Independent Technical Review Provides Increased Confidence in Historic Resource Calculations
Independent Technical Review Provides Increased Confidence in Historic
Resource Calculations
Vancouver, British Columbia, September 14, 2021 – Apollo Silver Corp. (“Apollo” or the “Company")
(TSX.V:APGO, OTCQB:APGOF, Frankfurt:6ZF) is pleased to provide an update of its technical work
program and exploration plan s for its Waterloo and Langtry Silver-Barite projects located in San
Bernardino County, California. Apollo’s technical program is well underway, and the Company anticipates
the declaring of maiden resource estimates at its two cornerstone silver-barite projects to proceed as initially
planned.
Highlights:
• Increased confidence in the historic estimates of silver mineralization at both the Waterloo
and Langtry projects made by previous operators based on;
o Completion of preliminary 3-D geology models of both projec ts by an independent
consulting group;
o Creation of an independently verified drill and assay database combining data for
both;
• Planning underway for a comprehensive geophysical program; and
• Engagement of Lilburn Corporation (“Lilburn”), of San Bernardino as permitting and
environmental consultants and commencement of permitting application process.
”I am extremely pleased with the progress we are making ,” Apollo CEO, Tom Peregoodoff commented.
“We remain on track to deliver against our objective of declaring a maiden silver and barite resource
estimates for the Waterloo and Langtry projects. The work completed to date by our technical team
including our highly-skilled consultants has confirmed the high quality of the data set we acquired as part
of this transaction and increased our confidence in the silver mineralization estimates made by previous
operators.”
Cathy Fitzgerald, VP Exploration and Resource Development, added, “The preliminary results of the data
compilation and analysis work has provided further confidence in the quality of the historic data for the
projects. This data, combined with o ur developing geological model , will provide a solid foundation for
Apollo to optimize its strategy for defining its maiden resource estimation program and refine its upcoming
drill program.”
The Calico Silver District - Waterloo and Langtry Silver-Barite Projects
The Waterloo and Langtry Silver-Barite projects are located in San Bernardino County, California, USA,
15 kilometres (9 miles) north of the city of Barstow. The properties are easily accessed via the I-15 interstate
highway in an area situated 230 kilometres (145 miles) northeast of Los Angeles, approximately halfway
between Los Angeles and Las Vegas, Nevada.
The Waterloo Silver-Barite Project (the “Waterloo Project”) comprises 21 unpatented lode claims and 27
fee land parcels, totaling approximately 1,770 gross acres (715 hectares) (collectively, the “Waterloo
Property”). The Langtry Silver Barite Project (the “ Langtry Project”) comprises 38 unpatented lode
claims and 20 patented lode claims, totaling approximately 1,180 gross acres (477 hectares) (collectively,
the “Langtry Property”). Prior to their acquisition by Apollo, these two projects have never been
controlled by a single company.
The Calico Mountains host the historic Calico Mining District which has a lengthy history of exploration
and mining, with silver-rich ore discovered here in 1881. The region was a prolific silver, barite and borax
producer and is responsible for the majority of the silver production in the Mojave. Several past-producing
mines and historical workings are situated in the vicinity of the projects, with most of the historical mining
operations situated over a 19.3 square kilometre (12 square mile) area northeast of the Waterloo and Langtry
properties. Five historical past-producing silver mines are located within the properties’ boundaries: the
Waterloo, Voca, Union, Langtry and the Burcham mine, the only mine in the district that also produced
gold.
Silver m ineralization on the projects occur as discrete high-grade veins in the volcanic/volcaniclastic
Pickhandle Formation striking generally northwest and as veinlet stockworks and disseminations in the
sedimentary Barstow Formation. Mineralogy of all styles of mineralization are similar, composed primarily
of barite, jasperoid/chalcedony, oxides, and sulphides with silver occurring commonly as either native silver
or silver salts . Near surface vein exposures are often oxidized, enriching the silver grade. Alter ation
dominantly consists of silicification (chalcedony and jasperoid) and patchy propylitic alteration with some
potassium feldspar alteration observed in the Barstow Formation associated with silver mineralization. Acid
sulphate/steam heated leaching has been mapped across the projects.
