Apollo Silver

Apollo Silver Corp. (Apollo) is a pure-play silver exploration and development company focused on advancing its portfolio of US-based assets. The company’s flagship project is the Calico Silver Project (Calico) located in mining-friendly San Bernardino County, California.

The project hosts an inferred mineral resource estimate of 166 million ounces of silver contained in 58.1 million tonnes at an average grade of 89 grams per tonne silver. Apollo’s portfolio also includes the Arizona Silver District Project in La Paz County, Arizona.

The project hosts three significant epithermal veins with a collective strike length of 13 kilometres. These historically produced a reported 1.5 million ounces of silver intermittently between 1883 and 1930.

Silver serves both the investment and industrial metal sectors. Silver has traditionally been viewed as an effective hedge against inflation. The current period of record high inflation across many of the G7 countries is expected to have a positive impact on the demand for silver from this sector.

In addition to protecting capital against inflation, the worldwide demand for silver driven by industrial applications remains strong and is expected to increase as electric vehicle adoption and solar energy capacity grows. Silver plays an important role in the green economy as it is known to be highly reflective and the most electrically conductive of all the metals (including copper). To support increased demand and future applications of the precious metal, industry will require more silver, preferably from stable, mining-friendly jurisdictions, with high ESG standards, such as the U.S.

Apollo offers investors exposure to a pure silver portfolio, in a stable jurisdiction with high ESG standards and is one of few “pure silver” options amongst its silver peers. Currently, the company trades at a discount to its peer group, however this valuation gap is expected to close as Apollo executes its strategy of upgrading and growing the Calico Project resource.

The Calico Silver Project

The company’s flagship asset, the Calico Silver Project, comprises 2,950 acres and is located in mining-friendly San Bernardino County, California (201 kilometres northeast of Los Angeles), with local services and infrastructure support (i.e., gravel and paved roads for project access and commercial electric power within 5 kilometres). San Bernardino County is host to almost 100 operating mines and “...recognizes that the extraction of minerals is essential to the continued economic well-being of California and to the needs of society.”

The project hosts two silver-mineralized bodies, the Waterloo and Langtry deposits, both of which are situated on private lands and lend to simplified permitting processes. In addition, both the Waterloo and Langtry properties have vested mining rights establishing that the lands may be used for mining activities.

In February 2022, the company published its maiden inferred mineral resource estimate on the project of 166 million ounces of silver contained in 58.1 million tonnes at an average grade of 89 grams per tonne (g/t) silver (at a 50 g/t silver cut-off grade squared) derived from over 42,000 metres of historical drilling. This forms the base from which Apollo expects to upgrade and grow its silver resources.

2022 Focus

The Calico Silver Project demonstrates a tremendous opportunity for growth and development. Previously, a full feasibility study had been completed on the Waterloo property, which had also received all required permits to advance to mining development and operation.

Apollo’s fully funded 2022 technical program at Calico includes up to 10,000 metres of drilling and focuses on:

• Upgrading the Calico Project mineral resource to increase resource confidence;
• Current drilling is at a nominal 100 ft by 200 ft spacing, which is expected to support an Indicated and Measured classification.
• Expanding the resource base by adding shallow high-grade ounces;
• The current resource is limited to approximately 125 metres at depth and there remains an opportunity to expand the resource laterally.
• Quantifying potential by-product credits (i.e. gold and/or barite), which may be included in the mineral resource update.