When Aftermath Silver Ltd (TSX-V:AAG, OTCQX:AAGFF) first acquired the Berenguela project in 2020, a silver-copper deposit located in southeastern Peru, its focus was primarily on its silver resources. A polymetallic carbonate-replacement deposit spanning nearly 6,600 hectares and small-scale production in the early twentieth century, the project fit well within Vancouver-based Aftermath’s goal to assemble one of the largest portfolios of silver development assets.
And then came the manganese. While the company originally acquired its project with a focus on silver, CEO Ralph Rushton said a growing focus on manganese, coupled with advancements in metallurgical processing technology, has significantly increased the project’s potential.
Manganese prices are influenced by a complex interplay of factors, including supply and demand dynamics, growth in the electric vehicle and other battery markets, and geopolitical considerations. While weak Chinese demand and increased production capacity are exerting downward pressure on prices, growing demand from the EV sector and potential associated production outside China may provide some price support in the near future.
Innovations in metal recovery
For Aftermath, innovations in hydrometallurgical processing have opened doors to recovering metals at Berenguela. With that in mind, the company began focusing on metallurgy and successfully extracted silver, copper, and manganese at the bench scale.
“The nature of the mineralization is such that you can’t extract the silver or copper without also considering the manganese,” Rushton explained.
“Today, manganese is something we can consider as a potential economic product of the project—whereas 25 to 30 years ago, a project like this might have been overlooked because of the manganese.”
The company’s focus on manganese extends beyond exploration into a broader vision of production. Rushton confirmed that a Preliminary Economic Assessment (PEA) will evaluate the potential for producing silver, copper, and possibly zinc, along with Manganese Sulfate Monohydrate (MSM)—a key component in lithium-ion batteries used in electric vehicles.
The forgotten metal
Manganese, once seen as the "forgotten metal," is now attracting increasing attention from governments and manufacturers. "Manganese does have a nickname, just like 'Dr. Copper.' It’s often referred to as the 'Forgotten Metal,'" Rushton explained. "Western governments have historically focused on copper, silver, and lithium, but toward the end of the process, they realize, 'Wait, we need manganese too.'"
The surge in demand for manganese is evident in recent investments. An Australian company, Element 25, recently secured close to $270 million in grants from both state and federal levels in the US to build a manganese purification plant. The shift towards securing a stable supply of manganese is gaining momentum, especially as governments worry about over-reliance on China, which has traditionally dominated the supply.
Meanwhile, the silver market is seeing growing industrial demand exceeding 700 million ounces annually, according to Kitco. Aftermath Silver’s project is well-positioned to meet some of that demand, particularly as high-grade silver and copper zones are exposed at the surface, promising a quick route to production. "The mineralization is already exposed at surface so we don't anticipate a lot of pre-stripping prior to mining,” said Rushton.
Votes of confidence
Aftermath Silver has already made progress in its exploration efforts. The company has drilled close to 140 holes in the project in addition to a substantial historic drill database from previous operators, with additional drilling planned in the next nine to 12 months. Their resource infill drilling has been consistent with expectations, confirming silver and copper mineralization with local high grades. "We’re seeing the same types of results we’ve observed in previous drill campaigns: locally very high-grade mineralization," Rushton said.
Another critical factor strengthening Aftermath Silver’s financial position is the increasing investment from Eric Sprott, a prominent investor in the mining sector. Rushton explained that Sprott initially invested in the company due to its silver content but later increased his stake based on his research into the growing manganese market. "Eric has spent a lot of time on the phone with us and some of our consultants, trying to understand the market and conducting his own research. I think he's pretty happy with the supply and demand story in manganese," Rushton added.
Sprott’s investment has provided the company with a much-needed financial runway, allowing it to make early payments on its project. "It’s also allowed us to really refine our plans for Berenguela, and most of the items on our wish list for 2025 are now covered by the cash we have," said Rushton. As the company moves forward, the expectation is that further warrant exercises will bring in additional funds, supporting exploration and development efforts.
Aftermath Silver is on track to gain full control of the project once it fulfills certain payment obligations. "We have one more payment left to make, which I believe is US$3.5 million, due in November 2026. We’d like to make that payment early if possible, to secure ownership of the project ahead of schedule," Rushton explained.
With a growing resource base, a strategic focus on manganese, and a supportive investor base, Aftermath Silver is positioning itself to be a key player in the critical minerals sector.