Previous Technical Work at the Waterloo Project
Exploration on the Waterloo Property commenced in 1964 and consisted of numerous technical programs
completed by two companies: American Smelting and Refining Company (“Asarco”) and Pan American
Minerals Inc. (“Pan American,” a wholly-owned subsidiary of Pan American Silver Corp.) . Exploration
by Asarco from 1964 to 1994 consisted of geological mapping, geochemical sampling, geophysical surveys
to characterize s ubsurface faults (gravity, magnetics, electromagnetic and induced polarization ), surface
trenching and drilling. This work culminated in the completion of comprehensive environmental impact
and economic feasibility studies by Asarco in 1981. Due to a fall in silver prices at the time, the project was
put on care and maintenance until 1994 when Pan American acquired an initial interest in the project and
subsequently acquired 100 % in 1996. Pan American completed two geological mapping programs,
conducted by Dr. Warren Pratt, as well as reverse circulation (“RC”) and diamond drilling between 2008
and 2012. A total of 17,790 metres (58,366 feet) in 255 drillholes has been completed on the Property by
the previous operators.
The initial historical re source estimate was calculated by Asarco in 1968, followed by a computer -
calculated resource estimate in the late 1970’s. Subsequently, Pan American calculated an internal resource
based on the results of their 2012 drilling program and validated historical data from Asarco. This work
yielded a historical resource estimate of 37.1 million tonnes grading 86 g rams/tonne for a total of 103
million ounces of contained silver (refer to Table 1). The reader is cautioned that this resource estimate is
historical in nature and the Company is not treating it, or any part of it, as a current mineral resource. Refer
to footnote 1 below.
Table 1: Historical mineral resource estimate for the Waterloo Project.
(1). Reference to historic resources at the Waterloo project refer to an internal company document prepared by Pan American Minerals Corp., dated
2013, unpublished. Historic resources are reported here as documented in original documents. Abbreviations are grams per metric tonne (g/t) and
tonnes are metric. The historical mineral resources discussed here were calculated using mining industry standard practices for estimating Mineral
Resource and Mineral Reserves (2005) which was prior to the implementation of the current Canadian Institute of Mining’s (‘CIM’) standards for
mineral resource estimation (as defined by the CIM Definition Standard on Mineral Resources and Ore Reserves dated May 10, 2014). The reader
is cautioned not to treat them, or any part of them, as current mineral re sources or reserves. An independent Qualified Person (‘QP’), has not
completed sufficient work to classify the estimates discussed as current mineral resources or reserves and therefore the estimates should be treated
as historical in nature and not current mineral resources or mineral reserves. Apollo’s QP, Cathy Fitzgerald, has determined these historic resources
are reliable, and relevant to be included here in that they demonstrate simply the mineral potential of the properties. A thorough review of all historic
data performed by an independent QP, along with additional exploration work to confirm results, would be required in order to produce a current
mineral resource estimate for either property. Effective February 25, 2019, the U.S. Security and Exch ange Commission (‘SEC’) adopted new
mining disclosure rules under subpart 1300 of Regulation S -K of the U.S. Securities Act of 1933, as amended (the “SEC Modernization Rules”),
with compliance required for the first fiscal year beginning on or after January 1, 2021. These replace the disclosure requirements included in SEC
Industry Guide 7 and as a result, the SEC now recognizes terms such as “indicated” and “inferred” with respect to mineral resources. U.S. investors
are cautioned that while the SEC Modern ization Rules are “substantially similar” to the CIM Standards, readers are cautioned that there are
differences between the SEC Modernization Rules and the CIM Standards.
Previous Technical Work at the Langtry Project
Exploration on the Langtry P roperty commenced in 196 0 and consisted of several technical programs
completed by two companies: Superior Oil Company (“Superior”) and Athena Silver Corp. (now Athena
Minerals Corp., “Athena”). Exploration by Superior from 1967 to 1984 consisted of geological mapping,
geochemical sampling, surface trenching and drilling. Superior was subsequently purchased by Mobil
Corporation and the Langtry Project sat dormant due to depressed silver prices until Athena acquired an
interest in the Pro ject in 2010. Subsequently Athena completed surface geological mapping, sampling,
geotechnical work and drilling. A total of 213 drillholes (26,200 metres/86,000 feet) has been completed
on the Langtry Property by the previous operators.
An initial historical resource estimate was calculated by Superior in 1970. Subsequently, Athena calculated
a resource estimate based on the results of their 2012 drilling program, along with validated historical data
from Superior’s programs. This independent work was completed by SRK Consulting (“SRK”) in 2012
and yielded a historical resource estimate of 12.7 million tons grading 1.48 ounce per tonne for a total of
18.8 million ounces of contained silver in the Indicated category and 30.4 million tons grading 1.40 ounce
per tonne for a total of 42.6 million ounces of silver in the Inferred Category as detailed below in Table 2.
