Transcript SBR - Roadshow Presentation

High Grade Silver in Russia PDAC
TSX: SBR
March 2010
Cautionary Statements
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to Silver Bear Resources Inc. (“Silver Bear” or the
“Corporation”), certain information contained herein constitutes "forward-looking statements" within the
meaning of the United States Private Litigation Reform Act of 1995 or “forward-looking information”
within the meaning of the Securities Act (Ontario). Forward-looking statements are frequently
characterized by words such as “target”, “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and
other similar words, or statements that certain events or conditions “may” or “will” occur. Forwardlooking statements are based on the opinions and estimates of management at the date the statements
are made, and are subject to a variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected in the forward-looking statements.
These factors include the inherent risks involved in the exploration and development of mineral
properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating
metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties
relating to the availability and costs of financing needed in the future, the uncertainties inherent to
conducting business in Russia, the availability of supplies, unexpected adverse climate conditions, the
reliance on only a few key members of management, and other factors. Expected production results
and cost of sales are based on management assumptions and have not been subject to any technical
review. They factor in certain assumptions with respect to future metal prices, costs of supplies and
labour and other parameters. There can be no assurance that such statements will prove to be
accurate; actual results and future events could differ materially from such statements. The Corporation
undertakes no obligation to update forward-looking statements if circumstances or management’s
estimates or opinions should change. The reader is cautioned not to place undue reliance on forwardlooking statements.
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Cautionary Statements
DISCLAIMER
The information contained herein, while obtained from sources which we believe are reliable, is not
guaranteed as to its accuracy or completeness. The technical information in this presentation has been
reviewed by Vivian Park, P.Geo, Silver Bear Resources Inc., Director, Exploration, and Qualified Person
for Silver Bear’s projects. Information contained in this presentation, unless otherwise specified, is
qualified in its entirety by the more detailed information contained in the Annual Information Form of Silver
Bear dated March 31, 2009 (the “AIF”), and the technical reports for the Mangazeisky project date March
31, 2009 (the “Mangazeisky Report”), all of which are available for viewing and downloading on the
Corporation’s profile at www.sedar.com or on www.silverbearresources.com.
The business of Silver Bear is subject to considerable risks related to the fluctuation of metal prices, risks
and dangers inherent in mining, competition with other mining companies, and doing business in Russia.
Investors should refer to the more detailed discussion of risk factors in the AIF under heading “Risk
Factors”.
The resource estimate for Silver Bear referred to in this presentation was completed by Wardrop
Engineering, Inc., a Tetra Tech Company ("Wardrop"). Wardrop estimates an indicated mineral resource
of 1.0 million tonnes averaging 558 grams per tonne totalling approximately 18 million ounces of silver for
the Vertikalny vein, with an additional inferred mineral resource of 1.5 million tonnes averaging 596 grams
per tonne totalling approximately 29 million ounces of silver. The estimate, as of November 6, 2009, is
based on a long term silver price of US$10.84 per ounce, a cut-off grade of 240 grams per tonne and
anticipates that the mineralized zone would be mined by selective underground methods at a minimum
mining width of 1.2 meters.
Mr. P. Gribble, FIMMM C.Eng, Wardrop Engineering is the independent qualified person who estimated
the mineral resource disclosed herein. Wardrop is currently completing a NI 43-101 Technical Report
supporting the mineral resource estimate. The Technical Report was filed on www.sedar.com on
December 22, 2009.
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Silver Bear Resources
• Proven Management Team
• Highly Prospective Region with Significant Upside
• High-Grade Mangazeisky Silver Project
• Indicated Resource – 18 million ounces at 558 g/t
• Inferred Resource – 29 million ounces at 596 g/t
• Strong Strategic Partnership in Russia
• Significant Potential Upside
• Solid Cash Position
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Board of Directors
Trevor Eyton
• Former member of the Senate of Canada
Non-Executive Chairman
Bill Biggar
• President and CEO, North American Palladium
Dzhulustan Borisov
• President of National Republic Bank, (Russia)
Dominic Gualtieri
• Former Managing Director, Head of Equities, Alfa Bank
Alexey Mikhaylovskiy
• CEO of United Gold Company
Cameron Mingay
• Partner with Cassels Brock & Blackwell LLP, Law Firm
Randall Oliphant
• Executive Chairman, New Gold Inc.
