122Moz Silver Resource Anchors Aftermath’s Berenguela Project | Mike Williams

Key Concepts

• Hydrometallurgy: A technique for obtaining metals from their ores using aqueous chemistry, crucial for processing manganese-rich deposits.
• Carbonate Replacement Deposit (CRD): A type of ore deposit formed by the replacement of carbonate rocks by hydrothermal fluids; the geological model for the Barangala project.
• High-Purity Manganese (HPM): Manganese refined to 99.9% purity, specifically required for EV battery cathodes, distinct from ferro-manganese used in steel.
• 43-101 Technical Report: The industry-standard document for disclosing mineral resources and reserves in Canada.
• All-In Sustaining Cost (AISC): A comprehensive metric representing the total cost of producing an ounce of metal, including mining, processing, and overhead.
• Skarn Mineralization: A type of ore deposit formed at the contact zone between igneous intrusions and carbonate rocks.
• Offtake Agreement: A contract between a producer and a buyer to purchase or sell a portion of the producer's future production.

1. Project Overview: The Barangala Silver-Copper-Manganese Project

Located in Puno, Peru, the Barangala project was acquired from Silver Standard Resources. The project is characterized as an open-pit, polymetallic deposit.

• Resource Estimates: 122 million ounces of silver (measured and indicated) + 20 million ounces (inferred); 870 million pounds of copper; and 3 million tons of manganese (with potential to yield 10 million tons of high-purity manganese for the EV market).
• Strategic Advantage: The project benefits from existing infrastructure, including proximity to a railway (3 km away) and power sources, which facilitates the transport of ore to lower elevations for processing, mitigating environmental risks associated with high-altitude tailings.

2. Metallurgical Innovation and Market Strategy

Mike Williams emphasizes that historical difficulty in processing manganese-rich silver deposits has been overcome by modern hydrometallurgy.

• EV Battery Focus: Unlike steel-grade manganese, the Barangala deposit is oxide-based, which is essential for achieving the 99.9% purity required for EV batteries.
• Phased Production: The company plans to prioritize silver and copper production in the first five years. Manganese will be stockpiled or processed later as the EV battery market matures, potentially through offtake agreements with Chinese or U.S. facilities.

3. Operational Methodology and Development

• Drilling: Over 40,000 meters of drilling have been completed. Recent exploration in the eastern zone yielded significant results: 150 meters of 1.2% copper, 289 g/t silver, and 7% manganese.
• Pre-Feasibility Study (PFS): Currently underway, with a target release for late 2026 or Q1 2027. The study is being stress-tested at a $50/oz silver price to ensure economic viability, though the company maintains a bullish long-term outlook.
• Leverage: Williams describes the company’s value proposition as: "The silver is the share; the warrant is the copper and the manganese." The polymetallic nature allows for byproduct credits that significantly lower the AISC of silver.

4. Political and Social Environment in Peru

• Stability: Despite frequent presidential turnover, Williams notes that the Peruvian Congress remains centrist and supportive of the mining industry, which accounts for 13% of the national GDP.
• Community Relations: The company employs local indigenous staff to manage community relations. Williams argues that permitting issues are universal, but success depends on local engagement to prevent opposition from NGOs.
• Environmental Stewardship: To address water concerns near Lake Titicaca, the company plans to transport ore to lower elevations for processing, avoiding high-altitude tailings risks.

5. Notable Quotes

• "If someone tells you they don't have permitting issues, I think they're lying or being disingenuous. We all have permitting issues. It's how you manage them." — Mike Williams
• "I think if you can maintain a reasonable all-in sustaining cost—call it $20–$22—and if silver is trading north of $75, companies like us... should be able to deliver tech returns." — Mike Williams

6. Synthesis and Conclusion

Aftermath Silver (TSXV: AG) is positioning itself as a major silver development story by leveraging a large, polymetallic resource in a mining-friendly jurisdiction. The company’s strategy relies on three pillars:

1. Technical De-risking: Proving the viability of hydrometallurgical processing for high-purity manganese.
2. Infrastructure Advantage: Utilizing existing rail and road access to lower processing costs and environmental risks.
3. Market Timing: Capitalizing on the industrial demand for silver and copper while holding manganese as a long-term "warrant" for the EV battery sector.

Key catalysts for the coming year include ongoing infill drilling, exploration of the skarn zone, and the release of the Pre-Feasibility Study.