The reader is cautioned that this resource estimate is historical in nature and the Company is not treating it,
or any part of it, as a current mineral resource. See footnote 2 below.
Table 2: Historical mineral resource estimate for the Langtry Project.
(2) Reference to historic resources at Langtry refer to Moran et al, 2012, which was an internal report on the Langtry Silver Project, San Bernardino
County, California: prepared for Athena Silver Corp, April 2012 . [Accessed April 30, 2021]. Historic resources are reported here as documented
in original documents. Abbreviations are ounces per short ton (opt) and tonnes are imperial. The historical mineral resources discussed here were
calculated using mining industry standard practices for estimating Mineral Resource and Mineral Reserves (2005) which was prior to the
implementation of the current Canadian Institute of Mining’s (‘CIM’) standards for mineral resource estimation (as defined by the CIM Definition
Standard on Mineral Resources and Ore Reserves dated May 10, 2014). The reader is cautioned not to treat them, or any part of them, as current
mineral resources or reserves. An independent Qualified Person (‘QP’), has not completed sufficient work to classify the estimates discussed as
current mineral reso urces or reserves and therefore the estimates should be treated as historical in nature and not current mineral resources or
mineral reserves. Apollo’s QP, Cathy Fitzgerald, has determined these historic resources are reliable, and relevant to be included here in that they
demonstrate simply the mineral potential of the properties. A thorough review of all historic data performed by an independen t QP, along with
additional exploration work to confirm results, would be required in order to produce a current mineral resource estimate for either property.
Effective February 25, 2019, the U.S. Security and Exchange Commission (‘SEC’) adopted new mining disclosure rules under subp art 1300 of
Regulation S-K of the U.S. Securities Act of 1933, as amended (the “SEC Modernization Rules”), with compliance required for the first fiscal year
beginning on or after January 1, 2021. These replace the disclosure requirements included in SEC Industry Guide 7 and as a re sult, the SEC now
recognizes terms such as “indicated” an d “inferred” with respect to mineral resources. U.S. investors are cautioned that while the SEC
Modernization Rules are “substantially similar” to the CIM Standards, readers are cautioned that there are differences betwee n the SEC
Modernization Rules and the CIM Standards.
Recent Work
Working with Apex Geoscience Limited, an independent, professional geological consulting company,
Apollo has recently completed the development of preliminary three-dimensional (“3D”) geology models
at both Waterloo and Langtry. The respective models were based on detailed surface mapping completed
by Superior (at Langtry), and Asarco and Pan American (at Waterloo). All previous drilling completed on
the projects was incorporated into these models. They are the first 3D geology models completed by Apollo
on the projects and provide the foundation for increasing our geological understanding of the mineralization
and will be important inputs into the calculation of a maiden resource estimate. For Waterloo, existing drill
data was compared to the historic resource model in a geological context both spatially and statistically
which has enabled Apollo to develop further confidence in the integrity and value of the historic data. The
geologic models and historic drilling will also be used as the foundation for developing Apollo’s drilling
and exploration plans for the two projects. For images of the 3D models please see Apollo’s website
https://apollosilver.com/calico-district/.
In addition to this work, Apollo engaged experts at Minalytix Inc. to create a single validated drill assay
database, coupled with their independent review a nd audit of the data, for both projects using their
proprietary MX Deposit software. At Waterloo this includes the Asarco and Pan American data and ,
importantly, the results of the 824 check assays of the Asarco pulps that were completed by Pan American.
At Langtry, the database includes data from Superior and Athena. Athena completed 13 drill holes (1,820
metres/6,000 feet), ten of which were for the purpose of validating the Superior drill data. Results from this
work, as determined by SRK Consulting in 2012, showed that, on average, the 2011 Langtry silver assays
corroborate the historic silver assays and thus, SRK determined that the historic assays were credible.
The outcome of these two work programs has been positive and verified the integrity of the drilling and
assay data and confirmed our confidence in the quality of the historical data collection and QA/QC
procedures at both the Waterloo and Langtry projects . This outcome may maximize the amount of
information that Apollo may incorporate into a maiden resource estimate. Importantly, this work has
increased Apollo’s confidence in the historical estimates of the silver mineralization made by the previous
operators at both projects. The results of the work have provided valuable insight into Apollo’s upcoming
technical work program and will ensure that the amount of re -drilling that may be required to declare the
maiden resource at both projects is optimised ensuring savings in both capital and time.
