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Silver Tiger Metals

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September 17, 2024 at 4:10 PM (MDT)|Broadmoor Hotel & Resort

Glenn Jessome

President and CEO

Glenn is the founding shareholder of Silver Tiger Metals Inc. and he oversaw the listing of the Company on the TSXV. Glenn is a securities lawyer with 25 years of resource sector capital markets experience and he currently serves as a member of the TSXV National Advisory Committee. Glenn is Corporate Secretary and a founding shareholder of Gogold Resources Inc., another company for which he oversaw the listing on the TSX. Glenn received his Law Degree and MBA from Dalhousie University in Halifax, Nova Scotia and holds a Science Degree from Saint Francis Xavier University in Antigonish, Nova Scotia.

This is an automatically generated transcript. Denver Gold Group cannot accept responsibility for mistakes, errors, omissions, or any action taken in reliance thereon. Use of this transcript is governed by Denver Gold Group’s Terms of Use.

This is our first time at the Denver Gold Forum to introduce it to this audience. We acquired the property in 2017. I have been serial and going to Beaver Creek and it's nice to introduce this project, which is we've done a lot of work on and we're near shovel ready to get on with building a silver mine in Mexico. Sonora is a, is a state that we're in a very pro mining state close to the US border. Our project is about 100 kilometers from the US border. Let's take a look at it. It's a very large land package we acquired in 2017. You can see inside of those golden lines or the concessions that's approximately 35 kilometers north, north, south and about 25 kilometers that prolific Sierra Madre trend. We've been very fortunate to have been in Mexico, the team that I work with for almost 30 years, a very experienced technical team and that technical team through those years have built three silver mines in Mexico and they've sold three others to majors. And it's that same team that's helping us move forward as you'll see with putting this project in production, in, in, in the near future. Why did we acquire the project? Look, there's no new discovery usually in Mexico, all of the mines that we've looked at through the group's years and, and many of them were under the old head frames of Spanish or American mines that operated from 1900 to about 1930. This was an American mine and our technical team went and looked at it and really what they came back and reported was that it was a project we had to have from 1908 to 1930. This old American mine produced 100 million silver equival ounces at an average grade of 2.5 kg. cut off grade was incredibly 1.2 kg. That was from 100 ton and a 200 ton per day mill over those 22 years. We were lucky that the public company that had it were willing to sell the asset to us for $11 million in Canadian. In 2017, we delisted that company and took the asset and got to work. I will show you just quickly, I think it is. Sonora is such for those that don't know, a, a very good mining jurisdiction probably much, maybe better than many in Canada. The support for the mining, especially where we are, is prolific and the reasons are is we're surrounded by some of the biggest mines in Mexico within 100 kilometer earshot of us. So you can see Cananea, Santa Lia. there's the Mercedes mine, Las CPA Silvercrest Asset and LA Car at 40 kilometers, a big group of Mexico copper mine. and all of the support in Mexico that we really need to move this project forward. Is there enough about the project? What have we done? Let's go, Reader's Digest version, you have to raise money over the last six years. We've raised 100 and $25 million for this project. And put, put a lot of it in the ground to be where I'm going to show you. We've gotten to in a few moments, I think the quality of institutional ownership is very important. 80 million of those dollars were raised in the last year in bought deal financings. The vast majority of that or our biggest shareholders were given to us by that. They know their win with us is that we will execute our plan, which we have done so far and to build a silver mine. That's, that's their alpha return and they're very supportive of us. Let's go back and let me get my next slide. This is the mineralized system. You saw that 20 that 35 kilometers, everything we're gonna talk about is around that old LT gray mine that I told you it was so prolific for those 20 years. The old timers delivered about,, Reader's Digest version. 