Gold identified at Waterloo project in continuous near-surface horizon
Gold identified at Waterloo project in continuous near-surface horizon
Vancouver, British Columbia , January 11, 2022 – Apollo Silver Corp. (“Apollo” or the “Company”)
(TSX.V:APGO, OTCQB:APGOF, Frankfurt:6ZF) is pleased to provide an update on its ongoing technical
review of historic data at the Waterloo and Langtry projects in San Bernardino County, California. Recently
this work has identified a 25 metre (“m”) thick, gold bearing horizon below silver mineralization. Silver
mineralization transitions to gold -dominated mineralization at t he variably faulted lithologic contact
between Barstow formation sedimentary rocks and Pickhandle formation volcaniclastics . Gold
mineralization at t he district’s only historic gold producer , the Burcham Mine, occurs along this contact
250 m to the southeast. Apollo’s analysis of historic data has shown that not only does gold mineralization
extend beyond the Burcham mine area, evidence suggest s that at the Waterloo project the entire 2.2
kilometre (“km”) long contact between the Barstow sediments and Pickhandle volcaniclastics is prospective
for gold mineralization.
Highlights:
• Potential for meaningful gold mineralization along the entire 2.2 km long contact for which
the majority of historic drill holes did not test;
• Gold (“Au”) mineralized horizon of 25 m (true thickness) returning 0.59 grams per tonne
(“g/t”) Au from 132.60 m below surface, including 1.52 m of 5.52 g/t Au. This horizon is 60 m
wide and 110 m length (down-dip) and open in all directions;
• The contact represents an excellent exploration target for replacement style gold
mineralization, and possibly higher-grade vein hosted gold; and
• The u pcoming 2022 drill program will test for additional gold m ineralization along this
prospective horizon.
“Our systematic approach to reviewing and validating the historic data is continuing to deliver significant
value” Apollo CEO, Tom Peregoodoff, commented. “We were aware of this historic gold production at the
Burcham mine, however it is only recently and through this detailed review that we have come to understand
the nature and extent of the host unit, and the potential for a significant gold discovery at Waterloo. This
presents an exciting opportunity in that it substantially adds to the exploration potential of the properties
and testing of this prospective horizon will form part of our upcoming 2022 drill program. With our pending
maiden silver resource declaration for Waterloo and Langtry on track, 2022 is shaping up to be a very
exciting year for Apollo.”
Gold Mineralization at Calico
Apollo’s Waterloo project hosts the Burcham mine, the only mine in the Calico Mining District known to
produce gold as its primary commodity (refer to Figure 1). Gold was produced from two NW-oriented veins
via underground drifts. Gold is hosted in veins varying from 0.3 up to 3 m wide and occurs as replacement
style mineralization, with both the Barstow and the Pickhandle volcaniclastics formations hosting
disseminated gold in zones up to 9 m wide. Gold was reported to be associated with chalcopyrite, galena,
sphalerite and silver chloride, all hosted in a gangue of quartz, barite and iron oxides. There are no known
production numbers from this mine, but historic public articles report grades of up to 0.31 ounces per ton
(9.7 g/t).
Historic Mining and Exploration for Gold at Calico
ASARCO undertook a number of work programs to better understand gold mineralization in the Burcham
area between 1985 and 1989. These included 10 shallow air track holes ( 188 m total, maximum depth of
29.30 m), three diamond drill holes ( 335.30 m total, maximum depth of 137.60 m ) and underground
chip/channel sampling (96 samples, 3 -6 m lengths, ~ 5 k ilograms each) from accessible underground
workings. A selection of results of gold mineralized intersections from this drilling are shown in Table 1.
Results from the underground chip sampling revealed a maximum of 2.01 g/t Au (average 0.63 g/t Au) in
the Pickhandle volcaniclastics (12 samples) and a maximum of 4.44 g/t Au (average 0.44 g/t Au) in the
Barstow sediments (84 samples). Importantly, this is the only work program completed by As arco that
included assaying for gold.
Between 2008 and 2012, Pan American Minerals, a wholly owned subsidiary of Pan American Silver Corp.
(“Pan American”), completed exploration programs comprising surface geological mapping and drilling.
Six reverse circulation holes completed by Pan American show a transition from silver -dominated
mineralization to gold -dominated mineralization towards the SW-dipping, unconformable and variably
faulted contact between the Barstow and Pickhandle formations. Th is gold-dominated horizon is up to 25
m thick (true thickness) , 60 metres wide, 110 m long and is open in all directions (refer to Figure 2) , as
identified in drill hole W-0054, which intersected 0.59 g/t Au from 132.60 m downhole, including 7.62 m
of 1.44 g/t and 1.52 m of 5.52 g/t Au.
Geological mapping completed by Dr. Warren Pratt in 2008 (for Pan American) identified hydrothermal
mineralization along the entire 2.2 km length of the contact o n the Waterloo property. Some areas were
intensely altered t o an acid -sulfate assemblage of kaolinite, alunite and cristobalite , particularly in the
volcaniclastics. Acid sulphate type leaching is widespread at surface at the contact in both the Barstow and
Pickhandle formations, and the contact appear s to be variably mineralized for at least half its length, as
hematite, jarosite, goethite, quartz and copper oxides were observed. Historic mining at both the Burcham
and Waterloo mines exploited this contact.
