Apollo Gold Announces Expanded Resource at the Black Fox Project.DENVER Denver, city (1990 pop. 467,610), alt. 5,280 ft (1,609 m), state capital, coextensive with Denver co., N central Colo., on a plateau at the foot of the Front Range of the Rocky Mts., along the South Platte River where Cherry Creek meets it; inc. 1861. -- Apollo Apollo (əpŏl`ō), in Greek religion and mythology, one of the most important Olympian gods, concerned especially with prophecy, medicine, music and poetry, archery, and various bucolic arts, particularly the care of flocks and herds. Gold Corporation ("Apollo" or the "Company") (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension : APG APG Assists Per Game (basketball) APG Assists Per Game (hockey statistic) APG Aberdeen Proving Ground APG Automated Password Generator APG Asia Pacific Group on Money Laundering ) (AMEX AMEX See: American Stock Exchange : AGT AGT antiglobulin test. ) is pleased to announce the results of a new Canadian New Canadian Noun Canad a recent immigrant to Canada National Instrument 43-101 ("43-101") resource study at its 100% owned Black Fox Project ("Black Fox") located near Timmins, Ontario This article is about city in Ontario, Canada. For other uses, see Timmins (disambiguation). Timmins, with a population of 42,997 (2006), is a city in northeastern Ontario, Canada on the Mattagami River. At 2,961. , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of . The 43-101 demonstrates the continued expansion of Black Fox since the last published 43-101 dated March 25, 2004. The new resource study was prepared by Mine Development Associates ("MDA (1) (Monochrome Display Adapter) The first IBM PC monochrome video display standard for text. Due to its lack of graphics, MDA cards were often replaced with Hercules cards, which provided both text and graphics. See PC display modes and Hercules Graphics. "), a well known and respected mining engineering firm based in Reno Reno (rē`nō), city (1990 pop. 133,850), seat of Washoe co., W Nev., on the Truckee River; inc. 1903. Tourism has been the major industry since gambling was legalized in Nevada in 1931. , Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , USA. MDA has confirmed that the resource study complies in all respects with 43-101 guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . Table 1 below summarizes the Black Fox Total Mineral Resource:
Table 1 Black Fox Total Mineral Resource Summary
Tonnes Grade
000's g Au/t Ounces
-----------------------------------
Open Pit - Material
Reserve 3,062 4.56 448,800
Indicated Resource 2,356 3.27
Inferred Resource 6,626 4.00
Underground - Material
Indicated Resource 1,004 9.66
Inferred Resource 1,228 9.71
----------------------------------------------------------------------
The resources shown utilizes a 0.90 grams of gold per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. ("g Au/t") cut off for material above the 9720 elevation elevation, vertical distance from a datum plane, usually mean sea level to a point above the earth. Often used synonymously with altitude, elevation is the height on the earth's surface and altitude, the height in space above the surface. , and a 3.0 g Au/t cut off below the 9720 elevation. The executive summary from MDA is available on the Apollo website: www.apollogold.com.
Table 2 Black Fox Ore Reserve - Open Pit
Indicated (1) Indicated (2) Total Indicated
----------------------------------------------------------------------
Elevation Tonnes Grade oz Au Tonnes Grade oz Au Tonnes Grade oz Au
000's g Au/t 000's 000's g Au/t 000's 000's g Au/t 000's
----------------------------------------------------------------------
9960 109.2 7.35 25.8 458.4 4.67 68.8 567.7 5.19 94.7
9930 171.5 4.73 26.1 592.6 3.95 75.3 764.1 4.12 101.3
9900 265.2 5.16 44.0 576.4 4.12 76.4 841.6 4.45 120.4
9870 139.1 5.51 24.7 450.0 4.91 71.1 589.1 5.06 95.7
9840 42.8 3.97 5.5 191.8 4.03 24.8 234.6 4.02 30.3
9810 7.5 2.63 0.6 58.2 3.14 5.7 65.8 2.99 6.3
9780
9750
9720
----------------------------------------------------------------------
Totals 735.3 5.36 126.6 2,327.5 4.31 322.2 3,062.7 4.56 448.8
----------------------------------------------------------------------
Table 3 Black Fox Deposit Indicated Resource
Indicated (1) Indicated (2) Total Indicated
----------------------------------------------------------------------
Elevation Tonnes Grade Tonnes Grade Tonnes Grade
000's g Au/t 000's g Au/t 000's g Au/t
----------------------------------------------------------------------
Open Pit
----------------------------------------------------------------------
9960 5.1 3.35 49.8 3.33 54.9 3.34
9930 10.5 1.30 68.3 1.55 78.7 1.52
9900 31.4 1.83 148.2 1.85 179.6 1.85
9870 45.9 2.54 257.5 2.53 303.3 2.53
9840 64.0 3.76 313.2 2.98 377.1 3.11
9810 52.0 3.73 278.0 2.85 330.0 2.99
