As we have seen in the spot price, ETFs and equities over the last twelve months, silver is in the early stages of what looks to be an extended bull market. The reason is a straightforward case of supply and demand. While demand is strong and steady, primary supply (mining) is struggling. As The Silver Institute has made clear, this supply deficit – which emerged in 2021 – appears set to continue. Despite a modest increase in production from Mexico, silver supply has been in this deficit state since 2021. During this time, demand has remained strong and, while there are still enough stockpiles to fill the gap, the multi-year supply deficit is making its presence felt – as the upwards price trend proves. Now factor in the approaching end-of-life for several primary silver mines in Mexico and you have a silver market quietly positioning itself for a sustained period of significantly higher prices.
It is at this time that I have taken the helm of Apollo Silver as President and CEO. I was offered the role by Apollo Chairman, Andy Bowering, because of my track record of delivering major value growth via a combination of successful exploration and asset development
For those of you who may not be familiar with my background, I am an award-winning mining executive and geologist with nearly 40 years of experience. Most recently, I oversaw the sale of Fission Uranium, which I co-founded and went on to run as President and CEO, to Paladin Energy for $1.14 billion. I have additionally been instrumental in the discovery and advancement of multiple deposits, many of which have transitioned into operational mines. Now that I am on board, Andy has stepped back as Interim CEO and will continue to lead our skilled Board of Directors as Chairman.
We are approaching a generational opportunity in the silver market. In such circumstances, having a pipeline of growth catalysts is absolutely key. Fortunately, due to the astute acquisitions and recent project work carried out by Management and the Board, Apollo is ideally positioned.
At our Calico project, located in southern California in San Bernadino County, we have one of the largest undeveloped primary silver projects in the US. This is an advanced asset with multiple growth avenues laid out, including accelerated development of the existing silver deposits, regional exploration, critical mineral credits, and expansion of a gold resource.
At Apollo’s recently optioned Cinco de Mayo project in Chihuahua, Mexico, we have one of the crown jewels of the silver industry, which includes a major CRD deposit with a historic inferred resource that is high-grade, large tonnage, and projected to have a small environmental footprint. Yes, there is work to do on the ground, specifically in terms of building social license. Engaging with local communities takes time and, when carried out correctly, can result in a major win for both company and community.
Fortunately, both Andy and I have a long track record of success in building social license. In Andy’s case, this experience is heavily focused in Mexico, where he has a long, successful history of delivering value growth for shareholders and local communities. We have a highly experienced Mexican social team in place, and they are hard at work.
Apollo’s growth strategy is ambitious and directly in line with the scale of the opportunity in front of us. Between now and the end of the year, you can expect to see updates on the following activities:
- Calico development activities
- Completion of updated resource estimate for the Waterloo deposit, which will include a barite resource estimate. Barite is classified as a critical mineral by the US Federal Government, and the current US federal administration is making the permitting process far more streamlined for critical minerals.
- Commencement of geotechnical and metallurgical drill program focused for optimization for mine development.
- Work towards preliminary engineering studies.
- Calico exploration activities
- Regional program targeting an expansion of the gold zone at Waterloo and testing for further silver, gold and base metal targets on our newly acquired Mule claims.
- Cinco de Mayo activities
- Comprehensive communication engagement process to establish mutually beneficial access and working agreements that would allow Apollo to operate on the project.
- With the social licence in hand, we can begin the process of permitting for an aggressive 20,000m drill program testing for the expansion of the Pegaso Zone, expansion of the Upper Manto Zone and other regional exploration targets.
- Update resource models and complete planning for drill program.
It’s going to be a very active period and, with $10M in the treasury, we already have the funds in place to deliver on this crucial stage of our growth strategy.
There is plenty more to share and, in line with our ambitious growth plans, we have appointed a new investor relations professional to enhance our shareholder communications. Richard Matthews is an experienced mining communications expert and is available to discuss our goals in more detail. He can be reached via info@apollosilver.com or by calling +1 604 428 6128.
To conclude, this is an exciting time for the company. We will be providing regular updates as we roll out the program and again, I encourage you to reach out to us with any further questions.
Ross McElroy, President and CEO of Apollo Silver
