AFTERMATH SILVER
August 2020
THE RIGHT COMBINATION ・ Silver ・ Management ・ Chile ・ Peru
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Photograph: Berenguela
Important Information Cautionary Statement on Forward Looking - - PowerPoint PPT Presentation
A FTERMATH S ILVER TSX.V: AAG - OTCQB: AAGFF T HE B ERENGUELA S ILVER C OPPER P ROJECT A T RANSFORMATIVE A CQUISITION T HE R IGHT C OMBINATION August 2020 Silver Management Chile Peru Photograph: Berenguela Important
August 2020
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Photograph: Berenguela
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Cautionary Statement on Forward Looking Information
This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation
Silver, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Certain information in this presentation contains forward-looking statements and forward-looking information within the meaning of applicable securities laws (collectively "forward-looking statements"). All statements, other than statements of historical fact are forward looking
related to certain factors including but not limited to, all costs varying significantly from estimates, production rates varying from estimates, changes in metal markets, changes in equity markets, the proposed use of net proceeds from private placements, availability and costs of financing needed in the future, equipment failure, unexpected geological conditions, imprecision in resource estimates or metal recoveries, ability to complete future drilling programs, drilling program results varying from expectations, delays in obtaining survey results, success
approvals from local authorities, community relations, and other development and operating risks. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described
inherent uncertainty therein. For more information the reader is referred to the Company’s filings with the Canadian securities regulators for disclosure regarding these and other risk factors, accessible through Aftermath’s profile at www.sedar.com Except as may be required by applicable securities laws, Aftermath Silver disclaims any intent or obligation to update any forward-looking statement. Although Aftermath Silver has attempted to identify important risks, uncertainties and other factors that could cause actual performance, achievements, actions, events, results or conditions to differ materially from those expressed in or implied by the forward-looking information, there may be other risks, uncertainties and other factors that cause performance, achievements, actions, events, results or conditions to differ from those anticipated, estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as of the date hereof and Aftermath Silver disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable law.
Cautionary Note About Mineral Resources
This presentation uses the terms measured, indicated and inferred resources as a relative measure of the level of confidence in the Mineral Resource estimate. Readers are cautioned that: (a) Mineral Resources are not economic Mineral Reserves; (b) the economic viability of Mineral Resources that are not Mineral Reserves has not been demonstrated; and (c) it should not be assumed that further work on the stated Mineral Resources will lead to Mineral Reserves that can be mined economically. In addition, Inferred Resources are considered too geologically speculative to have any economic considerations applied to them. It cannot be assumed that all or any part of an Inferred Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility
Historic Mineral Resources
This presentation quotes a Historic Mineral Resource for Berenguela. Please note, an independent “Qualified Person”, as defined in National Instrument 43-101 (“NI 43-101”), has not yet completed sufficient work on behalf of Aftermath to classify the historical estimate as a current Indicated or Inferred Mineral Resource, and Aftermath is not treating the historical estimate as a current Mineral Resource. For details of the Berenguela Historic JORC Mineral Resource please see the News Release by Valor Resource Ltd, 30 January 2018, available at www.ASX.com.au which presents the summary technical report by Mr. Marcelo Batelochi (CP Geo).
This presentation quotes a Historic Mineral Resource for Challacollo. Please note, an independent “Qualified Person”, as defined in National Instrument 43-101 (“NI 43-101”), has not yet completed sufficient work on behalf of Aftermath to classify the historical estimate as a
current Indicated or Inferred Mineral Resource, and Aftermath is not treating the historical estimate as a current Mineral Resource. For full details of the Challacollo Historic Mineral Resource please see the NI 43-101 Technical Report dated March 31, 2015, with an effective date
Mandalay Resources SEDAR profile. This presentation quotes a Historic Mineral Resource for Cachinal. Please note, an independent “Qualified Person”, as defined in National Instrument 43-101 (“NI 43-101”), has not yet completed sufficient work on behalf of Aftermath to classify the historical estimate as a current Indicated or Inferred Mineral Resource, and Aftermath is not treating the historical estimate as a current Mineral Resource. For full details of the Cachinal Historic Mineral Resource please see the NI 43-101 Technical Report dated February 30, 2015, with an effective date of April 30, 2008, titled “Mineral Resource Estimation, Cachinal Silver-Zinc-Gold Project, Region II, Chile” QPs Cole, G., Couture, J.-F., and Keller, G.D. of SRK Consulting (Canada) Inc. Prepared for Apogee Minerals Ltd., now available on the Halo Labs Inc. SEDAR profile.
Mineral Resources - Cautionary Note to US Investors
This presentation has been prepared in accordance with the requirements of Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects (''NI 43-101'') and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards, which differ from the requirements of U.S. securities laws. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian public disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC"), and information concerning mineralization, deposits, mineral reserve and resource information contained or referred to herein may not be comparable to similar information disclosed by U.S. companies.
