Apollo Silver Corp. (“
Apollo” or
the “
Company”) (TSX.V:APGO, OTCQB:APGOF,
Frankfurt:6ZF0) is pleased to report assay results from a surficial
rock grab sampling program and remaining assays from the Phase 1
2022 Drill Program at the
Calico Silver Project
(“
Calico” or the “
Project”)
located in San Bernardino County, California. The surficial rock
grab sampling and drilling programs are part of the 2022 Calico
Technical Program, which aims to upgrade and expand the previously
announced Inferred Mineral Resource Estimate
(“
MRE”) of
166
million ounces
(“Moz”) of silver
(“Ag”) contained in
58.1 million tonnes (“Mt”) at an average
grade of 89 grams per tonne (“g/t”) (see news release
dated February 9, 2022)1.
A surficial rock grab sampling program completed
recently in the Burcham area, 225 metres (“m”)
south of the Waterloo resource area, returned 34 rock samples with
0.1 g/t or more gold (“Au”), showing that this
region represents a significant gold mineralized prospect outside
the current MRE (see Figure 1 below). The surface program was
designed to follow up on historic work completed in this area
between approximately 1940 and 1989, showing the area exhibited
gold mineralization across a broad area. Notable new surface rock
samples reported include 6.280 g/t Au, 2.470 g/t Au, 2.410
g/t Au, and 2.240 g/t Au from subvertical, northwest
oriented structures. These results, combined with drilling results
to date confirm that gold mineralization is present over an
extensive area at Waterloo (900 m X 400 m) over a variably thick
horizon (approximately 5 m to 45 m true thickness).
In addition to these surface samples, final
Phase 1 reverse circulation (“RC”) drilling assay
results show that seven of nine holes reported herein intersected
gold at the Barstow-Pickhandle contact. This latest drilling shows
that gold mineralization is spatially continuous between the
Waterloo Ag resource (116 Moz Ag contained in 38.9 Mt at an average
grade of 93 g/t Ag) and Burcham areas. Gold mineralization
represents a compelling prospect with the latest results providing
further support for adding to the metal inventory for the upcoming
mineral resource estimate update. These latest results will be
followed up in Phase 2 of the 2022 Calico Technical Program which
is expected to recommence in late-September.
As with all previously reported drilling results
from the Phase 1 2022 Drill Program, silver mineralization
correlates well with predicted block model grades, with three drill
holes intersecting silver mineralization above the 50 g/t Ag
cut-off grade (“COG”) used for the MRE, and one
drill hole intersecting silver in excess of 500 g/t Ag.
GOLD HIGHLIGHTS
|
Hole W22-RC-030 |
|
- 0.225 g/t Au over 27.0 m from 131.5 m depth down hole;
- Including 0.850 g/t Au over 1.5 m from 133.0 m down hole;
|
|
Hole W22-RC-036 |
|
- 0.315 g/t Au over 6.0 m from 82.0 m down hole;
- Including 0.524 g/t Au over 1.5 m from 82.0 m down
hole;
|
|
Hole W22-RC-037 |
|
- 0.376 g/t Au over 16.5 m from 71.5 m depth down hole;
- including 0.672 g/t Au over 7.5 m from 76.0 m depth down
hole;
- and including 1.200 g/t Au over 1.5 m from 82.0 m depth down
hole.
|
|
Gold assays are reported at a 0.1 g/t gold cut-off grade with up to
4.5 m dilution and are uncapped. Lengths are down hole lengths and
may not represent true widths. |
SILVER HIGHLIGHTS
|
Hole W22-RC-029 |
|
- 151 g/t Ag
over 94.5 m from
1.0 m depth down hole;
- including 289 g/t Ag over 1.5 m from 5.5 m depth down
hole;
- including 257 g/t Ag over 6.0 m from 61.0 m depth down hole;
and
- including 734 g/t Ag over 1.5 m from 86.5 m depth down
hole.
|
|
Hole W22-RC-030 |
|
- 92 g/t Ag over 40.0 m from surface; and
- 53 g/t Ag over 6.0 m from 50.5 m depth down
hole.
|
|
Hole W22-RC-031 |
|
- 123 g/t Ag over 26.5 m from surface.
|
|
Silver assays are reported at a 50 g/t silver COG with up to 4.5 m
dilution and are uncapped. Lengths are down hole lengths and may
not represent true widths. |
1The MRE has been prepared by Derek Loveday, P.
