The Right Time for Calico’s Preliminary Economic Assessment

Apollo Silver has announced the engagement of SLR Consulting to lead a Preliminary Economic Assessment (PEA) for its Calico project, one of the largest undeveloped primary silver assets in the United States. The PEA represents a strategic milestone in advancing the project toward development-ready status, building on the company's existing Mineral Resource Estimate to evaluate optimal development approaches, processing methods, and economic parameters.

The timing of this assessment reflects Apollo's analysis of converging market forces that may create a compelling development window for primary silver projects. The company cites a structural supply deficit in global silver markets, with annual production of 830 million ounces falling short of industrial demand driven by solar panels, electric vehicles, and military applications. This deficit is compounded by approaching end-of-life cycles at major Mexican silver mines and depleting LBMA and COMEX inventories that analysts project could be exhausted by mid-2026.

Apollo's strategic positioning extends beyond market fundamentals to policy alignment with U.S. national security priorities. The company's membership in the U.S. Defense Industrial Base Consortium reflects silver's emerging role as a strategic material in mass-produced military systems including drones and interceptors. The November 2025 reclassification of silver as a critical mineral, combined with Proclamation 232 permitting streamlining, creates a supportive regulatory environment for domestic producers.

The Calico project's location in San Bernardino County, California, positions it as a potential cornerstone of domestic critical mineral supply resilience. Unlike most silver operations where the metal is produced as a byproduct, Calico is dominantly driven by its silver resource, providing direct exposure to silver price movements and supply dynamics. The project also contains demonstrated resources of barite and zinc, adding further critical mineral value to the asset portfolio.

Looking forward, the PEA will establish the technical and economic framework necessary for advancing to Pre-Feasibility and Feasibility studies, reducing development uncertainty while positioning Calico to respond to what Apollo characterizes as an increasingly structural shift in silver market dynamics. The company views the current convergence of supply constraints, policy support, and strategic demand as creating a time-sensitive opportunity for first-mover advantage in developing shovel-ready primary silver capacity in the United States.