Apollo Silver Corp. (“
Apollo” or
the “
Company") (TSX.V:APGO, OTCQB:APGOF,
Frankfurt:6ZF) is pleased to provide an update of its technical
work program and exploration plans for its Waterloo and Langtry
Silver-Barite projects located in San Bernardino County,
California. Apollo’s technical program is well underway, and the
Company anticipates the declaring of maiden resource estimates at
its two cornerstone silver-barite projects to proceed as initially
planned.
Highlights:
- Increased
confidence in the historic estimates of silver mineralization at
both the Waterloo and Langtry projects made by previous operators
based on;
- Completion
of preliminary 3-D geology models of both projects by an
independent consulting group;
- Creation of
an independently verified drill and assay database combining data
for both;
- Planning underway for a comprehensive geophysical
program; and
- Engagement
of Lilburn Corporation (“Lilburn”), of San Bernardino as permitting
and environmental consultants and commencement of permitting
application process.
"I am extremely pleased with the progress we are
making," Apollo CEO, Tom Peregoodoff commented. "We remain on track
to deliver against our objective of declaring a maiden silver and
barite resource estimates for the Waterloo and Langtry projects.
The work completed to date by our technical team including our
highly-skilled consultants has confirmed the high quality of the
data set we acquired as part of this transaction and increased our
confidence in the silver mineralization estimates made by previous
operators.”
Cathy Fitzgerald, VP Exploration and Resource
Development, added, “The preliminary results of the data
compilation and analysis work has provided further confidence in
the quality of the historic data for the projects. This data,
combined with our developing geological model, will provide a solid
foundation for Apollo to optimize its strategy for defining its
maiden resource estimation program and refine its upcoming drill
program.”
The Calico Silver District - Waterloo
and Langtry Silver-Barite Projects
The Waterloo and Langtry Silver-Barite projects
are located in San Bernardino County, California, USA, 15
kilometres (9 miles) north of the city of Barstow. The properties
are easily accessed via the I-15 interstate highway in an area
situated 230 kilometres (145 miles) northeast of Los Angeles,
approximately halfway between Los Angeles and Las Vegas,
Nevada.
The Waterloo Silver-Barite Project (the
“Waterloo Project”) comprises 21 unpatented lode
claims and 27 fee land parcels, totaling approximately 1,770 gross
acres (715 hectares) (collectively, the “Waterloo
Property”). The Langtry Silver Barite Project (the
“Langtry Project”) comprises 38 unpatented lode
claims and 20 patented lode claims, totaling approximately 1,180
gross acres (477 hectares) (collectively, the “Langtry
Property”). Prior to their acquisition by Apollo, these
two projects have never been controlled by a single company.
The Calico Mountains host the historic Calico
Mining District which has a lengthy history of exploration and
mining, with silver-rich ore discovered here in 1881. The region
was a prolific silver, barite and borax producer and is responsible
for the majority of the silver production in the Mojave. Several
past-producing mines and historical workings are situated in the
vicinity of the projects, with most of the historical mining
operations situated over a 19.3 square kilometre (12 square mile)
area northeast of the Waterloo and Langtry properties. Five
historical past-producing silver mines are located within the
properties’ boundaries: the Waterloo, Voca, Union, Langtry and the
Burcham mine, the only mine in the district that also produced
gold.
Silver mineralization on the projects occur as
discrete high-grade veins in the volcanic/volcaniclastic Pickhandle
Formation striking generally northwest and as veinlet stockworks
and disseminations in the sedimentary Barstow Formation. Mineralogy
of all styles of mineralization are similar, composed primarily of
barite, jasperoid/chalcedony, oxides, and sulphides with silver
occurring commonly as either native silver or silver salts. Near
surface vein exposures are often oxidized, enriching the silver
grade. Alteration dominantly consists of silicification (chalcedony
and jasperoid) and patchy propylitic alteration with some potassium
feldspar alteration observed in the Barstow Formation associated
with silver mineralization. Acid sulphate/steam heated leaching has
been mapped across the projects.
Previous Technical Work at the Waterloo
Project
Exploration on the Waterloo Property commenced
in 1964 and consisted of numerous technical programs completed by
two companies: American Smelting and Refining Company
(“Asarco”) and Pan American Minerals Inc.
