Apogee intersects silver in tumultuous Bolivia

While political uncertainty still swirls around the mining industry in Bolivia, Apogee Minerals (APE-V) had good news from the ground as it hit high grade silver-zinc mineralization at its La Solucion Mine there.

Rhetoric in Bolivia over the possible nationalization of the mining industry has risen in the past week, but Apogee’s press release focused squarely on intersects made at the Hampaturi south extension which is adjacent to the southwestern end of La Solucion.

In Toronto on Oct. 19, Apogee’s shares were up nearly 13% or 7 to 62 on roughly 110,000 shares traded.

Highlights include:

• 6 metres grading 64.5 grams silver per tonne, 5.11% zinc, 0.68% lead and 0.04 grams gold per tonne; including 2 metres with 113.5 grams silver, 13.4% zinc, 0.81% lead and 0.03 grams gold per tonne
• 8 metres grading 84.38 grams silver per tonne, 5.17% zinc, 0.59% lead, and 0.05 grams gold per tonne; including 6 metres grading 101.5 grams silver, 6.88% zinc, 0.71% lead and 0.06 grams gold per tonne
• 9 metres grading 64 grams silver per tonne, 1.64% zinc, 1.18% lead and 0.29 gold per tonne

Apogee estimates a zone of mineralization that is roughly 100 to 125 metres along strike, 125 to 150 metres down dip/plunge and averaging 4.3 metres in true thickness. The zone is open in all directions.

The drill program should be finished in three to four weeks, after which time a National Instrument 43-101 mineral resource will be calculated.

In a prepared statement, Apogee’s vice president of exploration, Doug Currie, says the zone could potentially provide “sufficient” resources to support the expansion of the flotation mill at La Solucion which currently produces 120 tonnes per day.

Currie also says 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 as a follow up to intersects from four holes drilled late in 2005. Drilling at Hampaturi south started shortly after Apogee bought 100% of the La Solucion Mine.

Roughly 3,300 metres of drilling have been done in 23 holes — 13 of 15 holes with results have intersected mineralization. Two diamond drills are continuing 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 to abundant pyrite.

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

While producing at La Solucion, the company has other exploration projects in the historic silver producing regions of central and southwest Bolivia.