Qualified Person
Peter Voulgaris, MAIG, MAusIMM,, is a non-independent qualified person, as defined by NI 43-101. Mr. Voulgaris has reviewed the technical content of this Presentation and consents to the information provided in the form and context in which it appears.
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*Note Cautionary Statement about Historic Resource page 5
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Classification Tonnes (Mt) Silver (g/t) Copper (%) Mang- anese (%) Zinc (%) Silver (Koz) Copper (Klb) Measured 7.71 104 0.99 8.68 0.34 25,717 168,040 Indicated 28.2 80 0.73 5.16 0.30 73,009 456,465 Measured + Indicated 35.9 85 0.79 5.91 0.30 98,725 624,505 Inferred 9.97 88 0.67 2.14 0.20 28,183 147,242
Notes on the Historic Mineral Resource Estimate
1.
JORC-2012 definitions were followed for Mineral Resources.
2.
Mineral Resources were estimated by P.Geo. Marcelo Batelochi, AusIMM Competent Person.
3.
Grades are estimated by the Ordinary Kriging interpolation method using capped composite samples.
4.
Bulk density has been estimated by Nearest Neighbour method and the average value is 2.82g/cm3.
5.
The historic mineral resource uses a copper equivalent cut off of 0.5%, copper equivalents (“CuEq”) were based on the formula CuEq (%) = Cu (%) + ((Ag (g/t) / 10000) in ounces x Ag price x silver recovery) / (Cu price x Cu recovery) + (Zn% x Zn price x Zn recovery) / (Cu price x Cu recovery). Assuming: Ag price $16.795/oz and Zn $3,150/t and recoveries of Ag 50%, Cu 85% and Zn 80%. Mn grades are not considered for CuEq calculations.
6.
Numbers may not add/multiply due to rounding. The Company cautions that an independent Qualified Person (“QP”), as defined in National Instrument 43-101 (“NI 43-101”), has not yet completed sufficient work on behalf of Aftermath Silver to classify the estimate as a current Measured, Indicated or Inferred Mineral Resource, and Aftermath Silver is not treating the historical estimate as a current Mineral Resource. Aftermath Silver will need to validate previous work to produce a mineral resource that is current for CIM purposes.
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Mining Inventory 21.8Mt @111g/t Ag + 0.98% Cu + 7.6% Mn Life of mine strip ratio 0.96 (waste/ore) for 12 years @ 2Mtpa Metal price assumptions $19.1/oz Ag, $3.22/lb Cu, $500/t MnSO4, $1.07/lb Zn Average recoveries 67.9% Ag, 70.8% Cu, 63.2% Mn, 69.4% Zn Preproduction Capex US$260.3m, including working cap, EPCM, owner’s cost, 30% contingency Life of mine sustaining capital US$85.2m, including closure costs Cumulative free cash flow US$1,658m Pre-Tax NPV (8%) & IRR US$815m - 49% Post-Tax NPV (8%) & IRR US$564m - 35% Average operating cost US$52.62/t run of mine, all-in sustaining cash cost includes royalties Level of accuracy ±35%
Historic 2 0 1 8 Scoping Study Pit Optim isation
A summary of the scoping study economic highlights follows, the results have not been verified by the Company and the reader is cautioned not to rely on the economic results below:
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80% with option to acquire last 20% 4,867 Ha Historic Mineral Resource
+ Gold credits Infill drilling to expand higher grade shoots & metallurgical samples for heap leach and direct leach flowsheets Option to own 100% 6,594 Ha Historic Mineral Resource:
+ Copper, Manganese & Zinc credits Convert Inferred to Indicated for inclusion in Pre-feasibility Pre-feasibility Engineering Option to own 100% 20,378 Ha. Historic Mineral Resource
+ Gold credits Resource Development Targets:
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100 200 300 400 500 600 100 200 300 400 500 600
AgEq g/t Silver Ounces
Inferred Ag Oz Indicated Ag Oz Measured Ag Oz AgEq g/t
Source : Elysium Mining Ltd, based on company disclosures. Silver Equivalents (AgEq) Calculated using metal prices as of 29/Jul/2020 at 100% recovery for all metals
See Peer Group Market Cap Next Slide
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As of August 7, 2020. Aftermath & Silver One Contained Silver Ounces are based on Historic Resources, see Cautionary Notes page 2
$0 $200 $400 $600 $800 $1,000
Market Capitalisation
100 200 300 400 500 600
Inferred Ag Oz Indicated Ag Oz Measured Ag Oz Golden Tag Resources Silver One Resources Inc. Minco Silver Kootenay Silver AFTERMATH SILVER New Pacific Metals Corp. Bear Creek Mining Corp Discovery Metals
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Current Share Structure Current AAG Shares Outstanding 94.17 m Warrants (ave. strike $0.19) 23.69 m Options (strike $0.33) 5.95 m Fully Diluted 123.28 m Cash $1.8m
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drive) & Arequipa (204 km - 2.5 hours drive), with daily flights from Lima
community of Santa Lucia
Lucia, connecting to the port of Matarani on the Pacific coast
220 Volts
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volume weighted average share price five (5) trading days prior to the date of signing the acquisition agreement, capped at a maximum 9.9% of Aftermath’s issued and outstanding shares, with the remainder, if any, to be paid in cash;
within 48 months of the anniversary date of closing;
⎼ 1.0% NSR, on all mineral production when the Silver Market Price is up to and including US$25/ounce; and ⎼ 1.25% NSR on all mineral production when the Silver Market Price is over US$25/ounce and when the Copper Market Price is above $2.00/lb.
