Gold identified at Waterloo project in continuous near-surface horizon

VANCOUVER, British Columbia, Jan. 11, 2022 (GLOBE NEWSWIRE) -- Apollo Silver Corp. ("Apollo" or the "Company") (TSX.V:APGO, OTCQB:APGOF, Frankfurt:6ZF) is pleased to provide an update on its ongoing technical review of historic data at the Waterloo and Langtry projects in San Bernardino County, California. Recently this work has identified a 25 metre ("m") thick, gold bearing horizon below silver mineralization. Silver mineralization transitions to gold-dominated mineralization at the variably faulted lithologic contact between Barstow formation sedimentary rocks and Pickhandle formation volcaniclastics. Gold mineralization at the district's only historic gold producer, the Burcham Mine, occurs along this contact 250 m to the southeast. Apollo's analysis of historic data has shown that not only does gold mineralization extend beyond the Burcham mine area, evidence suggests that at the Waterloo project the entire 2.2 kilometre ("km") long contact between the Barstow sediments and Pickhandle volcaniclastics is prospective for gold mineralization.

Highlights:

• Potential for meaningful gold mineralization along the entire 2.2 km long contact for which the majority of historic drill holes did not test;
• Gold ("Au") mineralized horizon of 25 m (true thickness) returning 0.59 grams per tonne ("g/t") Au from 132.60 m below surface, including 1.52 m of 5.52 g/t Au. This horizon is 60 m wide and 110 m length (down-dip) and open in all directions;
• The contact represents an excellent exploration target for replacement style gold mineralization, and possibly higher-grade vein hosted gold; and
• The upcoming 2022 drill program will test for additional gold mineralization along this prospective horizon.

"Our systematic approach to reviewing and validating the historic data is continuing to deliver significant value" Apollo CEO, Tom Peregoodoff, commented. "We were aware of this historic gold production at the Burcham mine, however it is only recently and through this detailed review that we have come to understand the nature and extent of the host unit, and the potential for a significant gold discovery at Waterloo. This presents an exciting opportunity in that it substantially adds to the exploration potential of the properties and testing of this prospective horizon will form part of our upcoming 2022 drill program. With our pending maiden silver resource declaration for Waterloo and Langtry on track, 2022 is shaping up to be a very exciting year for Apollo."

Gold Mineralization at Calico

Apollo's Waterloo project hosts the Burcham mine, the only mine in the Calico Mining District known to produce gold as its primary commodity (refer to Figure 1). Gold was produced from two NW-oriented veins via underground drifts. Gold is hosted in veins varying from 0.3 up to 3 m wide and occurs as replacement style mineralization, with both the Barstow and the Pickhandle volcaniclastics formations hosting disseminated gold in zones up to 9 m wide. Gold was reported to be associated with chalcopyrite, galena, sphalerite and silver chloride, all hosted in a gangue of quartz, barite and iron oxides. There are no known production numbers from this mine, but historic public articles report grades of up to 0.31 ounces per ton (9.7 g/t).

Historic Mining and Exploration for Gold at Calico

ASARCO undertook a number of work programs to better understand gold mineralization in the Burcham area between 1985 and 1989. These included 10 shallow air track holes (188 m total, maximum depth of 29.30 m), three diamond drill holes (335.30 m total, maximum depth of 137.60 m) and underground chip/channel sampling (96 samples, 3-6 m lengths, ~5 kilograms each) from accessible underground workings. A selection of results of gold mineralized intersections from this drilling are shown in Table 1. Results from the underground chip sampling revealed a maximum of 2.01 g/t Au (average 0.63 g/t Au) in the Pickhandle volcaniclastics (12 samples) and a maximum of 4.44 g/t Au (average 0.44 g/t Au) in the Barstow sediments (84 samples). Importantly, this is the only work program completed by Asarco that included assaying for gold.

Between 2008 and 2012, Pan American Minerals, a wholly owned subsidiary of Pan American Silver Corp. ("Pan American"), completed exploration programs comprising surface geological mapping and drilling. Six reverse circulation holes completed by Pan American show a transition from silver-dominated mineralization to gold-dominated mineralization towards the SW-dipping, unconformable and variably faulted contact between the Barstow and Pickhandle formations. This gold-dominated horizon is up to 25 m thick (true thickness), 60 metres wide, 110 m long and is open in all directions (refer to Figure 2), as identified in drill hole W-0054, which intersected 0.59 g/t Au from 132.60 m downhole, including 7.62 m of 1.44 g/t and 1.52 m of 5.52 g/t Au.

Geological mapping completed by Dr. Warren Pratt in 2008 (for Pan American) identified hydrothermal mineralization along the entire 2.2 km length of the contact on the Waterloo property. Some areas were intensely altered to an acid-sulfate assemblage of kaolinite, alunite and cristobalite, particularly in the volcaniclastics. Acid sulphate type leaching is widespread at surface at the contact in both the Barstow and Pickhandle formations, and the contact appears to be variably mineralized for at least half its length, as hematite, jarosite, goethite, quartz and copper oxides were observed. Historic mining at both the Burcham and Waterloo mines exploited this contact.

