Calico District

California

Located in mining-friendly San Bernardino County, California, Apollo’s Calico District combines the Waterloo and Langtry silver projects under one common ownership for the first time.

OVERVIEW

The adjacent Waterloo and Langtry Projects are located in the historic Calico Silver Mining District in the Mojave Desert of San Bernardino County, California. Under Apollo, this is the first time the two projects have been under common ownership. These represent district-scale mineral system endowment with 2,950 acres under Apollo control with approximately 6,000 metres (19,680 feet) in mineralized strike length. Waterloo and Langtry host low-sulfidation epithermal-vein type and disseminated-style silver-barite mineralization, which is open to depth and along strike. Previous operators completed more than 40,000 metres (131,234 feet) of drilling across 468 holes in the Apollo’s Calico District land package.

PROJECT LOCATION AND ACCESS

The Calico District is well-placed relative to infrastructure and is located in the mining-friendly jurisdiction of San Bernardino County. The projects are located approximately 15 kilometres (9 miles) from the city of Barstow and 235 kilometres (145 miles) east of Los Angeles, CA, and southwest of Las Vegas, NV.

Access to the properties is via paved roads for the majority of the distance from Barstow. There is a gravel road network across the project areas. Commercial electric power is available within 5 kilometres (3 miles) of the project areas.

Other mines of note in the region include SV Minerals Searles Lake project and Equinox Gold’s Castle Mountain and Mesquite gold mines (San Bernardino County) and Rio Tinto’s Boron mine (near the border with San Bernardino County).

TENURE

The Calico District claims comprise the Waterloo and Langtry properties, combined consisting of

0
Patented Claims
0
Fee simple land parcels
0
Unpatented lode mining claims (19 Waterloo and 38 Langtry)

Private lands at both Waterloo and Langtry have received a Certificate of Land Use Compliance, vesting surface mining rights which simplifies certain permitting processes. The unpatented claims on BLM-managed public lands are open for mineral entry, and no monuments, preserves or national parks encroach on these lands. The Calico District projects total 2,950 acres, with Waterloo comprising 1,770 acres and Langtry 1,180 acres.

WATERLOO PROJECT

The Waterloo Property comprises 27 fee simple land parcels (1,352 acres) and 21 unpatented claims [19 lode mining, 2 mill site claims] (418 acres). These were acquired by Apollo through an Asset Purchase Agreement between Stronghold Silver, a wholly-owned subsidiary of Apollo (see news release), and Pan American Minerals Inc. (“Pan American”; a wholly-owned subsidiary of Pan American Silver Corp.), that closed July 13, 2021 (see news release). Pan American retains a 2% Net Smelter Royalty on the property.

LANGTRY PROJECT

The Langtry Property comprises 20 patented claims (413 acres) and 38 unpatented lode mining claims (767 acres). The Project is under option between Stronghold Silver, a wholly-owned subsidiary of Apollo, and the Bruce and Elizabeth Strachan Revocable Living Trust (the “Strachan Agreement”) for the patented claims, and Athena Minerals Inc. for the unpatented claims.

WATERLOO HISTORICAL RESOURCE ESTIMATES

The initial historical resource estimate was calculated by Asarco in 1968, followed by a computer-calculated resource estimate in the late 1970’s. Subsequently, Pan American calculated an internal resource based on the results of their 2012 drilling program and validated historical data from Asarco. This work yielded a historical resource estimate of 37.1 million tonnes grading 86 grams/tonne for a total of 103 million ounces of contained silver (refer to Table 1). The reader is cautioned that this resource estimate is historical in nature and the Company is not treating it, or any part of it, as a current mineral resource. Refer to note 1 below.

Table 1: Historical mineral resource estimate for the Waterloo Project

Note 1:  Reference to historic resources at the Waterloo project refer to an internal company document prepared by Pan American., dated 2013, unpublished. Historic resources are reported here as documented in original documents. Abbreviations are grams per metric tonne (g/t) and tonnes are metric. The historical mineral resources discussed here were calculated using mining industry standard practices for estimating Mineral Resource and Mineral Reserves (2005) which was prior to the implementation of the current CIM’’s standards for mineral resource estimation (as defined by the CIM Definition Standard on Mineral Resources and Ore Reserves dated May 10, 2014). The reader is cautioned not to treat them, or any part of them, as current mineral resources or reserves. An independent Qualified Person (‘QP’) has not completed sufficient work to classify the estimates discussed as current mineral resources or reserves and therefore the estimates should be treated as historical in nature and not current mineral resources or mineral reserves. Apollo’s QP, Cathy Fitzgerald, has determined these historic resources are reliable, and relevant to be included here in that they demonstrate simply the mineral potential of the properties. A thorough review of all historic data performed by an independent QP, along with additional exploration work to confirm results, would be required to produce a current mineral resource estimate for either property. Effective February 25, 2019, the U.S. Security and Exchange Commission (‘SEC’) adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the U.S. Securities Act of 1933, as amended (the “SEC Modernization Rules”), with compliance required for the first fiscal year beginning on or after January 1, 2021. These replace the disclosure requirements included in SEC Industry Guide 7 and as a result, the SEC now recognizes terms such as “indicated” and “inferred” with respect to mineral resources. U.S. investors are cautioned that while the SEC Modernization Rules are “substantially similar” to the CIM Standards, readers are cautioned that there are differences between the SEC Modernization Rules and the CIM Standards.

