Aftermath Silver: Advancing a Silver-Copper-Mangenese Project in Peru Towards Development

Key Concepts

• Berenguela Project: A multi-commodity mining project in Peru containing silver, copper, and manganese.
• Hydrometallurgical Processing: An extraction method using aqueous chemistry to recover metals from ore, crucial for the project's unique mineral combination.
• Manganese Sulfate: A high-value chemical compound used in battery production, currently seeing significant demand.
• Infill Drilling: A drilling technique used to increase the density of data points in a known resource to upgrade its classification.
• Pre-Feasibility Study (PFS): An engineering and economic assessment used to determine the viability of a mining project.
• Byproduct Credits: A financial strategy where the production of one metal lowers the effective cost of producing others.

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1. Project Overview: The Berenguela Project

The Berenguela project in Peru is the flagship asset for Aftermath Silver. Acquired seven years ago from SSR, the project is unique due to its combination of silver, copper, and manganese.

• Historical Context: The site was mined over 100 years ago, but operations ceased due to the presence of manganese, which was considered a hindrance at the time.
• Strategic Shift: The modern surge in demand for battery metals has transformed manganese from a liability into a core asset.
• Economic Model: The company views the project as a "low-cost producer" opportunity. By leveraging silver and copper credits, they can lower the cost of manganese production, or conversely, use manganese to subsidize the production of silver and copper.

2. Engineering and Exploration Status

Aftermath Silver is currently transitioning from resource definition to engineering development.

• Current Status: The company has completed two resource estimates and is currently conducting a Pre-Feasibility Study (PFS).
• Timeline: The PFS is expected to be completed by the end of 2024 or the first quarter of 2025.
• Exploration Plans: The company is finalizing the publication of results from its most recent drilling phase (approximately 20–30 holes remaining). Future exploration will focus on two high-profile copper zones within the project area.
• Methodology: The team is conducting "proof of concept" work on hydrometallurgical processing routes to ensure they can efficiently extract the full suite of metals.

3. The Manganese Market and Battery Sector

CEO Ralph Rushton highlighted the critical state of the global manganese market:

• Pricing: Manganese sulfate is currently selling for approximately $1,000/ton in China. Because one ton of manganese metal yields three tons of sulfate, the potential valuation is roughly $3,000/ton. In North America and Europe, pricing ranges between $2,500 and $2,800/ton.
• Supply Chain Vulnerability: 95% of global manganese refining capacity is located in China, creating a significant supply chain bottleneck for Western battery manufacturers.
• Investor Sentiment: Eric Sprott, a major shareholder holding approximately 25% of the company, has increased his stake specifically due to the thesis that the battery metal sector is currently undervalued.

4. Financial Position

• Treasury: As of the time of the interview, the company held approximately $22 million CAD.
• Burn Rate: The monthly operational burn rate is approximately $1 million CAD, covering drilling and engineering costs.
• Future Funding: While current funds are sufficient to complete the PFS, the company anticipates needing further capital raises if they proceed to a Definitive or Bankable Feasibility Study.

5. Additional Assets and Milestones

Beyond Berenguela, Aftermath Silver is managing other projects:

• Chayakoyo (Chile): The company plans to drill this project to increase resources; it is expected to yield "pure silver" results, contrasting with the multi-commodity nature of Berenguela.
• Cachinal Project: The company is actively seeking a joint venture partner or a potential buyer for this asset.

Synthesis and Conclusion

Aftermath Silver is positioning itself as a strategic player in the energy transition by focusing on the Berenguela project’s unique mineral suite. The company’s primary value proposition lies in its ability to navigate the complex metallurgy of silver, copper, and manganese to provide a secure, non-Chinese source of battery-grade manganese. With a clear roadmap involving the completion of a Pre-Feasibility Study and ongoing exploration of copper targets, the next 12–18 months are defined as a critical period for establishing the project's economic viability and market relevance.