Apogee hits silver-zinc near La Solucion in Bolivia

Apogee Minerals (APE-V, AGEEF-O) had good news from the ground recently, hitting high-grade silver-zinc mineralization near its La Solucion mine — and from the Bolivian government, which backed off from plans to nationalize the country’s mining industry.

Rhetoric in Bolivia over the possible nationalization of the mining industry had intensified recently, until President Evo Morales admitted on Oct. 31 that his government can’t afford the scheme at the moment. It has already nationalized its natural gas and oil industry.

“(We) recognize as a government we do not have the necessary economic resources to nationalize the mines,” Morales said.

Instead, the government is trying to generate more investment and jobs.

Apogee said it viewed the recent statements by Morales, as well as comments by Mines Minister Guillermo Dalence, as positive. In a release, the company noted that Dalence has said there will be incentives and security for foreign investment and that there are no plans for project expropriations.

“We continue to view our Bolivian projects as secure investments that offer our company the possibility for excellent returns on investment,” said Apogee president and CEO John Carlesso.

Highlights from drilling at the Hampaturi South extension, adjacent to the southwestern end of La Solucion, include: 6 metres grading 64.5 grams silver per tonne, 5.11% zinc, 0.68% lead and 0.04 gram gold; 8 metres grading 84.38 grams silver, 5.17% zinc, 0.59% lead, and 0.05 gram gold; and 9 metres grading 64 grams silver, 1.64% zinc, 1.18% lead and 0.29 gram gold.

Apogee estimates the zone of mineralization is roughly 100 to 125 metres along strike, 125 to 150 metres downdip and averages 4.3 metres true thickness. The mineralization is open in all directions.

Meanwhile, Apogee’s vice-president of exploration, Doug Currie, said the mineralized zone at Hampaturi South could potentially provide “sufficient” resources to support the expansion of the 120-tonne-per-day flotation mill at La Solucion.

Currie also said that while historically there have been no resources or reserves over La Solucion’s 14-year production history, the latest results point to the potential for such a resource base.

The latest results come from a drill program designed to follow-up on results from four holes drilled late in 2005. Drilling at Hampaturi South started shortly after Apogee aquired La Solucion in May from a private partnership.

Roughly 3,300 metres of drilling have been completed in 23 holes; 13 of the 15 holes with assay results have intersected mineralization. Two diamond drills continue to drill on-site.

Apogee says mineralization at La Solucion is related to the Hampaturi vein, one of several major sub-parallel veins. The veins, averaging 5 to 8 metres, vary from massive quartz, barren of mineralization, to quartz-siderite veins with sphalerite, galena, chalcopyrite and lesser bornite, covellite, stibnite and varying amounts of pyrite.

The mine produces roughly 2,300 tonnes of ore each month averaging 49 grams per tonne silver, 1.3% lead and 4.5% zinc.

The company has other exploration projects in the historic silver-producing regions of central and southwest Bolivia.

Apogee shares were up nearly 7, or 13%, to 62 on roughly 110,000 shares traded on the drill results.