Notes on the Historic Mineral Resource Estimate
- JORC-2012 definitions were followed for Mineral Resources.
- Mineral Resources were estimated by P.Geo. Marcelo Batelochi, AusIMM Competent Person.
- Grades are estimated by the Ordinary Kriging interpolation method using capped composite samples.
- Bulk density has been estimated by Nearest Neighbour method and the average value is 2.82g/cm3.
- The historic mineral resource uses a copper equivalent cut off of 0.5%, copper equivalents (“CuEq”) were based on the formula CuEq (%) = Cu (%) + ((Ag (g/t) / 10000) in ounces x Ag price x silver recovery) / (Cu price x Cu recovery) + (Zn% x Zn price x Zn recovery) / (Cu price x Cu recovery). Assuming: Ag price $16.795/oz and Zn $3,150/t and recoveries of Ag 50%, Cu 85% and Zn 80%. Mn grades are not considered for CuEq calculations.
- Numbers may not add/multiply due to rounding.
Historic Scoping Study Summary
The previous operator undertook a scoping study on Berenguela (Salva Mining, May, 2018) to a quoted level of accuracy of ±35%. A summary of the scoping study economic highlights follows, the results have not been verified by the Company and the reader is cautioned not to rely on the economic results below:
- Open pit mining inventory (of historic Measured and Indicated Mineral Resource) of:
– 21.8Mt @ 111 g/t Silver, 0.98% Copper & 7.6% Manganese at a 1% CuEq cut off
- Conventional processing flow sheet:
– crushing, dry grind and magnetic pre-concentration;
– solvent extraction and electrowinning of Copper and manganese; and
– cyanide leaching and Merrill-Crowe precipitation of Silver doré
- Mine life 12 years at 2 Million tonnes per year using open pit methods
- Metal price assumptions: $19.10/oz Silver, $3.22/lb Copper, $500/t Manganese sulphate & $1.07 /lb Zinc
- Average overall metallurgical recoveries: 67.9% Silver, 70.8% Copper, 63.2% Manganese & 69.4% Zinc
- Average annual metal production of: 4.85 Moz of Silver, 13,883 tonnes of Copper, 96,087 tonnes of Manganese in MgSO4 mono-hydrate and 5,098 tonnes of Zinc
- Preproduction capital of US$260.3M, includes working capital, EPCM, owner’s costs and 30% contingency
- Life of mine sustaining capital of $85.2M, including closure costs
- Average operating cost US$52.62/t run of mine, all-in sustaining cash cost includes royalties
- Cumulative free cash flow $1,658M
- Pre-Tax NPV (8%) $815M and IRR 49%
- After Tax NPV (8%) $564M and IRR 35%
Aftermath Silver’s Immediate Plans
Upon closing of the proposed transaction, Aftermath will immediately commence a detailed review of the historic scoping study and define the scope of a Pre-feasibility study for Berenguela. This will involve upgrading of any Inferred Mineral Resource into Indicated Mineral Resources, the twinning of historic drill holes, acquiring fresh metallurgical samples, mine and civil geotechnical investigations and hydrology studies.
Aftermath Silver will also review the significant exploration potential around Berenguela and will drill test the most prospective targets.
Finders Fees
Finders fees commensurate with TSX-V policies will be payable to Elysium Mining Ltd (“Elysium”) in cash and shares, Elysium is a company in the business of identifying mineral project acquisitions.
About Aftermath Silver Ltd
Aftermath Silver Ltd is a Canadian junior exploration company focused on silver, and aims to deliver shareholder value through the discovery, acquisition and development of quality silver projects in stable jurisdictions. Aftermath has developed a pipeline of projects at various stages of advancement.
- Cachinal Silver-Gold project. The company currently owns 80% of the Cachinal Silver-Gold project, with an option to acquire the remaining 20% from SSRM. Cachinal has a historic Mineral Resource as shown in Table 2.
- Challacollo Silver-Gold project. In addition, the Company has an option to acquire a 100% interest in the Challacollo Silver-Gold project, located near Iquique, Region I, Chile. Challacollo has a historic Mineral Resource as shown in Table 2. Aftermath Silver’s focus on Challacollo is to define a Mineral Resource in the hangingwall and footwall of the existing historic Mineral Resource, summarised in Table 3.
Table 2. Historic Mineral Resource* Summary for the Cachinal Silver-Gold Project
Classification |
Tonnes (Mt) |
Silver (g/t) |
Gold (g/t) |
Silver (Moz) |
Gold (Koz) |
Indicated |
5.66 |
101 |
0.13 |
18.41 |
24.03 |
Inferred |
0.82 |
115 |
0.12 |
3.02 |
3.26 |
* Please see cautionary note below about Cachinal Historic Mineral Resources.
