A New Silver-Zinc Developer in Peru June 2012
LEGAL All statements and other information contained in this document related to Caracara Silver Inc. ( CSV ), as well as other statements about anticipated future events or results, constitute forward-looking statements. Forwardlooking statements often, but not always, are identified by the use of words such as seek, anticipate, believe, plan, estimate, expect, intend, forecast, project, likely, potential, targeted and possible and statements that an event or result may, will, would, should, could or might occur or be achieve and other similar expressions. Forward-looking statements are subject to known and unknown business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those expressed or implied by the forwardlooking statements. Forward-looking statements are based on estimates and opinions of management at the date the statements are made. CSV does not undertake any obligation to update forward-looking statements even if circumstances or management s estimates or opinions should change. For the reasons set forth above, investors should not place undue reliance on forward-looking statements. 2
HIGHLIGHTS Princesa project hosts 43-101 inferred resources 13 million oz. silver and 22 million eq silver oz. (1) Open to resource expansion at depth and along strike Attractive gross metal values +US190/ tonne at current commodity prices (1) Anchor project surrounded by 24,000 hectares of highly prospective ground As Princesa is advanced toward feasibility, expect resource ounces to rerate New drill targets at Marcia defined by surface grades and geophysics 8,000 m drill began in May 2012 1) Based on US$40.00 Ag, US$1.00 Zn and Pb prices 3
OUR PEOPLE Management Nick Tintor, B.Sc., President and CEO Geologist with more than 30 years of mineral exploration and junior mining company management experience. Director of Cerro Resources, Southern Andes Energy and Ferrum Americas Mining Inc. Arnaldo Leon, M.Sc., Country Manager Arnaldo is a respected mining engineer in Peru with years of experience in all aspects of mines management and administration Alain Vachon, P.Geo., Manager Exploration More than 13 years of experience in Peru managing exploration programs in a variety of geological settings including gold, VMS and uranium environments Carlos Miranda Project Geologist More than 15 years of exploration through out Peru in a variety of geological settings Board of Directors Robert Boaz, Chairman Stephen Coates John Cook Anne Chopra As project is advanced, will add to Board s mining expertise 4
PRINCESA PILUNANI A DISTRICT SCALE PLAY 24,000 hectare regional play More than 20 km of strike in Pilunani trend Highly prospective regional play anchored by major projects at San Rafael and Mina Cecilia Minsur, Glencore, Bear Creek in area. BHP has acquired +500,000 hectares immediately south of Caracara holdings. Excellent infrastructure and access from Juliaca along new InterOceanic Highway Anchor project can be advanced to PEA/ Pre-Feasibility stage by Q2 2013 5
PRINCESA PROJECT Project Project hosts NI 43 101 resources of 22 million oz. Ag equivalent (1) Direct silver ounces total 13 million 4.6 Mt 90.88 g, Ag/ t 1.69% Zn, 1.66% Pb Exploration Limited drilling outlined NI 43 101 Resource Estimate Resources tested to 150 m depth Open pit and underground resources (1) Silver equivalence based on a price for silver of US$40 per ounce and the spot bid price per pound for zinc and lead of US$1.00. Not drill tested Significant property and regional exploration upside 6
PRINCESA OPEN ON STRIKE/DEPTH North Zone Princesa vein includes 18 m/ 7.7 oz Ag, 17 m/ 6 oz Ag, and 14 m/ 1.9 oz Ag Structure up to 20 m wide Resources drilled to only 150 m Southwest Breccia Target Surface samples include: 15 oz Ag, 6 oz Ag, 7 oz Ag, 12 oz Ag, 1.7 oz Ag Not drill tested 7
IP CORRELATES WITH SILVER ZONES Area of no drilling along IP trend Hole 61 1.6 km of strike tested IP outlines mineralized zones Hole 61: 6.0 oz. Ag/ 12 m Untested target extends for more than 1 km north 8