9780 59.8 4.21 279.8 3.20 339.7 3.38
9750 64.3 7.10 275.3 4.15 339.6 4.71
9720 62.0 5.00 291.0 3.76 353.0 3.98
----------------------------------------------------------------------
Open Pit 394.8 4.20 1,961.1 3.09 2,355.8 3.27
Underground (UG)
9690 36.4 9.85 107.9 9.30 144.3 9.44
9660 54.1 13.66 118.3 11.46 172.4 12.15
9630 24.4 9.10 88.4 8.95 112.7 8.98
9600 15.7 8.99 91.2 9.34 106.9 9.28
9570 31.7 9.10 127.6 8.38 159.3 8.52
9540 31.1 8.70 113.6 7.90 144.7 8.07
9510 15.6 9.81 84.8 10.26 100.4 10.19
9480 4.6 11.66 43.5 12.04 48.1 12.00
9450 1.8 5.83 9.9 8.52 11.7 8.11
9420 0.0 0.00 1.9 4.78 1.9 4.78
9390 0.1 3.74 0.6 3.46 0.7 3.50
9360 0.0 0.00 0.0 0.00 0.0 0.00
9330 0.0 0.00 0.0 0.00 0.0 0.00
9300 0.0 0.00 1.0 3.47 1.0 3.47
----------------------------------------------------------------------
UG 215.5 10.38 788.7 9.46 1,004.2 9.66
----------------------------------------------------------------------
Totals 610.2 6.38 2,749.7 4.92 3,360.0 5.18
Table 4 Black Fox Inferred Material
Tonnes Grade
000's g Au/t
Open Pit
Elev. 10002 - 9720 6,626.4 4.00
Underground
Elev. 9720 -9300 1,228.0 9.71
Total Inferred 7,854.4 4.89
----------------------------------------------------------------------
Non-Reserve Mineral Resources Noun 1. mineral resources - natural resources in the form of minerals natural resource, natural resources - resources (actual and potential) supplied by nature Cautionary Note to U.S. Investors concerning estimates of Indicated Mineral Resources: Press releases use the term "indicated mineral resources." We advise U.S. investors that while the term is recognized and required by Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. regulations, the U.S. Securities and Exchange Commission does not recognize it. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into mineral reserves. Cautionary Note to U.S. Investors concerning estimates of Inferred Mineral Resources: This press release uses the term "inferred mineral resources." We advise U.S. investors that while the term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility fea·si·ble adj. 1. Capable of being accomplished or brought about; possible: a feasible plan. See Synonyms at possible. 2. . It cannot be assumed that all or any part of an inferred mineral resources will ever be upgraded to a higher category. In accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that part or all of the inferred mineral resource exists, or is economically ec·o·nom·i·cal adj. 1. Prudent and thrifty in management; not wasteful or extravagant. See Synonyms at sparing. 2. Intended to save money, as by efficient operation or elimination of unnecessary features; economic: or legally minable. The resources for the Black Fox deposit are based on 449 surface diamond drill (136,391.6 meters) and 321 underground diamond drill holes (75,704.5 meters) drilled by Apollo and 245 surface drill holes and 721 underground drill holes drilled by prior owners. However, MDA believes that there are two serious sampling issues with the deposit, both of which are related to the occurrence of coarse gold in the deposit (nugget Nugget A 15 year Gold FHLMC (Freddie Mac) bond; similar to a Dwarf. effect). MDA believes that the result in the Black Fox Deposit is that while a few samples overestimate o·ver·es·ti·mate tr.v. o·ver·es·ti·mat·ed, o·ver·es·ti·mat·ing, o·ver·es·ti·mates 1. To estimate too highly. 2. To esteem too greatly. gold in the area they represent, most samples tend to contain less gold than is believed to be actually present. First, the gold is often concentrated in small high-grade High-grade Credit quality of AAA or AA. high-grade Of, relating to, or being a bond with little risk of default on the part of the issuer. High-grade is usually reserved for bonds rated AAA or AA by the rating services. clots. The challenge is to obtain a sample that contains a representative amount of gold for the area sampled. The core holes that form the basis for the resource and reserve estimate are too small to obtain a representative sample. A core with a diameter diameter - The diameter of a graph is the maximum value of the minimum distance between any two nodes. of several meters would be required to obtain representative sample, which is not practical. As a result some of the samples contain too much gold in the sample, from hitting the areas that contain the concentrated gold occurrence. MDA believes that more of the core will produce samples that miss the area of local concentration and contain less gold than is actually present in the area sampled. Some of these samples may even appear to be waste. The second challenge is in preparing and assaying assaying (əsā`yĭng, ăs`āyĭng), in metallurgy, process of determining the specific metallic content of an ore, alloy, or other substance, especially one containing precious metals. the sample once it has been obtained. Gold particles <onlyinclude> This is a list of particles in particle physics, including currently known and hypothetical elementary particles, as well as the composite particles that can be built up from them. up to 0.15 centimeters (cm) have been observed ob·serve v. ob·served, ob·serv·ing, ob·serves v.tr. 1. To be or become aware of, especially through careful and directed attention; notice. 