Geo. of Stantec Consulting Services Ltd., in conformance with
Canadian Institute of Mining and Metallurgy’s “Estimation of
Mineral Resource and Mineral Reserves Best Practices” guidelines
and are reported in accordance with the Canadian Securities
Administrators NI 43-101. It is effective January 28, 2022. 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. Mr. Loveday is an
independent Qualified Person for Apollo’s MRE. Please refer to the
Company’s news release dated February 9, 2022, for more
information.
“These results have confirmed the significant
gold potential at Calico” commented Apollo CEO Tom Peregoodoff.
“The surficial sampling combined with Apollo’s drilling have
defined an extensive gold horizon that has never been fully
delineated by previous operators. This horizon has the potential to
add significant value to the Calico silver resource and further
work is planned as part of the second phase of our 2022 Calico
Technical Program to define this zone such that gold can be
included in the upcoming revised resource estimate. With drilling
set to commence this month, we are on track to deliver a revised
resource estimate in early 2023 and will commence engineering
studies shortly thereafter.”
SURFACE SAMPLING RESULTS
The surface rock grab sampling program was
undertaken in July 2022 over a three-day period. A total of 46 rock
samples were collected to confirm the historically reported
disseminated nature of gold in the basal Barstow formation rocks in
an area 225 m southeast of the Waterloo resource. This area,
referred to as the Burcham area, hosted the Burcham mine, the only
mine in the Calico mining district that produced gold as its
primary commodity. The mine was active in the 1940s and comprised
two underground drifts that exploited gold mineralized subvertical
northwest oriented structures (refer to Figure 1). Total production
figures are unknown. In 1985 and 1989, ASARCO completed 196.6 m of
rotary drilling and 335.4 m of diamond drilling and sampled the
underground workings at Burcham to determine the extent of
mineralization in the Barstow-Pickhandle rocks. The new rock sample
results follow up on and confirm that work and show that discrete
sub-vertical structures host gold with concentrations varying from
1 to over 6 g/t Au in bleached and brecciated fault gouge in
Barstow formation siltstones. The broader rock package across the
sampled region (down to ~ 45 m depth) is mineralized with at least
0.1 g/t Au, hosted in variably silicified (cherty), bleached
bedding horizons in the Barstow formation siltstones and
sandstones. Refer to Figure 1 showing the distribution of surface
rock samples reported herein.
Table 1: Surface rock grab sample
results for samples above 0.5 g/t Au.
Sample ID |
Easting(m) |
Northing(m) |
Elevation(m) |
Au(g/t) |
Ag(g/t) |
E569062 |
511279 |
3867390 |
701 |
1.555 |
18 |
P715865 |
511316 |
3867460 |
717 |
2.470 |
27 |
P715873 |
511296 |
3867501 |
744 |
6.280 |
13 |
P715879 |
511290 |
3867536 |
753 |
0.572 |
13 |
P715881 |
511260 |
3867499 |
740 |
1.340 |
8 |
P715908 |
511436 |
3867429 |
737 |
2.240 |
39 |
P715910 |
511419 |
3867435 |
742 |
0.507 |
11 |
P715911 |
511422 |
3867437 |
743 |
2.410 |
65 |
The reader is cautioned that grab samples are
selective by nature and do not necessarily represent the true metal
content of the mineralized zones. Complete rock sampling results
are available on the Company’s website.
Figure 1: Drill hole and surface rock
sample locations map as reported September 14, 2022, for the 2022
Calico Technical Program.
DRILLING ASSAY RESULTS
Results below are reported for the remaining
drill holes from the Phase 1 2022 Drill Program. These nine RC
drill holes were completed between mid-June and early-July 2022,
bringing the results released to market for the Phase 1 2022 Drill
Program to a total of 42 holes (4,909.5 m), of the 44 holes
completed (5,021.0 m). Two drill holes (W22-RC-003 and W22-RC-004)
were not assayed, as there was evidence of material mixing during
sampling at the drill rig. These two drill holes were re-drilled as
holes W22-RC-03B and W22-RC-04B (reported in news release dated
June 29, 2022).
Of the nine holes reported herein, four were MRE
infill holes targeting near surface silver, and five aimed to
target gold outside the southern margin of the current MRE. The
holes targeting gold aimed to determine if the gold hosted at the
Barstow-Pickhandle contact was continuous between the Waterloo
resource and Burcham areas. Results show that it is continuous, and
that the gold mineralization extends up to 900 m along strike.
Refer to Figure 1 (above) and Table 2 (below) for drill hole
locations and Table 3 (below) for gold results from drill
holes.
