Apollo Silver Corp. (“
Apollo” or
the “
Company”) (TSX.V:APGO, OTCQB:APGOF,
Frankfurt:6ZF0) is pleased to announce it has completed Phase 2 of
the 2022 Calico Drill Program at its Calico Silver Project
(“Calico” or the “Project”), located in San Bernardino County,
California.
With the completion of Phase 2 drilling, the
proposed 10,000 metre (“m”) 2022 Calico Drill Program is now
complete on schedule and under budget. Reverse
circulation (“RC”) drilling as part of the Phase 2 program began
September 19, 2022 (see news release September 20, 2022) and was
completed November 12, 2022, ahead of schedule. The 2022 Calico
Drill Program is one component of the multi-component
2022
Calico Technical Program that aims to upgrade and expand
the recently announced Inferred Mineral Resource Estimate (“MRE”)
of
166 million ounces of silver contained in 58.1 million
tonnes at an average grade of 89 grams per tonne (“g/t”)
(see news release dated February 9, 2022).
“The 2022 Calico Drill Program has been
completed ahead of schedule and under budget,” Apollo President and
CEO, Tom Peregoodoff, commented. “I am very proud of the team, who
completed the Phase 1 and Phase 2 drill campaigns with no lost time
incidents and no significant health or environmental issues to
report. This is a tribute to the culture of the Apollo organization
and the strength of the people involved both from Apollo and our
excellent contractors. Phase 2 assay results from Calico will be
released to the market on a regular basis as they are received from
the lab. In addition, I am pleased that we have been able to
re-negotiate the terms of the Arizona Silver Project option
agreement. Our focus has been on advancing Calico and the
renegotiated terms provide us with extra time to complete our
initial target generation work.”
2022 Phase 2 Drill Program
Completion
The Phase 2 Drill Program was composed of 4,819
m (15,810 feet) across 44 RC drill holes. The program was completed
on November 12, 2022, approximately 14 days ahead of schedule. A
total of 9,840 m (32,283 feet) across 88 RC drill holes has been
successfully completed at the Waterloo Property in the 2022 Calico
Drill Program. The drill program was designed to:
- Complete further infill drilling to
upgrade the confidence in the MRE;
- Expand the MRE by adding additional
high-grade silver ounces and quantifying possible by-products such
as barite and gold; and
- Increase the confidence in the
geological model.
Results to date confirmed the grade, continuity
and predictability of near-surface silver mineralization within the
current MRE; identified silver mineralization in thicker portions
of the Barstow sediments approximately 30 m below the base of the
current MRE (which is approximately 125 m depth below surface); and
has shown the gold-mineralized horizon is more extensive than
historic drilling indicated.
An update to the MRE is expected to commence
once all the assay results have been received and is expected to be
completed in Q1 2023. Following this, engineering studies are
planned to commence.
Amended Arizona Silver District Option
Agreement
The Arizona Silver District Project (“Arizona
Silver 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 m in width and
hundreds of metres in length.
The terms of the Option to Purchase Agreement to
acquire 100% interest in the Arizona Silver Project (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$2 million
on or before January 22, 2026. Original terms of the Option
Agreement include:
- US$70,000 upon closing (paid in
January 2021);
- US$100,000 and US$100,000 in common
shares of Apollo due on January 22, 2022 (paid in January
2022);
- US$125,000 and US$125,000 in common
shares of Apollo due on January 22, 2023;
- US$175,000 and US$175,000 in common
shares of Apollo due on January 22, 2024;
- US$250,000 and US$250,000 in common
shares of Apollo due on January 22, 2025;
- US$300,000 and US$300,000 in common
shares of Apollo due on January 22, 2026;
Apollo and the vendor, pursuant to an amendment
to the Option Agreement, have agreed to defer payment obligations 3
through 6 above by 12 months from the dates stipulated in the
Option Agreement, with the next payment now due by January 22,
2024, and the final payment due on January 22, 2027. All other
terms in the Option Agreement remain unchanged.
2022/2023 Option Grant
The Company also announces the granting, subject
to regulatory acceptance, of an aggregate of 4,000,000 incentive
stock options to certain officers, directors, employees and
advisors of the Company (the “Options”). The Options have a term of
five (5) years and are exercisable at a price of $0.125 per common
share. The Options shall become exercisable ("Vested") over a
24-month period, with one-third of the Options becoming Vested on
the grant date, a further one-third becoming Vested after twelve
(12) months, and the balance after 24 months.
ABOUT THE CALICO PROJECT
Location
The Project is located in San Bernardino County,
California and comprises the adjacent Waterloo and Langtry
properties which total 2,950 acres. The Project is 15 km (9 miles)
from the city of Barstow and has an extensive private gravel road
network spanning the property. There is commercial electric power
within 5 km (3 miles) of the Project.