(“Pan American,” a wholly-owned subsidiary of Pan
American Silver Corp.). Exploration by Asarco from 1964 to 1994
consisted of geological mapping, geochemical sampling, geophysical
surveys to characterize subsurface faults (gravity, magnetics,
electromagnetic and induced polarization), surface trenching and
drilling. This work culminated in the completion of comprehensive
environmental impact and economic feasibility studies by Asarco in
1981. Due to a fall in silver prices at the time, the project was
put on care and maintenance until 1994 when Pan American acquired
an initial interest in the project and subsequently acquired 100%
in 1996. Pan American completed two geological mapping programs,
conducted by Dr. Warren Pratt, as well as reverse circulation
(“RC”) and diamond drilling between 2008 and 2012. A total of
17,790 metres (58,366 feet) in 255 drillholes has been completed on
the Property by the previous operators.
The initial historical resource estimate was
calculated by Asarco in 1968, followed by a computer-calculated
resource estimate in the late 1970’s. Subsequently, Pan American
calculated an internal resource based on the results of their 2012
drilling program and validated historical data from Asarco. This
work yielded a historical resource estimate of 37.1 million tonnes
grading 86 grams/tonne for a total of 103 million ounces of
contained silver (refer to Table 1). The reader is
cautioned that this resource estimate is historical in nature and
the Company is not treating it, or any part of it, as a current
mineral resource. Refer to footnote 1 below.
Table 1: Historical mineral resource
estimate for the Waterloo Project.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/89c54735-bc2d-4ae5-9519-c6d31296a17f
(1). Reference to historic resources at the
Waterloo project refer to an internal company document prepared by
Pan American Minerals Corp., dated 2013, unpublished. Historic
resources are reported here as documented in original documents.
Abbreviations are grams per metric tonne (g/t) and tonnes are
metric. The historical mineral resources discussed here were
calculated using mining industry standard practices for estimating
Mineral Resource and Mineral Reserves (2005) which was prior to the
implementation of the current Canadian Institute of Mining’s
(‘CIM’) standards for mineral resource estimation (as defined by
the CIM Definition Standard on Mineral Resources and Ore Reserves
dated May 10, 2014). The reader is cautioned not to treat them, or
any part of them, as current mineral resources or reserves. An
independent Qualified Person (‘QP’), has not completed sufficient
work to classify the estimates discussed as current mineral
resources or reserves and therefore the estimates should be treated
as historical in nature and not current mineral resources or
mineral reserves. Apollo’s QP, Cathy Fitzgerald, has determined
these historic resources are reliable, and relevant to be included
here in that they demonstrate simply the mineral potential of the
properties. A thorough review of all historic data performed by an
independent QP, along with additional exploration work to confirm
results, would be required in order to produce a current mineral
resource estimate for either property. Effective February 25, 2019,
the U.S. Security and Exchange Commission (‘SEC’) adopted new
mining disclosure rules under subpart 1300 of Regulation S-K of the
U.S. Securities Act of 1933, as amended (the “SEC Modernization
Rules”), with compliance required for the first fiscal year
beginning on or after January 1, 2021. These replace the disclosure
requirements included in SEC Industry Guide 7 and as a result, the
SEC now recognizes terms such as “indicated” and “inferred” with
respect to mineral resources. U.S. investors are cautioned that
while the SEC Modernization Rules are “substantially similar” to
the CIM Standards, readers are cautioned that there are differences
between the SEC Modernization Rules and the CIM Standards.
Previous Technical Work at the Langtry
Project
Exploration on the Langtry Property commenced in
1960 and consisted of several technical programs completed by two
companies: Superior Oil Company (“Superior”) and
Athena Silver Corp. (now Athena Minerals Corp.,
“Athena”). Exploration by Superior from 1967 to
1984 consisted of geological mapping, geochemical sampling, surface
trenching and drilling. Superior was subsequently purchased by
Mobil Corporation and the Langtry Project sat dormant due to
depressed silver prices until Athena acquired an interest in the
Project in 2010. Subsequently Athena completed surface geological
mapping, sampling, geotechnical work and drilling. A total of 213
drillholes (26,200 metres/86,000 feet) has been completed on the
Langtry Property by the previous operators.
