Apogee Provides Update and Announces Change to Board
Focus on increasing output at La Solucion Mine and increasing resource at Pulacayo-Paca
TORONTO, ONTARIO–(Marketwire – June 14, 2007) –
NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES
Apogee Minerals Limited (“Apogee”) (TSX VENTURE:APE) provides the following update to its shareholders regarding the direction recommended by the new management team.
The new management team have completed a detailed technical review of Apogee’s operations with the Bolivian staff (David Gower, P.Geo., CEO, Helio Diniz, President, Flavio Lamberti, Vice President Operations, with Doug Currie, VP Exploration). As a result, Apogee will focus on the two projects that have the greatest potential to create value for the Company. The Pulacayo-Paca project has excellent potential to increase the mineral resource estimate and is viewed as a key project for the Company. At the La Solucion Mine, Apogee has identified and is evaluating opportunities to improve operating margins and potential to increase production. For detailed project information please refer to Apogee’s web site at www.apogeeminerals.com . The company recently announced a non-brokered financing of up to $5,000,000 to support advancing these key projects (see press releases dated June 13, 2007)
Apogee’s upcoming activities will focus initially on the following two priorities:
1. Expand the resource base at the Pulacayo-Paca project by targeting higher grade sections of the existing mineralized zones that are not closed off by drilling. Complete drilling required to upgrade the resource estimate in compliance with NI 43-101, from inferred to indicated, to form the basis for the economic evaluation of the project. Expansion of the resource will be focused on areas that could provide for increased production rates in a future operation. The total amount of drilling required during the next phase of the project will be approximately 20,000 meters as follows:
a. Complete delineation of extensions of the Paca Deposit to define limits of a potential open pit resource.
b. Complete the resource delineation of the Upper Tajo Deposit to define limits for a potential open pit resource.
c. Drill test higher grade areas of the Lower Tajo Deposit and determine whether sufficient higher grade mineralization occurs to warrant delineation of an underground resource below the historical adit.
d. Drill approximately 10 holes in mineralized targets, which occur between the Paca and the Tajo deposits in the Pulacayo area, to evaluate potential for additional open pit accessible resources.
2. Optimize production from the La Solucion Mine and lay the foundation for expansion of production. The review of operations has identified significant sources of ore within the mine that will be sequenced into a long-term mine plan to be completed in the third quarter of this year. Drilling will be completed on the Hampaturi South Deposit which is not yet fully delineated and occurs just 30m from the underground access on the 45 level in the mine. Due to focus on the silver-lead recoveries early in the mine life preliminary sampling indicates a significant portion of the tailings contains zinc values in excess of 3%. Detailed sampling is in progress to evaluate the viability of adding this material to the production plan. Because this material has previously been milled, throughput should be at significantly higher rates than for ore and costs to access the material which is deposited as close as 15 meters from the mill are expected to be minor. Flavio Lamberti, Vice President of Mining has relocated to Bolivia from Brazil and is taking a direct role with mine management in the optimization and long-term planning process. Senior staff has been reduced at the mine in order to streamline work flow. Apogee is evaluating the potential to increase the capacity of the mill as part of the new mine plan.
The company has been apprised of ongoing developments with respect to the business and investment climate in Bolivia by its local advisers. The recent decree by the Government of Bolivia introduced changes to the mining act. These changes are not expected to impact the land tenure of existing licenses such as Pulacayo-Paca and La Solucion which are actively being worked. However, there are indications that the taxes paid by mining operations will likely increase. The government has indicated that the increase would be through a profit-based tax and that the existing royalty regime would not be increased. The government proposal will be reviewed by the Congress and until that process is completed the new tax rate will not be finalized.
As part of the plan to focus the company’s activities on its top prospects, Apogee has decided that it will withdraw from its option to earn an interest in the Buena Vista property in Bolivia.
Helio Diniz, the recently appointed President and Chief Operating Officer of Apogee will be joining the Board. Helio Diniz has more than 25 years of experience and was most recently the Director of Exploration for Falconbridge and Noranda in Brazil. In that position he was a primary discoverer of the Araguia Nickel deposits which are currently undergoing economic scoping studies by Xstrata. Previously with Gencor he was involved in the evaluation and development of the Sao Bento gold mine which operated for 25 years. Mr. Diniz is based in South America which provides for more efficient interaction with the operations in Bolivia. Apogee also announces that Bruce Humphrey has decided to resign from the Board of Directors. Apogee management thanks Bruce for his valuable contribution to the company.
David Gower, P.Geo., CEO of Apogee who is a qualified person as defined by NI 43-101 has reviewed this release.
About Apogee Minerals
Apogee Minerals Ltd. is a Canadian producer of silver-zinc-lead and also carries out exploration and development activities. The Company is listed on the TSX Venture Exchange under the symbol APE. Apogee is focused on advanced silver-zinc-lead projects in South America that demonstrate the potential to 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’s 100%-owned La Solucion Mine has a 14 year production history and has a 120 tonne per day flotation mill. The Pulacayo-Paca project is an option to joint venture with Apex Silver Mines Ltd. The project occupies the property that includes the second-largest silver mine in the history of Bolivia with over 600 million ounces of past production.
For Further Information Contact:
Ana Lopes, Investor Relations – phone: (1) 416 861 5902
Email: info@apogeeminerals.com
Web: www.apogeeminerals.com
Forward Looking Statements
This document may contain or refer to forward looking information based on current expectations, including, but not limited to, mineralization projections, estimates regarding the timing for resource modeling and the preparation of a 43-101 compliant technical report and the impact of additional drill hole data on the existing resource estimate and the Company’s understanding of the Property. Forward-looking statements are subject to significant risks and uncertainties, and other factors that could cause actual results to differ materially from expected results. These forward-looking statements are made as of the date hereof and we assume no responsibility to update or revise them to reflect new events or circumstances.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
