Apollo Gold (AMEX:AGT)
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5 Years : From Jun 2008 to Jun 2013
Apollo Gold Corporation (“Apollo” or “the Company”) (TSX: APG)(NYSE
Amex: AGT) reports that its wholly owned and operated Black Fox Mine and
mill (“Black Fox”) achieved the previously stated production goal of
processing 2,000 tonnes per day (“tpd”), ahead of the original year-end
schedule, for a mill throughput average of 2,040 tpd of ore during the
fourth quarter ended December 31, 2009 (“4Q 2009”), for production of
15,820 ounces (“oz”) of gold in 4Q 2009.
The Company’s total gold production for the fourth quarter totaled
17,850 oz of gold, including 2,031 oz produced from lower grade Black
Fox ore toll milled at a nearby processing facility. For 2009, from
commencement of production at Black Fox in late May until the end of
2009, the Company’s total production was 52,961 oz of gold, with 47,430
oz from the Black Fox Mill, which is located approximately 30 km (19
miles) west of the Black Fox Mine and the remaining 5,531 oz from toll
milling. The Company sold 21,124 oz of gold in 4Q 2009; all of which was
sold against the forward sales contracts at a realized price of $875 per
oz.
Production from Black Fox in the third quarter of 2009 (“3Q 2009”) was
23,250 oz with 19,750 ounces produced at the Black Fox Mill and the
remaining from the toll milling arrangement. Gold production was lower
in the fourth quarter largely due to a 30% decrease in the average gold
head grade to 2.85 grams per tonne (“gpt”) at the mill compared to the
third quarter, partially offset by a 17% quarter-over-quarter increase
in tonnes milled to 187,600 tonnes in 4Q 2009. The recovery rate
decreased slightly to 92% due to the lower grade processed.
Table One: Black Fox Gold Production & Sales Highlights
4Q 2009
3Q 2009
May-Dec 2009
Ore tonnes mined
210,000
217,000
632,000
Total tonnes mined
2,007,000
1,644,000
4,815,000
Black Fox Mill
Tonnes milled
188,000
161,000
425,000
Tonnes per day milled
2,040
1,750
1,734
Head grade of ore (gpt)
2.85
4.10
3.73
Recovery(%)
94
92
93
Black Fox gold production
15,820
19,750
47,430
Toll Gold Production
2,031
3,500
5,531
Apollo total gold produced
17,851
23,250
52,961
Apollo total gold sold
21,124
19,848
46,015
Footnotes:
1. Tonnes above are rounded to the thousand.
2. Recovery is rounded to the whole number.
3. Production commenced in late May 2009.
R. David Russell, President and Chief Executive Officer of Apollo, said,
“Black Fox reached its steady state of production of 2,000 tpd during 4Q
2009 and the mill ramp up has proceeded very well. We are also
continuing to improve upon the ore grade control programs first
implemented in August 2009. 2010 marks the first full year of
production, and we are hopeful that some of the start-up operational
issues in 2009 should improve as we progress towards our goal of
producing 100,000 oz of gold from Black Fox in 2010.”
In addition to the gold production from the Black Fox Mill, as shown in
Table One above, Apollo also transported low grade ore from Black Fox
for toll milling at St Andrew Goldfields’ (“SAS”) Holt mill, located
approximately 50 km (31 miles) east of the Black Fox Mine. As was
previously announced on September 9, 2009, Apollo entered into an
agreement with SAS to toll mill approximately 100,000 tonnes of Apollo’s
Black Fox ore at SAS’s Holt mill. Under the toll agreement, 2,031 oz of
gold were produced for Apollo in 4Q 2009.
The Company will report its 4Q 2009 and full year 2009 financial
results, including total cash costs, by March 16, 2010.
Capital Program Update
The new conveyor associated with the new crusher scalping circuit,
including the high pressure screening, was substantially complete by the
end of 2009 and was commissioned in January 2010. The system will
improve crusher capacity by removing approximately 30% of crusher feed
as fines, ahead of the crushing circuit and thereby, reduce operating
costs. Further, completion of the water management holding facility is
also expected in this first quarter of 2010. The water management system
increases efficiency by separating water from tailings, which provides
greater capacity in the tailings impoundment sufficient for the current
life of mine.
Apollo Gold Corporation
Apollo is a growing gold producer that operates the wholly owned Black
Fox Mine and mill. Both the mine and mill are located in the Township of
Black River-Matheson, near Timmins in Ontario. Apollo also is exploring
the adjoining Grey Fox and Pike River properties, all in the greater
Timmins gold district in Ontario, Canada, as well as the Huizopa Joint
Venture (80 percent Apollo and 20 percent Minas de Coronado, S. de R.L.
de C.V.), an early stage, gold-silver exploration project, approximately
16 km (10 miles) southwest of Minefinders’ Dolores gold-silver mine, in
the Sierra Madres in Chihuahua, Mexico. Apollo announced it has a letter
agreement to sell its 50 percent interest in the currently closed
Montana Tunnels Mine, near Helena, Montana, to its joint venture partner
Elkhorn Tunnels, LLC.
FORWARD-LOOKING STATEMENTS
This news release includes “Forward-Looking Statements” within the
meaning of section 21E of the United States Securities Exchange Act of
1934, as amended. Forward-looking statements can be identified by the
use of words such as “may,” “should,” “expects,” “plans,” “anticipates,”
“believes,” “estimates,” “schedules,” “targets,” “predicts,” “intends,”
“continue,” or the negative of such terms, or other comparable
terminology. All statements regarding estimated gold production,
improvements to operational efficiency, cost reduction plans, the timing
of the completion of the water management holding facility and the
timing of the future reporting of financial results are estimates 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: unexpected
lower ore grades, additional operational, geotechnical and processing
problems at the Black Fox Mine and mill, further toll milling,
unexpected changes in business and economic conditions, political or
economic instability, significant decreases in gold prices, difficulties
or delays in permitting at Black Fox, changes in interest and currency
rates, local and community impacts and issues, labor accidents,
environmental risks and other factors disclosed under the heading “Risk
Factors” in Apollo’s most recent annual report on Form 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, The NYSE Amex, The United States Securities and Exchange
Commission and other regulatory authorities. All forward-looking
statements included in this news release are based on information
available to Apollo on the date hereof. Apollo assumes no obligation to
update any forward-looking statements.
