TSX:WS Investor Presentation April 2014 1 Focused, Strategic, Unique TSX: WS TSX: WS 1
CAUTIONARY STATEMENT Cautionary Note Regarding Forward-Looking Information Certain information contained in this presentation constitutes forward-looking statements. All statements, other than statements of historical facts, are forward looking statements including statements with respect to the Company’s intentions for its Hermosa project in Arizona, USA including, without limitation, the amount of mineral resources and mineral reserves, expected future mineral production, expected metal grades and metal recoveries, expected future capital and operating costs, expected realizable metal prices, expected markets for EMM, expected timing for future metallurgical and other work and expected timing for the completion of a feasibility study. Forward-looking statements are often, but not always, identified by the use of words such as may, will, seek, anticipate, believe, plan, estimate, budget, schedule, forecast, project, expect, intend, or similar expressions. The forward-looking statements are based on a number of assumptions which, while considered reasonable by Wildcat, are subject to risks and uncertainties. In addition to the assumptions herein, these assumptions include the assumptions described in Wildcat's management's discussion and analysis for the period ended December 31, 2012 ("MD&A"). Wildcat cautions readers that forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from those expressed in or implied by such forward-looking statements and forward-looking statements are not guarantees of future results, performance or achievement. These risks, uncertainties and factors include general business, economic, competitive, political, regulatory and social uncertainties; actual results of exploration activities and economic evaluations; fluctuations in currency exchange rates; changes in project parameters; changes in costs, including labour, infrastructure, operating and production costs; future prices of silver and other minerals; variations of mineral grade or recovery rates; operating or technical difficulties in connection with exploration, development or mining activities, including the failure of plant, equipment or processes to operate as anticipated; delays in completion of exploration, development or construction activities; changes in government legislation and regulation; the ability to maintain and renew existing licenses and permits or obtain required licenses and permits in a timely manner; the ability to obtain financing on acceptable terms in a timely manner; contests over title to properties; employee relations and shortages of skilled personnel and contractors; the speculative nature of, and the risks involved in, the exploration, development and mining business; and the factors discussed in the section entitled "Risks and Uncertainties" in the MD&A. Although Wildcat has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Wildcat disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law. About Reserves and Resources This presentation uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the resource estimate. Readers are cautioned that: (a) mineral resources are not economic mineral reserves; (b) the economic viability of resources that are not mineral reserves has not been demonstrated; and (c) it should not be assumed that further work on the stated resources will lead to mineral reserves that can be mined economically. In addition, inferred resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies or economic studies except for certain preliminary economic assessments. All Dollars are United States Dollars. All project metrics are shown on a 100%-ownership basis. All tons are short tons. 2 TSX: WS TSX: WS 2
ABOUT HERMOSA 80% owned silver and manganese project Patented Claims Approx. 150 Acres Stable, low risk jurisdiction with a history of mining Located in Santa Cruz County, Arizona 80 km SE from Tucson, Arizona Near existing infrastructure Power, water, rail, highways, natural gas Unpatented Claims Approx. 13,500 Acres Unpatented claims Patented claims 3 TSX: WS TSX: WS 3
