Apogee Continues Aggressive Drilling and Exploration Program
TORONTO, ON Dec ember 2 0, 2005Apogee Mine rals Ltd. (TSX Venture Exchange : APE) is pleased to provide shareholders with an update on the current status of ongoing drilling, exploration ,and development work underway at its three key projects. The company has made significant progress on itsprojects of focus in 2005 and has set out milestones for achievement in 2006. Apogee’s three main projects are the La Solucion Silver – Zinc Mine in Colquecahua, Bolivia, 17 km from the capital city of La Paz, the Pulacayo- Paca project –a Joint Venture with Apex Silver (AMEX:SIL) at the site of the second most prolific silver mine in the history of Bolivia, and the Buena Vista Gold- Silver- Zinc project in southwest Bolivia.
The Company is currently drilling at both the La Solucion and Buena Vista Projects and is completing extensive surface and underground geological mapping and samp ling at Pulacayo -Paca in preparation for drilling to commence early in the New Year.
The La Solucion Silver – Zinc Mine
The La Solucion Mine hosts a system of northeasterly trending veins which include the La Solucion Vein, the Hampaturi Vein, the Princi pal Vein, the Machuca Veins, the Santa Elena Vein, and the JC Vein. Within theseveins, some of which can be traced up to 10 kilometres along strike, there are high – grade shoots of silver, zinc and lead. Small scale, modern m ining has been carried out on the Principal and Hampaturi veins following these high – grade shoots. The La Solucion mine has been treating approximately120 tonne sper day of ore to produc e silver- zinc-lead concentrates for the past 13 year s, over which time over 500,000 tonnes of silver- zinc- lead ore has been produced from the Hampaturi Vein . The mine lies 18 kilometres northeast of the capital city of La Paz.
A Phase I Diamond Drilling program , totalling 1300 m and seven holes,targeting the Hampaturi Vein and the Machuca Vein has been completed. The program was designed to test veins with known mineral ization and production history with the objective of proving up resources around the existing mine. Assay results should be available in early January.
Underground development has begun a t the mine to establish drill bays that will allow drilling beneath the area currently being minedon the –45 level . This is expected to be completed to allow 3500 meters of underground drilling to begin in February 2006.
Following a channel sampling pr ogram, an initial three hole diamond dril ling program has begun at the Mi kaya zone, 5 km northeast of the mine portal along the Hampaturi Vein Structure. Additional mapping and channel sampling of the Hampaturi Vein ha vealso taken place.
These program s are being undertaken with the objective of 1) identifying a NI 43- 101 compliant resource estimate in the area immediately surrounding the existing mine and 2) demonstrating the extent of the Hampaturi Vein structure and the potential for significant growth of resources on the property .
Pulacayo-Paca Joint Venture with Apex Silver
Apogee entered into the Joint Venture with Apex Silver on September 13, 2005. The Pulacayo Silver Mine is the second largest silver mine in Bolivia after Cerro Rico de Potosi and one of the most important in Latin America. It has produced over 600 million ounces of silver over its lifetime. In 2002, Apex Silver completed a Phase 1 exploration program and discovered several additional zones of silver- zinc- lead mineralization withinthe vein system at the Pulacayo Mine that are both broad and high – grade.Drilling at the Paca project outlined the possibility for a potential open pit target (see Press Release dated September 13, 2005). The Joint Venture plans for a dvanced exploration at Pulacayo and Paca with the objective of defining mineral resources. Underground and surface mapping, channel sampling and hand trenchinghas commenced and is cont inuing at the Pulacayo Mine on both the Tajo Vein, where the majority of the over 600 million ounces of historic silver production occurred, and the Pacamayo Target Zone, an area to the north that has demonstrated similar characteristics to the Tajo Vein.
Surface and underground confirmatory drilling at the Tajo Vein, the Pacamayo Target Zone, and the Paca open – pit target will commence shortly after New Year.
Apogee’s objectives are to outline a NI 43- 101 compliant resource estimate and produce a bankable Feasibility Study in 2006.
Under the terms of the agreement Apogee has the right to earn from Apex a 60% interest in the property by completing a bankable feasibility study within three years and by spending US$ 1 million in exploration within three years of the Earn – In Period, including US$ 250,000 within the first six months of the Earn – In Peri od. Apogee will be the operator of all work programs on the property. In the event that the Feasibility Study evidences a critical mass of resources, Apex will have the option to increase its interest in the property to 60% by developing the property to production. Apex will also have the option to invest up to US$ 1 million in Apogee via private placement during the Earn – In Period, subject to regulatory approval.
Buena Vista Gold-Silver- Zinc Project
The Buena Vista project is a n 1150 hectare property thathosts typical Bolivian Polymetallic Vein- style mineralization that can be traced along surface for 1.5 kilometres across the project. Historic mining dates back to the Spanish colonial period over several hundred years. Work at Buena Vistahas begun to ou tline a significant high – grade gold- silver – zinc zone of mineralization that remains open along strike and at depth (see Press Release dated November 14, 2005).
A five hole Phase II diamond drilling program to follow up on the successful results of the Phase I program should be completed prior to the Christmas break, with results expected in January. Underground mapping and sampling is continuing at the Pique 4 and Pique zones, which to date have returned high – grade values of gold- silver- zinc mineralizat ion.
New concessions have recently been added to the property and a new structure in the southern portion of the property has been identified as a second target area for exploration. Channel sampling has recently begun. Objectives at Buena Vista are to ou tline a NI 43- 101 compliant resource estimate in 2006.
Apogee President and CEO John Carlesso commented: “2005 was a very significant year for our company both in terms of exploration success and the addition of high – quality advanced projects withworld- c lass partners. We antici pate that in 2006 we will also demonstrate significant activity as we proceed with our ambitious programs to advance our three key projects toward defining resources,and producing bankable Feasibility and P roduction Expansion studi es.
Building the World’s Premier Emerging Silver Producer
Apogee Minerals Ltd. i s a Canadian exploration and development company listed on the TSX Venture Exchange under the symbol APE. The company is focused on advanced Silver – Zinc projects in South Ame rica that demonstrate the potential to receive capital investment and be rapidly developed to production. Currently all of its projects are located in the historic silver producing regions of central and southwest Bolivia. The company recently received reg ulatory approval for the acquisition of the Silver- Zinc- Lead producing La Solucion mine near La Paz, Bolivia.
Statements in this release that are not historical facts a re “forward- looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these “forward- looking statements”.
This press release is availab le on the company’s official on – line investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com/ir/apogee. Alternatively, investors are as ked to email all questions and correspondence to APE@agoracom.com where they can also request addition to the Apogee Minerals investor email list to receive all future press releases and updates directly.
For further information contact:
John Carlesso
President and C.E.O.
(416) 861- 5881