100 million silver cool announces drilling under around a little north and south of that in an MRE in two thou last year in September around this time. We delivered the next 200 million silver qui and ounces. roughly 100 million in the stock work open pit and 100 million in the underground. We see the underground as we continue to explore greatly adding ounces there. But let's talk about where we are going to get to work to build and continue to explore right here. We've mapped this for another 15 kilometers or 10 kilometers. Each way continues for about 15. Everything we're going to talk about today is right in the middle of this 3rd 25 kilometer trend that we have this shows it very, very well. And you can see the old Lt Gray mine is here. We've drilled under and around it. I'll show you how that went and a little bit of drilling in the two or three kilometers to the north, not a lot of that made it into the MRE. But that's the great exploration potential. That's right in front of us. We'll talk about that near the end of the presentation. You know, one thing that the technical team did, which was amazing. which moved us so quickly ahead in 17 and 18 was find those old mining records. Luckily in 2019 80 Anaconda, some may remember them when the big, the biggest mining company in the world before they were put out of business by Standard Oil who purchased them in 82. They had those big mines I showed you Cananea those copper mines and CS at and they basically got on site and all the records. If you can imagine 50 years later, the paper records of that mine were saved. They went to the Anaconda Collection in Wyoming. And it took us almost two months in that museum to get all those paper records, six months to digitize it. And that was the real fingerprint to explore this project. What you're looking at there is that recreation of that old mine kilometer and a half. You can see that they went to 450 m chasing that high grade sto 100 million silver o of 2.5 kg. There was no drilling really at that time. They just chased the vein. If we go plan view, I think what's important to note here just quickly is that's the stoop that's actually what they mined. You could see they were developing north down deep. They dropped their tools in 1930. Silver went to 10 cents from a dollar 30 after the Mexican revolution, a little tougher for the American companies to operate. And and they dropped their tools in multi klo or what we had to do. And I'll show you Plan view here. I think it is important to see it. If you look at plan view, three main veins, we're going to talk about them. This one, they did not do much exploration on. That was the, excuse me, western vein, the Suey, the Tiger, the prolific vein and then the sites Kelly, which was to the East Nope, because I'll talk about it later. The old haulage way for that mine where that 100 million silver cool announces came out of and you can see the sto it was, it was a half meter. It was incredible or, and they left the rest. So I'm not saying it was not easy to figure it out because nothing is easy in mining. But our technical team said, let's drill here, let's drill off the stock work here, let's drill the unmined veins. And in the process of doing that, that's the 200 million silver announces we've added, we found something very special, a sales sale zone. We'll talk about it in a bit and also the real future of the underground, a massive sulfide will get to it. But really, let's start with and I think this might be a good slide to orient everybody. What we have here is keep an eye on the clock. LT gray 101 stock work. We're gonna show you the P A ready to build PFS will be coming for a second week of October. That's ready 100 silver qui ounces, roughly 100 million already in the underground. This is a, a classic flowering epi the system which we see in Mexico stock work easier drives cash flow or lower Capex to go underground. Like the old timers didn't go after that narrow vein as we drilled from surface. After finishing the, the, the pit, we found this new shale zone. I'm going to come back to it at the end in exploration potential and a massive sulfide that's already three quarters of a kilometer long, 350 high and 40 m wide. Well, let's talk about what's right ahead of us now delivered the MRE in September for that 100 million silver equivalent ounces roughly in the pit. And then the pe a PFS will be the 1st, 2nd week of Octo October. Please keep an eye for it. This is why open pits in Mexico are so valuable. We're gonna talk about permits at the end. I'll give you an update on where we are with all that we're permitted for the underground permit application to amend that for the pit is in and we'll come back to it and who's handling that for us. And this is the magic of an open pit in Mexico. 287 million US DNA. This was released in November. 56% irr pay back 1.7 years. makes about a half a billion almost over the government mine life after tax us free cash flow. And this is the magic though, 59 million Capex that could increase a little bit in the PFS. Keep an eye on as we fine tune and derisk the project. That's a 5 to 1 Capex MBP. 2 to 1 is a great project. So that's why we went after this. Now, this was done, I think, which is worth noting at 1850 and 2350 silver just because I like to make myself happy and you won't see these kind of numbers in the PFS. But let's look at the sensitivity table today, Lt Greg that pit lives there. Half a billion N A 89% irr a little over one year payback and 800 million US d after tax free cash flow in the 11 11.5 year mine life. It's just nice to reflect even though that's not in the study at today's prices. That's the value of a pit, high, high cash flow, low Capex drive the underground. Let's look at why that pit was so magical for those that are interested. Two kilometers. That's the final pit, 150 m benches, 300 m, 2 to 1 strip overall grade 0.6 g per ton, gold. It's two thirds gold. This is a silver mine, 75% silver, 25% gold underground. That