Vancouver —
Surface and underground drilling is designed to expand reserves. Highlights include: 4.6 metres (from a depth of 168 metres) grading 15.5 grams gold per tonne in hole 187; 2.2 metres (from 166 metres) grading 21.1 grams gold in hole 189; and 1.3 metres (at 184 metres) of 61.8 grams gold in hole 191.
Apollo plans to complete 29,500 metres of underground drilling and 22,700 metres of coring from surface in the first half of 2005.
According to previous calculations, Black Fox has a proven and probable open-pit reserve of 3 million tonnes grading 4.8 grams gold. But Apollo envisions an operation consisting of underground mining as well.
A feasibility study is ongoing and anticipated by the fall of 2005.
Black Fox is in the Abitibi greenstone belt, along the east-west-trending Destor-Porcupine fault. This mineralized belt hosts a score of mines and former mines, which together have produced more than 70 million oz. gold.
The main zone at Black Fox is related to moderate to steeply dipping mafic and ultramafic units transected by the Destor-Porcupine fault. Gold is associated with a 20-to-100-metre-wide zone of ankerite alteration. The alteration zone is cut by numerous felsic dykes and sills. Within the altered ultramafics, gold occurs predominantly in its free state, in quartz veins and stockworks, and is associated with pyrite in the altered mafic volcanics. Mineralized zones remain open to depth and along strike.
Surface drilling in 2004 outlined a new area of gold and base metal mineralization, outside of the main zone and north of the Destor-Porcupine fault.
Apollo Gold acquired Black Fox, previously known as the Glimmer mine, from
The previous operators suspended mining in mid-2001, owing to depressed gold prices. The underground mine operated from 1997 to May 2001, during which time it cranked out 50,000 oz. gold annually.
Apollo produces gold from its Florida Canyon and Standard mines in Nevada and the Montana Tunnels mine in Montana. The Standard mine, adjacent to and just south of Florida Canyon, is expected to enter full commercial operation by mid-2005.
In 2004, the company produced almost 107,000 oz. gold, plus a significant amount of silver, lead and zinc.
Apollo has 97.5 million shares issued, resulting in a market capitalization of $77 million. The stock recently traded at 79.
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