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Acquisition Terms

Work Program



Resource Classification
(Historic Resource)
Tonnes (Mt) Grade Contained Metal
Silver (g/t) Gold (g/t) Silver (Moz) Gold (Koz)
Underground 4.70 200 0.32 30.2 48.4
TOTAL 4.70 200 0.32 30.2 48.4
Underground 1.60 134 0.31 6.90 15.9
TOTAL 1.60 134 0.31 6.90 15.9

*Historic Resource An independent “Qualified Person”, as defined in National Instrument 43-101 (“NI 43-101”), has not done sufficient work on behalf of Aftermath to classify the historical estimate as a current indicated mineral resource or inferred mineral resource, and Aftermath is not treating the historical estimate as a current mineral resource.

For full details please see the March 2015 43-101 Technical Report “NI 43-101 Technical Report for the Challacollo Silver Project, Region 1, Chile” QPs Mroczek, M., Collins, and M., Butler, S. of Mining Plus Canada Consulting Ltd. and Tapia, J.C., of Sedgeman S.A. Prepared for Mandalay Resources, available on he Mandalay Resources SEDAR profile.

CHALLACOLLO Acquisition Terms
Under the terms of the Challacollo LOI, as amended, the Company may acquire MMC for an aggregate of:

  • CA$1,000,000 cash to be paid on or before February 28, 2019;
  • CA$1,000,000 cash to be paid on or before September 30, 2020;
  • CA$5,500,000 on or before February 28, 2021, to be paid, at Mandalay’s option, in Aftermath shares of up to a value of CA$2,750,000, and the balance in cash; provided that in no event shall the number of Aftermath shares issued represent more than 49% of Aftermath’s outstanding shares following such payment; and

Mandalay to retain a 3% Net Smelter Returns royalty on production, up to a maximum of CA$3,000,000. The Company, by making an additional CA$500,000 payment, shall have the right to vary the February 28, 2021 payment by paying CA$3,000,000 on or before February 28, 2021 and an additional CA$3,000,000 payment on or before February 28, 2022. In each case, Aftermath will have the option to pay up to 50% of each payment in Aftermath shares, subject to Mandalay holding no more than 49% of Aftermath’s outstanding shares following each such payment.

Immediate Work Program

  • Resource development drilling on Lolón hangingwall and footwall parallel structures and low grade halo mineralisation.
  • Advance metallurgical vat leach test work on high grade material & dump/heap leach (column leach) on low grade halo material.
  • Lolón down dip (sulphide) drilling programs in a staged manner along with testing of sulphide metallurgy.
  • Continue with project development activities.

Long Section showing Lolón Vein, Potential areas along strike and down plunge

Very High Grade Parallel Veins are Not Part of the Lolón Vein Resource


  • 130 km southeast of the major Pacific port city of Iquique, 2.5 hours drive from Iquique airport. Project office is located in Pica.
  • 30 km east of the Pan American Highway, via Teck Resources’ paved Quebrada Blanka Copper Mine access road. Last 20 km on gravel road.
  • Power transmission lines are located 15-30 km from property.
  • Groundwater rights for 12 l/sec (sufficient for 1,800 tpd agitated leach), held since 2005 at Tamentica community (10kms west of property), other water sources located and a developed bore (25 l/sec) is located on the “water concessions”. Goal is to transfer water rights to the water concessions bore.
  • Not at altitude : surrounding plain 1,000 m above sea level with the Challacollo Mountains rising towards around 1,550 above sea level.

Location and Project Lease Holdings

  • Silver-gold-zinc mineralization at Challacollo and Cachinal occurs in a series of sub-parallel, low-sulphidation epithermal quartz veins, and brecciated quartz veins/structures. The current ground surface at two project sit in different levels within the epithermal model. Cachinal has potential for deeper extensions of Ag-Au. Challacollo potentially will see Au and Zn/Pb increase at depth.
  • Challacollo is located within an Upper Cretaceous volcanic sequence designated as the Cerro Challacollo Volcanic Complex. This unit consists of dacitic and rhyolitic volcanic rocks.

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