AFTERMATH SILVER – INVESTOR PRESENTATION
May 2020
THE RIGHT COMBINATION ・ Silver ・ Management ・ Chile
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Photograph: The Challacollo Project, Chile
Silver Management Chile May 2020 Photograph: The Challacollo - - PowerPoint PPT Presentation
A FTERMATH S ILVER I NVESTOR P RESENTATION TSX.V: AAG - OTCQB: AAGFF T HE R IGHT C OMBINATION Silver Management Chile May 2020 Photograph: The Challacollo Project, Chile www.aftermathsilver.com | TSX.V : AAG I m portant I
May 2020
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Photograph: The Challacollo Project, Chile
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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 or which would require any registration or licensing within such jurisdiction. This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Aftermath 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 statements. Forward-looking statements are based on the beliefs and expectations of Aftermath Silver as well as assumptions made by and information currently available to Aftermath Silver management. Such statements reflect the current risks, uncertainties and assumptions 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
failure to obtain necessary permits and 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 herein. Although Aftermath Silver believes that assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the 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 or pre-feasibility studies or economic studies except for certain preliminary economic assessments.
Challacollo and Cachinal Historic Mineral Resources
Slide 11 of 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 of December 31, 2014 titled “NI 43-101 Technical Report for the Challacollo Silver Project, Region 1, Chile” QPs Mroczek, M., Collins, M. and Butler, S. of Mining Plus Canada Consulting Ltd. and Tapia, J.C., of Sedgeman S.A. Prepared for Mandalay Resources, available on the Mandalay Resources SEDAR profile. Slide 20 of 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, 2010, 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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The health and safety of our team, their families and the communities in which we work are the key priorities for Aftermath’s Board of Directors in light of the current unprecedented circumstances. Aftermath’s exploration plans have been postponed until the relevant authorities in Chile and Canada permit normal business activities to resume. With international and local travel restricted in both Canada and Chile, we will resume our activities when permitted. Nevertheless, our planning continues, although selection of key contractors such as drillers is impossible until site visits can resume. We thank all of our investors for their patience.
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There are currently few, pure silver projects leading to strong investor demand for silver-focused companies.
Ability to raise capital and advance projects from exploration through to development/ mining.
Premier mining jurisdiction with a skilled work force and an established mining framework. History of silver mining.
Photograph: The Cachinal Project, Chile
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Acquire silver assets with current or historic resources & exploration upside. Focus on projects with infrastructure. Operate in high-ranking mining friendly jurisdictions.
Build a silver-focused exploration & development/ mining company and monetize. Advancing 2 Chilean silver projects -Cachinal & Challacollo – as potentially open pit projects. Generating significant resource growth in areas previously overlooked, and de- risking through other project development activities.
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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
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Private Placem ents
$2.5m @ 8c + 3yr ½ warrant @ 12c (32m units)
$3.3m @ 20c + 3yr ½ warrant @ 25c (16.5m units)
$1.5m @ 20c + 3yr ½ warrant @ 25c (7.5m units) US Listing
2 0 2 0 Exploration Program *
* Field activities currently halted pending lifting of COVID restrictions in Canada and Chile
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As of May 15, 2020 Issued and Outstanding : 90.14m Warrants: 27.19m Options: 5.95m Fully Diluted: 123.28m Management & insiders 3% issued, 7% FD. Eric Sprott: 16.5% of issued Palisades Goldcorp: 8.3% of issued Cash at hand approx. C$3.1m Cash value of warrants: C$4.9m 3-month average daily trading volume: TSX-V 508,000 shares/ d OTCQB 315,000 shares/ d
90D average 30D average 20D average
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Quebrada Blanca
Both projects are former producing silver mines
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Location 130km from the port city of Iquique in northern Chile. 30km from the Pan American Hwy, elevation 1 ,5 0 0 m Area Concessions cover approximately 19,000 Ha. Annual fees ca. $100k Deposit Type Low sulphidation epithermal silver-gold quartz veins Ow nership Option to purchase 100% from Mandalay Resources (Mandalay’s exploration and acquisition costs – approximately $C33 million) I nfrastructure Accessed from Teck’s Quebrada Blanca access road. Power 15-30km. Water rights for 12 l/ s Status Design of 2020 exploration program underway. Old stope at 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 Sedgeman S.A. Prepared for Mandalay Resources, available on he Mandalay Resources SEDAR profile.
Historic Mineral Resource*
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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.
the south east.
southwest of Challacollo.
