166 Million Ounces of Silver Declared IN Calico Project Maiden Resource Estimate Substantial Resource Growth Opportunities Confirmed
*For the purposes of NI 43-101 reporting, the Waterloo and Langtry projects are now considered to be part of an expanded Calico Project, based on the reasonable expectation
that if put into production, the deposits would likely share common infrastructure.
- 1 -
166 MILLION OUNCES OF SILVER DECLARED IN CALICO PROJECT
MAIDEN RESOURCE ESTIMATE
SUBSTANTIAL RESOURCE GROWTH OPPORTUNITIES CONFIRMED
VANCOUVER, British Columbia, February 9, 2022 – Apollo Silver Corp. (“Apollo” or the
“Company”) (TSX.V:APGO, OTCQB:APGOF, Frankfurt:6ZF0) is pleased to announce its Maiden
National Instrument (“ NI”) 43-101 Mineral Resource Estimates (“ MRE”) for the Waterloo and
Langtry silver properties, now collectively referred to as the Calico Silver Project1 (“Calico” or the
“Project”), located in San Bernardino County, California. An Inferred resource estimate of 166
million ounces (“Moz”) of silver contained in 58.1 million tonnes (“Mt”) at an average grade
of 89 grams per tonne (“g/t”) has been defined at Calico by Derek Loveday, P.Geo., of Stantec
Consulting Services Ltd. (“Stantec”), the Company’s independent Qualified Person.
“This resource estimate represents the achievement of a significant milestone,” Apollo CEO, Tom
Peregoodoff, commented. “The outcome we are announcing today confirms Calico as one of the
largest undeveloped silver deposits in the USA and positions Calico as one of the largest globally.
The conservative cut-off grade, low strip ratio, and coherent distribution of silver mineralization
provide a solid foundation for Apollo to advance the project. Calico represents an exciting
development opportunity and provides low risk leverage to future silver prices. For investors
looking for exposure to silver in a Tier 1 jurisdiction, Calico represents a compelling opportunity.”
RESOURCE HIGHLIGHTS
Robust Inferred MRE of 166 Moz silver contained in 58.1 Mt at an average grade of
89 g/t silver for Calico at a 50 g/t cut-off grade (see Table 1):
o Includes high-grade subset of 71 Moz silver contained in 15.9 Mt at an average grade
of 139 g/t silver.
o The MRE is an optimized pit-constrained estimate supported by 42,091 m (138,094 ft)
of historic drilling in 438 holes and incorporates recent geologic mapping and
modeling.
Table 1: Calico Project Inferred Mineral Resource Estimate at a 50 g/t Ag Cut-Off Grade. Effective Jan 28, 2021.
Class Deposit
Imperial Units Metric Units Strip
Ratio
(t:t)
Contained Silver
Volume
Million
(yd3)
Tons
Million
(st)
Ag
Grade
(oz/st)
Volume
Million
(m3)
Tonnes
Million
(t)
Ag
Grade
(g/t)
Million
(oz)
Inferred
Waterloo 20.8 42.8 2.98 15.9 38.9 93 2.2 116
Langtry 10.3 21.3 2.59 7.9 19.3 81 6.0 50
Calico
(Total) 31.2 64.1 2.85 23.8 58.1 89 3.4 166
Base-case resource estimates reported in Table 1. Ounces are reported as troy ounces.
Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) definitions are followed for classification of the Mineral Resource.
Prospects for eventual economic extraction determined using surface mining operating costs of US$2.50/st, processing costs of US$29.00/st and
silver price of US$23.00/oz.
Specific gravity for the mineralized zone is fixed at 2.44 kg/m 3 (13.13 ft3/st). Silver grade was capped at 400 g/t only for Waterloo estimation.
Resources are constrained to within an economic pit shell targeting mineralized blocks with a minimum of 50 ppm (50 g/t) silver.
Totals may not represent the sum of the parts due to rounding.
The Mineral Resource estimate has been prepared by Derek Loveday, P. Geo. of Stantec Consulting Services Ltd. in conformance with CIM
“Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are reported in accordance with the Canadian Securities
Administrators NI 43-101. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that
any mineral resource will be converted into a mineral reserve .
