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
Design of 2020 exploration program underway.

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 an historic Mineral Resource, published by Mandalay Resources in 2015, of 4.7 million tonnes at 200 g/t silver in the Indicated category and 1.6 million tonnes at 134 g/t silver in Inferred, with associated gold credits (30.3 million ounces silver and 48.4 thousand ounces of gold).

CAUTIONARY STATEMENT

The Company is not treating the historical estimate as a current mineral resource. At this time, a qualified person has not done sufficient work on behalf of Aftermath to classify the historical estimate as a current mineral resource and it should not be considered reliable.

The historic resource estimate above, detailed in Table 1 below, classifies resources as indicated and inferred according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005). The estimate was calculated using ordinary kriging in Geovia Surpac software, based on 166 drill holes and 127 underground channel samples.

Aftermath plans to assess the 2015 historical estimate as it carries out its planned work at Challacollo to determine whether it can be verified as a current mineral resource estimate under NI 43-101, or what additional work is required to verify the resource. However, readers should be cautioned that there is no guarantee that the historical resource estimate in Table 1 will be verified or confirmed in accordance with the requirements of NI 43-101 or the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines.

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.

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

Historic Mineral Resources 

It is important to note that 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 Ag.
  • 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 tonne.
  • 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 grades.
  • 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 respectively.

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 principal Lolón Vein to a depth of about 200 m below surface. Aftermath will focus its initial exploration efforts on drilling and sampling smaller parallel veins that were not included in the historic Mineral Resource, but that have some preliminary drilling.