Challacollo

Location
Chile

Operator
Aftermath Silver Ltd.

Commodity
Silver-Gold

Royalty
2% NSR

Challacollo hosts a resource stage low-sulphidation epithermal deposit, located in Chile’s northernmost Region I. The project operator, Aftermath Silver Ltd. (TSX-V: AAG, “Aftermath Silver”), is earning 100% project interest under a binding agreement with Mandalay Resources Corporation (TSX: MND). After earn-in, EMX will retain a 2% NSR royalty, payable after 36 million ounces of silver have been produced, with a cap of US$5 million.

The primary target at Challocollo is the Lolón Structure but there is further potential in hanging wall veins, in addition to stockwork mineralization adjacent to the structures. There is good opportunity to increase the size of the defined mineralized zone in the Lolón Structure as well as other mineralized veins on the project, and to expand on the Challacollo deposit’s economic potential.

Aftermath Silver published a 2020 resource estimate and reported current Indicated and Inferred Resources of 9.4 million tonnes grading 153g/t silver and 0.24g/t gold, for approximately 46 million ounces of contained silver and 73 thousand ounces of contained gold. 

Aftermath Silver continues to focus on drilling and sampling mineralized structures and disseminated breccia style mineralization outside of the high-grade structures that formed the Mineral Resource Estimate and within the optimized pit shell that constrains the Mineral Resource.

Notes:

1. CIM (2014) definitions were followed for Mineral Resources.
2. The open pit and underground Mineral Resources are estimated at a cut-off grade of 35 g/t AgEq and 93 g/t AgEq, respectively. Silver equivalency formula is AgEq (g/t) = Ag (g/t) + 57.065 *Au (g/t).
3. Mineral Resources are estimated using long-term metal prices of US$1,400/oz Au and US$20/oz Ag.
4. Average bulk density is 2.47 t/m³ for both Indicated and Inferred categories.
5. The estimate is constrained by a pit shell for the open pit Mineral Resources and by a stope optimization process using Datamine’s Mineable Shape Optimiser (MSO).
6. Numbers may not add due to rounding. 

The mineral resources are classified and reported above are from the 43-101 report titled Technical report Challacollo Silver-Gold Mineral resource estimate. This report was completed in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definitions Standards for Mineral Resources and Mineral Reserves with an effective date of dated December 15, 2020 (CIM (2014) definitions). This resource was reviewed by Qualified Person  Dinara Nussipakynovaan, P.Geo., Principal Geologist of AMC Mining Consultants (Canada) Ltd.. (“AMC”) and registered as a Professional Geoscientist in the Province of British Columbia (Reg.#37412).

EMX has not performed sufficient work to verify the projects’ resource estimate but considers this information as reliable and relevant.

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