Conclusions ? Gold Exploration Potential

Apollo's analysis of historic Pan American and ASARCO data has concluded that not only does gold mineralization extend beyond the Burcham mine area, there is evidence to suggest that the entire 2.2. km long contact between the Barstow sediments and Pickhandle volcaniclastics is prospective for gold. Historic work by ASARCO demonstrated that the Barstow formation and a wide halo in the Pickhandle volcaniclastics in the Burcham area are mineralized with disseminated gold. Spatial distribution and both Pan American and ASARCO drill log data suggest this is a replacement style mineralized zone preferentially formed along the contact between the Barstow and Pickhandle formation, with the Pickhandle volcaniclastics being the preferential gold host. Shallow drilling by ASARCO and evidence from geologic mapping completed by Pan American suggest this mineralization extends to surface. All gold mineralization occurred in oxidized rock.

Of the 277 drill holes in Apollo's Waterloo database, only 18 definitively pierce the contact and have gold assays (see Figure 1). Thirteen of these holes are mineralized (i.e., +0.2 g/t Au). Of note is that many of the holes that pierce the contact do not fully test the adjacent volcaniclastics.

The current focus of the review has been on the Waterloo project. The gold potential at the adjacent Langtry property remains poorly constrained and work is ongoing to better assess this potential.

Testing of the gold prospective horizon will form part of the upcoming 2022 drilling program.

Figure 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/43d6e5d3-a3f7-48c8-a0c6-e032c4c7a68c

Figure 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e2353718-9e61-4bf4-bf4c-d7123e12a62c

Table 1: Selection of gold intercepts from historic drilling at the Waterloo project.

*Diamond Drill hole **Reverse circulation or air track hole. Assay data is shown as recorded by operators.

Qualified Person

The scientific and technical data contained in this news release was reviewed and approved under the supervision of Cathy Fitzgerald, P.Geo., Vice President Exploration and Resource Development, a Qualified Person as defined by National Instrument 43- 101 Standards of Disclosure for Minerals Projects. Ms. Fitzgerald is a registered Professional Geoscientist in British Columbia, Canada.

For further information about the Waterloo project please see the 2021 N.I. 43-101 technical report "NI 43-101 Technical Report Waterloo Project, California, USA" with an effective date of May 12, 2021; and for further information about the Langtry project please see the 2021 N.I. 43-101 technical report "NI 43-101 Technical Report Langtry Project, California, USA" with an effective date of December 1, 2021. Both reports were prepared by H. Samari and L. Breckenridge of Global Resource Engineering, Ltd.

Please visit www.apollosilver.com for further information.

ON BEHALF OF THE BOARD OF DIRECTORS

Tom Peregoodoff
Chief Executive Officer

For further information, please contact:

Tom Peregoodoff
Chief Executive Officer
Telephone: +1 (604) 428-6128
[email protected]

About Apollo Silver Corp.
Apollo Silver Corp. has assembled an experienced and technically strong leadership team who have joined to advance world class precious metals projects in tier-one jurisdictions. The Company is focused on advancing its portfolio of three significant pure silver exploration and resource development projects, the historical Waterloo and Langtry projects, in San Bernardino California and Silver District Project in Arizona.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding "Forward-Looking" Information

This news release includes "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements including, without limitation, statements with respect to the potential of the Company's properties; the potential for a significant gold discovery at Waterloo; the timing and completion of the anticipated maiden declaration of resource estimates at the Company's silver-barite projects; the evaluation of the quality of the historical data collection, historical estimates, geological models, drilling and assay data, data sets prepared by and acquired from previous operators; timing and cost of future exploration, drilling, metallurgical testing and geophysical program plans and targets; success of exploration activities; the estimation of mineral resources; and conclusions of economic evaluations. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "estimate", "expect", "potential", "target", "budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. 

Forward-looking statements are based on the reasonable assumptions, estimates, analysis and opinions of the management of the Company made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management of the Company believes to be relevant and reasonable in the circumstances at the date that such statements are made. Forward-looking information is inherently subject to known and unknown risks, significant operational, economic, and competitive uncertainties, contingencies and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to the Company's goal of creating shareholder value by concentrating on the development of the Waterloo project, the Langtry project, or the AZ Silver District project (the "Properties"); believing that the Properties have the potential to contain economic silver deposits; the Company's assessment of future plans for the Properties; managements' economic outlook regarding future trends; the Company's exploration budget for the Properties; and in particular, the availability of equipment, skilled labour and services needed, timing and the amount of the expected budget; the Company's ability to meet its working capital needs at the current level in the short term; expectations with respect to raising capital; sensitivity analysis on financial instruments may vary from the amounts disclosed; government regulation and environmental liability; relations with local stakeholders and the surrounding communities; general business and economic conditions; the timing and receipt of governmental permits and approvals; the timing and receipt of community and landowner approvals; changes in regulations; political factors; the accuracy of the Company's interpretation of drill results; the geology, grade and continuity of the Company's mineral deposits; currency fluctuations; and impact of the COVID-19 pandemic. 

There can be no assurance that forward-looking statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include actual exploration results, interpretation of exploration results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, unknown impact related to potential business disruptions stemming from the COVID-19 pandemic, or another infectious illness, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators, including those discussed or referred to in the Company's continuous disclosure filings with the securities regulatory authorities in Canada, available at www.sedar.com. 

Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward looking information, other factors could also cause materially different results. There can be no assurance that forward looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The forward-looking information contained herein is presented for the purpose of assisting investors in understanding the Company's expected financial and operational performance and the Company's plans and objectives and may not be appropriate for other purposes. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.