Three of the nine holes intersected silver
mineralization at or above the mineral resource silver COG of 50
g/t Ag. As expected, holes W22-RC-036 through W22-RC-041 confirmed
the MRE-predicted lower Ag grade (< 50 g/t COG) in the southeast
margins of the deposit and confirmed the continuous nature of Au in
this region. Refer to Figure 1 (above) and Table 2 (below) for
drill hole locations and information Table 4 (below) for silver
assay results.
Table
2: Drill hole information for
results reported September 14, 2022,
for the 2022 Calico Technical
Program.
Hole |
Easting(m) |
Northing(m) |
Elevation(m) |
Total Depth(m) |
Total Depth(ft) |
Azimuth |
Dip |
W22-RC-029 |
510753 |
3867840 |
786 |
202 |
663 |
0 |
-90 |
W22-RC-030 |
510844 |
3867775 |
785 |
172 |
564 |
247 |
-75 |
W22-RC-031 |
510908 |
3867764 |
786 |
142 |
466 |
0 |
-90 |
W22-RC-036 |
511069 |
3867538 |
757 |
139 |
456 |
0 |
-90 |
W22-RC-037 |
511114 |
3867560 |
753 |
154 |
505 |
0 |
-90 |
W22-RC-038 |
511158 |
3867607 |
756 |
31 |
102 |
0 |
-90 |
W22-RC-039 |
511101 |
3867598 |
777 |
109 |
358 |
0 |
-90 |
W22-RC-040 |
511033 |
3867577 |
774 |
165 |
540 |
0 |
-90 |
W22-RC-041 |
511094 |
3867568 |
763 |
115 |
377 |
0 |
-90 |
Note: Drill hole assay results are reported as
received from the laboratory. Results are not necessarily received
in the order holes were drilled.
Table 3: Gold
assay results reported
September 14, 2022, for the 2022
Calico Technical Program.
Hole |
|
|
From(m) |
To(m) |
Interval(m) |
Au(g/t) |
W22-RC-029 |
No significant intercepts |
W22-RC-030 |
|
|
131.5 |
158.5 |
27.0 |
0.225 |
including |
|
133.0 |
134.5 |
1.5 |
0.850 |
W22-RC-031 |
|
|
85.0 |
88.0 |
3.0 |
0.220 |
W22-RC-036 |
|
|
82.0 |
88.0 |
6.0 |
0.315 |
including |
|
82.0 |
83.5 |
1.5 |
0.524 |
W22-RC-037 |
|
|
71.5 |
88.0 |
16.5 |
0.376 |
including |
|
76.0 |
83.5 |
7.5 |
0.672 |
and including |
|
82.0 |
83.5 |
1.5 |
1.200 |
and |
|
95.5 |
98.5 |
3.0 |
0.201 |
W22-RC-038 |
|
|
14.5 |
19.0 |
4.5 |
0.142 |
and |
|
25.0 |
28.0 |
3.0 |
0.240 |
W22-RC-039 |
|
|
53.5 |
55.0 |
1.5 |
0.142 |
and |
|
85.0 |
86.5 |
1.5 |
0.235 |
and |
|
100.0 |
101.5 |
1.5 |
0.104 |
W22-RC-040 |
No significant intercepts |
W22-RC-041 |
|
|
74.5 |
76.0 |
1.5 |
0.112 |
and |
|
100.0 |
115.0 |
15.0 |
0.157 |
Gold intercepts calculated using 0.1 g/t cut-off
grade with higher-grade intercepts calculated at 0.5 g/t cut-off
grade with a maximum of 4.5 m internal dilution and are uncapped.
Intercepts are down hole lengths and may not represent true
widths.
Table 4:
Silver assay
results reported September 14,
2022, for the
2022 Calico Technical
Program.
Hole |
|
|
From(m) |
To(m) |
Interval(m) |
Ag(g/t) |
Ag(opt*) |
W22-RC-029 |
|
|
1.0 |
95.5 |
94.5 |
151 |
4.4 |
including |
|
5.5 |
7.0 |
1.5 |
289 |
8.4 |
including |
|
61.0 |
67.0 |
6.0 |
257 |
7.5 |
including |
|
86.5 |
88.0 |
1.5 |
734 |
21.4 |
W22-RC-030 |
|
|
0.0 |
40.0 |
40.0 |
92 |
2.7 |
and |
|
50.5 |
56.5 |
6.0 |
53 |
1.6 |
W22-RC-031 |
|
|
0.0 |
26.5 |
26.5 |
123 |
3.6 |
and |
|
85.0 |
86.5 |
1.5 |
59 |
1.7 |
W22-RC-036 |
No significant intercepts |
W22-RC-037 |
No significant intercepts |
W22-RC-038 |
No significant intercepts |
W22-RC-039 |
No significant intercepts |
W22-RC-040 |
No significant intercepts |
W22-RC-041 |
No significant intercepts |
Silver intercepts calculated using 50 g/t
cut-off grade with significantly higher-grade intercepts reported
at 250 g/t cut-off grade with a maximum of 4.5 m internal dilution
and are uncapped. Intercepts are down hole lengths and may not
represent true widths. *Troy ounces per US short ton.
