Projects

Overview

Summary

Location
Northern Chile
Minerals
Ag, Au
Area
Approximately 19,000 hectares (46,950 acres)
Ownership
99.9% subject to completion of staged payments
Status
Current resource estimate completed December 2020.

Overview

The Challacollo silver project provides a platform for Aftermath to become a significant, silver-dominant exploration and development company.

Challocollo is a low-sulphidation (LS), epithermal deposit. LS epithermal deposits represent major sources of gold and silver throughout the world. Mining of epithermal gold deposits accounts for about 12% of the world’s total gold production and some deposits achieve bonanza grades.

Challacollo hosts a current Mineral Resource, published by Aftermath in December 2020, of 6.64 million tonnes at 165 g/t silver in the Indicated category (35.2 million ounces silver and 58 thousand ounces of gold) and 2.8 million tonnes at 124 g/t silver in Inferred, with associated gold credits (11.1-million ounces silver and 15,000 ounces of gold).

Location & Infrastructure

Challacollo is located in Region I in Northern Chile, 130 km southeast of the major port city of Iquique and 50 km south of the town of Pica. The project office is in Pica. The plains surrounding the project are at 1,000m above sea level with the Challacollo Mountains rising towards around 1,550m above sea level.

The project lies approximately 30 km east of the Pan American Highway, and is accessed via Teck Resources’ Quebrada Blanca Copper Mine road. High voltage powertransmission lines are located 15-30 km from the property, in part to service nearby mines of Collahuasi and Quebrada Blanca.

The Project includes water rights groundwater rights for 12 l/sec, held since 2005 at Tamentica community 10km west of Challacollo.

Current Status

Aftermath’s exploration work is focusing on the potential of the material located above the main Lolón vein, the “Halo Target”. The 3.5km long Lolón vein is the largest on the property.

Classification Material Type Tonnes (Kt) Silver (g/t) Gold (g/t) Silver (Koz) Gold (Koz)
Indicated Open Pit 5,597 170 0.27 30,639 49
Underground 1,043 134 0.29 4,510 10
TOTAL 6,640 165 0.27 35,150 58
Inferred Open Pit 2,360 117 0.15 8,912 11
Underground 443 157 0.26 2,232 4
TOTAL 2,803 124 0.17 11,144 15

Source: NI 43-101 technical report for the Challacollo Mineral Resource Estimate prepared by AMC Mining Consultants (Canada) Ltd, announced on December 15, 2020, titled "Challacollo Silver-Gold Mineral Resource Estimate" with an effective date of December 15, 2020

Notes on the Challacollo Mineral Resource Estimate

  • CIM Definition Standards (2014) were used for reporting the Mineral Resources.
  • The effective date of the estimate is 30 November 2020.
  • The Qualified Person is Dinara Nussipakynova, P.Geo., of AMC Mining Consultants (Canada) Ltd.
  • Mineral Resources are constrained by an optimized pit shell at a long-term metal price of US$20/oz Ag with recovery of 92% Ag and metal price of US$1,400/oz Au with recovery of 75%.
  • Silver equivalency formula is AgEq (g/t) = Ag (g/t) + 57.065 *Au (g/t).
  • The pit mineral resources are based on a pit optimization using the following assumptions:
    • Ore mining costs of US$3.5/t and waste mining cost of $2.5/t.
    • Processing costs of US$17/t and General and Administration costs of $2.5/t.
    • Edge dilution of 7.5% and 100% mining recovery.
    • 45-degree slope angles
    • Cut-off grade is 35 g/t AgEq g/t.
  • The underground mineral resources are reported within Datamine MSO stopes based on the following assumptions:
    • Ore mining costs of US$35/t.
    • Processing costs of US$17/t and General and Administration costs of US$2.5/t.
    • Minimum width of 2.5 m
    • No dilution or mining recovery.
    • Cut-off grade is 93 AgEq g/t
  • Bulk density used was 2.47 t/m3
  • Drilling results up to 31 December 2016.
  • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  • The numbers may not compute exactly due to rounding.
  • Mineral Resources are depleted for historic mined out material.

Looking Ahead

Aftermath's exploration work is focusing on the potential of the material located above the main Lolón vein; the "Halo target". Previous drilling concentrated on the Lolón Vein to a depth of about 200m below surface. Aftermath will focus its initial exploration efforts on drilling and sampling mineralised structures and disseminated breccia style mineralisation outside of the high-grade structures that formed the Mineral Resource Estimate and within the optimised pit shell that constrains the Mineral Resource.

A field crew was mobilised in January 2021 to commence cutting and sampling over 3,000 metres of previously unsampled historic core; a program expected to take roughly 3 months to complete.