Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) is
pleased to report the results of an independent resource estimate
on the Pulacayo Deposit located in southwestern Bolivia (Figure 1),
which includes 29.34 million ounces of silver in the Indicated
category plus 26.24 million ounces of silver in the Inferred
category. This represents an increase of silver in the Indicated
resource category of 133% or 16.77 million ounces and an increase
of silver in the Inferred resource category of 38% or 7.21 million
ounces from the mineral resource estimate which was undertaken as a
part of the Preliminary Assessment of the Pulacayo Project and
supported in the NI 43-101 Technical Report dated June 25, 2010.
The resource estimate also includes 268.05 million pounds of zinc
in the Indicated category plus 247.35 million pounds of zinc in the
Inferred category, and 119.57 million pounds of lead in the
Indicated category plus 99.18 million pounds of lead in the
Inferred category. Table 1 below summarizes the resource
classification, tonnages and grades.
Neil Ringdahl, Chief Executive Officer, commented that "The new
resource estimate strongly demonstrates the additional blue-sky
potential of this polymetallic deposit, and to this end we plan to
continue our aggressive exploration and development efforts. We are
particularly pleased with the significant increase in silver ounces
in the Indicated category, upon which we are able to continue with
the feasibility work for a mine that is now likely to be
substantially larger than what has been previously projected in
studies." He added that "The oxide drilling and trenching program
has yielded encouraging results. These will be included in a
resource update planned for the first half of 2012 that includes
open pit resources as well. Together with the information obtained
from our trial underground mining program and further results from
ongoing drilling campaigns, we will be well positioned to conclude
the feasibility study for a new multi-million ounce mine."
Table 1: Summary of Mineral Resources, Pulacayo Deposits effective October
18, 2011
Pulacayo Underground Mineral Resources - Inverse Distance Squared Model
----------------------------------------------------------------------------
All blocks within $40 NSR Domain and greater than or equal to
$40 NSR cutoff
----------------------------------------------------------------------------
Ag Pb Zn
Million Million Million
Class Tonnes Ag g/t Pb % Zn % oz. lbs. lbs.
----------------------------------------------------------------------------
Indicated 5,960,000 153.14 0.91 2.04 29.34 119.57 268.05
----------------------------------------------------------------------------
Inferred 5,420,000 150.61 0.83 2.07 26.24 99.18 247.35
----------------------------------------------------------------------------
NOTES
(1)Due to the polymetallic nature of the deposit the cut off is
determined using a US$ Net Smelter Return (NSR) calculation which
is normal industry practice; NSR calculation details appear below
under a separate heading
(2)Tonnages have been rounded to the nearest 10,000
(3)Mineral resources that are not mineral reserves do not have
demonstrated economic viability. The estimate of mineral resources
may be materially affected by environmental, permitting, legal,
title, taxation, sociopolitical, marketing, or other relevant
issues.
The Pulacayo Deposit was the second largest silver mine in the
history of Bolivia with over 600 million ounces past production of
silver. The extent of the known mineralization at Pulacayo is based
on the extent of the known workings that occur over a strike length
of approximately 2.7 kilometers and to a vertical depth from
surface of approximately 1 kilometer. To date the company has
systematically drilled along approximately 1.3 kilometers of the
known strike extent and to a vertical depth of approximately 550
meters from surface. (Figure 2). The Pulacayo Deposit remains open
for further extension and Apogee is continuing to evaluate the
deposit with two drill rigs working on surface and two rigs working
from underground.
Resource Estimate Details:
This Mineral Resource Estimation was completed by Mercator
Geological Services Limited (Mercator) of Dartmouth, Nova Scotia in
accordance with Canadian Securities Administrators National
Instrument ("NI 43-101") and is based on CIM standards. The
effective date of this mineral resource estimate is October 18,
2011.
The estimate is based on validated results of 59,352 meters of
diamond drilling from 174 surface drill holes and 41 underground
drill holes carried out by Apogee Silver through various drill
programs between 2006 and 2011.
