Vancouver, British Columbia--(Newsfile Corp. - September 16, 2020) - Aftermath Silver Ltd. (TSXV: AAG) (OTCQB: AAGFF) (the "Company" or "Aftermath Silver") is pleased to provide the results of a CIM compliant Mineral Resource estimate for the Cachinal silver-gold project, in Chile, summarised in Table 1.
The Company also wishes to advise that an amended and restated technical report entitled "Amended Independent Technical Report for the Cachinal Silver-Gold Project, Region II, Chile" with an effective date of September 11, 2020 has been filed under the Companies profile on SEDAR. The Mineral Resource estimate was performed by independent qualified persons Glen Cole P.Geo of SRK Consulting (Canada) Inc., and Sergio Alvarado Casas, CMC of Geoinvest SAC E.I.R.L. (Chile).
The Amended and Restated Technical Report was prepared in accordance with the Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
Table 1. Summary of the CIM Compliant Mineral Resource Estimate for the Cachinal Silver-Gold Project
| Classification | Material type | Tonnes (Mt) | Silver (g/t) | Gold (g/t) | Silver (Moz) | Gold (Koz) |
| Indicated | Open Pit | 4.83 | 97 | 0.13 | 15.03 | 20.05 |
| Underground | 0.22 | 182 | 0.22 | 1.29 | 1.65 |
| TOTAL | 5.05 | 101 | 0.13 | 16.32 | 21.70 |
| Inferred | Open Pit | 0.17 | 73 | 0.07 | 0.41 | 0.43 |
| Underground | 0.36 | 180 | 0.19 | 2.07 | 2.18 |
| TOTAL | 0.53 | 145 | 0.15 | 2.48 | 2.61 |
Notes on the Cachinal Mineral Resource Estimate
- For full details on the Cachinal Mineral Resource estimate please refer to the NI 43-101 technical report titled "Independent Technical Report for the Cachinal Silver-Gold Project, Region II, Chile." By Qualified Persons G. Cole, (P.Geo) of SRK Consulting (Canada) Inc and S. Alvarado Casas, of Geoinvest SAC E.I.R.L. (Chile), dated September 11, 2020 with an effective date of August 10, 2020, filed on the Aftermath Silver SEDAR profile.
- Cachinal mineral resources were classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014).
- Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- All figures have been rounded to reflect the relative accuracy of the estimates.
- Cut-off grades are based on metal price assumptions of US$22.00 / ounce of silver and US$1,550 / ounce of gold, and metallurgical recoveries of 85% for both silver and gold using milling and cyanide leaching.
- The portion of the Mineral Resources that has been determined to be amenable to extraction through Open Pit methods uses a cut-off's of 30 g/t Silver equivalent.
- The open pit Mineral Resource is constrained within Lerchs-Grossman optimised pit shells that assume mining dilution & losses of 2.5%, 50-degree overall slope angles, mining costs of $2/t rock, general and administrative costs of $2/t rock, processing costs of US$15/t for processing using milling and cyanide leaching.
- The portion of the Mineral Resources deemed to be amenable to extraction through underground methods are reported at a cut-off of 150 g/t Silver Equivalent. This assumes a mining cost of US$90/t, general and administrative costs of $2/t and a processing costs of US$15/t for agitated leaching.
The amended and restated Technical Report includes additional disclosure in the areas of the assumed metal prices, and the mining, general, administrative and processing costs used to establish the cut-off grades. It also includes the results of recent sit visit and other data verification steeps.
Ralph Rushton, President and CEO of the Company, commented, "We're pleased to be able to release this current resource for Cachinal. We were fortunate to have been able to work with Chilean based independent QP, Sergio Alvarado Casas, who was able to conduct the site visit as Chilean COVID19 restrictions have eased in some areas. 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."
About Cachinal Silver-Gold Project
The Cachinal Silver-Gold Project is located in Chile's 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 Gold's Guanaco gold-silver mine.
Aftermath Silver currently owns 80% interest in the Cachinal silver-gold project, through its Chilean holding company Minera Cachinal S.A. Aftermath has a binding agreement with SSR Mining to acquire the remaining 20%. (See Company news release dated May 27th, 2020).
Cachinal is a low-sulphidation epithermal deposit. The epithermal veins and breccias have been recognized by mapping, trenching and over 37,000 metres of drilling. Cachinal has a strike length of at least two kilometres. Historic mining is known to have occurred to a depth of at least 300 metres. The main veins trend north-northwest and north-west with a secondary set trending east-northeast to east-west, most strongly developed at the southern end of the deposit. The current Mineral Resources are demonstrated to a depth of approximately 150 m below surface and provide sufficient evidence to interpret the presence of high-grade shoots within the vein system extending below the base of the optimised pit shells