2. and particles of 0.06 cm are very common (Pitard - The Black Fox preliminary Pitard report, November November: see month. 2005). The proper sample size is required in order to get a representative sample. In order to sample the 0.15 cm gold particles that occur at Black Fox, samples of up to 109 kilograms (kg) must be processed in their entirety The whole, in contradistinction to a moiety or part only. When land is conveyed to Husband and Wife, they do not take by moieties, but both are seised of the entirety. (Pitard, 2005). If the sample contains 0.06 cm gold particles, which commonly occur in the deposit, a 7 kg sample must be processed in its entirety (Pitard, 2005). These sample sizes are much larger than the typical 30-gram fire assay ASSAY. A chemical examination of metals, by which the quantity of valuable or precious metal contained in any mineral or metallic mixture is ascertained. 2. By the acts of Congress of March 3, 1823, 3 Story's L. U. S. 1924; of June 25, 1834, 4 Shars. cont. Story's L. U. S. sample or even the 1000-gram screen metallic assay sample. We believe that this results in a few assays containing too much gold, with more containing less gold than is actually present in the whole sample. Francis Francis, French prince, duke of Alençon and Anjou Francis, 1554–84, French prince, duke of Alençon and Anjou; youngest son of King Henry II of France and Catherine de' Medici. Pitard, an expert on gold distribution and sampling techniques, in his study of the Black Fox Deposit, concluded that without proper size samples the database for the deposit likely contains a few samples that are too high in grade, but more that are too low in grade. For these reasons MDA declined to categorize cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat any of the resource "Measured" until further sampling and test mining is completed. All the ore ore, metal-bearing mineral mass that can be profitably mined. Nearly all rock deposits contain some metallic minerals, but in many cases the concentration of metal is too low to justify mining the ore. that would have normally been considered "Measured" is categorized cat·e·go·rize tr.v. cat·e·go·rized, cat·e·go·riz·ing, cat·e·go·riz·es To put into a category or categories; classify. cat as "Indicated (1)." Further evidence that our resource model is conservative with gold predictions is indicated by a comparison of the previously mined ores to what our model estimates would have been a reserve in those areas. Exall, the previous owners, mined a total of 1.1 million tonnes grading 6.03 g Au/t (calculated head grade) containing 213,600 ounces of gold from the deposit. MDA compared the material predicted by the model inside the area mined by Exall to the actual grade and tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. mined. The model predicted 95,800 ounces as compared to the 213,600 ounces that were actually mined. We believe that it is therefore reasonable to infer that positive adjustments to the resource model will continue between the model based on drill hole information and the actual gold mined. R. David Russell David Russell may refer to:
MDA completed the resource estimate of material contained in the Black Fox model between the 9300 elevation and the 9960 elevation. Most of the resource is contained in a part of the Destor-Porcupine Fault, 750 meters along strike and drilled to a depth of 350 meters on the west and 500 meters on the east. The mineralization Mineralization The process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. remains open along strike and to depth. The Black Fox resource estimate is based on two cut-offs. A 0.90 g Au/t cut-off cut-off Anesthesiology The point at which elongation of the carbon chain of the 1-alkanol family of anesthetics results in a precipitous drop in the anesthetic potential of these agents–eg, at > 12 carbons in length, there is little anesthetic activity, , suitable for the open pit, was applied to material down to the 9720 elevation, or about 280 meters below the surface. Below the 9720 elevation, a 3.0 g Au/t cut-off was used since it is likely that this material would only be mined by underground methods. Open Pit Reserves The open pit reserves of 448,800 gold ounces are in a pre-feasibility study completed