u.s. silver investor presentation march 2011
DESCRIPTION
U.S. Silver, through its wholly owned subsidiaries, owns and/or operates the Galena, Coeur, Caladay and Dayrock silver-lead-copper mines in Shoshone County, Idaho, with the Galena mine being the second most prolific silver mine in US history. Total silver production from U.S. Silver's mining complex has exceeded 217 million ounces of silver production since 1953. U.S. Silver controls a land package now totalling approximately 14,000 acres in the heart of the Coeur d'Alene Mining District. U.S. Silver is focused on expanding the production from existing operations as well as exploring and developing its extensive Silver Valley holdings in the Coeur D'Alene Mining District.TRANSCRIPT
U.S. Silver Corporation
March 2011
TSXV : USAUS OTC Markets : USSIF
Forward Looking Statements
Certain statements contained in or incorporated by reference into this presentation 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 its management, are intended to identify forward-looking statements, however, other information may also constitute forward-looking statements. Such statements reflect the current views of U.S. Silver with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of U.S. Silver that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. U.S. Silver does not intend, and does not assume any obligation, to update these forward-looking statements.
Strong Silver Market Trends
In 1980, when Nelson Bunker Hunt was asked as to why he had developed a passion for silver, he said; "Silver looked safer than overseas oil concessions, the way things were going. And precious metals were a good hedge against paper money".
Silver Demand – Industrial and Investment
Strong Silver Market Trends
Silver up 101% since January 1, 2010
Million oz AgAnnual production85% of revenue from silver
Company Overview
Established producer in prolific Silver Valley in Northern Idaho
Low cost incremental growth potential (excess capacity)
Revenue of $85 million at current prices
Located in Historic Silver Valley
Montana
Oregon
Washington
British Columbia
Spokane
Alberta
Missoula
Boise
Idaho
Over 1 billion ounces produced
Modern and ample infrastructure in place
Safe and friendly jurisdiction
Company Overview• 100% interest in the producing Galena silver-copper-lead mine
– High grade narrow vein mining operation
• 100% interest in the Coeur Silver mine– Redevelopment plans underway
• 2 mills (Galena and Coeur)– Both in use, 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• 80% unhedged, 100% unhedged in 2012 and after
Million oz Ag
Proved & Probable Reserves
99.8 Million lbs. lead
9.8 Million Lbs. copper
Provides a 7 year mine life
Exploration consistently replaces annual production
Million oz. Ag
2010 Results
5.6 million lbs. lead
1.0 million lbs. copper
Cash costs of $13.50
Galena Mine
Galena Mine – an impressive history
High grade, narrow vein, copper-silver & lead-silver mine
Short term variability in operating results, long term proven producer
No historic environmental liability
ndlargestPrimary silver producer in the U.S.
Galena – Past & Present
Focusing on higher grade zones to increase head grade
Examining production expansion options with high prices
Continued exploration success and mine life extension
millionOunces produced
Mining Operations
No.
3 S
haft
Gal
ena
Sha
ft
Cal
law
ay S
haft
Coe
ur S
haft
2400
Sea Level
3700
5500
Cal
laha
n S
haft
4900
483356400
Coeur 3700
28003000
3400
1200
Silver
Vein117-215
72
Ag - Pb Veins
Ag - Cu Veins
5200
460043004000
LEGEND
175
Galena Performance
Milling OperationsExcess CapacityGalena Mill 900 tons/day and Coeur Mill 500 tons/ day = total capacity of 1,400 tons/day
Ores2 ore types (silver-copper and silver-lead) have separate crushing, milling and flotation circuits
RecoveriesConsistent 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
Reserves Detail
• 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 have doubled since property acquired in 2005
Coeur Redevelopment
Restarting The Coeur Mine
• No permitting or acquisition costs
• Existing excess mill capacity
• Examining alternative mining methods & scale
• Additional drilling underway to better define deposit
• Significant exploration upside
millionresource ounces targeted
Exploration Potential
• Dominant land position• Under explored and
accessible camp• Region of increasing
interest• Strong cash flow funding
all plans internally• Identified 8 immediate
targets that are ready for drilling
Thousandacres of land
Exploration Potential
Surface and Underground Drill Targets
Surface and Underground Drill Targets
CA “GAP”
Western Coeur Mine
ArgentineVein
DeepCoeur Mine
DeepSilverVein
Calady MineLead-Silver
Additonal Medium Term Targets
Have developed several medium term targets with expected launch of program in 2012
Drill ready targets identified bySurface and underground showingsGeochem profile matching that of Galena/CoeurRegional structure is the same host for several ot her mines in valleyStrong correlation between tetrahedrite showings and deeper silver vein systems
The Right People in Place
Experienced and Stable Workforce
33 with over 20 years of experienceemployees
The Right Management Team
Bobby E. Cooper
Chairman
• 42 years experience in the mining industry
• Served as Chairman of High Plains Uranium and former President and CEO of Kennecott Corporation
• Formerly held executive positions with Thunder Basin Coal, RTZ (Rio Tinto), Shell Mining, Inspiration Consolidated (Huda), and Ridgeway Mining (Kennecott)
Tom H. Parker
President , CEO & Director
• Mining engineer with over 40 years experience in the mining industry
• Former President and CEO of Gold Crest Mines and High Plains Uranium
• 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 Conoco
• Worked in potash, limestone and talc industries and has extensive experience in Niger, France and Venezuela
Chris J. Hopkins
CFO
• Chartered Accountant with over 25 years experience in financial management, strategic planning, mergers and acquisitions, corporate finance and financing and management reporting
• Formerly with Rio Algoma, Suncor, and several junior mining and oil & gas companies
Mine Management • Many long service management end employees provide knowledge and continuity
• New management bring new thinking and approaches
The Right Board
Gordon E. Pridham
Director
• Over 25 years experience in investment banking, capital markets, and corporate banking
• President and CEO of Edgewater Capital and Chairman of Titanium Corporation
• Serves as a Director for Newalta Income Fund
• Formerly with Chemical Bank and National Bank, in the energy and minerals sector in New York, Calgary, and Toronto
• Formerly with Merrill Lynch Canada and Midland Walwyn and managed the Investment Banking groups at Deutsche Morgan Grenfell, Research Capital, and Raymond James
John S. Brock
Director
• Geologist with over 40 years experience as an executive for 20 public, junior exploration companies
• 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 Group
James M. Macintosh
Director
• Geologist and mining analyst with over 15 years experience
• Served as an executive and a director of numerous public and private companies in Canada and the United States
• President and COO of Innovium Capital, a company that invests in innovative opportunities
Kevin D. Stulp
Director
• Served on the board of Aurora Oil & Gas since 1997
• 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 reengineering
Summary
• Highly leveraged silver producer, 85% revenue from silver
• Stable and consistent production• Infrastructure in place with excess capacity• Dominant land position with significant
exploration upside with in a highly prospective regi on
• No debt , sufficient financial capacity to execute growth plan
• No historic environmental liability
Million
Market Data
Current Market Cap
TSX-V: USAOTCQX: USSIFFrankfurt: QE2
52 week hi-low: $0.83 -$0.15
288.9 million shares outstanding
335.3 fully diluted
TSX.V and OTCQX average daily volume 1 Million
Undervalued vs. peers on key metrics
Questions
Contact
Tom ParkerChief Executive Officer208-752-0400
Christopher HopkinsChief Financial Officer
416-907-9539
Patrick PietteTMX Equicom416-815-0700 x267