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Core storage & logging facility Teck water pipeline route under construction Historic stopes Site panorama
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Aftermath’s exploration will benefit from a large amount of historic exploration data dating back to the 1980s.
1995-96: Minera Mantos Blancos drilled 22 RC holes (3,000m), 10 cut Lolón vein 2001: Codelco options property, drilling 16 RC holes (3,985m) 2001: Silver Standard options property, completes NI43-101 compliant resource estimate 2002-07: Silver Standard completes 7 diamond holes (746 m) and 88 RC holes (15,462 m) Underground survey, mapping and sampling every 25 m down the underground development. 2013: Mandalay Resources drills 52 diamond core holes (9,153m) 2014: Mandalay completes NI43-101 compliant resource estimate Total drilling to date, RC and diamond core = 185 holes, 32,982m
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1896 and 1931;
by artisanal miners;
Challacollo in 1980 and continued until the early 1990s.
* Source: NI43-101 technical Report for the Challacollo Silver Project, Region 1, December 31, 2014, Chile prepared by Mining Plus Canada Consulting Ltd
Historic production stope on the Lolón vein at Challacollo
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Location of Lolón shoot shown slide 16
Geology
sequence.
granitoids.
Veins
length.
Palermo, Gladys 4, and Gladys) controlled by NE and NW dipping normal faults.
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Approximate base of weathering Along-strike oxide potential, under sand cover High grade shoot, sulphide potential, sulphide metallurgy to be confirmed Parallel high grade veins & low grade halo to be investigated over 2 km of know n Lolón Vein strike
Position of cross section
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Hangingwall halo structures are NOT part of the Lolón Historic Mineral Resource Footwall potential is less well
extend into footwall
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core).
which has only been intersected in two previous drill holes e.g. CHAG-3 6 : 5 m @ 2 5 6 g/ t Ag from 2 2 m dow n hole.
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1905 2018
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Location 170km from Taltal in Northern Chile. 25km from the Pan American Hwy. The Cachinal project is accessible year round - Elevation 2 ,7 0 0 m Deposit Type Low sulphidation silver-gold quartz veins, potential for high-grade silver at depth. Area 4,867 Ha comprised of 16 mining concessions. Ow nership 80% . The remaining 20% of the project is owned by SSR Mining Inc. I nfrastructure Power lines are located 15-30km from property. Road access via the Guanaco Mine. Status Planning for 3D survey of u/ g workings. Drill collar locations have been selected for first stage drilling. Mineral Resources Historic resource from Valencia Ventures Inc. 2008. However, an updated NI43-101 compliant technical report is in preparation by SRK Consultants of Toronto.
Historic mine workings, Cachinal
Historic Mineral Resource*
* 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 February 30, 2010, 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)
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Gold-Silver Mine, then via a 15 km dirt track.
and Paposa and TalTal Solar farms
16 km south (at Guanaco)
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leach pads3.
* Aftermath has not been able to independently verify these production estimates. Aftermath is not treating the surface dumps of mined material as current mineral resources or mineral reserves. A portion of this material was reworked as a heap leach on the east side of the Cachinal property, reportedly during the 1980s.
Comité Sectorial Minero Industrial. Dpto. Producción (Mimeo).
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100 metre stations). Valencia: 2 0 0 4 -2 0 0 8
and evaluate the strike extension of the known silver- bearing veins. Sernageom in: 1 9 8 6 -8 7 Aftermath’s exploration will benefit from a large amount
Historic drill collar monuments, Cachinal project
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Heap leach pad stacked with crushed material by previous
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host to several significant gold and silver deposits;
volcanic caldera feature;
volcaniclastic sediments;
epithermal quartz veins, and vein breccias.
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planned using existing drill sites to minimise disturbance.
historic leach pads.
magnetics
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⁻ Cutting and assaying of + 3,000 m existing core at Challacollo ⁻ 3D surveys of historic workings at Cachinal ⁻ Permitting of drilling at both Challacollo and Cachinal (~ 3 months) ⁻ Extend soil geochemistry at Cachinal regional prospect
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April 2020
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Am ended Challacollo LOI , AAG to acquire 1 0 0 % :
$2,750,000, and the balance in cash, as long as the number of Aftermath shares issued doesn’t represent more than 49% of AAG’s outstanding shares following such payment;
from and after the date on which 36,000,000 ounces of silver have been sold or credited to the account of Mandalay, up to a maximum amount of $5 million.
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interest in the property for $1,575,000;
$250,000, $525,000 and $550,000 due 6, 12 and 18 months after closing;
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