Aftermath Silver Ltd (CVE:AAG) (OTCQB:AAGFF) has released a CIM compliant resource estimate for its Challacollo silver-gold project in northern Chile.
The company has an option to acquire 100% of the Challacollo asset through a binding agreement with metals producer Mandalay Resources (TSE:MND).
READ: Aftermath Silver strikes amended acquisition deal with SSR Mining over Berenguela silver-copper project in Peru
The latest resource shows a total of 6.6 million tonnes of indicated material (both open pit and underground) for 35.1 million ounces of silver at 165 grams per ton (g/t) and 58,000 ounces of gold at 0.27 g/t.
In the lower confidence inferred category, the project hosts 2.8 million tonnes with 11.1 million ounces of silver at 124 g/t and 15,000 ounces of gold at 0.17 g/t.
The resource used a conceptual open pit and underground model to constrain the estimate, while the cut-off grade for the open pit was 35 g/t silver-equivalent, and for the underground was 93 g/t silver-equivalent.
"We are extremely pleased with the results of this Mineral Resource estimate," Ralph Rushton, the CEO and president of Aftermath, said in a statement.
"For the first time, a significant amount of mineralisation is included from outside of the main Lolón Vein, from veins that are predominately on the hangingwall to the Lolón vein," he noted.
"We believe this validates our concept for the project, approximately 84% of the Indicated and Inferred resources fall inside the conceptual pit shell. This estimate is only the first step for Aftermath Silver in reaching the company's ultimate vision for Challacollo, and the whole team is excited to start the program in the new year."
The company also has an option to acquire a 100% interest in the Berenguela silver-copper project in Peru via a binding agreement with SSR Mining, and it owns 80% of the Cachinal silver-gold project in Chile, with an option to acquire the remaining 20%, also from SSR Mining.
Aftermath Silver shares added 3.60% to C$1.15 on the day.
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Contact the author at giles@proactiveinvestors.com