- 2 -
Optimized pit-constrained resource uses conservative cut-off grade of 50 g/t silver
o The base-case cut-off grade (“ COG”) was determined using the following
assumptions:
Silver price of US$23 per troy ounce (“ oz”)
Processing costs of US$29 per short ton (“ st”).
Mining costs of US$2.50/st
Silver recovery of 80%
o Silver price was determined by averaging the price from the last 24 months up to
December 31, 2021, based on data from the World Bank. Processing cost was
based on published estimates for similar deposit types, cross-checked against
historical processing costs determined by ASARCO in their 1980 historical
feasibility study for Waterloo, and adjusted for inflation to 2022 prices. Increased
silver prices, optimised processing parameters and/or improved silver recoveries
will all impact the COG and the resultant MRE.
Resource estimates comprise oxide mineralization only
o The MRE is entirely contained within an extensive, near-surface oxidized silver
mineralized zone that shows excellent continuity at both Waterloo and Langtry.
o The depth of the oxide/sulphide boundary below the current depth extent of the
resource is poorly constrained, presenting opportunities to define additional oxide
resource at depth. See Growth Opportunities section below.
High continuity of shallow mineralization amenable to bulk mining methods
o The near-surface resource is calculated to a maximum depth below surface of
~125 m (415 ft) at Waterloo and 146 m (480 ft) at Langtry. Using conservative
open pit optimization to determine reasonable prospects for economic extraction,
the calculated waste to mineralized zone ratio for Waterloo is 2.2:1.
o Drilling demonstrates that mineralization is continuous and extensive: at Waterloo
it extends along a strike length of 1,860 m (6,100 ft), and 1,250 m (4,100 ft) at
Langtry.
Significant resource growth opportunities identified
o Untested silver host stratigraphy identified below ~125 m (415 ft) within current
resource extents and along strike at both Waterloo and Langtry.
o Expansion of high-grade silver mineralization.
o Gold and barite both have potential to make meaningful contribution.
Clear path to resource advancement identified
o 2022 drill program designed to increase resource confidence and expand metal
inventory.
o Metallurgical testing program defined. Results are expected in Q3 of 2022.
Refer to the Appendix for images of the Waterloo and Langtry mineral resource estimate block
models.
“I am very pleased with the outcome of our MRE,” Apollo Vice President Exploration and Resource
Development, Cathy Fitzgerald, commented. “Through this process we have confirmed the silver
mineralization at Calico and firmly established that it is continuous over extensive strike lengths
- 3 -
at both the Waterloo and Langtry deposits. Our teams’ focus now turns to drill testing the important
resource growth opportunities that this work has confirmed and to upgrading the confidence in
the current silver MRE. The upcoming, fully permitted drill program, together with the metallurgical
work program we are commencing, will put us in an excellent position to update the MRE and
commence initial engineering studies later this year.”
GROWTH OPPORTUNITIES
Several opportunities exist at Calico to expand silver mineralization within and
near the current MRE footprint:
o Historical drilling is shallow (average drill hole depth at Waterloo was 73 m (240 ft)
and at Langtry was 128 m (420 ft)). A number of holes terminated prior to
intersecting the footwall contact and/or ended in mineralization. The opportunity
exists to test for additional silver mineralization at depth within the mineralized
Barstow formation.
o There are indications that footwall Pickhandle formation volcaniclastic rocks may
also host disseminated silver mineralization. These remain poorly tested.
o At Langtry, extensive Quaternary cover is present, and many areas remain
untested.
o Across the Project, several areas within or near the current MRE envelope have
not been drill tested and have high potential to host silver mineralization.
o High-grade silver feeder zones require further drill testing and may add additional
+100 g/t silver mineralization.
Opportunity exists to expand the mineral inventory by defining the extent of gold
and barite mineralization:
o The extent of gold mineralization remains poorly constrained. Drilling on the
Waterloo property by previous operator Pan American Minerals Inc., identified a
gold mineralized horizon 2 km northwest of the historical gold producing Burcham
mine. This drilling intersected 25 m (true thickness) of 0.59 g/t at 132.60 m below
surface, including 1.52 m of 5.52 g/t Au. This horizon is 60 m wide and 110 m in
length (down-dip) and open in all directions. There is potential for meaningful gold
mineralization along the entire 2.2 km long contact for which most historic drill
holes did not test (see news release from January 11, 2022).
o Extent of barite mineralization remains poorly constrained. Historic assay
techniques both at Waterloo and Langtry tended to under report barium because
it was not consistently analyzed using appropriate methods. Analysis of historical
pulps and duplicates along with new drilling material using ideal methods will be
critical in defining the barite mineralization so that it may potentially be included in
a MRE update.
