Apollo Silver files NI 43-101 Technical Report for Cinco de Mayo Project, Chihuahua State, Mexico
Apollo Silver Corp. [TSXV: APGO; OTCQB: APGOF, FSE: 6ZF0] has filed an independent NI 43-101 Technical Report for the Cinco de Mayo Project, Chihuahua State, Mexico with an effective date of February 28, 2025 in connection with its previously announced earn-in and option agreement with MAG Silver Corp. [TSX, NYSE: MAG] and its subsidiary, Minera Pozo Seco, S.A. de C.V. (MPS) with respect to the 29 concessions totalling 25,113.2049 ha located in the Municipio de Buenaventura comprising the Cinco de Mayo Project.
Katharine Masun, MSA, M.Sc., P.Geo., Principal Resource Geologist with SLR Consulting (Canada) Ltd. is the Qualified Person for this Technical Report.
The Upper Manto Pb-Zn-Ag (Au) deposit consists of two parallel and overlapping manto deposits referred to as the Jose Manto deposit and the Bridge Zone. The project also hosts the Pozo Seco Mo-Au deposit. The two deposits host distinctly different mineralization with different commodities, are separated by 4 km, and are divided by a small mountain range. At the project, extensive amount of historical technical work has been completed by MAG between mid-2004 and 2012. The work included geological mapping, geochemical sampling, geophysical surveys, surface drilling (approximately 213,591 m in 445 drill holes), and metallurgical testing.
An independent technical report and Mineral Resource estimate (MRE) on the Upper Manto deposit was prepared in 2012 by Roscoe Postle and Associates (RPA), which is now part of SLR. RPA estimated the Mineral Resources for the Upper Manto deposit using drill hole data available as of September 1, 2012.
At an NSR cut-off of US$100/t, Inferred Mineral Resources were estimated to total 12.45 million tonnes (Mt) at 132 g/t silver, 0.24 g/t gold, 2.86% lead and 6.47% zinc. The total contained metals in the resource were 52.7 million ounces (Moz) of Ag, 785 million pounds (Mlb) of Pb, 1,777 Mlb of Zn, and 96,000 ounces of Au.
In 2010, RPA prepared an independent technical report and Mineral Resource estimate for the Pozo Seco deposit based on drill results available as of July 12, 2010. At a cut-off grade of 0.022% Molybdenum (Mo), the Indicated Mineral Resources were estimated at 29.1 Mt grading 0.147% Mo and 0.25 g/t Au, containing 94.0 Mlb of Mo and 230,000 oz of Au. Inferred Mineral Resources were estimated at 23.4 Mt grading 0.103% Mo and 0.17 g/t Au, containing 53.2 Mlb of Mo and 129,000 oz of Au. The estimate was constrained within a preliminary pit shell using assumed costs, recoveries, and metal prices.
Apollo does not intend to complete additional work at Pozo Seco to update the historical Mineral Resource estimate in the foreseeable future and all future field work activities and proposed work would only occur once Apollo has obtained social license, and necessary permits for the Project. The Technical Report recommends that a significant exploration budget is warranted at the Upper Manto deposit.
Recommended work includes additional drilling to expand the mineralized domains along strike and down dip, collect density data, and construct a geological model to improve confidence in the mineralization controls. The 61.6 m intersection of massive sulphide known as the Pegaso Zone, was not included in the historical estimate at the Upper Manto deposit and additional drilling is also recommended to establish the geometry of this zone during the first phase. The Technical Report recommends that as part of a Phase 2 program, Apollo prepares a current Mineral Resource estimate on the Upper Manto deposit.
On September 20, 2024, Apollo entered an earn-in and option agreement with MAG and its subsidiary MPS, pursuant to which Apollo was granted the option to acquire all of the issued and outstanding shares of 0890887 B.C. Limited, a wholly owned subsidiary of MAG. MPS is (except for one share that is owned Los Lagartos S.A. de C.V., who holds such share for the benefit of MAG, in order to comply with the minimum legal requirement of having two shareholders in a Mexican corporation) an indirect, wholly-owned subsidiary of 089 Limited and the sole registered and beneficial owner of the Project. In order to render the Option exercisable, and to acquire a 100% indirect interest in and to the Project, Apollo must first obtain the necessary licensing and permits to access and conduct mining activities on the Project, followed by completing no less than 20,000 metres of exploration drilling within five years. Upon completion of these terms and subject to the final approval of the TSXV, Apollo must then issue MAG such number of Apollo common shares equivalent to 19.9% of the then issued and outstanding common shares of the company on a non-diluted basis following such issuance. In addition, Apollo will grant MAG the right to maintain its 19.9% stake by participating in any subsequent financing for an additional four years from the date of exercise of the option.
A potential new discovery, called the Pegaso Zone was not included in the 2012 Historical MRE. Apollo’s technical team considers this intersection as a high priority target that has potential to be a significant new discovery. The company’s initial review of historical data suggests that the Pegaso Zone could indicate a larger and higher-grade resource at depth.