Modeling was performed using Gemcom SurpacĀ® 6.2.1 modeling
software with silver, lead and zinc grades estimated by inverse
distance squared (ID2) interpolation from 1.0 meter down hole assay
composites. Block size was 5 meters (x) by 3 meters (y) by 3 meters
(z) with no sub- blocking. Block model results were checked using
ordinary Kriging and Nearest Neighbour interpolation methods.
The polymetallic nature of the mineralization was evaluated by a
Net Smelter Return (NSR) value considering an underground mining
scenario below the oxide surface within a minimum operating cost of
$40NSR/t as identified in the Preliminary Assessment of the
Pulacayo Deposit by Micon International Limited and supported in
the NI 43-101 Technical Report dated June 25 2010 and filed under
the company's profile on SEDAR.
A peripheral constraining $40NSR solid model was created from 50
meter spaced interpreted sections of assay sample NSR values. NSR
values were determined from a calculator developed by John Starkey,
P. Eng., of Starkey & Associates Inc., Consulting Metallurgical
Engineers. The modeling used a 24 month trailing average silver
price and a 27 month forward seller contract price for both lead
and zinc as of August 31 2011, which correspond to prices of
$24.87USD/oz silver, $1.19USD/lb lead, and $1.09USD/lb zinc
respectively. The $40NSR solid model has a 25 to 30 meter average
thickness with a 1,100 meter strike length oriented at 280 degrees
and a 425 meter average sub-vertical dip extent. This reflects the
orientation and geometry of the principal mineralized structure
"Veta Tajo" and the associated secondary structures.
Grade interpolation was peripherally constrained by a $40NSR
shell wireframe and carried out using multiple independent search
ellipsoid passes for silver, lead and zinc. Contributing silver
values were capped at 1,500 g/t and interpolated using an ellipsoid
oriented at 280 degrees with a 30 degrees major axis plunge and 80
degrees N dip, contributing lead values were capped at 13.5 % and
interpolated using an ellipsoid oriented at 280 degrees with a 45
degrees major axis plunge and a 75 degrees N dip, and contributing
zinc values were capped at 13.5 % and interpolated using an
ellipsoid oriented at 280 degrees with a 45 degrees major axis
plunge and an 80 degrees N dip. A 60 meter ellipsoid major axis, 30
meter semi-major axis and 5 meter minor axis were applied for all
primary interpolation passes, with secondary and tertiary passes
applied at 2 times and 3 times these ranges to completely fill the
peripheral wireframe model.
A specific gravity model was interpolated by ID2 methodology
from 1.0 meter down hole specific gravity composites using an
ellipsoid oriented at 280 degrees with a 45 degrees major axis
plunge, 80 degrees N dip and the ranges specified above.
A solid model of historic underground mining and stoping was
used to remove previously mined blocks and an interpolated 5 meter
marginal envelope to historic workings was applied to assign
intersecting resource blocks to the Inferred category. This
reflects uncertainty in local accuracy of the underground solid
model. Indicated resources occur outside this envelop and have an
interpolated grade for each metal derived from primary
interpolation ellipsoid passes and have at least 2 or more
contributing drill holes within at least one of the passes. All
other interpolated blocks have been categorized as Inferred
resource blocks. (Figure 3)
A complete Technical Report on the Pulacayo Deposit describing
in detail, among other things, the resource estimate, QA/QC,
database validation and geologic model, will be filed on SEDAR
within the required 45 day period.
Independent Qualified Persons:
Peter Webster P. Geo. and Michael Cullen M.Sc., P. Geo. of
Mercator Geological Services Limited are the Qualified Persons, as
defined in NI 43-101 who are responsible for the Mineral Resources
Estimate.
John Starkey P. Eng., President of Starkey & Associates
Inc., Consulting Metallurgical Engineers is acting as the Qualified
Person responsible for the NSR calculations.
Net Smelter Return
Net Smelter Return is the calculated potential revenue that is
returned from the smelter for the sale of concentrate products. The
NSR method recognizes that more than one metal, (i.e. Ag, Pb, Zn,
can contribute to a potential revenue stream. It proceeds to derive
a potential revenue value that accounts for such items as recovery
to concentrate, metal prices, payable fractions of the metals
treatment, and refining charges, penalties, freight and handling.