PRE-FEASIBILITY HIG IGHLIGHTS Converted Resource to Reserve: Contained metal of 145M ounces of silver and 7.2B lbs of manganese (1) Annual production of 12.2M ounces of silver and 110M lbs of EMM (2,3) Utilized magnetic separation to improve efficiency and throughput Confirmed by-product recoveries for copper and zinc Added EMM plating facility for the production of manganese, now a co-product Achieved industry low cash co-product cash costs of $4.45 per ounce of silver and $0.73 per pound of EMM (4) Improved after-tax NPV(5%) to $830 million with an after-tax IRR of 21% (5) Extended mine life to 18 years 1. See appendix for detailed reserve and resource table and associated footnotes 2. EMM = Electrolytic Manganese Metal 3. Silver production is for the first five years of production (5.7M oz Ag is average life of mine); EMM production is for the life of mine 4. Cash costs are calculated on a co-product basis whereby production costs are allocated to silver and manganese based on the relative revenues of each metal, and silver cash costs are Photo: Testing Pilot Plant at net of gold, zinc and copper by-products. Metal prices are as mentioned in footnote 5. Hazen’s labs in Golden, Colorado 5. NPV and IRR based on metal prices of $23.50/oz Ag, $1,250/oz Au, $1.19/lb EMM, $0.92/lb Zn, $3.25/lb Cu 4 TSX: WS TSX: WS 4
HERMOSA CROSS SECTION (A- A’) 5 TSX: WS TSX: WS 5 5
HERMOSA CROSS SECTION (B- B’) 6 TSX: WS TSX: WS 6
HERMOSA RESERVE AND RESOURCE Hermosa Reserve and Resource Estimate (1) Tons Ag Mn Contained Ag Contained Ore Type (000s) (opt) % Ounces (000s) Mn lbs (000s) Tota otal Pr Prov oven and nd Pr Prob obable Mi Mineral Re Reserves Total Proven 31,067 2.73 8.58 84,737 4,051,000 Total Probable 28,589 2.11 7.99 60,339 3,182,000 Total Proven & Probable 59,656 2.43 8.31 145,076 7,233,000 Reserves) (2) Tota otal Me Measured and nd Ind ndica cated Mi Mineral Re Resource ce (Incl clusive of of Re Total Measured 78,512 1.54 6.60 121,115 4,898,000 Total Indicated 111,056 1.11 5.03 123,539 5,443,000 Total Measured & Indicated 189,568 1.29 5.67 244,654 10,341,000 Tota otal Inf nferred Min Mineral Re Resource (2) Total Inferred 49,622 1.02 3.80 50,437 1,238,000 1. See appendix for detailed reserve and resource table and associated footnotes 2. Mineral resources that are not mineral reserves do not have a demonstrated economic viability. Mineral resources are inclusive of mineral reserves. 7 TSX: WS TSX: WS 7
TOTAL SIL ILVER RESOURCE COMPARISON Total global silver resource (Moz) 800 Hermosa is one of the 10 largest 700 undeveloped primary silver deposits* 600 500 400 300 200 100 0 Navidad Pitarrilla Cordero Corani Escobal Malku Khota Hermosa Hackett La Preciosa Santa Ana Maverick Candelaria Juanicipio Berenguela San Agustin Diablillos GC Project Parrena Challacollo San Juan Joaquin Colorada Silvertip Springs River Silver Veta * Includes only primary silver deposits for projects with recent 43-101 compliant resource estimates 8 TSX: WS TSX: WS 8
RESOURCE BLOCK MODEL Section 167,800 N Looking North A A’ B A’ A A A’ B’ 9 TSX: WS TSX: WS 9
RESOURCE BLOCK MODEL Section 1,075,500 E Looking East B’ B B B A A’ B’ B’ 10 TSX: WS TSX: WS 10
PROCESS FLOW SHEET Copper/Zinc Raffinate Upper Silver Manto Oxide SXEW Zinc Zinc Cathode 3 Stage Crush Cu Conc. (79%) SART Copper Magnetic Separation Recovered Cyanide Calcining CN Destruct EMM Flake Grinding WHIMs EMM CN Leach/CCD Pregnant Solution Merrill Crowe Mn Concentrate Concentrate Ag/Au Dore Tails Refinery Storage 11 TSX: WS TSX: WS 11
CALCINE (KILN) PIL ILOT PLANT TESTS Approximately 14 tons of Manto Oxide material have been tested in three separate pilot-scale tests Photo: Testing Hermosa Pilot Plant at Hazen’s labs in Golden, Colorado 12 TSX: WS TSX: WS 12
MAGNETIC SEPARATION TESTS Magnetic separation of crushed Manto Oxide material Photo: Testing the magnetic separation process separating Hermosa ore from waste at Hazen’s labs in Golden Colorado 13 TSX: WS TSX: WS 13
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