb Chalchihuites • • Grades up to underground Completed initial 3,800 g/t silver,drill El Sol program, g/t gold + 1.6%and surface 0.99 underground Pb • Completed initial underground mapping and sampling drill program, underground and • Initiating follow-up ~4,350m surface surface mapping and sampling drilling program • Initiating follow-up ~1,600m • On strike with and adjacent tosurface underground and ~4,350m First Majestic Silver’s (NYSE: AG) Del Toro drilling program Project (within 4 km) adjacent to First • On strike with and Majestic Silver’s (NYSE: AG) Del Toro Project (within 4 km) TSX VENTURE: OAG 7
  8. 8. Silver Project Portfolio SAN LUCAS (Durango State) OREMEX SILVER INC. • 66 hole, 10,000m drilling program Project locations completed • Similar geology to Tejamen but with base metals • Further drilling to establish resource and follow up high grade zones, 1,856 g/t silver San Lucas EL SOL (Durango State)Tejamen • Potential for silver-rich, base metal Chalchihuites skarns and CRD El Sol • Adjacent to Cerro Las Minitas (763,830T @ 211 g/t Ag, 5.2% Pb, 7.17% Zn) • Cerro Las Minitas acquired by Southern Silver Sept 23/10 for $3M + $3M expenditures • Strong IP geophysics demonstrate excellent drill targets TSX VENTURE: OAG 8
  9. 9. Tejamen: Preliminary Assessment• Key silver valuation component and flagship project• Oremex Silver owns 100% mineral rights• Surface access being negotiated• Wardrop Report (2006) defines 50.8M oz. Ag • 22Mt at 69 g/t Ag• Snowden Report (2006) outlines viability of open pit, heap leach operation • 10,000 TPD • Estimated CapEx USD $45 million • 2:1 strip ratio • 3.5 - 4.0M oz. silver per year • Operating cost scenario of $5.75/ tonne • Cash operating cost of $4/ oz. Ag• Block model shows Los Mantos remains open to the south and east• Significant exploration upside in feeder veins beneath both Los Mantos and Cerro Prieto deposits, grades to 6m of 1,400 g/t silver, with about 5% lead & zinc TSX VENTURE: OAG 9
  10. 10. Tejamen: NPV (7% discount) CAPITAL AG RECOVERY SILVER GOLD NPV (US $ Million) % US$ /oz US$ /oz (US $ Million) 45 70 8 500 19.2 45 70 10 550 58.6 45 70 12 600 97.4 45 70 15 650 155.5 45 70 25 1300 298.3 45 70 30 1300 372.6 45 70 35 1300 446.9Source: Snowden (2006) TSX VENTURE: OAG 10
  11. 11. Tejamen: Target Locations Cerro Prieto Upper • Completed 36,318m of drilling Cerro Prieto Lower • Defined two primary targets: Los Mantos Pueblo Fault and Cerro Prieto • Los Mantos drill result highlights : • Hole MMT-141: 80m at 417 g/t Ag • Hole MMT-101: Los Mantos 89m at 621 g/t AgView of Cerro Prieto and Los Mantos with drill holes TSX VENTURE: OAG 11
  12. 12. Tejamen: Site Map • Located close to Tejamen town withVein outcrops 400 peopleCERRO PRIETO • Power and water access Perimeter potential • Year-around access: LOS MANTOS open pit at a low elevation and in easy to access topography • Mining-friendly jurisdiction with no violence TSX VENTURE: OAG 12
  13. 13. Tejamen: Ore Body Geological Section Opportunity for upside toSECTION FROM expand the resource by WARDROP drilling the South EasternENGINEERING area of the project with high grade mineralisation TSX VENTURE: OAG 13
  14. 14. Tejamen: Exploration Potential DRILLLOS INTERCEPT FEEDER MANTOS AG METERSHOLE NO. VEIN INDICATIONS INTERVALS GRADETJBD - 6 166 -172 6.00 1,400MMT - 149 168 -170 2.00 448MMT -150 134 – 136 2.00 1,355MMT -142 160 – 162 2.00 806MMT - 156 110 - 112 2.00 773 TSX VENTURE: OAG 14
  15. 15. Tejamen: Community Infrastructure ProgramOremex Silver is committed to responsibly • Due to the success of the program, theconducting our business to deliver long-term vast majority of the Tejamen Community supportsbenefits for the communities we operate in Oremex Silver and the development of the project• Beginning in 2009, current management of • Together with the Tejamen Community Oremex Silver began establishing positive Association, Oremex Silver is in the process community relations with the local Tejamen of negotiating surface access town population • A decision from the Secretaria de la Reforma• The company employed local labour for Agraria is expected in the future various opportunities TSX VENTURE: OAG 15
  16. 16. Chalchihuites Silver Project• Located on the north edge of the Chalchihuites silver district where historic, high-grade silver, lead and zinc production came from veined manto deposit• Eight concessions total 440 hectares• Initial 4 hole, 525 m underground drill program completed Q1, 2012• Highlights of the mineralized intervals include: • 5.5 m of 212.26 g/t Ag containing 1.7 m of 563 g/t Ag • 5.4 m of 28.56 g/t Ag and 0.82 g/t Au comprising of 1.4 m of 56.6 g/t Ag and 2.54 g/t Au• Sample values: • 2,000 - 3,540 g/t Ag, 0.011 - 3.405 g/t Au, 0.020 - 13.2% lead and 0.012 - 5.4% zinc• Exploratory surface drill program anticipated to commence TSX VENTURE: OAG 16
  17. 17. Chalchihuites Silver Project• Two parallel silver/ gold/ base metal mineralized shear zones, separated by approx. 100m • Mineralization can be traced over a WNW zone with a map area of approx. 900 m long by 200 m wide • The shear zones have proven vertical extent of about 300m and 75m along strike length• Veins, breccias and mantos on Chalchihuites project are similar to those of First Majestic Silver Corp. (NYSE: AG) and Pan American Silver Corp. (TSX: PAA) • On strike with and adjacent to First Majestic Silver’s Del Toro Project (within 4 km) Purísima Santa María First Majestic’s mine mine Dolores mine North view of the Purisima mine located at the middle of the project. TSX VENTURE: OAG 17
  18. 18. Value Underpinning OremexSilver Unchanged TSX VENTURE: OAG 18
  19. 19. Overview• Management with a successful track record of mine discovery, exploration and development in Mexico and seasoned ability for project evaluation and acquisition• Highly prospective portfolios of silver assets with substantial exploration upside• Tejamen asset underpins the value of the company and provides a “call option” on price of silver• Spin-out of Oremex Gold to unlock unrecognized value • Oremex Silver shareholders to receive Oremex Gold share dividend• All projects are located in a democratic, mining and capital-friendly jurisdiction• Dedicated to building a discrete, legitimate growth platform TSX VENTURE: OAG 19
  20. 20. Contact Information1200 - 333 Bay St. | Toronto, ON M5H 2R2 | T: +1 (416) 309.4321TSX VENTURE: OAG OTCQX: ORAGF FRANKFURT: OSI