RESOURCE ESTIMATION METHODOLOGY
The MRE was prepared in accordance with the requirements of the Canadian Institute of Mining
Metallurgy and Petroleum’s (“CIM”) National Instrument 43-101 (“NI 43-101”) adopted May 2014.
Mineral Resources are not Mineral Reserves as they do not have demonstrated economic
- 4 -
viability. The quantity and grade of reported Inferred MRE are uncertain in nature as there has
been insufficient exploration to define these Inferred Resources as Indicated or Measured.
The MRE considered drilling information up to and including the most recently completed
programs in 2012 and geological information from Apollo’s 2021 activities. Drilling information
included exploration drilling records for a total of 438 drill holes; 255 holes, 18,626 m (61,108) at
Waterloo and 183 holes, 23,465 m (76,986 ft) at Langtry. Nominal drill hole spacing is 40 x 45 m
(140 x 150 ft) at Waterloo and 50 x 60 m (160 x 200 ft at Langtry. Average drill hole depths at
Waterloo were 73 m (240 ft) and at Langtry 128 m (420 ft). Most holes are vertically oriented
reverse circulation holes, with six holes being diamond drill holes.
The resource estimate only considered silver. Previously, barite has been included in historic
resource statements however the assay technique used tended to under report barium
concentration, rendering some of the barium data unreliable. Gold was evaluated but not enough
data was available from drilling for it to be included in the MRE. Both represent growth
opportunities as previously discussed.
The 3D resource block models were oriented along regional strike of mineralization controlling
range front fault (Calico fault) and bedding, at approximately 045 degrees. Silver grades were
estimated using ordinary kriging into a standard 20 ft x 20 ft x 20 ft block model using 15 ft drill
hole composites and a bulk density of 2.44 kg/m3 (13.13 ft3/st). The block models are constrained
to the west by the Calico range front fault and to the east by the contact between the mineralized
Barstow formation sedimentary rocks and the Pickhandle formation rhyolitic rocks. Both structures
are mineralization controlling features. A grade capping evaluation was performed, and silver
grades were capped at 400 g/t Ag for the Waterloo resource estimate only. The near-surface
resource is calculated to a maximum depth of ~125 m (415 ft) at Waterloo and 146 m (480 ft) at
Langtry, both comprise only oxide mineralization. The calculated waste to ore ratio for Waterloo
is 2.2:1 and for Langtry is 6:1.
Verification of exploration data used for MRE was performed by the independent Qualified
Person. The MRE was internally audited and peer reviewed by Stantec prior to being released to
Apollo and being declared final. Additionally, Apollo completed an internal review of the MRE as
supplied by Stantec. A full description of the data and project verification process will be detailed
in the technical report for the MRE, which will be prepared in accordance with NI 43-101
Standards of Disclosure for Mineral Projects and filed within 45 days of this news release on
Apollo’s website and on SEDAR at www.sedar.com.
Reasonable Prospects for Economic Extraction and COG Sensitivities
Reasonable prospects for eventual economic extraction were assessed by calculating a base-
case COG for silver at 50 g/t. This was achieved by estimating a surface mining operating cost of
US$2.50/st, processing operating cost of US$29.00/st and silver price of US$23.00/oz. Block
revenue estimates for silver grade blocks greater than 50 g/t, less surface mining costs, were
used to generate an optimized Lerchs-Grossman economic pit shell at constant slope of 45
degrees and constrained to within the property claim boundaries.
The processing cost chosen for the MRE was based on published estimates for similar deposit
types and cross checked against historical processing costs determined by ASARCO in their 1980
historical feasibility study for Waterloo, adjusted for inflation to 2022 prices. The silver price was
- 5 -
determined by averaging the price from the last 24 months up to end-December 2021, based on
data from the World Bank.
