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Apollo Silver has a lot of SilverBob Moriarty I’ve been pounding the table for a long time that silver and platinum were far cheaper in relative terms than gold. Even the Chinese agree and have told their people the same. Now both metals have woken up and have shot higher. I have little doubt that there will be a correction on the way but this would be a great time to own a solid silver company. And there aren’t many of them. Recently I was contacted by a silver company headed by an old friend of mine, Andy Bowring. The company is named Apollo Silver (APGO-V) and has one giant 182-million-ounce silver deposit in mining friendly San Bernardino County California along with a world class Carbonate Replacement Deposit in mining friendly Chihuahua. Andy is the Chairman of Apollo with Ross McElroy working as President and CEO. Here is a link to a recent interview by Ross. Apollo’s Calico silver/barite project in San Bernardino contains two sub-projects, the Waterloo property with a 43-101 silver resource of 125 million ounces at a grade of 71 g/t Ag and the nearby Langtry property with an additional 57 million ounces of silver at 73 g/t Ag. San Bernardino seems to be one of the few jurisdictions in California not run by nutcases. The county has over ninety different mines operating. Obviously adding silver to the 2025 Critical Metals Draft list is a giant step forward for Apollo. Waterloo also contains an additional 130,000 ounces of oxide gold at a grade of 0.25 g/t Au. Apollo’s secondary project is located in Mexico. As we all know in mining, Mexico can be difficult. With Doctor Peter Megaw leading the way, I spent three days driving around northern Mexico with him in 2007 or 2008, I forget which. Peter is in my view one of the top three geologists in the world. Now I can fully understand what a giant treat it was to visit several of Mag Silver’s projects almost twenty years ago. If you spend three days in a truck with him, you can take that to the Colorado School of Mines and they will issue you a Master’s Degree. He is like Quinton Hennigh, in five minutes he can teach you a semester of geology. We visited the Cinco de Mayo CRD project for a day. Peter is the world’s best CRD expert and it was an adventure to see what Mag Silver discovered. Apollo now has an option to buy the Cinco de Mayo property from Mag Silver. When Peter and I visited the project, it was one of the most important prospects for Mag Silver. Mag poked 214,000 meters of drilling into the project in 445 holes. They completed a 43-101 in 2012 showing 52.7 million ounces of silver with 96,000 ounces of silver, 1.777 million pounds of zinc and 785 million pounds of lead. Alas, things went sideways with the local community and Mag could not continue to work on the property without the social license required by Mexican law after 2012. Apollo’s option agreement with Mag Silver calls for Apollo to obtain the social licensing and exploration permits to advance the Cinco de Mayo project. The option period is for five years. Apollo is responsible for payment of all fees and license requirements during that period. Once the social license agreement is in place, Apollo is required to conduct 20,000 meters of drilling. When all the terms of the option have been fulfilled, Apollo will be required to turn over 19.9% of the issued and outstanding shares to Mag Silver. Cinco de Mayo is obviously a wild card. While it is clear the property is a world class massive CRD, relations with the locals can’t make you succeed but they can make you fail. Apollo has a low cost, high potential opportunity if they can make nice with the local community and convince them it is a big opportunity for them as well. I am convinced the debt-based system of the west is in a state of collapse right now. All real wealth comes from one of three places. You can grow it or you can manufacture it or you can mine it. It's entirely possible that the locals realize the real value of a high grade mine in a time of financial disorder. Or not. As I write Apollo has a market cap of 179 million in CAD with about 182 million ounces of silver just in the Calico property in California. That’s one of the biggest primary silver projects in the world. The price works out to about one ounce of silver per Canadian Peso or $.72 in US Pesos. In 2011 with silver at half the price punters were paying about $3 US or CAD per ounce. It seems to me that $5 an ounce would be a lot more reasonable today. Apollo Silver is an advertiser and that makes me biased. Do your own due diligence. Do watch the corporate presentation, it’s good. Apollo Silver Corp ### Bob Moriarty 321gold Ltd |
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