Silver Riches Abound at Apollo Silver
Contributed Opinion

1. MAG Silver Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$3,000 and US$6,000.
2. Bob Moriarty: I, or members of my immediate household or family, own securities of: None. My company has a financial relationship with: Apollo Silver Corp. My company has purchased stocks mentioned in this article for my management clients: None. I determined which companies would be included in this article based on my research and understanding of the sector.
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I've been banging the drum for ages that silver and platinum were significantly undervalued compared to gold. Even Chinese officials concur and have advised their citizens accordingly. Now both metals have finally awakened and surged upward. I'm certain we'll see some pullback eventually, but this presents a prime opportunity to invest in a quality silver enterprise. Unfortunately, genuine silver companies are quite scarce.

Not long ago, I spoke with a silver venture led by my longtime colleague, Andy Bowring. The outfit is called Apollo Silver Corp. (APGO:TSX.V; APGOF:OTCQB) and possesses one enormous 182-million-ounce silver holding in the mining-supportive region of San Bernardino County, California, alongside a premier Carbonate Replacement Deposit in business-friendly Chihuahua.  Andy serves as Chairman at Apollo with Ross McElroy functioning as President and CEO. Here you can view the most recent discussion featuring Ross.

Apollo's  Calico silver/barite project in San Bernardino encompasses two subsidiary projects: the Waterloo property boasting a 43-101 silver resource of 125 million ounces grading 71 g/t Ag, and the adjacent Langtry property containing an additional 57 million ounces of silver grading 73 g/t Ag. San Bernardino appears to be among the few California jurisdictions not governed by extremists. The county hosts over ninety operational mines. Clearly, the inclusion of silver in the 2025 Critical Metals Draft list represents a tremendous advancement for Apollo. Waterloo also includes an extra 130,000 ounces of oxide gold grading 0.25 g/t Au.

Apollo's secondary venture is situated in Mexico. As everyone in mining recognizes, Mexico can be challenging. With Doctor Peter Megaw guiding us, I traversed northern Mexico with him by car for three days around 2007 or 2008, I can't precisely recall. In my estimation, Peter ranks among the top three geologists globally.

Now I fully appreciate what an incredible privilege it was to examine several MAG Silver Corp. (MAG:TSX; MAG:NYSE American) projects nearly two decades ago. Spending three days in a vehicle with him is equivalent to earning a Master's Degree from the Colorado School of Mines. He resembles Quinton Hennigh; in just five minutes he can deliver an entire semester's worth of geological knowledge. We spent a day visiting the Cinco de Mayo CRD project. Peter is the foremost CRD specialist worldwide, and witnessing Mag Silver's discoveries was truly remarkable.

Apollo currently holds an option to acquire the Cinco de Mayo property from Mag Silver. When Peter and I toured the project, it represented one of Mag Silver's most significant prospects. Mag conducted 214,000 meters of drilling across 445 holes. They completed a 43-101 in 2012 revealing 52.7 million ounces of silver with 96,000 ounces of silver, 1.777 million pounds of zinc and 785 million pounds of lead. Unfortunately, relations deteriorated with the local population, and Mag couldn't proceed with development without the social license mandated by Mexican legislation after 2012.

Apollo's arrangement with Mag Silver stipulates that Apollo must secure the social licensing and exploration permits to progress the Cinco de Mayo project. The option extends for five years. Apollo bears responsibility for covering all fees and license requirements throughout this timeframe. Once the social license agreement is established, Apollo must execute 20,000 meters of drilling. Upon fulfilling all option conditions, Apollo will need to transfer 19.9% of its issued and outstanding shares to Mag Silver.

Cinco de Mayo clearly represents a wildcard opportunity. While the property undoubtedly constitutes a world-class extensive CRD, community relations cannot guarantee success but can certainly ensure failure. Apollo has a budget-friendly, high-potential prospect if they can establish positive relations with local residents and persuade them of the mutual benefits.

I firmly believe the western debt-based financial system is currently collapsing. All genuine wealth originates from three possible sources: agricultural production, manufacturing, or mineral extraction. It's entirely possible that locals understand the true value of a high-grade mining operation during financial instability.

Or perhaps not.

As I write this, Apollo maintains a market capitalization of CA$179 million with approximately 182 million ounces of silver solely in the California Calico property. That ranks among the largest primary silver projects worldwide. The valuation translates to roughly one ounce of silver per Canadian dollar or US$0.72 in American currency. In 2011, with silver trading at half today's price, speculators were paying about $3 US or CAD per ounce. I believe $5 an ounce would be considerably more appropriate today.