Apollo Gold Reports on 2004 Production and Operating Outlook for 2005.DENVER -- Apollo 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. ) reports fourth quarter 2004 gold production of 29,500 ounces and 106,825 ounces for the year. Total cash cost per ounce of gold was US$362 for the fourth quarter of 2004 and US$392 for the year.
2004 Production Summary
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Operation 4th Q 2004 Total 2004
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Apollo Gold Total
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Gold (oz) 29,533 106,825
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Total Cash Cost (US$ / oz) 362 392
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Montana Tunnels
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Gold (oz) 12,090 33,743
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Total Cash Cost (US$ / oz) 335 459
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Florida Canyon
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Gold (oz) 17,443 73,083
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Total Cash Cost (US$ / oz) 380 360
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In addition to gold, Montana Tunnels produced and sold approximately 970,000 ounces of silver, 10.0 million pounds of lead, and 26 million pounds of zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table. in 2004. As previously announced (press release November 12, 2004), Montana Tunnels was expected to complete its waste stripping program, reach the 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 material and return to a more typical level of production late in the fourth quarter of 2004. This objective was met as shown by the levels of production achieved, as demonstrated by the table below:
Montana Tunnels
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3rd Qtr Oct Nov Dec 4th Qtr
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Mill tons per day 16,500 16,600 18,500 17,500 17,500
Gold production ozs 4,967 2,543 3,889 5,658 12,090
Total Cash Cost (US$ / oz Au) 640 460 385 244 335
The Florida Canyon operations achieved production of 17,443 ounces of gold in the fourth quarter 2004 compared to the announced forecast (press release November 12, 2004) of 17,000 ounces of gold. Total 2004 production was 73,100 ounces of gold at a total cash cost of US$360 per ounce gold compared to the forecast of 74,000 ounces at a total cash cost of US$345 per ounce gold. 2005 Operating Outlook Gold production in the range 135,000 to 165,000 ounces is expected in 2005 at a total cash cost in the range US$325 to US$365 per ounce as detailed below: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Operation Estimate Estimate Estimate Estimate Total 2005 ---------------------------------------------------------------------- Apollo Gold Total ---------------------------------------------------------------------- Gold (oz) 25-30,000 35-43,000 36-46,000 39-46,000 135-165,000 ---------------------------------------------------------------------- Total Cash Cost (US$ / oz) 340 -380 340 -380 320 - 360 320 - 360 325 - 365 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Montana Tunnels ---------------------------------------------------------------------- Gold (oz)15 - 17,000 17 - 20,000 17 - 21,000 16 - 17,000 65 - 75,000 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Standard Gold Mine ---------------------------------------------------------------------- Gold (oz) Development 8 - 10,000 9 - 13,000 13 - 17,000 30 - 40,000 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Florida Canyon ---------------------------------------------------------------------- Gold (oz)10 - 13,000 10 - 13,000 10 - 12,000 10 - 12,000 40 - 50,000 ---------------------------------------------------------------------- The total cash cost per ounce of gold anticipated for 2005 of US$325 per ounce to US$365 per ounce includes approximately US$80 per ounce of charges related to deferred stripping at Montana Tunnels and leach leach v. leached, leach·ing, leach·es v.tr. 1. To remove soluble or other constituents from by the action of a percolating liquid. 2. pad inventory charges at Florida Canyon. At Montana Tunnels the permitting process has started on the next pit expansion with an application filed with the Montana Department of Environmental Quality, with the required permits expected to be received in 2006. The Standard Gold Mine, which poured its first ounce of gold in late December 2004, is expected to reach commercial production starting in the second quarter of 2005, achieving an estimated 30,000 to 40,000 ounces of gold for the year 2005. Production should ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale during the year as the leach pad area available for leaching leaching, method of extraction in which a solvent is passed through a mixture to remove some desired substance from it. A simple example is the passage of boiling water through ground coffee to dissolve and carry out the chemicals necessary for producing the beverage. increases following the completion of the initial placing of a layer of crushed ore from the Standard Mine open pit on the pad. The gold recovery process from the Standard Gold mine carbon cells will be carried out at the Florida Canyon facility where the gold/silver dore is produced. During 2005, the Company expects Florida Canyon to continue to mine on a limited basis with the mining crews placing run of mine ore on the remaining open section of the Florida Canyon heap leach pad, and forecast 2005 production is based on this operating plan. A decision to build the designed and permitted pad expansion for the Florida Canyon heap is under consideration by Apollo management Apollo Management L.P. is a private equity L.P. firm, founded in 1990 by Leon Black (Apollo Advisors). Based in New York, it also has offices in Los Angeles and London. It has invested over $16 billion in companies inside and outside the of the United States. . Development and Exploration --At the Black Fox Project 276,000 feet of core drilling was completed in 2004 bringing the overall total to 547,600 feet. The 2005 program includes an additional 100,000 feet of underground infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. drilling and 70,000 feet of surface drilling, sufficient drilling to complete the previously announced feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. that the company expects to complete in the third quarter of 2005. The Company plans to release an updated open pit/underground ore reserve estimate and report with the feasibility study. Estimated expenditures at Black Fox are expected to be between US$6.0 and US$8.0 million in 2005. --The exploration program at the Huizopa Project is expected to continue with scheduled activities including geological mapping and studies, geophysical ge·o·phys·ics n. (used with a sing. verb) The physics of the earth and its environment, including the physics of fields such as meteorology, oceanography, and seismology. studies, additional trenching and the commencement of an exploration drilling program is expected to start in the first half of 2005. About Apollo Gold Apollo Gold is a gold mining company with operating mines in Nevada and Montana, the Black Fox advanced stage development project in Ontario, Canada, and the Huizopa Project 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, Mexico. 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 certain "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. . All statements regarding anticipated amounts and timing of production and total cash costs, the timing and results of drilling at Black Fox and of a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. of Black Fox and other future plans and objectives of Apollo Gold, 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: technical, permitting, mining or processing problems or issues; unexpected variations in ore grades and processing and recovery rates, delays in achieving commercial production at the Standard Mine; delays in permits or approvals; the market price of gold; the outcome of assays and additional sampling and drilling efforts; the availability of funding for the future exploration and development of Apollo Gold mines and or projects, and other factors disclosed under the heading "Risk Factors" and elsewhere in Apollo Gold 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 . |
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