epigenetic event where you had that nice blow of minimization. And that stock work was the other way, two thirds gold, one third silver, which of course helps the economics as gold will leach a lot quicker than, than than silver. The starter pit was really what really drove us ahead very quickly in the project in that. and able to fund it and build it on a pfs. That starter pit is about the first three years of war, why it was there and why it was such a, a wonderful thing to have is that's where those three veins I talked about came together where the old timers went to 450. After that high grade, you had the same effect in that epigenetic event that took place in the stock work as the vein came through it. And it, it, it created a much higher grade about the first three years of production in this, in this open pit. The grade is 1 g per ton gold and the strip is 0.3 to one which is almost zero. The mountain works so well with us there. It's not rocket science to see it. You can see the strip on that starter p there that being said, What we wanted to do I'm not going to get into the transition to the PFS from the PE A. But one of the most important things for us was we had to give the lenders, it's not a big loan, 75 million. Well, that it is a big loan,, but we wanted to get as much or as we could,, in the measure and indicate it. So we've drilled that,, we were gunning for three years on a 1.7 year payback as the PE A said, that would be great comfort to any lender. Stay tuned for that in the PFS. I'm very pleased with what we're seeing in moving. that, that starter pit and the, the length of the, the, the, the time to mine that starter pit or to measure and indicate it. It's going to be a, a simple process. Nothing simple, of course, but just a little cartoonish drawing of what the what the processing is going to lead to look like. There's your pit. It's, it's, it's a crushing platform. that allows us probably about a 3/8 crush. We will not have to agglomerate it. You can see where the leach pad will be. You can see where the waste dump is in the pools and that goes out to the heap. And basically, we will extract the, the gold, the silver and the gold. There'll be a lot more information on metallurgy, et cetera, et cetera in the PFS. That's only a couple of weeks away., please take a look at that when it does come out. That's the first part of the project., and I'm gonna quickly go through what happens. We'll have that done ready to go. And,, in 1st, 2nd week of October, we'll be waiting into next year for the permit amendment. I'll talk about at the end so that we can start working that. But we don't put the tools down. We stopped the underground drilling, the the 100 million silver who announces higher grade to finish the pit. Now, we're getting back to it as soon as we possibly can. This is the from our independent consultants. They always give you an exploration target just around that old mine around the block model, which was the kilometer and a half, about two or three kilometers around the mine. And they gave us another, just a rough guessimate drill, deeper drill, it tighten it up and there's another 75 million silver ounces. We think there's more, but it's a nice indication. Let's get going. I showed you the 25 kilometer trend. Here's really where we're going to be doing our work. This will bring it together as I start to discuss what the exploration program is gonna look like. There's that five kilometers. You're gonna see here, there's the pit, the yellow, it's delineated. That's pretty well done and ready to go. We've developed back in the underground. I'm gonna talk about that in a minute. All of our drilling going forward late this year, early next year, we hope will be from underground. I'll show you why. this is really where the ma the majority and there's the old mine, you can just see it drilling around it and underneath it, 200 million silver cool ounces. Not a lot of this got into the MRE, but it just continues for this three kilometers. We drilled the shale zone, 3 kg about five kilometers. We think it may be property wide and this, this sulfide zone sitting on the precambrian granite. It's open. We just stopped drilling. How are we going to get back to it? I'm going back to my, my section PFS done in October check these were long holes to drill the three different types of mineralization we have now underground, usually only one the veins. So what we've decided to quietly in the background while we were getting the PFS ready for the underground. And that was another 60 or 70,000 m of drilling we had to do to finish that off. We brought Kin in a very, very skilled underground exploration company and remember that old haulage way where that 100 million came out. What we decided to do is let's get back in the mine that will be the haulage route, way for the underground at some point. But today, it's my entry so that I can do exploration from underground. And those long, long holes, 600 m. This is where we walk right now turn into 25 m 30 m to the shale and the salt fighting to get the veins. So, it's, it's interesting for those that like history. The mine was in incredible shape. That's 100 years later, the old L tre mine 2.5 by two, incredible rock, integrity, but that's not big enough