Variations in processing costs, silver price and silver recovery may impact COG and the resultant
MRE. A sensitivity analysis was undertaken to examine the impacts of changing these variables
on the MRE at Calico (see Table 2).
Table 2: Sensitivity analysis of the grade and tonnage relationships at varying pit-constrained cut-
off grades for the Calico project. Effective January 28, 2022.
Classification Silver
COG
(g/t)
Imperial Units Metric Units
Strip
Ratio
(t:t)
Contained
Silver
Volume
Million
(yd3)
Tons
Million
(st)
Ag
Grade
(oz/st)
Volume
Million
(m3)
Tonnes
Million
(t)
Ag
Grade
(g/t)
Million (oz)
Waterloo Pit Constrained Silver Mineral Resource Estimate
Inferred
≥ 25.0 27.6 56.8 2.54 21.1 51.5 79 0.4 131
≥ 50.0 20.8 42.8 2.98 15.9 38.9 93 2.2 116
≥ 75.0 12.2 25.1 3.69 9.3 22.8 115 6.2 84
≥ 100.0 6.7 13.8 4.43 5.1 12.5 138 13.8 56
Langtry Pit Constrained Silver Mineral Resource Estimate
Inferred
≥ 25.0 18.5 38.0 1.97 14.1 34.4 61 1.9 68
≥ 50.0 10.3 21.3 2.59 7.9 19.3 81 6.0 50
≥ 75.0 4.3 8.9 3.47 3.3 8.1 108 18.0 28
≥ 100.0 1.8 3.7 4.47 1.4 3.4 139 46.4 15
Calico Project Pit Constrained Silver Mineral Resource Estimate
Inferred
≥ 25.0 46.1 94.8 2.31 35.2 86.0 72 1.0 199
≥ 50.0 31.2 64.1 2.85 23.8 58.1 89 3.4 166
≥ 75.0 16.5 34.0 3.63 12.6 30.8 113 9.2 112
≥ 100.0 8.5 17.6 4.44 6.5 15.9 139 20.8 71
Base-case resource estimates reported in Table 1. Ounces are reported as troy ounces.
Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) definitions are followed for classification of the Mineral Resource.
Prospects for eventual economic extraction determined using surface mining operating costs of US$2.50/st, processing costs of
US$29.00/st and silver price of US$23.00/oz.
Specific gravity for the mineralized zone is fixed at 2.44 kg/m 3 (13.13 ft3/ton). Silver grade was capped at 400 g/t only for Waterloo estimation.
Resources are constrained to within an economic pit shell targeting mineralized blocks with a minimum of 50 ppm (50 g/t) silver.
Totals may not represent the sum of the parts due to rounding.
The Mineral Resource estimate has been prepared by Derek Loveday, P. Geo. of Stantec Consulting Services Ltd. in conformance
with CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines and are reported in accordance with the
Canadian Securities Administrators NI 43-101. Mineral resources are not mineral reserves and do not have demonstrated economic
viability. There is no certainty that any mineral resource will be converted into a mineral reserve.
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 kilometers (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 kilometres (3 miles) of the Project.
- 6 -
Geology and Mineralization at Calico
The Calico 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
metres (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
focus of this MRE.
QUALIFIED PERSONS
Derek Loveday, P.Geo., of Stantec Consulting Services Ltd., is an independent Qualified Person
as defined by NI 43-101 Standards of Disclosure for Mineral Projects. Mr. Loveday has supervised
and approved the technical contents of this news release as it pertains to the disclosed Mineral
Resource Estimates. Mr. Loveday is a registered Professional Geoscientist, registered in Alberta,
Canada.
The scientific and technical data contained in this news release was also 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 Peregoodoff
Chief Executive Officer
For further information, please contact:
Tom Peregoodoff
Chief Executive Officer
Telephone: +1 (604) 428-6128
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.
- 7 -
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.
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.
- 8 -
Appendix 1: Figures
Figure 1: Calico Project Inferred Mineral Resource: Block Model of the Waterloo Deposit.
Figure 2: Calico Project Inferred Mineral Resource: Waterloo Block Model Cross Section.