Geology and Mineralization at
Calico
The Project is situated in the southern Calico
Mountains of the Mojave Desert, in the south-western region of the
Basin and Range tectonic province. This mountain range is a 15 km
(9 mile) long northwest-southeast trending range dominantly
composed of Tertiary (Miocene) volcanics, volcaniclastics,
sedimentary rocks and dacitic intrusions. Mineralization at Calico
comprises high-level low-sulfidation silver-dominant epithermal
vein-type and disseminated-style deposits associated with
northwest-trending faults and fracture zones and mid-Tertiary
volcanic activity. The Project represents a district-scale mineral
system endowment with approximately 6,000 m (19,685 feet) in
mineralized strike length controlled by Apollo. Oxidized,
disseminated and stockwork-style mineralization is primarily hosted
in the Barstow sedimentary formation and is the subject of the
MRE.
QUALIFIED PERSON
The scientific and technical data contained in
this news release was reviewed and approved by Cathy Fitzgerald,
P.Geo., Apollo’s Vice President Exploration and Resource
Development, a Qualified Person as defined by NI 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 BEHALF OF THE BOARD OF DIRECTORS
Tom PeregoodoffChief Executive Officer
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. The
Company is focused on advancing its portfolio of two significant
silver exploration and resource development projects, the Calico
Silver Project, in San Bernardino California and Silver District
Project in Arizona.
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Statement Regarding “Forward-Looking”
Information
This news release includes “forward-looking
statements” and “forward-looking information” within the meaning of
Canadian securities legislation. All statements included in this
news release, other than statements of historical fact, are
forward-looking statements including, without limitation,
statements with respect to the potential of the Calico
Project; the potential for identification of gold and barite
resources at Calico; the potential to expand the resource
estimate and upgrade its confidence level, including prospective
mineralization on strike and at depth; timing of commencement of
mobilization, drilling and exploration activities; timing of
announcement of drill results. Forward-looking statements include
predictions, projections and forecasts and are often, but not
always, identified by the use of words such as “anticipate”,
“believe”, “plan”, “estimate”, “expect”, “potential”, “target”,
“budget” and “intend” and statements that an event or result “may”,
“will”, “should”, “could” or “might” occur or be achieved and other
similar expressions and includes the negatives thereof.
Forward-looking statements are based on the
reasonable assumptions, estimates, analysis and opinions of
the management of the Company made in light of its experience and
its perception of trends, current conditions and expected
developments, as well as other factors that management of the
Company believes to be relevant and reasonable in the circumstances
at the date that such statements are made. Forward-looking
information is based on reasonable assumptions that have been made
by the Company as at the date of such information and is subject to
known and unknown risks, uncertainties and other factors that may
have caused actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information,
including but not limited to: risks associated with
mineral exploration and development; metal and mineral prices;
availability of capital; accuracy of the Company’s projections and
estimates; realization of mineral resource estimates, interest and
exchange rates; competition; stock price fluctuations; availability
of drilling equipment and access; actual results of current
exploration activities; government regulation; political or
economic developments; environmental risks; insurance risks;
capital expenditures; operating or technical difficulties in
connection with development activities; personnel relations;
contests over title to properties; changes in project parameters as
plans continue to be refined; and impact of the COVID-19
pandemic. The estimate of mineral resources may be materially
affected by environmental, permitting, legal, title, taxation,
sociopolitical, marketing, or other relevant issues. The quantity
and grade of reported inferred mineral resources in this estimation
are uncertain in nature and there has been insufficient exploration
to define these inferred mineral resources as an indicated or
measured mineral resource and it is uncertain if further
exploration will result in upgrading them to an indicated or
measured mineral resource category. Forward-looking statements are
based on assumptions management believes to be reasonable,
including but not limited to the price of silver, gold and barite;
the demand for silver, gold and barite; the ability to carry on
exploration and development activities; the timely receipt of any
required approvals; the ability to obtain qualified personnel,
equipment and services in a timely and cost-efficient manner; the
ability to operate in a safe, efficient and effective matter; and
the regulatory framework regarding environmental matters, and such
other assumptions and factors as set out herein. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that forward-looking statements will prove to be
accurate and actual results, and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward looking
information contained herein, except in accordance with applicable
securities laws. The forward-looking information contained herein
is presented for the purpose of assisting investors in
understanding the Company’s expected financial and operational
performance and the Company’s plans and objectives and may not be
appropriate for other purposes. The Company does not undertake to
update any forward-looking information, except in accordance with
applicable securities laws.
For further information, please contact:
Tom Peregoodoff
Chief Executive Officer
Telephone: +1 (604) 428-6128
tomp@apollosilver.com
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