Christopher Westdal
• Consultant in international affairs
• Canadian Ambassador to Russia 2003-2006
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Management Team
Randall Oliphant
• Chief Executive Officer
Brian Penny
• Chief Financial Officer
Randolph Lewis
• Managing Director, Russia
Vivian Park
• Consultant, Exploration
Hannes Portmann
• Vice President, Corporate Development/Investor Relations
Yury Petrov
• General Director, Russian Operating Company, ZAO
Prognoz
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Silver Grade Comparisons
Silver Project Grade Comparison
Project Name
Location
Silver Grade (g/t)
Goltsovoye
Russia
904
Prognoz
Russia
681
Mangazeisky(1)
Russia
558
Dukat
Russia
403
Lucky Friday
USA
301
Huaron
Peru
184
Morococha
Peru
166
Pirquitas
Argentina
157
Berenguela
Peru
126
Navidad
Argentina
117
San Bartolome
Bolivia
94
Pitarrilla
Mexico
83
(1) Mangazeisky announced updated resources on November 9, 2009. Grade based on Indicated Resource.
Note: Not all grades reported are comparable to Reserves, Resources and geologic averages.
Source: Publicly available company reports, grades based on reserves where applicable.
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High Grade Silver Projects in Russia
1) Mangazeisky
4) Julietta
• Owner: Silver Bear (100%)
• Mineralization: Ag
• Inventory (000 oz): 18,000
• Grade (Ag): 558 g/t
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2) Prognoz
• Owner: High River, Severstal
• Mineralization: Ag
• Inventory (000 oz): Ag – 205,000
• Grade (Ag): 681 g/t
2
1
3 4 5
6
• Owner: Dukat Mining and
Geological Company (100%)
• Mineralization: Ag, Au
• Inventory (000 oz): Ag – 1,671
Au – 202
• Grade (Ag): 134 g/t
5) Lunnoye
• Owner: Polymetal (100%)
• Mineralization: Ag, Au
• Inventory (000 oz): Ag – 101,000
Au – 351
• Grade (Ag): 349 g/t
6) Goltsovoye
• Owner: Polymetal (100%)
• Mineralization: Ag, Pb
• Inventory (000 oz): Ag – 67,000
• Grade (Ag): 904 g/t
3) Dukat
• Owner: Polymetal (100%)
• Mineralization: Ag, Au, Pb, Zn, Cu
• Inventory (000 oz): Ag – 325,000
Au – 690
• Grade (Ag): 403 g/t
7) Kupol
• Owner: Kinross Gold (75%)
• Mineralization: Ag, Au
• Inventory (000 oz): Ag – 52,000
Au – 4,155
• Grade (Ag): 177 g/t
Source: Publicly available company reports
Grades represent weighted average grades where applicable
Mangazeisky has an additional 29 million ounces of Inferred Resources at 596 g/t
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The Mangazeisky Project
Mangazeisky Project
• 100% ownership
• NI 43-101 resource:
• Indicated resource of 1.0 million
tonnes at 558 g/t for 18 million ounces
• Inferred resource of 1.5 million tonnes
at 596 g/t for 29 million ounces
• Exploration license covers over 570 km2 in
Yakutia
• Multiple prospective areas of mineralization
within license area
• The Mangazeisky Project, along with other
silver deposits in the region, continue to
exhibit among the highest silver grades
globally
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Mangazeisky Property
• Over 15 known exploration areas – each
featuring several silver occurrences
• License hosts many additional underexplored targets
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2009 Exploration Update
• 74 holes (12,373 metres) drilled in 2009
• 15,067 m3 of total trenching in 2009
N
• Drilling aimed at expanding and
upgrading original March 2009 resource
estimate
• Down-dip holes targeted in Central
Zone upgraded 18 million ounces to
Indicated Resource category
• Drilled 75 metres below levels
previously targeted
• Along-strike holes targeted Northwest
zone and added 6 million ounces to
Inferred Resource category