by MDA. The study indicates an economic project based on a gold price of US$550 per ounce ounce, in zoology ounce, in zoology: see leopard. ounce, unit of measurement ounce: see English units of measurement. . The study utilizes processing costs provided by SRK SRK Shah Rukh Khan (Indian actor) SRK Shoryuken (fighting games) SRK Soave-Redlich-Kwong (thermodynamic model) SRK Syk-Related Tyrosine Kinase and tailings Tailings (also known as tailings pile, tails, leach residue, or slickens[1]) are the materials left over[2] after the process of separating the valuable fraction from the worthless fraction of an ore. cost provided by AMEC AMEC African Methodist Episcopal Church AMEC Agent Mediated Electronic Commerce AMEC Arctic Military Environmental Cooperation AMEC Advanced Micro-Fabrication Equipment Inc AMEC Association of Media Evaluation Companies . The process design was completed by Peter Taggart
Pit optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. studies were completed utilizing the following parameters for the deposit: --Overburden mining costs - US$1.25 per tonne of material; --Rock mining costs - US$1.50 per tonne of material; --Processing costs - US$12.16 per tonne ore; --General Administration costs - US$4.50 per tonne ore; --Plant Gold recovery - 96%; and --Assume 50% of existing underground workings backfilled with material having a density of 2.0. The following Table 5 indicates the final Pit Optimization Results:
Table 5 Pit Optimization Results
----------------------------------------------------------------------
Gold Price Indicated 1 Indicated 2
$/oz Au -----------------------------------------------------
cutoff tonnes g Au/ oz Au tonnes g Au/ oz Au
g Au/t 000's tonne 000's 000's tonne 000's
----------------------------------------------------------------------
250 2.12 109.3 10.68 37.5 344.0 8.97 99.2
275 1.93 131.7 10.32 43.7 430.9 8.18 113.3
300 1.77 168.3 9.63 52.1 495.9 7.71 123.0
325 1.63 385.2 7.72 95.6 995.0 6.55 209.5
350 1.51 495.8 7.10 113.1 1,402.3 5.99 269.9
375 1.41 540.4 6.70 116.4 1,588.4 5.58 284.8
400 1.32 568.5 6.45 117.9 1,697.1 5.34 291.1
425 1.25 595.6 6.24 119.5 1,787.1 5.15 295.8
450 1.18 626.3 6.02 121.3 1,916.6 4.92 303.2
475 1.12 649.7 5.85 122.2 2,010.5 4.75 307.0
500 1.06 672.0 5.69 123.0 2,107.2 4.59 311.2
525 1.01 695.3 5.55 124.0 2,201.6 4.46 315.7
550 0.96 725.0 5.41 126.0 2,302.8 4.36 322.7
575 0.92 753.3 5.27 2,407.4 4.24
600 0.88 775.2 5.15 2,502.6 4.13
625 0.85 797.1 5.05 2,584.2 4.05
650 0.82 833.1 4.90 2,710.8 3.94
675 0.79 861.4 4.79 2,804.0 3.86
700 0.76 889.9 4.69 2,907.5 3.77
----------------------------------------------------------------------
----------------------------------------------------------------------
Gold Price Total Indicated Waste Strip Ratio
$/oz Au -------------------------
cutoff tonnes g Au/ oz Au tonnes t waste/
g Au/t 000's tonne 000's 000's t ore
----------------------------------------------------------------------
250 2.12 453.3 9.38 136.7 7,616.4 16.8
275 1.93 562.7 8.68 157.0 9,386.8 16.7
300 1.77 664.1 8.20 175.1 11,639.7 17.5
325 1.63 1,380.2 6.87 305.0 28,391.0 20.6
350 1.51 1,898.1 6.28 383.0 38,984.4 20.5
375 1.41 2,128.9 5.86 401.2 40,417.0 19.0
400 1.32 2,265.7 5.62 409.1 40,910.3 18.1
425 1.25 2,382.6 5.42 415.2 41,189.0 17.3
450 1.18 2,543.0 5.19 424.4 42,073.1 16.5
475 1.12 2,660.2 5.02 429.2 42,128.7 15.8
500 1.06 2,779.2 4.86 434.2 42,258.6 15.2
525 1.01 2,896.9 4.72 439.8 42,695.5 14.7
550 0.96 3,027.8 4.61 448.7 44,224.0 14.6
575 0.92 3,160.7 0.00 45,264.6 14.3
600 0.88 3,277.9 0.00 45,842.6 14.0
625 0.85 3,381.2 0.00 46,341.9 13.7
650 0.82 3,543.9 0.00 48,191.3 13.6
675 0.79 3,665.4 0.00 49,113.6 13.4
700 0.76 3,797.4 0.00 50,073.0 13.2
----------------------------------------------------------------------
Open Pit Economics The Black Fox project reserves were developed by completing a pre-feasibility study for the project considering open pit mining and two processing options: --Own Milling - Construction of a new mill on the project site (base case); and --Toll Milling - Toll milling at a nearby mill (toll mill case). Open Pit Economics - Own Mill - Reserve Ounces Only (base case) The economics, using the open pit reserves only, at a gold price of US$550 per ounce, utilizing an on-site on-site adj. Done or located at the site, as of a particular activity: on-site monitoring of a production run; an on-site film shoot. mill processing facility with a capacity of 1,500 tonnes per day and tailings facility, has a positive NPV NPV See: Net present value of US$36 million at a 5% discount rate and an IRR IRR In currencies, this is the abbreviation for the Iranian Rial. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. of 21.65%. Variations of NPVs and discount rates can be found at the bottom of Table 6.