for us. So, a picture is worth a million words. I think. So, if you look here, that's what the old timers we brought Kin and we've gone and just slash it five by 5.5 m, full commercial. But for me to get in there now, we've got about the 1st 400 m, we're gonna get them back on site. We've got another 200 to finish so we can get the right angle on the drilling. And I'll show you a little bit about that. I think I've got two or three minutes left. So, that's the type of underground development they left us with, let's just look at what we're going to do. And I think this slide really shows it. this one here shows it very well. That's where we are. Now, we walk, we're going to keep on another 200 m, the sulfide zone, which is a big prize. incredibly already 750 by, excuse me, 350 by 50 upwards of maybe an average, this is a guesstimate. Now, we got a lot more drilling to do six or 700 g or so, I just have it there, it is there, you can see it. It's open. We're gonna get at that. I think this one will show really what the drilling program is gonna look like. A little bit better. You can see the optionality we're gonna have here if I can get that one opened. We're here, we soon we'll be here. You can drill from underground short holes into the sulfide. You can get the shale. We'll have the optionality to drill up into other veins that are around, that's coming later this year in all, like maybe early next year, but that's where the underground exploration will come from. Look in a perfect world. I'll lay out a game plan as I that I would like to see happen and you'll get to judge me because I will be back next year and what we accomplish., this pfs is done, we'll build on it. You can see why. And I think the, from what we're seeing with the lenders we're dealing with now, They agree. Second part is,, we're gonna have to wait for that permit fully permitted for the 800 ton per day underground. The person we used on that as I hired a year ago, Francisco albs, many of you may not know him but you'll know Argonaut. Two big open pits built from 2000, excuse me. 2012 through 2018 were the Patella context complex and the El Castillo Complex. Those were both projects that moved over 100,000 tons in an open pit or per day. And Francisco was the person who with ergot permitted them, built them, ran them and in the end ran the both of them, he joined us a year ago with his mining team. And we're going to use him to basically build this thing, so we're ready. He's also the person that recommended we are fully permitted for the 800 ton per day underground, which is important. Instead of filing for a new mia permit for the open pit on his recommendation over a year, a little over a year ago, we filed for a permit application to use those same approvals from Sene to get the permit issued for the open pit. Let's just look at timing. It will be next year. I that's my position when we will get the amendments for the open pit. Let's just say it's July. I just want to give a little timeline we would start to build. Then Francisco Alba says it's a twelvemonth build. So by July of 26 these are made up numbers. It will be next year. We hope to get a permit amendment, but I've got to catch up on the underground because by July or August, let's say we could 2026 we can get this built, you'll pay your capital back. But the, the real reason you want to drive this pit is now you've got the capital to really go after the underground herd. I have to catch up. We're going to start drilling that underground. First half of next year, we'll deliver a pe a for the underground, 800 ton per day, mill is already on site fully permitted. It'll match up to that through that next year. I'll be able to move that with more drilling, more work to a pfs. And if required a feasibility study, hopefully to catch up with that open pit that by fall of 2026 if things go according to plan, we'll have in production, that's the road map. The guess on the permit for the open pit is a guess. But we feel confident that we will get it and we will execute this plan. Going forward. I want to thank you for the time if there's any questions and if I have any time I'd be pleased to answer them. Yeah, I just had one quick., I mean, you really went through well, on all those,, all those points about the open pit. I just wanted to ask about, you know, exploration spend coming up and what that looks like for you guys. Well, we,, we, we, we'll get underground, we've got to finish a little bit of work there. That's that next 200 m. We hope to get that started very soon in October. I would think that, you know, we'll start with one underground drill rig. just to get acclimatized its new underground drilling for the company. And,, you know, everybody asked me what the drilling budget is and I like to say about Al Tre, it's unlimited because once we start back underground and you saw the trend that we're on, I just think we're going to keep on drilling. When the money becomes available from either a raise or as we put the other, the open pit in production and one rig will drill rig underground will turn into two and in time three. So I would say the budget for this project would be unlimited for drilling. Excellent. Thank you, Glenn.


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