Vancouver, British Columbia, September 10, 2019 – Aftermath Silver Ltd. (TSXV: AAG.H – NEX) (the “Company” or “Aftermath Silver”) is pleased to announce the appointment of Mr. Ralph Rushton, M.Sc. as CEO, President and Director. Michael Williams will remain as a Director and Chairman of the Company.
Mr. Rushton holds a B.Sc. in geology from Portsmouth University in the UK, a Master’s degree in Economic Geology from the University of Alberta, and a Certificate in Business Communications from Simon Fraser University. He has significant exploration and mining experience in a number of geological settings and terrains working for Anglo American plc and Rio Tinto.
For the last 16 years he has worked in business development and marketing for a number of junior resource companies. He currently serves as a director for three TSX Venture Exchange companies, and is an advisor to two other exploration companies. He has helped to raise over C$400 million through equity financings to fund exploration and development programs in Latin America, Scandinavia and Eastern Europe.
“I look forward to working with Ralph. His experience as a geologist, combined with his financial and corporate expertise, will benefit Aftermath greatly. He has previously helped to finance and market a successful silver producer and junior company and understands the sector well.” said Aftermath Silver’s Chairman, Michael Williams.
Reactivation and Financing Update
Earlier this year, the Company made application to reactivate and to have its shares listed as a Tier 2 Mining Issuer on the TSX Venture Exchange. In August, the Company made a follow-up submission to the Exchange, including a revised NI 43-101 Report on the Cachinal Property, title opinion and up-dated use of proceeds. The Company has also made applications to the TSX Venture Exchange in connection with the two recently announced Private Placements (see the Company’s news releases dated July 24, 2019 and September 3, 2019). The reactivation and the two private placements remain subject to acceptance by the Exchange, and the Company is using its best efforts to obtain such acceptances as quickly as practicable.
Challacollo Silver-Gold Project
Challacollo is a low-sulphidation epithermal silver-gold deposit which hosts an historic indicated mineral resource of 30 million ounces of silver (4.7 million tonnes at 200 g/t silver) and an inferred mineral resource of 6.9 million ounces of silver (1.6 million tonnes of 134 g/t) with associated gold credits.
Previous drilling concentrated on the principal vein (Lolón Vein) to a depth of about 200 m below surface. Aftermath will focus its initial exploration efforts on parallel vein systems that have some preliminary drilling but were not included in the historic mineral resource. The oxidation level bottoms at approximately 200m below surface. The down-dip extent of the mineralized structures remains unknown. Gold and base metal grades generally increase with depth.
The Challacollo project is located in Chile’s Tarapaca Region (Region I). The project is approximately 30 km east of the Pan American Highway. Power transmission lines are located 15-30 km from the property. The project includes water rights. For further details please see the Company’s news release dated August 1, 2018.
Cachinal Silver-Gold Project
Cachinal is a low-sulphidation epithermal deposit which hosts a current CIM compliant mineral resource of 18.4 million silver ounces in the Indicated category (5.66 million tonnes of 101 g/t) and 3 million silver ounces in the Inferred category (0.82 million tonnes of 115 g/t), with associated gold credits.
Shallow drilling has defined the current mineral resources principally to a depth of 150m below surface and provides sufficient evidence to interpret the presence of high-grade shoots within the vein system extending below the base of a potential open pit. Following these high-grade shoots to depth with drilling will be the initial focus of the Company’s efforts to expand the silver-gold mineralisation. The oxidation level bottoms at about 120-150m below surface; however, the down-dip extent of the mineralized structures remains unknown.
The Cachinal Silver-Gold Project is located in Chile’s Antofagasta Region (Region II). The project is located about 40 km east of the Pan American Highway, in a nearly flat plain at an elevation of around 2,700 m above sea level, 16 km north of Austral Gold’s Guanaco gold-silver mine. For further details please see the Company’s news release dated June 25, 2018.
About Aftermath Silver Ltd
Aftermath Silver Ltd is a Canadian junior exploration company engaged in acquiring, exploring, and developing quality mineral properties in stable jurisdictions with an emphasis on silver in Chile. Aftermath continues to seek new opportunities to take advantage of the relatively low silver price.
Peter Voulgaris, MAIG, MAusIMM, 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
Michael Williams, Director/Vice President/Executive Chairman
Notes on Mineral Resources
- Challacollo Historic Mineral 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 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 the Mandalay Resources SEDAR profile.
- Challacollo mineral resources were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005).
- Mineral Resources are estimated at a cut-off grade of 60 g/t
- Mineral Resources are estimated using a silver price of US$24/oz, a gold price of US$1,400 per ounce, metallurgical recoveries of 92% for silver and 75% for gold, and operating costs of US$50 per
- A density of 2.45 g/cm3 is used as a base density with adjustments according to the variation of the estimated barium, lead and zinc
- No capping of Ag grades has been applied due to low grade variability. Au grades have been capped at 3 g/t for two sample composites 4.57 g/t Au and 4.11 g/t Au
- Cachinal current Mineral Resource Estimate: for full details please see the April 2018 43-101 Technical Report “Independent Technical Report for the Cachinal Silver-Gold Project, Region II, ” QPs Cole, G and Couture, J. of SRK Consulting (Canada) Inc. prepared for Aftermath Silver filed on the Aftermath Silver SEDAR profile.
- Cachinal mineral resources were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005).
- The Silver equivalent (AgEq) grades are calculated using gold to silver ratio of 50:1, using metal price assumptions of US$12.50 per ounce of silver, US$650 per ounce of gold and metallurgical recoveries of eighty-five percent for silver and Zinc does not contribute to revenues.
- Open Pit shell constrained Mineral Resources are reported at a cut-off of 40 g/t AgEq to a vertical depth of 150 m below surface, constrained within a Lerchs Grosman optimised pit shell.
- Underground constrained Mineral Resources are reported at a cut-off of 150 g/t
Forward Looking Statements
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.
Certain statements within this news release, other than statements of historical fact relating to Aftermath, are to be considered forward-looking statements with respect to the Company’s intentions for the Cachinal and Challacollo Projects in Chile. Forward-looking statements include statements that are predictive in nature, are reliant on future events or conditions, or include words such as “expects”, “goal”, “potential”, “anticipates”, “plans”, “believes”, “considers”, “significant”, “intends”, “targets”, “estimates”, “seeks”, attempts”, “assumes”, and other similar expressions.
The forward-looking statements are based on a number of assumptions which, while considered reasonable by Aftermath, are, by their nature, subject to inherent risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differmaterially from those in forward-looking statements include: the interpretation of previous and current results, the accuracy of exploration results, the accuracy of Mineral Resource Estimates, the anticipated results of future exploration, the forgoing ability to finance these acquisitions further exploration and development, delays in the completion of exploration, the future prices of silver and gold, and other metals, and general economic, market and/or business conditions. There can be no assurances that such statements and assumptions will prove accurate and, therefore, readers of this news release are advised to rely on their own evaluation of the information contained within. In addition to the assumptions herein, these assumptions include the assumptions described in the Company’s most recent Management’s Discussion and Analysis, as filed with the TSX Venture Exchange and available on SEDAR under Aftermath’s profile at www.sedar.com.
Although Aftermath has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking statements, there may be other risks, uncertainties and other factors that cause future performance to differ from what is anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Aftermath does not assume any obligation to update any forward-looking statements after the date on which such statements were made, except as required by applicable law.