corporate presentation october 2012
DESCRIPTION
Corporate Presentation October 2012TRANSCRIPT
Developing Silver
Resources in Mexico
TSX VENTURE: OAG OTCQX: ORAGF FRANKFURT: OSI
Q4 2012
2 TSX VENTURE: OAG
• 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 www.sedar.com
• 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.
Forward Looking Statement
3 TSX VENTURE: OAG
• 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
acquisition
Company Overview
3
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
4 TSX VENTURE: OAG
MICHAEL R. SMITH, R.G. – PRESIDENT AND CEO Mr. Smith is a geologist with significant international mining operations experience.
Previously, Mr. Smith served as Chief Mine Geologist for Barrick Gold Corp. at the Goldstrike
Mine in Nevada. He subsequently became General Manager of Exploration and
Development for Barrick Gold in South America. Mr. Smith also managed design and
operational aspects of engineering geology and has been involved in all aspects of ore
reserve calculations, parameters and block modeling
PAUL HABER, CA, CPA, C.DIR – CHIEF FINANCIAL OFFICER Mr. Haber is both a CA and CPA with significant amount of public company experience. Over
the last decade, Mr. Haber assisted in building a number of companies at the CFO level. He
also sits on several board of directors within the resource industry
CARLOS E. PACHECO – GENERAL MANAGER
Mr. Pacheco is a geologist with 20 years of experience in exploration, development and
operation with major Mexican and Canadian junior mining companies. Carlos has extensive
experience in community relations and business development
Management Team
5 TSX VENTURE: OAG
JOHN CARLESSO – EXECUTIVE CHAIRMAN
Mr. Carlesso is the President of Cervello Capital Inc., a Toronto-based private merchant
bank. He has extensive experience as a founder, director and an executive with several
junior resource companies throughout Latin America and internationally
DAVID PRINS – DIRECTOR
Mr. Prins is an engineer with 12 years experience with Placer Dome Latin America where he
played a significant role in the Feasibility Studies for the Cerro Casale and Pueblo Viejo
projects. David has an outstanding record in the areas of Mine Safety and the Environment
DAVID A. TERRY, PH.D., P.GEO. – DIRECTOR
Mr. Terry is a geoscientist with over 20 years of international experience in the mining sector
and has held positions with a number of senior mining companies including Hemlo Gold
Mines, Cominco and Gold Fields. He specializes in advanced project evaluation, acquisitions
as well as design and implementation of exploration programs
Board of Directors
6 TSX VENTURE: OAG
Basic Shares Issued . . . . . . . . . . . 122.8 million
Stock Options Outstanding . . . . . . . . 8.9 million
1.95 million @ $0.10
0.6 million @ $0.15
3.1 million @ $0.32
0.25 million @ $0.26
3.0 million @ $0.19
Warrants Outstanding . . . . . . . . . . . . 13.3 million
0.7 million - Exercisable @ $0.17 expiry Dec. 2012
2.3 million - Exercisable @ $0.16 expiry May 2012
6.7 million - Exercisable @ $0.14 expiry Sept. 2012
3.6 million - Exercisable @ $0.14 expiry Oct. 2012
Fully Diluted Shares . . . . . . . . . . . . . 145 million
Share Capitalization (May 25, 2012)
* All prices expressed in C$
7 TSX VENTURE: OAG
Tejamen
El Sol Chalchihuites
San Lucas
OREMEX SILVER INC. Project locations
Silver Project Portfolio
Oremex Silver Portfolio
TEJAMEN (Durango State)
• Flagship property with
50.8M oz., 43-101 mineral
resource with P.E.A.
• Potential to expand resource
CHALCHIHUITES (Zacatecas State)
• Skarn and carbonate replacement
deposits (CRD) manto system
with past production of
high-grade silver-zinc-lead
• Grades up to 3,800 g/t silver,
0.99 g/t gold + 1.6% Pb
• Completed initial underground
drill program, underground and
surface mapping and sampling
• Initiating follow-up ~1,600m
underground and ~4,350m surface
drilling program
• On strike with and adjacent to First
Majestic Silver’s (NYSE: AG) Del Toro
Project (within 4 km)
TEJAMEN (Durango State)
• Flagship property with 50.8M oz. Ag
(22Mt at 69 g/t Ag), 43-101 mineral
resource with P.E.A.