Table 6 Black Fox Open Pit Economics - Own Mill -
Reserve Ounces Only
======================================================================
550 BLACK FOX PROJECT - PRELIMINARY ECONOMICS
======================================================================
PRODUCTION
STATISTICS
YR -1 YR 1 YR2 YR 3
======================================================================
----------------------------------------------------------------------
OPEN PIT
ORE TONNES 540,000 540,000 540,000
-------------------------------
GRADE(G AU/TONNE) 4.71 4.60 4.71
----------------------------------------------------------------------
RECOVERY (97% OF AU) 97.00% 97.00% 97.00%
----------------------------------------------------------------------
CONTAINED OZ AU 81,837 79,884 81,827
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
WASTE - TONNES
ROCK 2,581,311 8,615,913 5,852,859 7,373,634
----------------------------------------------------------------------
WASTE - TONNES
TILL 5,353,452 259,344 3,892,464 200,592
----------------------------------------------------------------------
======================================================================
PRODUC-
TION -
OUNCES
GOLD
GOLD
----------------------------------------------------------------------
OPEN PIT
ORE 97.00% 79382 77488 79373
----------------------------------------------------------------------
UNDER-
GROUND
ORE 97.00% 0 0 0
----------------------------------------------------------------------
TOTAL
OUNCES 79382 77488 79373
----------------------------------------------------------------------
======================================================================
======================================================================
======================================================================
GOLD SALES 550 $43,660,185 $42,618,493 $43,654,950
----------------------------------------------------------------------
SILVER
SALES 10 $0 $0 $0
----------------------------------------------------------------------
ROYALTY
(0.0%) 0 $0 $0 $0
----------------------------------------------------------------------
TOTAL
SALES $43,660,185 $42,618,493 $43,654,950
======================================================================
----------------------------------------------------------------------
TONS WASTE
MINED 7,934,763 8,875,257 9,745,323 7,574,226
----------------------------------------------------------------------
======================================================================
OPERATING
COST
----------------------------------------------------------------------
MINING $1.48 $13,368,826 $13,740,398 $12,839,799
----------------------------------------------------------------------
PROCESSING
----------------------------------------------------------------------
LOADER
AT
CRUSHER $0.23 $124,611 $124,611 $124,611
----------------------------------------------------------------------
ORE $12.16 $6,566,400 $6,566,400 $6,566,400
----------------------------------------------------------------------
----------------------------------------------------------------------
$0.00 $0 $0 $0
----------------------------------------------------------------------
G & A $3.44 $1,936,441 $1,936,441 $1,886,441
----------------------------------------------------------------------
TOTALS $21,996,278 $22,367,851 $21,417,252
======================================================================
----------------------------------------------------------------------
COST PER
TON ORE 40.73 41.42 39.66
----------------------------------------------------------------------
COST PER
OUNCE GOLD $277.09 $288.66 $269.83
----------------------------------------------------------------------
NET
PROFIT
BEFORE
TAXES $21,663,907 $20,250,643 $22,237,699
======================================================================
======================================================================
CAPITAL
INVESTMENT $54,690,561 $179,850 $8,429,057 $8,841,667
----------------------------------------------------------------------
WORKING
CAPITAL $5,499,069
----------------------------------------------------------------------
EQUIPMENT
SALVAGE
----------------------------------------------------------------------
PRE-
PRODUCTION
MINING $0 $0 $0 $0
----------------------------------------------------------------------
NET CAPITAL
COST $54,690,561 $5,678,919 $8,429,057 $8,841,667
----------------------------------------------------------------------
NET CASH
FLOW ($54,690,561) $15,984,988 $11,821,586 $13,396,032
----------------------------------------------------------------------
CUMULATIVE
CASH FLOW ($54,690,561)($38,705,573)($26,883,987)($13,487,956)
======================================================================
NET PRESENT
VALUE
(10%)
NET PRESENT
VALUE (5%)
NET PRESENT
VALUE (3%)
NET PRESENT
VALUE (0%)
INTERNAL
RATE OF
RETURN
======================================================================
======================================================================
550
======================================================================
PRODUCTION
STATISTICS
YR 4 YR 5 YR 6 TOTALS
======================================================================
----------------------------------------------------------------------
OPEN PIT
ORE TONNES 540,000 540,000 362,749 3,062,749
--------------------- -----------
GRADE(G
AU/TONNE) 4.02 5.17 3.92 4.56
----------------------------------------------------------------------
RECOVERY
(97% OF
AU) 97.00% 97.00% 97.00% 97.00%
----------------------------------------------------------------------
CONTAINED
OZ AU 69,718 89,805 45,756 448,828
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
WASTE - TONNES
ROCK 7,679,428 3,455,146 1,966,525 37,524,815
----------------------------------------------------------------------
WASTE - TONNES
TILL 0 0 0 9,705,852
----------------------------------------------------------------------
======================================================================
PRODUCTION
-OUNCES
GOLD
GOLD
----------------------------------------------------------------------
OPEN PIT
ORE 97.00% 67627 87111 44383 435364
----------------------------------------------------------------------
UNDERGROUND
ORE 97.00% 0 0 0 0
----------------------------------------------------------------------
TOTAL
OUNCES 67627 87111 44383 435364
----------------------------------------------------------------------
