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Cachinal

Overview

Acquisition Terms

Work Program

Infrastucture

Geology

Resource Classification Tonnes (Mt) Grade Contained Metal
Silver (g/t) Gold (g/t) Silver (Moz) Gold (Koz)
Indicated
Open Pit 5.50 99 0.13 17.49 23.00
Underground 0.15 188 0.21 0.92 1.02
TOTAL 5.66 101 0.13 18.41 24.03
Inferred
Open Pit 0.45 61 0.07 0.88 1.01
Underground 0.37 180 0.19 2.14 2.25
TOTAL 0.82 115 0.12 3.02 3.26

For full details please see the April 2018 43-101 Technical Report “Independent Technical Report for the Cachinal Silver-Gold Project, Region II, Chile.” QPs Cole, G and Couture, J. of SRK Consulting (Canada) Inc. prepared for Aftermath Silver.

CACHINAL Acquisition Terms
By agreement dated as of June 22, 2018, as amended by agreements dated June 24, 2019 and July 24, 2019, Aftermath agreed to purchase from Apogee 80% of the issued shares of Cachinal, which owns a 100% interest in the Cachinal Property, for $1,575,000. The vendor has the right to receive all or part of the purchase price in the form of common shares of Aftermath at a deemed price of $0.20 per common share.

The purchase is to be closed 5 business days following the acceptance of the Purchase Agreement by the TSX Venture Exchange, and the initial payment of $250,000 is to be paid on closing. Additional payments of $250,000, $525,000 and $550,000 are due 6, 12 and 18 months following the closing, respectively.

Immediate Work Program

  • Develop revised long sections for each vein and plan down dip drilling
  • Update mapping and review prospects outside of Mineral Resource
  • Execute down dip drilling programs in a staged manner
  • Advance metallurgical leaching test work in preparation for PEA
  • Critically view regional prospects for accretive acquisitions
  • Advance water investigation


Long Section – Pit Optimization & High Grade Shoot Projection to Depth

Cachinal Infrastructure Advantages

  • 270 km southeast of Antofagasta. The project is accessible year round and located about 40 km east of the Pan American Highway, on a hill surrounded by a nearly flat plain at an elevation of around 2,700 m above sea level.
  • Austral Gold’s Guanaco Gold Mine Located 16 km to South of Cachinal
  • Produced: ~49,000 Au Eq oz per year over last 4 years
  • All-in Sustaining Cost of ~ $753/oz over last 4 years
  • A new 1500 tpd agitation leach and Merrill-Crowe processing plant operational 2017, largely replacing heap leach. Total capital cost $18-18.5m
  • Grid Power, 330 man camp, water licences from surface catchment and bore field


Guanaco Plant Site – from Austral Gold web site

  • Guanaco shifted from open pit to underground, veins mined on 20 m sub-levels, average thickness 3 m
  • Developing the Amancaya satellite open pit and underground mine development, 75 km away.
  • Cachinal oxidation level bottom at about 120 – 150 m below surface and Challacollo at 200 m; however, the bottom of the mineralized structures at both deposits remains unknown.
  • 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.


Epithermal Vein Deposit Model – Schematic Relative Position of Cachinal and Challacollo Ag-Au Deposits (modified after Magaw 2010, )