Table 3. Historic Mineral Resource* Summary for the Challacollo Silver-Gold Project
Classification |
Tonnes (Mt) |
Silver (g/t) |
Gold (g/t) |
Silver (Moz) |
Gold (Koz) |
Indicated |
4.7 |
200 |
0.32 |
30.2 |
48.4 |
Inferred |
1.6 |
134 |
0.31 |
6.9 |
15.9 |
* Please see cautionary note below about Challacollo Historic Mineral Resources.
Qualified Person
Peter Voulgaris, MAIG, MAusIMM, a consultant to the Company, is a non-independent qualified person as defined by NI 43-101. Mr. Voulgaris has reviewed the technical content of this news release, and consents to the information provided in the form and context in which it appears.
ON BEHALF OF THE BOARD OF DIRECTORS
“Ralph Rushton”
Ralph Rushton
CEO and Director
604-484-7855
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Forward-Looking Information
Certain of the statements and information in this news release constitute “forward-looking information” within the meaning of applicable Canadian provincial securities laws. Any statements or information that express or involve discussions with respect to interpretation of exploration programs and drill results, predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategies”, “targets”, “goals”, “forecasts”, “objectives”, “budgets”, “schedules”, “potential” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements or information.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking statements. Although the Company believes the expectations expressed in such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward‐looking statements. Factors that could cause actual results to differ materially from those in forward‐looking statements include, but are not limited to, changes in commodities prices; changes in expected mineral production performance; unexpected increases in capital costs; exploitation and exploration results; continued availability of capital and financing; differing results and recommendations in the Feasibility Study; and general economic, market or business conditions. In addition, forward‐looking statements are subject to various risks, including but not limited to operational risk; political risk; currency risk; capital cost inflation risk; that data is incomplete or inaccurate. The reader is referred to the Company’s filings with the Canadian securities regulators for disclosure regarding these and other risk factors, accessible through Aftermath Silver’s profile at www.sedar.com.
There is no certainty that any forward‐looking statement will come to pass and investors should not place undue reliance upon forward‐looking statements. The Company does not undertake to provide updates to any of the forward‐looking statements in this release, except as required by law.
Cautionary Note about Cachinal Historic Mineral Resources
This News Release quotes an Historic Mineral Resource for Cachinal. Please note, an independent “Qualified Person”, as defined in National Instrument 43-101 (“NI 43-101”), has not yet completed sufficient work on behalf of Aftermath to classify the historical estimate as a current Indicated or Inferred Mineral Resource, and Aftermath is not treating the historical estimate as a current Mineral Resource. For full details of the Cachinal Historic Mineral Resource please see the For full details of the Cachinal Historic Mineral Resource please see the NI 43-101 Technical Report dated February 9, 2010, with an effective date of April 30, 2008, titled “Mineral Resource Estimation, Cachinal Silver-Zinc-Gold Project, Region II, Chile” QP’s Cole, G., Couture, J.-F., and Keller, G.D. of SRK Consulting (Canada) Inc. Prepared for Apogee Minerals Ltd., now available on the Halo Labs Inc. SEDAR profile.
Cautionary Note about Challacollo Historic Mineral Resources
This News Release quotes an Historic Mineral Resource for Challacollo. Please note, an independent “Qualified Person”, as defined in National Instrument 43-101 (“NI 43-101”), has not yet completed sufficient work on behalf of Aftermath to classify the historical estimate as a current Indicated or Inferred Mineral Resource, and Aftermath is not treating the historical estimate as a current Mineral Resource. For full details of the Challacollo Historic Mineral Resource please see the NI 43-101 Technical Report dated March 31, 2015, with an effective date of December 31, 2014 titled “NI 43-101 Technical Report for the Challacollo Silver Project, Region 1, Chile” QPs Mroczek, M., Collins, M. and Butler, S. of Mining Plus Canada Consulting Ltd. and Tapia, J.C., of Sedgman S.A. Prepared for Mandalay Resources, available on the Mandalay Resources SEDAR profile.
Cautionary Note to US Investors – Mineral Resources
This News Release has been prepared in accordance with the requirements of Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (”NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards, which differ from the requirements of U.S. securities laws. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian public disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”), and information concerning mineralization, deposits, mineral reserve and resource information contained or referred to herein may not be comparable to similar information disclosed by U.S. companies. |