======================================================================
======================================================================
======================================================================
GOLD SALES 550 $37,194,814 $47,911,051 $24,410,675 $239,450,169
----------------------------------------------------------------------
SILVER
SALES 10 $0 $0 $0 $0
----------------------------------------------------------------------
ROYALTY
(0.0%) 0 $0 $0 $0 $0
----------------------------------------------------------------------
TOTAL SALES $37,194,814 $47,911,051 $24,410,675 $239,450,169
======================================================================
----------------------------------------------------------------------
TONS WASTE
MINED 7,679,428 3,455,146 1,966,525 47,230,667
----------------------------------------------------------------------
======================================================================
OPERATING
COST
----------------------------------------------------------------------
MINING $1.48 $11,787,453 $7,413,188 $3,709,283 $62,858,947
----------------------------------------------------------------------
PROCESSING $0
----------------------------------------------------------------------
LOADER AT
CRUSHER $0.23 $124,611 $124,611 $83,651 $706,706
----------------------------------------------------------------------
ORE $12.16 $6,566,400 $6,566,400 $4,411,023 $37,243,023
----------------------------------------------------------------------
$0
----------------------------------------------------------------------
$0.00 $0 $0 $0 $0
----------------------------------------------------------------------
G & A $3.44 $1,836,441 $1,763,017 $1,183,161 $10,541,944
----------------------------------------------------------------------
TOTALS $20,314,905 $15,867,216 $9,387,119 $111,350,620
======================================================================
----------------------------------------------------------------------
COST PER TON
ORE 37.62 29.38 25.88 36.36
----------------------------------------------------------------------
COST PER
OUNCE GOLD $300.40 $182.15 $211.50 255.76
----------------------------------------------------------------------
NET
PROFIT
BEFORE
TAXES $16,879,909 $32,043,835 $15,023,556 $128,099,549
======================================================================
======================================================================
CAPITAL
INVESTMENT $2,591,539 $55,000 $0 $74,787,674
----------------------------------------------------------------------
WORKING
CAPITAL ($5,499,069) $0
----------------------------------------------------------------------
EQUIPMENT
SALVAGE ($4,000,000) ($4,000,000)
----------------------------------------------------------------------
PRE-
PRODUCTION
MINING $0 $0
----------------------------------------------------------------------
NET CAPITAL
COST $2,591,539 $55,000 ($9,499,069) $70,787,674
----------------------------------------------------------------------
NET CASH
FLOW $14,288,370 $31,988,835 $24,522,626 $57,311,875
----------------------------------------------------------------------
CUMULATIVE
CASH FLOW $800,414 $32,789,249 $57,311,875 $57,311,875
======================================================================
NET PRESENT
VALUE (10%) $21,036,246
-------------
NET PRESENT
VALUE (5%) $36,139,131
-------------
NET PRESENT
VALUE (3%) $43,744,937
-------------
NET PRESENT
VALUE (0%) $57,311,875
INTERNAL
RATE OF
RETURN 21.63%
======================================================================
Open Pit Economics - Toll Milling Case - Reserve Ounces Only The economics, using the open pit reserves only, at a gold price of US$550 per oz utilizing an off-site off-site adj. Taking place or located away from the site, as of a particular activity: an off-site waste treatment operation. off mill processing facility with a capacity of 1,500 tonnes per day and tailing facility has a positive NPV of US$54 Million at a 5% discount rate and an IRR of 96.27%. Variations of NPVs and discount rates can be found at the bottom of Table 7.
Table 7 Black Fox Open Pit Economics - Toll Milling -
Reserve Ounces Only
======================================================================
BLACK FOX PROJECT - PRELIMINARY ECONOMICS
======================================================================
PRODUCTION
STATISTICS
YR -1 YR 1 YR2
======================================================================
----------------------------------------------------------------------
OPEN PIT ORE TONNES 540,000 540,000
----------------------------------------------
GRADE(G AU/TONNE) 6.80 7.12
----------------------------------------------------------------------
RECOVERY (97% OF AU) 97.00% 97.00%
----------------------------------------------------------------------
CONTAINED OZ
AU 118,127 123,609
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
WASTE - ROCK TONNES 5,470,110 10,632,750 10,281,548
----------------------------------------------------------------------
WASTE - TILL TONNES 5,599,404 3,053,916 4,093,056
----------------------------------------------------------------------
======================================================================
PRODUCTION - OUNCES
GOLD
GOLD
----------------------------------------------------------------------
OPEN PIT ORE 97.00% 114583 119901
----------------------------------------------------------------------
UNDERGROUND ORE 97.00% 0 0
----------------------------------------------------------------------
TOTAL OUNCES 114583 119901
----------------------------------------------------------------------
======================================================================
======================================================================
======================================================================
GOLD SALES 550 $63,020,669 $65,945,345
----------------------------------------------------------------------
SILVER SALES 10 $0 $0
----------------------------------------------------------------------
ROYALTY (0.0%) 0 $0 $0
----------------------------------------------------------------------
TOTAL SALES $63,020,669 $65,945,345
======================================================================
----------------------------------------------------------------------
TONS WASTE MINED 11,069,514 13,686,666 14,374,604
----------------------------------------------------------------------
