Vancouver — Drilling by
Latest drill results include:
– Hole 05BF-440 — A 1.4-metre interval (from 74 metres below surface) graded 83.9 grams gold per tonne;
– Hole 235-210 — A 2.1-metre true-width intercept (from 103 metres below surface) returned 47.4 grams gold;
– Hole 235-277 — An intersection of 2.3 metres (from 178 metres below surface) averaged 113 grams gold.
Apollo is advancing Black Fox towards a full feasibility study through extensive programs of surface and underground drilling, en route to a revised resource update and reserve calculation. The company’s reserve delineation drilling is being conducted on 12.5-metre centres.
A 2004 prefeasibility study on the project reviewed reserves (potentially open-pit minable) of 3 million tonnes grading 4.8 grams gold (457,100 contained ounces). Extensive drilling in 2004 and 2005 will be compiled into the new calculation, including the underground reserves, and is expected to add significantly to the gold tally.
With the feasibility study and permitting expected to be completed in 2006, the company anticipates construction and initial production as soon as early 2007. Apollo has been actively developing underground workings at the project, recently completing a 920-metre drift on the 235-metre level.
The Black Fox deposit straddles the southern limb of the east-west trending Destor-Porcupine fault system, which is host to many of the deposits in the Timmins area. It is situated on a flexure in the fault, where the strike changes to southeast. Free gold occurs in quartz veins and stockworks hosted by altered ultramafic rocks and with associated pyrite in altered tholeiitic basalts.
Apollo’s initial plans envisage a combined open-pit and underground operation, with the open pit running at a planned rate of 1,500 tonnes per day for more than five years. Average annual life-of-mine production from the pit is estimated at 81,000 oz. gold. Development of underground operations will include construction of a mill and tailings impoundment facility.
The company’s Black Fox exploration plans also include continued surface drilling of the base metal zone where high-grade silver, lead, and zinc mineralization co-exists with high-grade gold.
Apollo Gold shares have recently traded in the 37 range, giving the company a market capitalization of about $40 million based on its 106.6 million shares outstanding.
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