An initial historical resource estimate was
calculated by Superior in 1970. Subsequently, Athena calculated a
resource estimate based on the results of their 2012 drilling
program, along with validated historical data from Superior’s
programs. This independent work was completed by SRK Consulting
(“SRK”) in 2012 and yielded a historical resource
estimate of 12.7 million tons grading 1.48 ounce per tonne for a
total of 18.8 million ounces of contained silver in the Indicated
category and 30.4 million tons grading 1.40 ounce per tonne for a
total of 42.6 million ounces of silver in the Inferred Category as
detailed below in Table 2.
The reader is cautioned that this resource
estimate is historical in nature and the Company is not treating
it, or any part of it, as a current mineral resource. See footnote
2 below.
Table 2: Historical mineral resource
estimate for the Langtry Project.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/ce2370e9-2548-4a32-9622-2179921206c2
(2) Reference to historic resources at Langtry
refer to Moran et al, 2012, which was an internal report on the
Langtry Silver Project, San Bernardino County, California: prepared
for Athena Silver Corp, April 2012. [Accessed April 30, 2021].
Historic resources are reported here as documented in original
documents. Abbreviations are ounces per short ton (opt) and tonnes
are imperial. The historical mineral resources discussed here were
calculated using mining industry standard practices for estimating
Mineral Resource and Mineral Reserves (2005) which was prior to the
implementation of the current Canadian Institute of Mining’s
(‘CIM’) standards for mineral resource estimation (as defined by
the CIM Definition Standard on Mineral Resources and Ore Reserves
dated May 10, 2014). The reader is cautioned not to treat them, or
any part of them, as current mineral resources or reserves. An
independent Qualified Person (‘QP’), has not completed sufficient
work to classify the estimates discussed as current mineral
resources or reserves and therefore the estimates should be treated
as historical in nature and not current mineral resources or
mineral reserves. Apollo’s QP, Cathy Fitzgerald, has determined
these historic resources are reliable, and relevant to be included
here in that they demonstrate simply the mineral potential of the
properties. A thorough review of all historic data performed by an
independent QP, along with additional exploration work to confirm
results, would be required in order to produce a current mineral
resource estimate for either property. Effective February 25, 2019,
the U.S. Security and Exchange Commission (‘SEC’) adopted new
mining disclosure rules under subpart 1300 of Regulation S-K of the
U.S. Securities Act of 1933, as amended (the “SEC Modernization
Rules”), with compliance required for the first fiscal year
beginning on or after January 1, 2021. These replace the disclosure
requirements included in SEC Industry Guide 7 and as a result, the
SEC now recognizes terms such as “indicated” and “inferred” with
respect to mineral resources. U.S. investors are cautioned that
while the SEC Modernization Rules are “substantially similar” to
the CIM Standards, readers are cautioned that there are differences
between the SEC Modernization Rules and the CIM Standards.
Recent Work
Working with Apex Geoscience Limited, an
independent, professional geological consulting company, Apollo has
recently completed the development of preliminary three-dimensional
(“3D”) geology models at both Waterloo and Langtry. The respective
models were based on detailed surface mapping completed by Superior
(at Langtry), and Asarco and Pan American (at Waterloo). All
previous drilling completed on the projects was incorporated into
these models. They are the first 3D geology models completed by
Apollo on the projects and provide the foundation for increasing
our geological understanding of the mineralization and will be
important inputs into the calculation of a maiden resource
estimate. For Waterloo, existing drill data was compared to the
historic resource model in a geological context both spatially and
statistically which has enabled Apollo to develop further
confidence in the integrity and value of the historic data. The
geologic models and historic drilling will also be used as the
foundation for developing Apollo’s drilling and exploration plans
for the two projects. For images of the 3D models please see
Apollo’s website https://apollosilver.com/calico-district/.
In addition to this work, Apollo engaged experts
at Minalytix Inc. to create a single validated drill assay
database, coupled with their independent review and audit of the
data, for both projects using their proprietary MX Deposit
software. At Waterloo this includes the Asarco and Pan American
data and, importantly, the results of the 824 check assays of the
Asarco pulps that were completed by Pan American. At Langtry, the
database includes data from Superior and Athena. Athena completed
13 drill holes (1,820 metres/6,000 feet), ten of which were for the
purpose of validating the Superior drill data. Results from this
work, as determined by SRK Consulting in 2012, showed that, on
average, the 2011 Langtry silver assays corroborate the historic
silver assays and thus, SRK determined that the historic assays
were credible.
