Aftermath Silver Ltd. (TSXV: AAG.H) (the Company or Aftermath Silver) is pleased to announce a non-brokered private placement of up to 23,809,524 shares at a price of $0.105 per share. The private placement is subject to the approval of the TSX Venture Exchange and the securities will be subject to a four month and one day hold period under securities laws.
The Company intends to use the net proceeds from the private placement for the acquisition and exploration of the Challacollo and Cachinal Silver-Gold projects in Chile (see news release dated January 15, 2019), and for general working capital.
Challacollo Silver-Gold Project
Aftermath recently entered into a non-binding letter of intent with Mandalay Resources Inc. to purchase its 100% interest in the Challacollo silver-gold project in Chile. Challacollo is a low-sulphidation epithermal deposit which hosts a historic 30 million silver ounce Indicated Mineral Resource (4.7 million tonnes at 200 g/t silver) and a 6.9 million silver ounce Inferred Mineral Resource (1.6 million tonnes of 134 g/t), with associated gold credits.
Previous drilling concentrated on the principal vein (Lolon Vein) to a depth of about 200 m below surface. Aftermath will focus its initial exploration efforts on parallel vein systems, not included in the historic Mineral Resource, that have some preliminary drilling. The oxidation level bottoms at approximately 200 m below surface; however, the down-dip extent of the mineralized structures remains unknown. Gold and base metal grades are generally observed to increase with depth.
The Challacollo project is located in Chiles Tarapaca Region (Region I). The project is approximately 30 km east of the Pan American Highway. Power transmission lines are located 15-30 km from the property. The Project includes water rights. For further details please see the Company news release August 1, 2018.
Cachinal Silver-Gold Project
The Company has also entered into a definitive agreement with Halo Labs Inc (Formally Apogee Opportunities Inc) to purchase its 80-per-cent interest in the Cachinal silver-gold project, Chile. Cachinal is a low-sulphidation epithermal deposit which hosts a current CIM compliant 18.4 million silver ounce Indicated Mineral Resource (5.66 million tonnes of 101 g/t) and 3 million silver ounce Inferred Mineral Resource (0.82 million tonnes of 115 g/t), with associated gold credit.
Shallow drilling has defined the current mineral resources principally to a depth of 150 m below surface and provides sufficient evidence to interpret the presence of high-grade shoots within the vein system extending below the base of a potential open pit. Following these high-grade shoots to depth with drilling will be the initial focus of the Companys efforts to expand the silver-gold mineralisation. The oxidation level bottoms at about 120 150 m below surface; however, the down-dip extent of the mineralized structures remains unknown.
The Cachinal Silver-Gold Project is located in Chiles Antofagasta Region (Region II). The project is located about 40 km east of the Pan American Highway, in a nearly flat plain at an elevation of around 2,700 m above sea level, 16 km north of Austral Golds Guanaco gold-silver mine. For further details please see the Company news release June 25, 2018.
This article provided by NewsEdge.