Apogee Minerals Ltd.

Apogee Minerals Ltd.

October 04, 2007 07:30 ET

Apogee Commences 20,000 Meter Diamond Drill Program on Paca and Pulacayo Deposits, Bolivia

TORONTO, ONTARIO--(Marketwire - Oct. 4, 2007) - Apogee Minerals Limited ("Apogee") (TSX VENTURE:APE) is commencing a 20,000 meter diamond drill program on the Pulacayo and Paca silver-zinc-lead deposits in Bolivia, approximately 420 km south of La Paz (Figure 1). The objective of the drill program will be to increase the resource base by incorporating a significant resource contribution from the Pulacayo deposit and upgrade the current resource at Paca to an "Indicated" category (CIMM definition) in order to support completion of a feasibility study. The drill proposal has been structured to target areas that have potential to add higher grade resources with the objective of increasing the over-all grade of the deposits. Preliminary economic modeling indicates that if successful this will have a positive impact on the project's economic potential. The drill contract has been awarded to Compania de Sondeos Fujita. Three drills are being deployed to the site.

The project is an option joint venture with Apex Silver Mines Limited (Apex) of Denver, Colorado whereby Apogee can earn up to a 60% interest by completing a feasibility study. In compliance with the terms of an underlying agreement, Apogee submitted a major technical report to Apex and Comibol (the Bolivian state mining company) in June, 2007. Comibol has an underlying agreement on the project. The technical review of this report has been completed by Comibol and following constructive meetings with the President of Comibol and the Minister of Mines of Bolivia formal documentation was provided by Comibol confirming that the terms of the agreement had been satisfied. Mr. Helio Diniz, President of Apogee, stated, "We were very encouraged by our discussions with the Senior Officials in Bolivia and are excited to reactivate this important project for Apogee and its partners. We are proceeding with a carefully designed program in which activities are focused on collecting data required to support completion of a feasibility study as efficiently as possible. Apogee will also continue to work on initiatives with local community leaders, who have been very supportive of the project."

The drill program will budget 14,000 meters for the Pulacayo deposit where management expects that a significant increase in the mineral resource estimate and an improvement in grade can be achieved by supplementing the existing wide-spaced drill holes (Figure 2). Drilling to date at Pulacayo indicates there are structurally controlled higher grade zones and these will be specifically targeted by the diamond drill program.

At Pulacayo the mineralized zone being targeted is more than 600 m long and ranges from 10 to 60 m in thickness. This zone is characterized by intense mineralized stockwork and veins. Three high grade structures are interpreted to occur within the mineralized zone (Figure 2) and include intersections such as in drill hole PuD007, which intersected 413 g/t silver, 1.8% lead, and 3.5% zinc over 44 meters and hole PuD005, which intersected 231 g/t silver, 1.2% lead and 2.2% zinc over 43.5 meters (true widths). The drill program will target the mineralized zone from near surface to approximately 300 meters below surface. Management believes that the Pulacayo mineralization continues to significantly greater depths as this is within the structure where approximately 600 million ounces of silver were produced from the historical Pulacayo mining camp.

At the Paca deposit 6,000 meters will be targeted to expand the highest grade area of the existing resource complete infill drilling to increase the confidence in the resource to at least an indicated classification required for the prefeasibility/ feasibility study (Figure 3).

As part of this program metallurgical sampling will commence to determine the end-member ore characteristics in order to determine the design parameters for the full metallurgical test program to follow.

Quality Control

The company employs a QA/QC protocol on all aspects of the analytical procedures. Core samples are sawn and one half of the NQ core is restored to the core box for future reference and one half of the core is sent for analysis. Samples are taken in approx. 1.0-metre intervals or less. A blank sample is inserted every 40th sample and standard samples representing a range of grades are inserted at intervals of 1 in 20 samples. Five percent of pulps are re-analysed at a second lab.

All aspects of the project will be supervised by Mr. Joaquin Merino, Apogee's Vice President of Exploration. The Quality Control of the exploration program is supervised by Dr. Fernando Tallarico, P.Geo., who is a Qualified Person as defined under National Instrument 43-101.

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 Limited

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 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 a 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.

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 the future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding exploration prospects, the identification of mineral reserves and resources, costs of and capital for exploration projects, exploration expenditures, timing of future exploration, requirements for additional capital, government regulation of mining operations, environmental risks, reclamation expenses, title disputes or claims, and limitations of insurance coverage. 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: 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.

Please visit the link below to view the following:

Figure 1: Location Map, Paca and Pulacayo Project.

Figure 2: Longitudinal Section showing potential high grade structures at Pulacayo. All drill holes to date on this longitudinal section have intersected silver-lead-zinc mineralization and high grade structures indicated by the dashed red lines will be specifically targeted within the broader mineralized zone.

Figure 3: Diamond drill plan for the Paca Deposit where management believes in fill drilling will upgrade the resource and open areas will be evaluated for resource expansion.


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