• Additional Regional exploration work
completed in other prospective areas
0
500
1000
Along-strike Northwest zone
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12
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Vertikalny Cross Section – Profile 10500
489 / 21.0m
1,296 / 3.6m
556 / 7.45m
120 / 6.8 m
220 / 3.8 m
301 / 10.0 m
213 / 5.0 m
0
25
Ag grams per tonne / metres
50
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Strategy for Success: Strong in Russia
• Government/Regulatory
• Partnership
• Local Relations
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Government/Regulatory
• Russian operating company, ZAO Prognoz, in good standing
• License extension granted ahead of schedule
• Company in full compliance
• Co-operation in both centers: Moscow and Yakutsk
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Strategic Partnership
• Partnership with Alfa Group announced June 13, 2008
• One of largest financial/industrial groups in Russia
• 19.5% investment in Silver Bear a “vote of confidence”
• Partnership to accelerate growth and development
• Two strong additions to Board of Directors
• Dominic Gualtieri, Former Head of Equities, Alfa Bank
• Alexey Mikhailovsky, CEO, United Gold Company
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Local Relations
• Mutually beneficial projects
• Weather station
• “Following the Reindeer”
• Local input – People: Over 90% of employees from
Republic of Sakha
• Local input – Goods/Transport: Source locally
• Community supportive in hopes of increased economic
benefit to the area
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Trading Comparables
Company
Share
Price
(US$)
Market
Cap(1,2)
Cash
Debt
Ent.
Value(1,3)
(US$ mm) (US$ mm) (US$ mm)
(US$ mm)
Attributable Silver Mineralization(4)
P&P
M&I
Inferred
Ent. Value(1,3,4) / In Situ
Inventory
P&P
M&I
(mm Ag Eq. oz) (mm Ag Eq. oz) (mm Ag Eq. oz) (mm Ag Eq. oz)
(US$/oz)
(US$/oz)
Inferred Inventory
(US$/oz)
(US$/oz)
ECU Silver
$ 0.72
$209
$1
$22
$229
-
38
391
429
n/a
$6.02
$0.59
$0.53
MAG Silver
$ 6.69
$346
$31
$0
$308
-
50
70
120
n/a
$6.19
$4.40
$2.57
Bear Creek
$ 3.88
$271
$9
$38
$300
262
286
115
401
$1.14
$1.05
$2.61
$0.75
Alexco
$ 3.72
$175
$8
$0
$167
-
13
3
16
n/a
$13.10
nmf
nmf
Orko Silver
$ 1.38
$172
$2
$0
$170
-
199
35
235
n/a
$0.85
$4.82
$0.72
Minco Silver
$ 1.91
$78
$0
$0
$78
64
47
80
126
$1.21
$1.68
$0.98
$0.62
Aurcana
$ 0.37
$44
$1
$14
$57
1
27
24
51
nmf
$2.09
$2.41
$1.12
Silvermex
$ 0.44
$30
$0
$0
$30
3
41
20
62
$10.45
$0.74
$1.49
$0.49
South American Silver
$ 0.38
$22
$5
$0
$17
-
145
178
322
n/a
$0.12
$0.10
$0.05
Average
83
94
102
196
$4.27
$3.54
$2.17
$0.86
Average (ex. High / Low)
34
78
75
188
n/a
$2.66
$2.08
$0.71
Median
34
47
70
126
$1.21
$1.68
$1.95
$0.67
-
18
29
47
n/a
$0.07
$0.04
$0.03
Silver Bear Resources
$ 0.37
$14
$13
$0
$1
(1)
All figures in US dollars (market cap and enterprise value (“EV”) are US$ millions
(2)
Fully diluted market capitalization based on Treasury Stock Method and share prices as at close on January 14, 2010
(3)
EV = market capitalization + net debt + minority interests – equity investments
(4)
In situ resources based on silver-equivalent ounces assuming prices of US$15/oz silver, US$1,000/oz. gold
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Capitalization
Listing / Symbol TSX : SBR
Shares Outstanding
Basic
Options (@$0.76/share)
37,935,569
866,666
Management and Directors
7,314,596
19.3%
Alfa Group
7,400,000
19.5%
Current Market Capitalization
(March 3, 2010 @ C$0.37/share)
C$14.0 million
Cash and Equivalents at September 30, 2009
C$13.2 million
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