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: 1.23 CAD

Market: TSX-V
Market Cap: $143.66 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 acquiring 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. 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 also told investors it was to buy the advanced Berenguela silver, copper project in Peru. 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:

On December 15, Aftermath Silver released a CIM compliant resource estimate for its Challacollo silver-gold project in northern Chile. The company has an option to acquire 100% of the Challacollo asset through a binding agreement with metals producer Mandalay Resources (TSE:MND).

The latest resource showed a total of 6.6 million tonnes of indicated material (both open pit and underground) for 35.1 million ounces of silver at 165 grams per ton (g/t) and 58,000 ounces of gold at 0.27 g/t. In the lower confidence inferred category, the project hosts 2.8 million tonnes with 11.1 million ounces of silver at 124 g/t and 15,000 ounces of gold at 0.17 g/t.

The resource used a conceptual open pit and underground model to constrain the estimate, while the cut-off grade for the open pit was 35 g/t silver-equivalent, and for the underground was 93 g/t silver-equivalent.

In the previous month, Aftermath announced that it had struck an amended agreement with SSR Mining over its previously announced acquisition of the Berenguela silver-copper project in Peru and final closing of the deal was expected on or before November 24, 2026. 

The Berenguela silver-copper project is an epithermal polymetallic carbonate-replacement deposit, with a total tenement package of 6,594 hectares. According to a 2018 JORC study, it contains 98 million ounces of measured and indicated (M&I) silver, plus 28 million ounces of silver in the inferred category. It also boasts 624 million pounds of copper measured and indicated and scoping study of the same year estimated an open-pit mine with a life of 12 years at 2 million tonnes per year.

The terms of the acquisition agreement have now been amended such that the total cash consideration payable to SSR Mining by Aftermath has decreased by US$275,000 from US$13 million to US$12.725 million. Also, in lieu of the US$275,000 cash, the number of shares in Aftermath Silver issuable to SSR Mining has been increased to C$3,358,902.50 from C$3 million.

This means an additional 458,077 Aftermath shares are issuable to SSR Mining at a deemed price of C$0.7835 per share for a total of over 4.28 million so-called payment shares.

And in September, Aftermath also reported a CIM (Canada) compliant resource estimate for its Cachinal silver-gold project in Chile, 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.

On the financing front, in the same month, the firm closed a previously announced upsized non-brokered private placement of 26,362,442 shares for gross proceeds of $17,135,587. The group noted that renowned investor Eric Sprott had increased his investment in Aftermath in order to maintain 19.61% of the company's issued and outstanding common shares.

The company said it intended to use the net proceeds for drilling and other technical studies on the Berenguela Silver-Copper project in Peru, and the Challacollo and Cachinal Silver-Gold projects in Chile, and for general working capital purposes.

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 the group's latest update on the Challacollo silver-gold project, Ralph Rushton, Aftermath's CEO and president said: "For the first time, a significant amount of mineralisation is included from outside of the main Lolón Vein, from veins that are predominately on the hangingwall to the Lolón vein."

"We believe this validates our concept for the project, approximately 84% of the Indicated and Inferred resources fall inside the conceptual pit shell. This estimate is only the first step for Aftermath Silver in reaching the company's ultimate vision for Challacollo, and the whole team is excited to start the program in the new year," he added.

Contact the author at jon.hopkins@proactiveinvestors.com

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Aftermath Silver comes out with a new resource estimate for their...

Aftermath Silver (CVE: AAG-OTCQB: AAGFF) CEO Ralph Rushton joined Steve Darling from Proactive with news the company has provided an update on some of their properties. Rushton giving details about a new resource estimate on the Challacollo Project. Rushton also gave details about the work...

4 weeks, 1 day ago

6 min read