======================================================================
OPERATING COST
----------------------------------------------------------------------
MINING $1.30 $16,712,561 $17,432,917
----------------------------------------------------------------------
PROCESSING
----------------------------------------------------------------------
LOADER AT CRUSHER $0.23 $124,611 $124,611
----------------------------------------------------------------------
ORE $32.58 $17,591,904 $17,591,904
----------------------------------------------------------------------
----------------------------------------------------------------------
$0.00 $0 $0
----------------------------------------------------------------------
G & A $3.56 $1,938,777 $1,938,777
----------------------------------------------------------------------
TOTALS $36,367,853 $37,088,209
======================================================================
----------------------------------------------------------------------
COST PER TON ORE 67.35 68.68
----------------------------------------------------------------------
COST PER OUNCE GOLD $317.39 $309.32
----------------------------------------------------------------------
NET PROFIT BEFORE
TAXES $26,652,816 $28,857,136
======================================================================
======================================================================
CAPITAL INVESTMENT $19,583,848 $564,850 $5,445,000
----------------------------------------------------------------------
WORKING CAPITAL $9,091,963
----------------------------------------------------------------------
EQUIPMENT SALVAGE
----------------------------------------------------------------------
PRE-PRODUCTION MINING $0 $0 $0
----------------------------------------------------------------------
NET CAPITAL COST $19,583,848 $9,656,813 $5,445,000
----------------------------------------------------------------------
NET CASH FLOW ($19,583,848)$16,996,003 $23,412,136
----------------------------------------------------------------------
CUMULATIVE CASH FLOW ($19,583,848)($2,587,845)$20,824,290
======================================================================
NET PRESENT VALUE
(10%)
NET PRESENT VALUE
(5%)
NET PRESENT VALUE
(3%)
NET PRESENT VALUE
(0%)
INTERNAL RATE OF
RETURN
======================================================================
======================================================================
BLACK FOX PROJECT - PRELIMINARY ECONOMICS
======================================================================
PRODUCTION
STATISTICS TOTALS
YR 3 YR 4
======================================================================
----------------------------------------------------------------------
OPEN TONNES
PIT ORE 540,000 157,221 1,777,221
-------------------------------- -----------
GRADE(G AU/TONNE) 7.09 5.50 6.87
----------------------------------------------------------------------
RECOVERY (97% OF AU) 97.00% 97.00% 97.00%
----------------------------------------------------------------------
CONTAINED OZ AU 123,009 27,787 392,531
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
----------------------------------------------------------------------
WASTE - TONNES
ROCK 7,393,162 1,636,388 35,413,958
----------------------------------------------------------------------
WASTE - TONNES
TILL 0 0 12,746,376
----------------------------------------------------------------------
======================================================================
PRODUCTION
-
OUNCES
GOLD
GOLD
----------------------------------------------------------------------
OPEN PIT
ORE 97.00% 119319 26953 380756
----------------------------------------------------------------------
UNDER-
GROUND
ORE 97.00% 0 0 0
----------------------------------------------------------------------
TOTAL
OUNCES 119319 26953 380756
----------------------------------------------------------------------
======================================================================
======================================================================
======================================================================
GOLD SALES 550 $65,625,661 $14,824,293 $209,415,968
----------------------------------------------------------------------
SILVER
SALES 10 $0 $0 $0
----------------------------------------------------------------------
ROYALTY
(0.0%) 0 $0 $0 $0
----------------------------------------------------------------------
TOTAL SALES $65,625,661 $14,824,293 $209,415,968
======================================================================
----------------------------------------------------------------------
TONS WASTE
MINED 7,393,162 1,636,388 48,160,334
----------------------------------------------------------------------
======================================================================
OPERATING
COST
----------------------------------------------------------------------
MINING $1.30 $13,162,341 $3,077,945 $50,385,764
----------------------------------------------------------------------
PROCESSING $0
----------------------------------------------------------------------
LOADER AT
CRUSHER $0.23 $124,611 $36,229 $410,062
----------------------------------------------------------------------
ORE $32.58 $17,591,904 $5,121,871 $57,897,583
----------------------------------------------------------------------
$0
----------------------------------------------------------------------
$0.00 $0 $0 $0
----------------------------------------------------------------------
G & A $3.56 $1,888,777 $566,633 $6,332,965
----------------------------------------------------------------------
TOTALS $32,767,633 $8,802,679 $115,026,375
======================================================================
----------------------------------------------------------------------
COST PER TON
ORE 60.68 55.99 64.72
----------------------------------------------------------------------
COST PER
OUNCE GOLD $274.62 $326.59 302.10
----------------------------------------------------------------------
NET
PROFIT
BEFORE
TAXES $32,858,027 $6,021,614 $94,389,593
======================================================================
======================================================================
CAPITAL
INVESTMENT $5,857,610 $192,500 $31,643,808
----------------------------------------------------------------------
WORKING
CAPITAL ($9,091,963) $0
----------------------------------------------------------------------
