Apollo Silver expands project team and obtains drill permit for Calico Silver Project, California

Apollo Silver Corp. [TSXV: APGO, OTCQB: APGOF, FSE: 6ZF0] reported a number of positive developments at its Calico Silver Project in San Bernardino County, southern California.

Highlights: Appointment of Senior Project Manager: Tony Gonzales, P.Geo., with over 35 years of mineral exploration experience, including leading roles at BHP and Fission Uranium, joins as Senior Project Manager with a focus on advancing Calico.

Langtry Option Extension: The company executed an amendment to one of its option to purchase agreements for the Strachan portion of the Langtry Property, extending its right to acquire up to 100% of that portion of the property by an additional nine years.

Waterloo Permit Extension: The company has received approval for a third extension of the Temporary Use Permit (TUP) for the Waterloo Property, which allows for exploration drilling activities for the next 12 months.

Strengthening of Technical Advisors: The company has engaged George Kenline, PG, CHg, CEG, a California-licensed Engineering Geologist and Hydrogeologist, and Genesg, a consulting firm with global expertise specializing in permitting, stakeholder relations, sustainability, and ESG leadership, to its technical advisory team for Calico.

To support the advancement of Calico, Apollo also appointed Tony Gonzales, P. Geo., as Senior Project Manager.

Tony brings more than 35 years of mineral exploration experience, including nearly two decades with mining giant BHP.

Ross McElroy, President and CEO of Apollo, commented, “Calico consists of a major, high confidence silver resource surrounded by one of the most prospective land packages in the region. Thanks to the success of prior work programs, we already have an exciting list of exploration targets, including high-grade silver, gold, and barite. Now, with the appointment of Tony Gonzales, we have one of the industry’s top exploration team leaders to take Calico into its next phase of growth.”

The company has entered an amendment to its option to purchase agreement with David K. Strachan as Trustee of the Bruce & Elizabeth Strachan Revocable Living Trust dated July 25, 2007. Under the original agreement, the company was required to make a payment equal to the greater of US$5.2 million or the spot price of 220,000 troy ounces of silver, less any option payments made to date, by December 24, 2025, in order to acquire 100% interest in 20 patented and 2 unpatented mineral claims within the Langtry Property, part of the company’s larger Calico Project.

The Langtry deposit, the majority of which is located on the Strachan Property, has a 2022 inferred Mineral Resource Estimate of 19.3 M tonnes grading 81 g/t Ag for a total of 50 M oz of Ag using a 50 g/t silver cut-off.

The amendment extends the option period expiry date from December 24, 2025 to December 24, 2034; increases the purchase price to the greater of US$7.0 million or the spot price of 250,000 troy ounces of silver, less any option payments made to date; and provides for annual option maintenance payments to be made over the duration of the eight-year extension totaling US$3.9 million, all of which can be credited against the Amended Purchase Price upon exercise.

To date, the company has made a total of US$500,000 in option maintenance payments, which can be credited against the Amended Purchase Price upon exercise.

The company has received approval from the San Bernardino County Land Use Services Department for its third extension of its TUP, allowing the company to conduct exploration drilling at Waterloo for the next 12 months

The company has entered into an advisory agreement with George Kenline to act as an independent technical advisor to the company.

Additionally, Apollo has also strengthened its project development team by engaging Genesg, a consulting firm with global expertise in permitting, stakeholder engagement, sustainability, and ESG Leadership, to support the company as it advances Calico towards project development.

Apollo is advancing one of the largest undeveloped primary silver projects in the US. The Calico project hosts a large, bulk minable silver deposit with significant barite credits – a critical mineral essential to the US energy and medical sectors. The company also holds an option on the Cinco de Mayo Project in Chihuahua, Mexico, which is host to a major carbonate replacement (CRD) deposit that is both high-grade and large tonnage.