Apollo Silver (TSX-V: APGO) - 2022 Drill Program Complete Ahead of Schedule

Apollo Silver Corp. has assembled an experienced and technically strong leadership team who have joined to advance world-class precious metals projects in tier-1 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 the Silver District Project in La Paz County, Arizona.

Matt Gordon caught up with Tom Peregoodoff, President, CEO, and Director, Apollo Silver. Tom has over 30 years of industry leadership experience through all stages of exploration. He previously served as Vice President of Early Stage Exploration at BHP, and as CEO for Peregrine Diamonds. Tom is currently a Board member and Independent Director of American West Metals Limited.

Company Overview

Apollo Silver Corp. is focused on providing shareholder value through advancing pure-play silver projects in mining-friendly American jurisdictions. Apollo Silver has assembled an experienced and technically strong leadership to advance its project portfolio. Both the Calico Silver Project and the Silver District project have significant historical, geological, and drilling databases and have large exploration upside within under-explored land packages. The company was founded in 1999 and is headquartered in Vancouver, Canada. It is listed on the Toronto Stock Exchange (TSX-V: APGO), the OTC Markets (OTCQB: APGOF), and the Frankfurt Stock Exchange (FSE: 6ZF0).

Apollo Silver is a US silver story, advancing the Calico project in San Bernardino County, California. The company’s representatives recently attended the 121 Mining Investment conference in London. According to the company, there has been an increase in the number of genuine investors over the past 2 years. Institutional investors are now showing interest in big development stories where they can invest at a slightly lower risk. This has had a knock-on effect, which is a positive development.

At the conference, over 95% of the new investors have shown interest in Apollo Silver’s story. Many investors are eyeing the bottom end of the market and are looking at Apollo Silver as an entry point for investments.

There have been several conversations between Apollo Silver’s management team and the current shareholders where the company demonstrated that it has a strong team. The company is advancing the asset according to the last year’s plan.

Last year, the company introduced the Calico asset to the market. The company was looking to publish a maiden resource estimate in 2022, which was accomplished in February. It is important to note that the resource estimate was carried out ahead of time and under budget. The company currently has a 166Moz silver resource at the Calico asset. The company was looking to expand and advance its resource through a drill program. In order to achieve this, the company would require permits. Apollo Silver applied for drill permits in San Bernardino county, which were acquired within 6 weeks. This was surprising for a lot of people because acquiring mining permits in California is highly-challenging. Notably, San Bernardino country has been highly supportive of the company’s resource and development.

Financial Considerations

Apollo Silver has made a couple of major decisions regarding its finances. It has ensured that the treasury is focused on getting the project to a point where it benefits from green shoots, which can potentially turn into growth. The company is preparing itself for a market turn so that it can be on investors' radars, effectively benefitting from a change in the market cycle.

The company has a strong treasury and is well-funded to deliver on its targets. It has plans to convert the inferred ounces to the M&I (Measured and Indicated) category. The company is also looking to carry out some engineering studies before it can approach the market for recapitalization. Once the company goes back to the market, it will be backed by a significant advanced asset, which, in turn, will also increase the value of the opportunity in Calico.

Market Landscape

Apollo Silver is cognizant that in order to make the most of the opportunity it needs to time the market. This year, the company has optimized its drill program, which was completed 2 weeks ahead of schedule and under budget. The company will approach the market with a revised resource estimate in the first quarter of 2023.

The company understands that the market’s timing and recovery are beyond its control. It is confident that eventually, the markets will turn. In the meantime, the company is actively avoiding an expensive capital raise. This is because the capital provider would end up benefitting from the team’s hard work and the shareholder support that the company has received since its inception.

The market downturn has been sharper than anticipated. A lot of good projects with talented teams have been caught up in this downturn. The company anticipates that when the markets eventually turn, the better projects will see a stronger recovery.

Ongoing Operations

In California, power accounts for a large portion of the operations costs. Crushing and grinding is a significant drivers of power consumption and overall costs. The company is looking at different technologies that can help lower its power consumption. Over the next few months, the company will be working with technology providers to put a program in place. The company expects to make an announcement on the same in the next 4 months.

In order to fulfill its commercial power requirements, the company is looking at the Daggett Solar complex, which is currently in the second or third phase of construction. This complex is located 3km from the company’s asset, providing an option to source commercial, green power. The company will try setting up a direct off-take for its energy requirements. The company is also considering the installation of renewable energy sources on-site to help support its power needs. It is focused on bringing the processing costs as low as possible.

According to the company, there hasn’t been a change in risk appetite for retail investors. Meanwhile, institutional investors, large family offices, and sophisticated investors are looking at some of the green shoots. Overall, there’s a lot of uncertainty for average retail investors, and they are expected to sit on the sidelines for a little bit longer.

As per Apollo Silver, the current market landscape is an excellent time for a contrarian approach. There are some fantastic stories out there with highly-experienced teams that have suffered from the general market downtrend. It’s essential for investors to identify these stories as there’s a potential to accrue a lot of value in the current environment. Apollo Silver is focused on moving the project forward and discussing potential off-take agreements with interested parties.

To find out more, go to the Apollo Silver website