PRINCESA POTENTIAL EXPANDED High grade cluster 600 m of IP strike to east Coincident with cluster of high grading silver surface samples +14 oz Ag/t 9
PRINCESA MINE POTENTIAL Princesa project compares well with peer group projects in Peru Project Trevali Santander Resource (tonnes) Ag (g/t) Zinc Lead Ag ( 000 oz.) Zinc ( 000 lbs) Lead ( 000 lbs) 5,858,000 44 3.86% 1.35% 8,200 498,600 173,900 Gross Metal Value ($/tonne) (2) $171.20 Caracara Princesa 4,600,000 (1) 90.88 1.69% 1.66% 13,440 171,000 167,992 $190.57 (1) 43-101 inferred resources. Inferred resources cannot be relied upon to determine the economic viability of the Princesa project (2) Gross metal value does not take into consideration variations in metallurgical recovery and is based on silver at US$40/ ounce and $1/ lb for zinc and lead 10
MARCIA HOSTS LARGE TARGET Large IP anomaly coincident with surface mineralization Surface prospecting outlined high grade Zn/ Pb mineralization in new zone and east of geophysics target First phase program 3,000 m underway 11
PILUNANI OPEN PIT TARGET Project Large area of historic mine workings Excellent open pit potential Past Drilling Includes: PIL-1: 6.54% Pb/ 5.14% Zn/ 20.2 m PIL-10: 15.44% Pb/ 6.8% Zn/ 9.55 m Exploration Mine workings access high-grade breccia/diatremes Large untested IP targets in north New targets associated with low grade surface mineralization 12
PILUNANI OPEN PIT TARGETS MULTIPLE BROAD SURFACE ZN/PB ZONES NW Target DH 13: 18.5 m 1.24%Zn/0.66% Pb NE Target Several broad surface targets NE Target 1,200 m x 100 m Zn/Pb mineralization associated with geophysics 18.5m at surface grading 1.9% Zn-Pb in weak IP in 2007 NE target never drill tested Target potential for low grade, open pit mineralization 13
PILUNANI HISTORIC RESULTS Limited drilling intersected 20.2 m 6.4% Zn, 5.6% Pb, 25.2 m 5.14% Zn and 7.35 m 5.15% Zn, 1.39% Pb 14
PARCUYO PROJECT Two large gossan areas with historic surface workings Open pit bulk mine target Parcuyo project underscores regional potential for outlining near surface mineralization 200 m x 100 m area sample area tested 28% Zn/ 18.8% Pb 16% Zn/ 12.6% Pb 13.5% Zn/ 9.1% Pb 15.1% Zn/ 7% Pb Never drill tested Project Exploration Grabs by Caracara from trench in diatreme breccia: 8.54% Zn, 11.95% Pb Sample from diatreme-limestone contact: 24% Zn, 9.43% Pb 15
CARACARA EXPLORATION TIMELINE AND CATALYSTS 8,000 metre drilling program began in May 2012 Revised 43-101 resource end of Q1 2013 Initiate PEA or prefeasibility study Q2 2013 Field exploration and exploration drilling ongoing throughout 2012 testing other targets Catalysts from Exploration Program: Targeting increase in Ag eq. oz to +100 million Project drilling budget 8,000 m in 2012 Advance Princesa with upgraded resource study and feasibility study by Q1 and Q2 2013 District recon to define new drill targets Business arrangement with Peruvian miners Seeking other advanced stage Ag-Zn-Pb projects 2012 2013 June July Aug Sept Oct Nov Dec Q1 Q2 Q3 Q4 Program Princesa Drilling (5,000 m) Marcia Drilling (3,000 m) Revised 43-101 Resource Initiate Prefeasibility Target Identification 16
POST FINANCING SHARE CAPITALIZATION Share structure (May 28, 2012): Shares Issued Options/ Warrants (1) 50,921,168 7,975,800 warrants 2,900,000 options Pro-Forma Market Capitalization Share Price $0.09 Market Capitalization $4.6 million Major Shareholders Sprott Pinetree Cash Debt $3 million Nil (1) Warrants exercisable at $0.60. Expire May 31, 2013. Options exercisable at $0.50. Expire Sept 11, 2016 17
SUMMARY Caracara Silver controls 24,000 hectares in the Princesa-Pilunani District Anchor project Princesa hosts 4.6 Mt inferred resources Silver inferred resources are 13 million oz and 22 million oz on an equivalent basis Resource Expansion Targets Princesa at depth below 150 m and along strike on IP trend Numerous cross cutting and diatreme breccia zones to south east Marcia, Pilunani, Parcuyo and regional surface targets outlined by recon exploration 18
CONTACT Head Office (Toronto, Ontario, Canada) Nick Tintor, President & CEO Office Tel: +1-416-987-0855 Mobile Tel: +1-416-953-4244 Email: ntintor@rgmi.ca 19