Conclusions – Gold Exploration Potential
Apollo’s analysis of historic Pan American and ASARCO data has concluded that not only does gold
mineralization extend beyond the Burcham mine area, there is evidence to suggest that the entire 2.2. km
long contact between the Barstow sediments and Pickhandle volcaniclastics is prospective for gold. Historic
work by ASARCO demonstrated that the B arstow formation and a wide halo in the Pickhandle
volcaniclastics in the Burcham area are mineralized with disseminated gold. Spatial distribution and both
Pan American and ASARCO drill log data suggest this is a replacement style mineralized zone
preferentially formed along the contact between the Barstow and Pickhandle formation, with the Pickhandle
volcaniclastics being the preferential gold host. Shallow drilling by ASARCO and evidence from geologic
mapping completed by Pan American suggest this minera lization extends to surface. All gold
mineralization occurred in oxidized rock.
Of the 277 drill holes in Apollo’s Waterloo database, only 18 definitively pierce the contact and have gold
assays (see Figure 1). Thirteen of these holes are mineralized (i.e., +0.2 g/t Au). Of note is that many of the
holes that pierce the contact do not fully test the adjacent volcaniclastics.
The current focus of the review has been on the Waterloo project. The gold potential at the adjacent Langtry
property remains poorly constrained and work is ongoing to better assess this potential.
Testing of the gold prospective horizon will form part of the upcoming 2022 drilling program.
Figure 1: Location of drill holes with gold assays and those that also pierce the Barstow-Pickhandle
contact at the Waterloo project.
Figure 2: Cross Section of gold mineralization relative to silver mineralization at the Waterloo
project hilltop region.
Table 1: Selection of gold intercepts from historic drilling at the Waterloo project.
Operator &
Location Drill Hole From
(m) To (m) Intercept
(m)
Au Grade
(g/t)
Ag Grade
(g/t)
Au gram-
metres
ASARCO
(1981)
Burcham Area
Drilling
BR-1** 0 27.43 27.43 0.77 n/a 21.12
including 0 7.32 7.32 1.30 n/a 9.52
BD-1* 24.38 40.54 16.16 0.691 0.89 11.17
including 24.38 27.43 3.05 1.206 0.79 3.68
BD-2* 30.33 37.19 6.86 1.096 0.34 7.52
including 30.33 34.9 4.57 1.539 0.43 7.03
BR-9** 3.66 7.32 3.66 1.89 n/a 6.92
BD-2* 58.06 69.80 11.74 0.343 0.50 4.03
including 72.54 80.47 7.93 0.372 1.82 2.95
Pan American
(2012)
Hilltop
Area Drilling
W-0054** 132.58 163.07 30.49 0.59 9.10 17.99
including 135.64 143.26 7.62 1.444 4.30 11.00
including 140.21 141.73 1.52 5.520 5.30 8.39
W-0046** 112.78 126.49 13.71 0.76 17.13 10.42
including 117.35 121.92 4.57 1.692 14.58 7.73
W-0049** 86.87 100.58 13.71 0.340 42.63 4.66
W-0-S-12001** 0 2 2 1.975 34.00 3.95
*Diamond Drill hole **Reverse circulation or air track hole. Assay data is shown as recorded by operators.
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.
For further information about the Waterloo project please see the 2021 N.I. 43-101 technical report “NI 43-
101 Technical Report Waterloo Project, California, USA” with an effective date of May 12, 2021; and for
further information about the Langtry project please see the 2021 N.I. 43-101 technical report “NI 43-101
Technical Report Langtry Project, California, USA” with an eff ective date of December 1, 2021. Both
reports were prepared by H. Samari and L. Breckenridge of Global Resource Engineering, Ltd.
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 three significant pure silver exploration and resource development projects, the
historical Waterloo and Langtry projects, 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, state ments with respect to the potential of the Company’s
properties; the potential for a significant gold discovery at Waterloo ; the timing and completion of the anticipated maiden
declaration of resource estimates at the Company’s silver-barite projects; the evaluation of the quality of the historical data
collection, historical estimates, geological models, drilling and assay data, data sets prepared by and acquired from previous
operators; timing and cost of future exploration, drilling , metallurgical testing and geophysical program plans and
targets; success of exploration activities; the estimation of mineral resources; and conclusions of economic
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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 i s inherently subject to known and unknown
risks, significant operational, economic, and competitive uncertainties, contingencies and other factors that may cause the
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 related to the Company’s goal of creating
shareholder value by concentrating on the development of the Waterloo project, the Langtry project, or the AZ Silver District
project (the “Properties”); believing that the Properties have the potential to contain economic silver deposits; the Company’s
assessment of future plans for the Properties; managements’ economic outlook regarding future tre nds; the Company’s
exploration budget for the Properties; and in particular, the availability of equipment, skilled labour and services needed,
timing and the amount of the expected budget; the Company’s ability to meet its working capital needs at the cur rent level
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and the surrounding communities; general business and economic conditions; the timing and receipt of governmental
permits and approvals; the timing and receipt of community and landowner approvals; changes in regulations; political
factors; the accuracy of the Company ’s interpretation of drill results; the geology, grade and continuity of the Company’s
mineral deposits; currency fluctuations; and impact of the COVID-19 pandemic.
There can be no assurance that forward -looking statements will prove to be accurate and a ctual results, and future events
could differ materially from those anticipated in such statements. Important factors that could cause actual results to diffe r
materially from the Company’s expectations include actual exploration results, interpretation of exploration results, changes
in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable
terms, general economic, market or business conditions, uninsured risks, regulatory changes, delay s or inability to receive
required approvals, unknown impact related to potential business disruptions stemming from the COVID -19 pandemic, or
another infectious illness, and other exploration or other risks detailed herein and from time to time in the fil ings made by
the Company with securities regulators, including those discussed or referred to in the Company’s continuous disclosure
filings with the securities regulatory authorities in Canada, available at www.sedar.com.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from
those contained in forward looking information, other factors could also cause materially different results. There can be no
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except in accordance with applicable securities laws.