Challacollo is a 19,000-hectare royalty property and 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.