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Cachinal

Overview

Acquisition Terms

Property
Location Close to Taltal, 170 km from the project. Taltal is located 306km south of Antofagasta and 25 km from Route 5. The project is accessible year round and located on a hill surrounded by a nearly flat plain. Elevation 2,700m ASL.
Deposit Type Silver-gold quartz veins, potential for high-grade silver at depth.
Ownership AAG buying 80% of the issued shares of Minera Cachinal from Halo (formerly Apogee) for C$1.575m for staged cash payments. Minera Cachinal owns a 100% interest in the property. The remaining 20% of Minera Cachinal is owned by Silver Standard.
Infrastructure Power lines are located 15-30 km from property.
Status Design of drill program underway.

Geology and Mineralization

Cachinal is located within the Paleocene Precious Metal Belt, to the west of, and parallel to the prolific northern Chilean porphyry copper belt. The Paleocene Belt hosts several significant low and high sulphidation epithermal gold-silver and silver-gold deposits including current producers Yaman’s El Peňón Mine and Austral Gold’s El Guanaco/Amancaya Mines, and former producers San Cristobal and Vaquillas mines.

The Cachinal epithermal silver-gold deposit is the most important exploration target on the Cachinal project. This deposit was mined from underground workings during the 20th century. Sporadic drilling by previous owners of the project since 2005 has delineated near-surface silver-gold mineralization associated with a network of steeply dipping, north to northwest trending low-sulphide quartz veins.

The epithermal veins and breccias have been recognized by trenching and drilling over a strike length of at least 2 km and are known to have been mined to a depth of at least 300m. They range in thickness from a few centimetres to 2 m, reaching up to 20 m locally at the intersection of two structures. The main veins trend north-northwest and north-west with a secondary set trending east-northeast to east-west, best developed at the southern end of the deposit.

Cachinal oxidation level bottom at about 120–150m below surface, however the bottom of the mineralized structure remains unknown.

Project History

It appears that initial mineral activities began in the Cachinal de la Sierra district during the 1850s focusing on silver mineralization. Gold was discovered 10 to 20 years later in the Guanaco District about 14 km to the south of Cachinal.

Silver was first produced in the district in 1875 and production continued uninterrupted from 1880 to 1930. The total historic production was estimated to be approximately 1,000 tonnes of silver (about 32 million ounces). Independent miners intermittently mined the area when silver prices were relatively high in the early 1980s, from 1985 to 1987 and in the early 1990s. Unverifiable records suggest that between 1985 and 1987 a total of 170,639 tonnes were mined at an average grade of 280 grams of silver per tonne (“g/t silver”) and 0.58 g/t gold.

Mineral Resource

An updated CIM compliant NI 43-101 technical report is currently in preparation by SRK Consultants of Toronto.

Planned Work Program

Aftermath is planning the following work:

  • Resource development drilling.
  • Advance the metallurgical vat leach test work.

CACHINAL Acquisition Terms
By agreement dated as of June 22, 2018, and amended June 24, 2019 and July 24, 2019, Aftermath agreed to purchase from Halo (formerly Apogee) 80% of the issued shares of Minera Cachinal, which owns a 100% interest in the Cachinal Property, for C$1,575,000. Aftermath is purchasing the remaining 20% of the shares in Minera Cachinal from Silver Standard Resources for C$100,000 and a promissory note for C$600,000 in staged payments beginning in 2022.