The outcome of these two work programs has been
positive and verified the integrity of the drilling and assay data
and confirmed our confidence in the quality of the historical data
collection and QA/QC procedures at both the Waterloo and Langtry
projects. This outcome may maximize the amount of information that
Apollo may incorporate into a maiden resource estimate.
Importantly, this work has increased Apollo’s confidence in the
historical estimates of the silver mineralization made by the
previous operators at both projects. The results of the work have
provided valuable insight into Apollo’s upcoming technical work
program and will ensure that the amount of re-drilling that may be
required to declare the maiden resource at both projects is
optimised ensuring savings in both capital and time.
Initial Site Visit
Completed
In August, Cathy Fitzgerald, Vice President,
Exploration and Resource Development, and Alan O’Connor, General
Manager-Waterloo and Langtry Projects, completed a visit to the
Waterloo and Langtry projects and the city of Barstow. The visit
was positive and verified that the project is easily accessible by
paved and gravel roads. The visit also confirmed that most of the
roads on the projects remain accessible and can be used for the
Company’s upcoming exploration and drilling program. Additionally,
meetings were held with key local stakeholders, local services that
could be provided from Barstow and surrounding communities were
assessed and connections were made with several local
businesses.
Appointment of Lilburn Corp
Apollo has engaged Lilburn, a consulting company
based in San Bernardino, California, to assist with commencement of
the permitting application process associated with drilling and
other exploration activities. Lilburn is a multi-disciplinary
environmental consulting firm with over 20 years of business
practice in California and western states, providing a wide range
of services in environmental management, permitting and natural
resource management.
Waterloo and Langtry 2021 Exploration
Plan
Apollo’s exploration program for 2021 will focus
on completing technical work that will support its plan to declare
a maiden resource estimate for both the Waterloo and Langtry
projects. The program will also include geological and geophysical
work for characterization and target generation purposes.
Maiden Resource Declaration
Program
Based on the results of multiple independent
reviews of drilling data from both Waterloo and Langtry (i.e.
historical technical reports and recent work by independent
consultants) Apollo is reviewing its initially proposed maiden
resource declaration program, specifically the amount of
re-drilling that may be required. Apollo believes that the amount
of re-drilling required may be substantially lower than initially
believed and, if confirmed by further independent review, this
could have substantial implications to the time-line and capital
requirements of the technical program. Until results of further
independent review are received, the Company will proceed with its
permitting to ensure maximum flexibility and to enable the Company
to most effectively allocate its planned drill metres over
geotechnical, metallurgical, resource definition and target testing
components of its upcoming program.
Mapping and Geophysics
Program
Apollo has secured the services of Warren Pratt,
Ph.D., a U.K.-based professional geologist who worked with Pan
American on the Waterloo Project and has deep knowledge of the
geology and mineralization in the district. Dr. Pratt will focus
his work on surface mapping and sampling at the Langtry Property
and will undertake follow up mapping at the Waterloo Property. This
work is planned to commence in late November subject to any travel
restrictions that the U.S may impose due to the on-going COVID-19
pandemic.
In addition to the mapping, Apollo is finalizing
details of an extensive geophysical program composed of both ground
and airborne techniques. A 3D ground Induced
Polarization/Resistivity Survey is planned to cover both the
Waterloo and Langtry Project areas. Neither of these two projects
have seen any modern geophysics and the application of this
ground-based technology is expected to provide additional insights
into the known mineralization, identify opportunities to expand
that mineralization, and provide new targets that could lead to a
significant greenfield discovery in this very prospective silver
district.
The second component of the geophysics program
will be an airborne magnetics survey, the results of which will
enable a better understanding of the structural framework and
controls on mineralization and will support Apollo’s mineralization
expansion and new target generation activities.
It is anticipated that the geophysics program
will commence in mid-November subject to any travel restrictions
that the U.S may impose due to the on-going COVID-19 pandemic.
Further details of Apollo’s planned program will be provided in due
course.
Qualified Person
Cathy Fitzgerald, P.Geo., Vice President
Exploration and Resource Development, is a Qualified Person as
defined by National Instrument 43- 101 and has reviewed and
approved the technical content in this news release.