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dominated by Cenozoic to Quaternary volcanic and sedimentary rocks.
that exposes Mesozoic sedimentary rocks.
bed-evaporites at the base, Murco Limestones & red-beds, which host the mineralisation, & Ayabacas Limestone. This sequence is capped by a post mineral Tacaza group andesites.
1,400m along a whale-back ridge that separates two valleys.
⎼ Mn-Cu-Ag-Co mantos which replace beds in the Murco Formation ⎼ Hydrothermal manganese oxide breccias of Mn-Cu-Ag.
BERENGUELA GT11 GT12
Historic Datasets : Stream Sedim ents, Soil, Rock Chip & Drilling
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Manganese oxide replacement of carbonate Oxide copper mineralisation with chalcedonic quartz
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Photo : www.AnkaSea.com
Photos : www.tisur.com.pe
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Berenguela Detailed Mapping
BERENGUELA GT11 GT12 GT11 1.5 km SW from Berenguela, separated by a fault. 1.3 km strike of anomalous rock chips. 2009, ‘15 & ’18 Rock Chip Highlights:
GT12 3.5 km SW from Berenguela 1.3 km strike of anomalous rock chips. 2018 Rock Chip Highlights :
Berenguela Rock Chip Geochem - Silver
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Gravity / Density Ground Magnetics I nduced Polarisation ( I P)
BERENGUELA GT11 GT12
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TSX.V: AAG OTCQB: AAGFF Historic Mining at Challacollo
* * Challacollo Historic Mineral Resource: An independent “Qualified Person”, as defined in National I nstrument 43-101 (“NI 43-101”), has not done sufficient work on behalf of Aftermath to classify the historical estimate as a current indicated mineral resource or inferred mineral resource, and Aftermath is not treating the historical estimate as a current mineral resource. For full details please see the March 2015 43-101 Technical Report “NI 43-101 Technical Report for the Challacollo Silver Project, Region 1, Chile” QPs Mroczek, M., Collins, and M.,Butler, S. of Mining Plus Canada Consulting Ltd. and Tapia, J.C., of Sedgman S.A. Prepared for Mandalay Resources, available on he Mandalay Resources SEDAR profile.
* Cachinal Historic Mineral Resource: An independent “Qualified Person”, as defined in National Instrument 43-101 (“NI 43-101”), has not done sufficient work on behalf of Aftermath to classify the historical estimate as a current indicated mineral resource or inferred mineral resource, and Aftermath is not treating the historical estimate as a current mineral resource. For full details of the Cachinal Historic Mineral Resource please see the NI 43-101 Technical Report dated April 30, 2008, with an effective date of April 30, 2008, titled “Mineral Resource Estimation, Cachinal Silver-Zinc-Gold Project, Region II, Chile” QPs Cole, G., Couture, J.-F., and Keller, G.D. of SRK Consulting (Canada) Inc. Prepared for Apogee Minerals Ltd., & available on the Halo Labs Inc. SEDAR profile.
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a 20 km dirt track.
tenements, approximately 6 km to the south of the historic resource area.
exploration tenements to allow access to Teck’s Quebrada Blanca desalination water and concentrate pipelines.
to the south east.
southwest of Challacollo.
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Hangingwall halo structures are NOT part of the Lolón Historic Mineral Resource Footwall potential is less well
extend into footwall Section through approximate centre of known strike
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silver mine, then via a 15km dirt track.
Paposa and Taltal Solar farms
south (at Guanaco)
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Ralph Rushton
President, CEO, Director
Mining Exploration Marketing Capital Raising
Peter Voulgaris
Technical Advisor
Exploration Mining Engineering Project Management Business Development
Michael W illiam s
M&A Marketing Executive Management Capital Raising
Keenan Hohol
Director
David Terry
Director
Geology & exploration Corporate finance CEO Genesis Metals Director of Genesis, Great Bear, Aftermath, Golden Arrow, Blue Sky Uranium Former general counsel Pan American Silver Corporate governance Securities law & M&A Director of Genesis, Aftermath
April 2020