SAMPLING AND
QUALITY ASSURANCE/QUALITY
CONTROL
Drilling is being undertaken by Cooper Drilling
LLC, of Monte Vista, Colorado. RC chip samples were collected in
1.5 m lifts with 15 lb representative samples sent for analysis.
Grab samples were collected in the field and a 2 kg representative
sample was sent for analysis. Representative chip samples were also
collected for logging purposes (lithology, alteration,
mineralization), detailed photography and analysis by portable
X-Ray Fluorescence. RC and rock grab samples are catalogued and
securely stored in a warehouse facility in Barstow, California
until they are ready for secure shipment to ALS Global-Geochemistry
in Reno, Nevada (“ALS Reno”) for sample
preparation and gold analysis. ALS Reno may selectively ship
samples to other laboratories, such as ALS Global-Geochemistry in
Carson City, Nevada (“ALS Carson City”) for
preparation. After preparation, splits of prepared pulps are
securely shipped to ALS Vancouver, British Columbia for
multi-element analysis.
Samples were prepared at either ALS Reno or ALS
Carson City (Prep-31 package) with each sample crushed to better
than 70% passing a 2 mm (Tyler 9 mesh, U.S. Std. No.10) screen. A
split of up to 250 g is taken and pulverized to better than 85%
passing a 75-micron (Tyler 200 mesh, U.S. Std. No. 200) screen. All
RC samples were analyzed for 48 elements via ICP-MS following a
four-acid digestion with reportable ranges for silver of 0.01 to
100 ppm (method ME-MS61). Over-range samples analyzed for silver
were re-submitted for analysis using a four-acid digestion and
ICP-AES finish with a silver range of 1-1,500 ppm (method Ag-OG62).
When results were over 400 ppm silver, they were re-submitted for
analysis by fire assay with a gravimetric finish using a 30 g
nominal sample weight with reportable silver range of 5-10,000 ppm
(method Ag-GRA21). Over-range samples analyzed for copper, lead and
zinc were re-submitted for analysis using a four-acid digestion and
ICP-AES finish (method OG62) with range of 0.001-50% for copper,
0.001-20% for lead, and 0.001-30% for zinc. Gold was analyzed by
fire assay with atomic absorption finish (method Au-AA26) with a
reportable range of 0.01-100 ppm Au. Of the 46 surface rock grab
samples collected, 36 were analyzed by method ME-MS-61 only, with
the remaining 10 analyzed using complete characterization via the
CCP-PK05 method which includes whole rock analysis (ME-ICP06),
ME-MS61, single element trace method using aqua regia digestion and
ICP-MS (ME-MS42) and rare earth elements using method ME-ME81 which
consist of lithium borate fusion followed by ICP-MS. All surface
rock samples were submitted for gold analysis by fire assay
(Au-AA26). All analyses were completed at ALS Vancouver except for
gold by fire assay, which was completed at ALS Reno.
The Company maintains its own comprehensive
quality assurance and quality control (“QA/QC”)
program to ensure best practices in sample preparation and analysis
for samples. The QA/QC program includes the insertion and analysis
of certified reference materials, commercial pulp blanks,
preparation blanks, and field duplicates to the laboratories.
Apollo’s QA/QC program includes ongoing auditing of all laboratory
results from the laboratories. The Company’s Qualified Person is of
the opinion that the sample preparation, analytical, and security
procedures followed are sufficient and reliable. The Company is not
aware of any drilling, sampling, recovery, or other factors that
could materially affect the accuracy or reliability of the data
reported herein.
ABOUT THE
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
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 the
Project 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 ft) 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
PERSONS
The scientific and technical data contained in
this news release was reviewed, and approved by Cathy Fitzgerald,
M.Sc., 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
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 County, California and Silver
District Project in La Paz County, Arizona.
Neither the 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 drilling and exploration activities.
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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