• Potential to expand resource
CHALCHIHUITES (Zacatecas State)
• Skarn and carbonate replacement
deposits (CRD) manto system with past
production of high-grade silver-zinc-lead
• Grades up to 3,800 g/t Ag, 0.99 g/t Au,
+ 1.6% Pb
• Completed initial underground drill
program, underground and surface
mapping and sampling
• Initiating follow-up ~4,350m surface
drilling program
• On strike with and adjacent to First
Majestic Silver’s (NYSE: AG) Del Toro
Project (within 4 km)
8 TSX VENTURE: OAG
Tejamen
El Sol Chalchihuites
San Lucas
OREMEX SILVER INC. Project locations
Silver Project Portfolio
SAN LUCAS (Durango State)
• 66 hole, 10,000m drilling program
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
EL SOL (Durango State)
• Potential for silver-rich, base metal
skarns and CRD
• 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
9 TSX VENTURE: OAG
• 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
Tejamen: Preliminary Assessment
10 TSX VENTURE: OAG
Tejamen: NPV (7% discount)
CAPITAL
(US $ Million)
AG RECOVERY
%
SILVER
US$ /oz
GOLD
US$ /oz
NPV
(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
Source: Snowden (2006)
45 70 25 1300 298.3
45 70 30 1300 372.6
45 70 35 1300 446.9
11 TSX VENTURE: OAG
Tejamen: Target Locations
• Completed 36,318m
of drilling
• Defined two primary
targets: Los Mantos
and Cerro Prieto
• Los Mantos drill
result highlights :
• Hole MMT-141:
80m at 417 g/t Ag
• Hole MMT-101:
89m at 621 g/t Ag
View of Cerro Prieto and Los Mantos with drill holes
Cerro Prieto Upper
Cerro Prieto Lower
Los Mantos
Pueblo Fault
12 TSX VENTURE: OAG
Tejamen: Site Map
• Located close to
Tejamen town with
400 people
• Power and water
access
• Year-around access:
at a low elevation and
in easy to access
topography
• Mining-friendly
jurisdiction with
no violence
Vein outcrops
CERRO PRIETO
Perimeter potential
LOS MANTOS open pit
13 TSX VENTURE: OAG
Tejamen: Ore Body Geological Section
Opportunity for upside to
expand the resource by
drilling the South Eastern
area of the project with high
grade mineralisation
SECTION FROM
WARDROP
ENGINEERING
14 TSX VENTURE: OAG
Tejamen: Exploration Potential
DRILL
HOLE NO.
INTERCEPT
INTERVALS METERS
AG
GRADE
TJBD - 6 166 -172 6.00 1,400
MMT - 149 168 -170 2.00 448
MMT -150 134 – 136 2.00 1,355
MMT -142 160 – 162 2.00 806
MMT - 156 110 - 112 2.00 773
LOS MANTOS FEEDER
VEIN INDICATIONS
15 TSX VENTURE: OAG
Tejamen: Community Infrastructure Program
Oremex Silver is committed to responsibly
conducting our business to deliver long-term
benefits for the communities we operate in
• Beginning in 2009, current management of
Oremex Silver began establishing positive
community relations with the local Tejamen
town population
• The company employed local labour for
various opportunities
• Due to the success of the program, the
vast majority of the Tejamen Community supports
Oremex Silver and the development of the project
• Together with the Tejamen Community
Association, Oremex Silver is in the process
of negotiating surface access
• A decision from the Secretaria de la Reforma
Agraria is expected in the future
16 TSX VENTURE: OAG
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
17 TSX VENTURE: OAG
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)
North view of the Purisima mine located at the middle of the project.
Purísima
mine Santa María
mine
First Majestic’s
Dolores mine
18 TSX VENTURE: OAG
Value Underpinning Oremex
Silver Unchanged
19 TSX VENTURE: OAG
• 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
Overview
Contact Information
TSX VENTURE: OAG OTCQX: ORAGF FRANKFURT: OSI
1200 - 333 Bay St. | Toronto, ON M5H 2R2 | T: +1 (416) 309.4321
www.oremexsilver.com