EQUIPMENT
SALVAGE ($4,000,000) ($4,000,000)
----------------------------------------------------------------------
PRE-
PRODUCTION
MINING $0 $0 $0
----------------------------------------------------------------------
NET CAPITAL
COST $5,857,610 ($12,899,463) $27,643,808
----------------------------------------------------------------------
NET CASH
FLOW $27,000,417 $18,921,077 $66,745,785
----------------------------------------------------------------------
CUMULATIVE
CASH FLOW $47,824,708 $66,745,785 $66,745,785
======================================================================
NET PRESENT
VALUE (10%) $44,022,818
-------------
NET PRESENT
VALUE (5%) $54,027,344
-------------
NET PRESENT
VALUE (3%) $58,743,347
-------------
NET PRESENT
VALUE (0%) $66,745,785
INTERNAL
RATE OF
RETURN 96.27%
======================================================================
MDA Recommendations MDA's primary recommendation is to confirm that the model underestimates the actual material in the ground. In particular, the following programs are recommended by MDA to be completed during the feasibility: --Check sample at least 5-10% of the material inside the mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. zones by metallic assay zones at a zero cut-off. --Complete approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 150 samples within mini-bulk sample gravity Gravity The gravitational attraction at the surface of a planet or other celestial body. The quantity g is often referred to simply as “gravity’’ or “the force of gravity’’ of Earth, both of which are incorrect. checks on drill hole composite composite, alternate common name for Asteraceae or Compositae, the aster family. composite - aggregate samples. --Design and complete a bulk sampling program for the green carbonate carbonate (kär`bənāt', –nət), chemical compound containing the carbonate radical or ion, CO3−2. Most familiar carbonates are salts that are formed by reacting an inorganic base (e.g. and "flow ore" mineralization types. The bulk sampling program should be designed to determine differences between grade model and actual mineralization. --Extend the 235 level to the east and continue to develop the "flow ore" mineralization. Apollo intends to advance the indicated and inferred resources as advised by MDA and continue to aggressively explore the entire Black Fox property, as well as continue with final permitting for the open pit, underground mines and processing facility. Apollo Gold Corporation Apollo is a gold mining and exploration company with a mine in Montana Montana (mŏntăn`ə), Rocky Mt. state in the NW United States. It is bounded by North Dakota and South Dakota (E), Wyoming (S), Idaho (W), and the Canadian provinces of British Columbia, Alberta, and Saskatchewan (N). (which is currently on care and maintenance), the Black Fox advanced-stage development project in Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. , Canada, and the Huizopa Project, an early-stage exploration project in the Sierra Madre Sierra Madre, city, United States Sierra Madre (sēĕr`ə mä`drā), residential city (1990 pop. 10,762), Los Angeles co., S Calif., at the foot of Mt. Wilson; inc. 1907. There is some light manufacturing. Gold Belt in Chihuahua Chihuahua, state, Mexico Chihuahua (chēwä`wä), state (1990 pop. 2,441,873), 94,831 sq mi (245,612 sq km), N Mexico, on the border of N.Mex. and Texas. The city of Chihuahua is the capital. , Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. . This press release has been reviewed and approved for release by Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Nanna Nanna immolated herself on pyre with husband, Baldur. [Norse Myth.: Wheeler, 256] See : Faithfulness , Professional Geologist, Apollo's Senior Vice-President vice president or vice-pres·i·dent n. Abbr. VP 1. An officer ranking next below a president, usually empowered to assume the president's duties under conditions such as absence, illness, or death. 2. , Exploration and Development and designated "Qualified Person" under NI 43-101. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release includes "Forward-Looking Statements" within the meaning of Section 21E of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Forward-looking statements can be identified by the use of words such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "continue," or the negative of such terms, or other comparable terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or . All statements regarding the expected date of completion of the latest ore reserve calculation, the nature of that calculation, estimated resources and the results of any further sampling, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from these forward-looking statements include: the results of independent Canadian NI 43-101 reports; the outcome of assays and additional exploration sampling and drilling efforts; variations in ore grade Ore grade is a measure that describes the concentration of a valuable natural material (such as metals or minerals) in its surrounding ore. Ore grade is used to assess the economic feasibility of a mining operation: the cost of extracting a natural material from its ore is directly , mining, or processing problems or issues; the availability of external financing In the theory of capital structure, External financing is the phrase used to describe funds that firms obtain from outside of the firm. It is contrasted to internal financing which consists mainly of profits retained by the firm for investment. on acceptable terms and other factors disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). under the heading "Risk Factors" in Apollo's most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the United States Securities and Exchange Commission and elsewhere in Apollo's documents filed from time to time with the Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. , The American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. , The United States Securities and Exchange Commission and other regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . All forward-looking statements included in this press release are based on information available to Apollo on the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Apollo assumes no obligation to update any forward-looking statements. |
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