LANGTRY HISTORICAL RESOURCE ESTIMATES

Exploration on the Langtry Property commenced in 1960 and consisted of several technical programs completed by two companies: Superior Oil Company (“Superior”) and Athena Silver Corp. (now Athena Minerals Corp., “Athena”). Exploration by Superior from 1967 to 1984 consisted of geological mapping, geochemical sampling, surface trenching and drilling. Superior was subsequently purchased by Mobil Corporation and the Langtry Project sat dormant due to depressed silver prices until Athena acquired an interest in the Project in 2010. Subsequently Athena completed surface geological mapping, sampling, geotechnical work and drilling. A total of 213 drillholes (26,200 metres/86,000 feet) is reported to have been completed on the Langtry Property by the previous operators. Of these, 20,710 metres (67,946 feet) in 161 drill holes existed in the drill database for the recently released technical report “NI 43-101 Technical Report Langtry Project, California, USA” prepared by H. Samari and L. Breckenridge of Global Resource Engineering, Ltd., with an effective date of December 1, 2021 (see news release of December 2, 2021). Data for the remaining holes has been recently acquired and will be incorporated into the drill database.

An initial historical resource estimate was calculated by Superior in 1970. Subsequently, Athena calculated a resource estimate based on the results of their 2012 drilling program, along with validated historical data from Superior’s programs. This independent work was completed by SRK Consulting in 2012 and yielded a historical resource estimate of 12.7 million tons grading 1.48 ounce per tonne for a total of 18.8 million ounces of contained silver in the Indicated category and 30.4 million tons grading 1.40 ounce per tonne for a total of 42.6 million ounces of silver in the Inferred Category as detailed below in Table 2.

The reader is cautioned that this resource estimate is historical in nature and the Company is not treating it, or any part of it, as a current mineral resource. See note 2 below.

Table 2: Historical mineral resource estimate for the Langtry Project

Note 2: Reference to historic resources at Langtry refer to Moran et al, 2012, which was an internal report on the Langtry Silver Project, San Bernardino County, California: prepared for Athena Silver Corp, April 2012. [Accessed April 30, 2021]. Historic resources are reported here as documented in original document. Abbreviations are ounces per short ton (opt) and tonnes are imperial. The historical mineral resources discussed here were calculated using mining industry standard practices for estimating Mineral Resource and Mineral Reserves (2005) which was prior to the implementation of the current Canadian Institute of Mining’s (‘CIM’) standards for mineral resource estimation (as defined by the CIM Definition Standard on Mineral Resources and Ore Reserves dated May 10, 2014). The reader is cautioned not to treat them, or any part of them, as current mineral resources or reserves. An independent Qualified Person (‘QP’) has not completed sufficient work to classify the estimates discussed as current mineral resources or reserves and therefore the estimates should be treated as historical in nature and not current mineral resources or mineral reserves. Apollo’s QP, Cathy Fitzgerald, has determined these historic resources are reliable, and relevant to be included here in that they demonstrate simply the mineral potential of the properties. A thorough review of all historic data performed by an independent QP, along with additional exploration work to confirm results, would be required to produce a current mineral resource estimate for either property. Effective February 25, 2019, the U.S. Security and Exchange Commission (‘SEC’) adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the U.S. Securities Act of 1933, as amended (the “SEC Modernization Rules”), with compliance required for the first fiscal year beginning on or after January 1, 2021. These replace the disclosure requirements included in SEC Industry Guide 7 and as a result, the SEC now recognizes terms such as “indicated” and “inferred” with respect to mineral resources. U.S. investors are cautioned that while the SEC Modernization Rules are “substantially similar” to the CIM Standards, readers are cautioned that there are differences between the SEC Modernization Rules and the CIM Standards.

GEOLOGY

The Calico District is situated in the Calico Mountains of the Mojave Desert, in the west-central part of the Basin and Range tectonic province. The Calico Mountains consist of a 15 kilometre (9 mile) long northwest-southeast trending range dominantly composed of Tertiary (Miocene) volcanics, volcaniclastics, sedimentary rocks and dacitic intrusions.

The Calico Mountains form an uplifted block in a wedge-shaped zone between three major fault systems: the San Andreas Fault, the Death Valley Fault and the Garlock Fault.

Silver mineralization appears to be associated with mid-Tertiary volcanic activity and northwest-trending fracture zones. Tertiary geologic units in the Calico area are the Pickhandle Formation (also called the Calico Formation; volcanic flows, breccias and volcaniclastics primarily of dacitic to andesitic composition) and Barstow Formation (sediments deposited in a shallow lake environment), overlain by the younger (Plio-Pleistocene) Yermo Formation.

Mineralization at Waterloo and Langtry occurs as discrete NW and EW striking, high-grade silver-barite veins (primarily hosted in the Pickhandle formation) and broad disseminations and veinlet stockworks (primarily hosted in the Barstow sandstones). Both styles are believed to have formed from a common event, with the host rock controlling the style of mineralization. The timing of mineralization is ~15-20 Ma which aligns with a period of subduction and extension in the region.

Cherty sandstone with thick barite vein in the Barstow Formation. This is the common host of disseminated silver mineralization at Waterloo and Langtry