By this means in situ grades can be converted to potential
revenues, with the cut-off grade being the estimated cost of all
activities related to mining, mineral processing and general
administration.
Quality Control
Apogee Silver employs a QA/QC protocol on all aspects of its
drill core processing and analytical procedures. Core samples are
sawn and one half of the NQ and/or HQ core is returned to the core
box for future reference with the other half sent for analysis.
Sample preparation is completed at the ALS Chemex preparation
laboratory in Oruro, Bolivia and analysis occurs at the ALS Chemex
laboratory in Lima, Peru.
The Company's quality control protocol includes the insertion of
certified geological standards that have been purchased from
Canadian Resource Laboratories of Langley, British Columbia.
Standards are inserted at a frequency of 1 in every 20 samples. The
Company also inserts geological blanks that are blind to the
laboratory at a frequency of 1 in every 20 samples. Duplicates are
taken at every sub-sampling stage in the preparation process. Field
duplicates are taken at a frequency of 1 every 50 samples. Sample
preparation duplicates are taken at the crushing and pulverizing
stages at a frequency of 1 in every 20 samples. Cross-check
analysis on the master pulps is undertaken at a second laboratory
for 5% of all samples. The Company uses SGS Mineral Services in
Lima, Peru for the second lab cross check analysis.
The Quality Control and all aspects of the exploration program
are supervised by Apogee Silver Limited's Exploration Manager Mr.
Hernan Uribe, who holds a Masters of Applied Science in Mineral
Exploration from the Imperial College of Science And Technology,
Royal School of Mines, London, England under the supervision of Mr.
Chris Collins, P.Geo. and President of Apogee.
The scientific and technical information presented in this press
release has been reviewed and approved by Chris Collins, P. Geo.,
who is the President of Apogee Silver and a qualified person as
defined by NI 43-101.
For more detailed project information please refer to Apogee's
web site at www.apogeesilver.com.
About Apogee Silver Ltd.
Apogee Silver Ltd. is a mineral exploration and development
stage company listed on the TSX Venture Exchange under the symbol
APE. Apogee targets advanced silver-zinc-lead projects in South
America that demonstrate potential to be developed to production.
Currently its projects are located in the historic silver producing
regions of southwest Bolivia and northern Chile.
Its most advanced project is the 100% owned Pulacayo-Paca
project in Bolivia. This project includes the property that covered
the second-largest silver mine in the history of Bolivia with over
600 million ounces of past production.
Cautionary Note Regarding Forward-Looking Information. This
press release contains "forward looking information" within the
meaning of applicable Canadian securities legislation. Forward
looking information includes, but is not limited to, statements
with respect to mineral resource estimates, mineral prices,
exploration and development timetables and budgets, permitting and
future production scenarios. Generally, forward looking information
can be identified by the use of forward-looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to: financing not being available at desired prices;
general business, economic, competitive, political and social
uncertainties; the actual results of current exploration
activities; timing and availability of external financing on
acceptable terms; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; future prices
of mineral prices; failure of plant, equipment or processes to
operate as anticipated; accidents, labour disputes and other risks
of the mining industry; and, delays in obtaining governmental
approvals or required financing or in the completion of activities.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward
looking information. The Company does not undertake to update any
forward-looking information, except in accordance with applicable
securities laws
On Behalf of the Board,
Neil Ringdahl, Chief Executive Officer
To view Figure 1, please visit the following link:
http://media3.marketwire.com/docs/ape_f1_1019.pdf
To view Figure 2, please visit the following link:
http://media3.marketwire.com/docs/ape_f2_1019.pdf
To view Figure 3, please visit the following link:
http://media3.marketwire.com/docs/ape_f3_1019.pdf
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE
Contacts: Apogee Silver Ltd. Marilia Bento Vice President
Corporate Development +1 (416) 309-2694info@apogeesilver.com Apogee
Silver Ltd. G. Scott Paterson Chairman of the Board +1(416)
368-6464info@apogeesilver.comwww.apogeesilver.com
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