viewAftermath Silver

Aftermath Silver is building up its portfolio and now boasts three advanced projects in South America


The company's aim is to buy advanced projects that are underpinned by existing resources

Aftermath Silver -

Quick facts: Aftermath Silver

Price: 0.79 CAD

Market: TSX-V
Market Cap: $92.27 m
  • Portfolio of attractive advanced silver projects
  • Experienced management
  • Among top five TSX venture silver juniors in terms of resource-base

What Aftermath Silver does:

Aftermath Silver Ltd (CVE:AAG) (OTCQB:AAGFF) describes itself as a junior explorer focused on acquiring, exploring and developing silver projects with an emphasis on Chile, South America.

The company says it wants to attract the market by amassing over 100 million ounces of silver with a portfolio of projects that remain 'cost positive' at around US$16 per ounce of silver.

The firm also aims to buy advanced projects that are underpinned by existing resources.

The company is currently buying the Challacollo project in Region 1, Chile, which lies 30 kilometres (km) east of the Pan American Highway.

The project already boasts a historic NI 43-101 resource estimate from 2015 of 4.7 million tonnes for 30.2 million ounces of contained silver at a grade of 200 grammes per tonne (g/t) and 48,400 ounces of gold at 0.32 g/t in the higher confidence indicated category.

In the lower confidence inferred section there are 1.6 million tonnes for 6.9 million ounces of silver and 15,900 ounces of gold at a grade of 134 g/t and 0.31 g/t respectively.

The company says that only the Lolon vein at the project is included in its previous resource estimate and that, on that vein, metallurgical recoveries were 92% silver and 75% gold.

Aftermath will have to pay vendor Mandalay Resources (TSE:MND) a total of C$7.5 million to acquire 100% of the Challacollo project. Mandalay currently retains a 3% net smelter return (NSR) on the project's production of up to C$3 million which reportedly works out at about C$0.20 an ounce or about 1% of the value of the silver in the ground.

Aftermath's second Chile project is the advanced Cachinal property, in Region 2, 40km east of the Pan American Highway. Aftermath currently owns 80% of the project, with an option to acquire the remaining 20% from SSR Mining.

This asset has a CIM (Canada) compliant resource estimate, showing 16.32 million ounces of silver in the higher confidence indicated category. Of those, 15.03 million ounces were in an open pit and 1.29 million ounces were underground. Indicated gold ounces came in at 21,700 ounces, using a cut-off grade of 0.13 grams per ton (g/t), while the silver ounces had a cut-off of 101 g/t.

Notably, Austral Gold's (ASX:AGD) Guanaco mine lies 16km to the south of the project, which has produced around 49,000 gold equivalent ounces per annum over the last four years.

In July 2020, Aftermath told investors it was to buy the advanced Berenguela silver, copper project in Peru for nearly US$13 million in staged cash payments over six years.

Berenguela is an epithermal polymetallic deposit. The project's total land package of 6,594 hectares. It lies 6km from the town of Santa Lucia, which has railway access to the port of Matarani.

How is it doing:

It has been a busy spell for the mining firm. In late August, Aftermath Silver said it was poised to bring in C$12.5 million via a private placing, with renowned resource investor Eric Sprott investing over C$5.3 million. Later, it upsized the placing and when it was closed in September, gross proceeds were around C$17.13 million after the firm issued over 26 million shares.

Sprott took part and increased his investment in order to maintain his holding at 19.61% of Aftermath's shares.

Also in September, the group reported the new Cachinal resource, which it said it was pleased to release amid the ongoing uncertainties over the coronavirus (COVID-19) crisis.

"As soon we're able to, the company will commence field work on both the Cachinal and Challacollo projects. Planning for this is well advanced," CEO Ralph Rushton said in the statement.

At the beginning of September, it also revealed it was poised to produce an NI 43-101 compliant technical report for the recently acquired Berenguela silver-copper project in Peru.

The deposit has a known strike length of 1.4 km and mineralization is present from surface to a depth of about 100 metres. Small scale production from surface pits and underground occurred in the early part of the 20th century, for a total of around 500,000 tonnes.

According to a 2018 JORC survey, the deposit contains 98 million ounces of measured and indicated silver, plus 28 million ounces of silver in the inferred category. It also boasts 624 million pounds of copper measured and indicated, and an additional 147 million pounds inferred.

Aftermath said it expects to have a re-cast NI 43-101 report for the project filed on or before October 25, 2020, after it has relied on extension regulations provided by Canadian Securities Administrators, which were deployed due to the pandemic.

Inflection points:

  • Getting back in the field as coronavirus restrictions ease
  • NI 43-101 compliant resource filed for Berenguela
  • Precious metals moves

What the boss says:

In early August, speaking to Proactive at the time of the Berenguela silver-copper project acquisition, Aftermath CEO Ralph Rushton said due to the coronavirus pandemic, the company still was not able to get on the ground at its projects but was hoping to do so before the end of the year in Peru and at Challacollo, Chile.

"We've had a lot of time to be able to sit and work though desktop studies and think about what work we do want to do when restrictions are lifted," he said.

He also explained that the relatively advanced nature of the newly acquired Berenguela asset was a benefit too.

"We can basically jump straight to the engineering side on this project, which is good, it cuts out quite a few years of grunt exploration work."

Rushton added: "Last time we spoke was in May and we were trading at 22 cents, silver at US$16.90 and we had two projects. Now we are trading at 75/78 cents, somewhere in that range, we have three projects and silver's trading at US$26 so from a business perspective it’s been very positive."

Contact the author at giles@proactiveinvestors.com

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