Apollo Silver Corp. (“
Apollo” or
the “
Company”) (TSX.V:APGO, OTCQB:APGOF,
Frankfurt:6ZF
) is pleased to provide an update on
its corporate and technical activities for its Arizona Silver
District Project (the “
Project”) in La Paz County,
Arizona. Apollo has the option to earn 100% interest in the Project
through its wholly-owned subsidiary Stronghold Silver USA Corp.,
(“
Stronghold”), from Gulf + Western Industries
Inc. (the “
Vendor”).
Highlights
- Site visit
by technical team completed at the Project, confirming large size
(up to 15 m width) of mineralized veins and breccias;
- Plans for
2022 exploration work program finalized, set to commence Q2 2022;
and
- First
option payment made to Vendor of the Project.
“The visit verified the extensive scale of the
epithermal system in the region, which when combined with the fact
that exploration to date has been limited to less than 45 m depth,
has confirmed the prospectivity of the project,” Apollo’s VP
Exploration and Resource Development, Cathy Fitzgerald, commented.
“The surface exploration program we have designed will improve our
understanding of the mineralization controls and identify new
targets for drilling in early 2023.”
About the Silver District
Project
The Project is located in the heart of the
Silver District, a historic silver mining region in southwestern
Arizona. The district-scale property position comprises over 2,000
acres covering three major epithermal vein structures having a
collective strike length of 13 kilometres (“km”). Mineralization
consists of silver, lead and zinc hosted in massive
quartz-calcite-barite-fluorospar, occurring in pod-like bodies in
fault-hosted veins and breccia that may exceed 15 metres (“m”) in
width and be hundreds of m long.
Silver and lead were discovered in the area in
1862 and supported small but significant production, largely from
underground operations at the Red Cloud and Clip mines. Additional
exploration work was completed by various operators between 1950
and 1992 and included limited further underground development,
drilling of 465 shallow (less than 45 m depth) holes for an
aggregate length of 19,161 m (62,866 feet); metallurgical test work
and scoping studies. Between 2012 and 2014, Magellan Gold Corp., a
wholly-owned subsidiary of the Vendor, completed limited mapping
and surface sampling, a 20 line-km ground magnetic survey and three
diamond drill holes, one of which was designed to confirm historic
drill results.
The Project is located 48 km (30 miles) north of
the city of Yuma. It is easily accessed via State Route 95 (56
km/35 miles) and then along county-maintained gravel roads (24
km/15 miles). This area is a well-mineralized but under-explored
area in a prime jurisdiction in Arizona, which is ranked #2
globally in terms of investment attractiveness in the Fraser
Institute Survey (2020).
2022 Exploration Program
Historical work on the Project was focused on or
immediately around known mineralized segments of veins and breccias
and no comprehensive geological mapping or geophysical program has
ever been completed over the project area. Apollo’s near-term
exploration plans are designed to define the broad controls on the
mineralized system and to identify new targets. The exploration
program will be completed over three phases:
- Phase One: Site
visit to confirm size and extent of mineralized vein systems
(completed November 2021); validation of the historic drilling data
and construction of a detailed database and preliminary 3D geology
model (underway);
- Phase Two:
Comprehensive surface exploration program involving a ground or
drone-based airborne magnetic survey, soil sampling, prospecting
and rock grab sampling and detailed geological mapping covering the
entire property; and
- Phase Three:
Drill testing prospective targets identified in Phase Two.
A budget of approximately C$830,000 has been
approved for Phase One and Phase Two described above. Results of
this work will provide a better understanding of the
mineralization, alteration and structural controls on
mineralization resulting in new drilling targets which will form
the basis of Phase Three of the exploration program.
Phase One is well advanced and results to date
have validated the prospectivity of the Project. It is expected
that Phase Two commence in Q2 of this year. Planning and permitting
of the planned Phase Three drill program is expected to commence in
late Q3 of 2022, with the drills expected to begin turning in early
Q1 of 2023.
Terms of the Option
Agreement
The terms of the definitive option agreement
between Stronghold and the Vendor to acquire a 100% interest in the
Project dated January 22, 2021 (the “Option
Agreement”) were announced in the Company’s news release
dated May 12, 2021. Among other commitments, Apollo must make
scheduled cash and share payments to the Vendor in aggregate value
of US$1.97 million on or before January 22, 2026. Terms of the
Option Agreement include:
- US$70,000 due on
the effective date (paid);
- US$100,000 and
US$100,000 in common shares of Apollo on the 12-month anniversary
of the effective date;
- US$125,000 and
US$125,000 in common shares of Apollo on the 24-month anniversary
of the effective date;
- US$175,000 and
US$175,000 in common shares of Apollo on the 36-month anniversary
of the effective date;
- US$250,000 and
US$250,000 in common shares of Apollo on the 48-month anniversary
of the effective date; and
- US$300,000 and
US$300,000 in common shares of Apollo on the 60-month anniversary
of the effective date.
Additional bonus payments may be made by Apollo in the following
events:
- US$250,000 and
US$250,000 in common shares of Apollo in the event the property
becomes the flagship property of the company on or before January
22, 2024
- US$250,000 and
US$250,000 in common shares of Apollo in the event Apollo declares
a NI 43-101 compliant resource of at least 30 million ounces of
silver on or before January 22, 2024; and
- US$3,000,000 in
the event that the price of silver exceeds US$125/ounce for ninety
days on or before January 22, 2026.