For further information about the Waterloo
Project historic mineral resource estimate, please see the 2012
N.I. 43-101 technical report “NI 43-101 Technical Report Waterloo
Project, California, USA” prepared by H. Samari and L. Breckenridge
of Global Resource Engineering, Ltd., with an effective data of May
12, 2021. Please visit www.apollosilver.com for further information
on the Company and the Waterloo and Langtry projects.
ON BEHALF OF THE BOARD OF DIRECTORS
Tom PeregoodoffChief Executive Officer
For further information, please
contact:
Tom PeregoodoffChief Executive Officer Telephone: +1 (604)
428-6128tomp@apollosilver.com
About Apollo Silver Corp.
Apollo Silver Corp. has assembled an experienced
and technically strong leadership team who have joined to advance
world class precious metals projects in tier-one jurisdictions. The
Company is focused on advancing its portfolio of three significant
pure silver exploration and resource development projects; the
historical Waterloo and Langtry projects, in San Bernardino
California and Silver District Project in Arizona.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement Regarding
“Forward-Looking” Information
This news release includes “forward-looking
statements” and “forward-looking information” within the meaning of
Canadian securities legislation. All statements included in this
news release, other than statements of historical fact, are
forward-looking statements including, without limitation,
statements with respect to the potential of the Company’s
properties; the timing and completion of the anticipated
declaration of resource estimates at the Company’s silver-barite
projects; the evaluation of the quality of the
historical data collection, historical estimates,
geological models, drilling and assay data, data sets prepared
by and acquired from previous operators; timing and cost of
future exploration, drilling and geophysical program plans and
targets; success of exploration activities; the
estimation of mineral resources; and conclusions of economic
evaluations. Forward-looking statements include predictions,
projections and forecasts and are often, but not always, identified
by the use of words such as “anticipate”, “believe”, “plan”,
“estimate”, “expect”, “potential”, “target”, “budget” and “intend”
and statements that an event or result “may”, “will”, “should”,
“could” or “might” occur or be achieved and other similar
expressions and includes the negatives thereof.
Forward-looking statements are based on the
reasonable assumptions, estimates, analysis and opinions of
the management of the Company made in light of its experience and
its perception of trends, current conditions and expected
developments, as well as other factors that management of the
Company believes to be relevant and reasonable in the circumstances
at the date that such statements are made. Forward-looking
information is inherently subject to known and unknown
risks, significant operational, economic, and competitive
uncertainties, contingencies and other factors that
may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information,
including but not limited to risks related to the
Company’s goal of creating shareholder value by concentrating on
the development of the Waterloo project, the Langtry project, or
the AZ Silver District project (the “Properties”); believing that
the properties have the potential to contain economic silver
deposits; the Company’s assessment of future plans for the
Properties; managements’ economic outlook regarding future trends;
the Company’s exploration budget for the Properties; and in
particular, the availability of equipment, skilled
labour and services needed, timing and the amount of the
expected budget; the Company’s ability to meet its working capital
needs at the current level in the short term; expectations with
respect to raising capital; sensitivity analysis on financial
instruments may vary from the amounts disclosed; government
regulation and environmental liability; relations with
local stakeholders
and the surrounding communities; general business
and economic conditions; the timing and receipt of
governmental permits and approvals; the timing and receipt of
community and landowner approvals; changes in regulations;
political factors; the accuracy of the Company’s interpretation of
drill results; the geology, grade and continuity of the Company’s
mineral deposits; currency fluctuations; and impact of the COVID-19
pandemic.
There can be no assurance that forward-looking
statements will prove to be accurate and actual results, and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to
differ materially from the Company’s expectations include actual
exploration results, interpretation of exploration results,
changes in project parameters as plans continue to be refined,
future metal prices, availability of capital and financing on
acceptable terms, general economic, market or business conditions,
uninsured risks, regulatory changes, delays or inability to receive
required approvals, unknown impact related to potential business
disruptions stemming from the COVID-19 pandemic, or another
infectious illness, and other exploration or other risks detailed
herein and from time to time in the filings made by the Company
with securities regulators, including those discussed or
referred to in the Company’s continuous disclosure filings with the
securities regulatory authorities in Canada, available
at www.sedar.com.
Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward looking information,
other factors could also cause materially different results. There
can be no assurance that forward looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward looking
information. The forward-looking information contained herein is
presented for the purpose of assisting investors in understanding
the Company’s expected financial and operational performance and
the Company’s plans and objectives and may not be appropriate for
other purposes. The Company does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws.
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