Initial Site Visit Completed
In August, Cathy Fitzgerald, Vice President, Exploration and Resource Development, and Alan O’Connor,
General Manager-Waterloo and Langtry Projects, completed a visit to the Waterloo and Langtry projects
and the city of Barstow. The visit was positive and verified that the project is easily accessible by paved
and gravel roads. The visit also confirmed that most of the roads on the projects remain accessible and can
be used for the Company’s upcoming exploration and drilling program. Additionally, meetings were held
with key local stakeholders , local services that could be provided from Barstow and surrounding
communities were assessed and connections were made with several local businesses.
Appointment of Lilburn Corp
Apollo has engaged Lilburn, a consult ing company based in San Bernardino, California, to assist with
commencement of the permitting application process associated with drillin g and other exploration
activities. Lilburn is a multi-disciplinary environmental consulting firm with over 20 years of b usiness
practice in California and western states, providing a wide range of services in environmental management,
permitting and natural resource management.
Waterloo and Langtry 2021 Exploration Plan
Apollo’s exploration program for 2021 will focus on completing technical work that will support its plan
to declare a maiden resource estimate for both the Waterloo and Langtry projects. The program will also
include geological and geophysical work for characterization and target generation purposes.
Maiden Resource Declaration Program
Based on the results of multiple independent reviews of drilling data from both Waterloo and Langtry (i.e.
historical technical reports and recent work by independent consultants) Apollo is reviewing its initially
proposed maiden resource declaration program, specifically the amount of re-drilling that may be required.
Apollo believes that the amount of re -drilling required may be substantial ly lower than initially believed
and, if confirmed by further independent review, this could have substantial implications to the time -line
and capital requirements of the technical program. Until results of further independent review are received,
the Company will proceed with its permitting to ensure maximum flexibility and to enable the Company to
most effectively allocate its planned drill metres over geotechnical, metallurgical, resource definition and
target testing components of its upcoming program.
Mapping and Geophysics Program
Apollo has secured the services of Warren Pratt, Ph .D., a U.K.-based professional geologist who worked
with Pan American on the Waterloo Project and has deep knowledge of the geology and mineralization in
the district. Dr. Pratt will focus his work on surface mapping and sampling at the Langtry Property and will
undertake follow up mapping at the Waterloo Property. This work is planned to commence in late
November subject to any travel restrictions that the U.S may impose due to the on -going COVID-19
pandemic.
In addition to the mapping, Apollo is finalizing details of an extensive geophysical program composed of
both ground and airborne techniques. A 3 D ground Induced Polarization/Resistivity Survey is planned to
cover both the Waterloo and Langtry Project area s. Neither of these two projects have seen any modern
geophysics and the application of this ground -based technology is expected to provide additional insights
into the known mineralization, identify opportunities to expand that mineralization, and provide new targets
that could lead to a significant greenfield discovery in this very prospective silver district.
The second component of the geophysics program will be an airborne magnetics survey, the results of
which will enable a better understanding of th e structural framework and controls on mineralization and
will support Apollo’s mineralization expansion and new target generation activities.
It is anticipated that the geophysics program will commence in mid -November subject to any travel
restrictions that the U.S may impose due to the on-going COVID-19 pandemic. Further details of Apollo’s
planned program will be provided in due course.
Qualified Person
Cathy Fitzgerald, P.Geo., Vice President Exploration and Resource Development, is a Qualified Person as
defined by National Instrument 43- 101 and has reviewed and approved the technical content in this news
release.
For further information about the Waterloo Project historic mineral resource estimate, please see the 2012
N.I. 43-101 technical report “NI 43-101 Technical Report Waterloo Project, California, USA” prepared by
H. Samari and L. Breckenridge of Global Resource Engineering, Ltd., with an effective data of May 12,
2021. Please visit www.apollosilver.com for further information on the Company and the Waterloo and
Langtry projects.
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, statements with respect to the potential of the
Company’s properties; the timing and completion of the anticipated 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 and geophysical program plans and targets; success of exploration
activities; the estimation of mineral resources; and conclusions of economic evaluations . Forward-looking
statements include predictions, projectio ns 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 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 outlo ok regarding future trends; 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 current level in the short term; expectations with respect to raising capital; sensitivity
analysis on financial instruments may vary from the amounts disclose d; government regulation and
environmental liability; relations with local stakeholders 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 actual results, and
future events could differ materially from those anticipated in such statements. Important factors that could cause
actual results to differ materially from the Company’s expectations include actual exp loration 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, delays 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 filings 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 m aterially
different results. 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, readers
should not place u ndue reliance on forward looking information. 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 obj ectives 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.