Upon vesting of the 100% interest, Apollo will
grant to the Vendor a 2% Net Smelter Royalty on any future
production of minerals from the Project.
Apollo made the payment of US$100,000 due on the
first anniversary of effective date of the Option Agreement. Under
the terms of the Option Agreement, Apollo also intends to issue an
aggregate of 203,322 common shares of the Company at a price of
C$0.617 per share representing a value of approximately C$125,450
(US$100,000 on the deemed conversion date) to the Vendor, subject
to TSX Venture Exchange approval. The price per share is calculated
based on the 10-day volume-weighted average price for the 10
trading days prior to the anniversary date. Shares issued to the
Vendor will be subject to a four-month and one day hold period.
Investor Relations
Apollo announces that it intends to enter into
an investor relations and services agreement (the
“Agreement”) with Pacific Prime Communications
Corp. (“PPC”) to provide digital marketing and
investor relations services to the Company. The Agreement provides
for total consideration of C$140,000 for a term of 10 months. In
addition, PPC will be entitled to receive grants of stock options
of the Company, from time to time, pursuant to the Company’s
incentive stock ownership plan. All grants of stock options shall
be at the sole discretion of the Company and shall be subject to
the approval of the TSX Venture Exchange.
PPC, a company based in Vancouver, British
Columbia, provides investor communications and marketing strategies
for growing and emerging public companies. A principal of PPC was
previously issued a total of 200,000 stock options, exercisable
into 200,000 common shares of the Company, pursuant to a consulting
arrangement. The stock options were granted on July 21, 2021, at an
exercise price of $0.86 and are exercisable for a period of five
years, expiring on July 21, 2026.
The Agreement is subject to the approval of the
TSX Venture Exchange.
Qualified Person
The scientific and technical data contained in
this news release was reviewed and approved under the supervision
of Cathy Fitzgerald, P.Geo., Vice President Exploration and
Resource Development, a Qualified Person as defined by National
Instrument 43- 101 Standards of Disclosure for Minerals Projects.
Ms. Fitzgerald is a registered Professional Geoscientist in British
Columbia, Canada.
Please visit www.apollosilver.com for further
information on the Arizona Silver District project.
ON BEHALF OF THE BOARD OF DIRECTORS
Tom PeregoodoffChief Executive Officer
For further information, please
contact:
Tom PeregoodoffChief Executive Officer Telephone: +1 (604)
428-6128tomp@apollosilver.com
About Apollo Silver Corp.
Apollo Silver Corp. has assembled an experienced
and technically strong leadership team who have joined to advance
world class precious metals projects in tier-one jurisdictions in
the United States. The Company is focused on advancing its
portfolio of three significant pure silver exploration and resource
development projects: the historical Waterloo and Langtry projects,
in San Bernardino County, California and Arizona Silver District
Project in La Paz County, Arizona.
Forward Looking Statements
This news release contains forward-looking
statements and forward-looking information within the meaning of
Canadian securities laws (collectively, “forward-looking
statements”). Forward-looking statements in this news release
relate to, among other things: receipt of final approval from the
TSXV for the Agreement; acquiring an interest in the Project; and
all other statements that are not historical facts, particularly
statements that express, or involve discussions as to,
expectations, beliefs, plans, objectives, assumptions or future
events or performance of the Company. Often, but not always,
forward-looking statements can be identified through the use of
words or phrases such as “will likely result”, “are expected to”,
“expects”, “will continue”, “is anticipated”, “anticipates”,
“believes”, “estimated”, “intends”, “plans”, “forecast”,
“projection”, “strategy”, “objective” and “outlook”.
Forward-looking statements contained in this news release are made
based on reasonable estimates and assumptions made by management of
the Company at the relevant time in light of its experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that are believed to
be appropriate and reasonable in the circumstances. Forward-looking
statements contained in this news release are made as of the date
of this news release and the Company will not update any such
forward-looking statements as a result of new information or if
management’s beliefs, estimates, assumptions or opinions change,
except as required by law. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, the reader is
cautioned not to place undue reliance on forward-looking
statements.
Forward-looking statements involve known and
unknown risks, uncertainties and other factors, many of which are
beyond the Company’s control, which could cause actual results,
performance, achievements and events to differ materially from
those that are disclosed in or implied by such forward-looking
statements. Such risks and uncertainties include, but are not
limited to, the impact and progression of the COVID-19 pandemic and
other factors outlined in the Company’s publicly filed documents
under the Company’s profile on SEDAR at www.sedar.com. The
Company cautions that the list of risk factors and uncertainties
described in its publicly filed documents on SEDAR is not
exhaustive and other factors could materially affect its results.
New factors emerge from time to time, and it is not possible for
the Company to consider all of them or assess the impact of each
such factor or the extent to which any factor, or combination of
factors, may cause results to differ materially from those
contained in any forward-looking statement. Any forward-looking
statements contained in this news release are expressly qualified
in their entirety by this cautionary statement.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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