Apogee Minerals Ltd.
TSX VENTURE : APE

Apogee Minerals Ltd.

May 24, 2006 08:34 ET

Apogee Finds new High Grade Silver-Zinc-Gold Zone at 100% Owned La Solucion Mine

TORONTO, ONTARIO--(CCNMatthews - May 24, 2006) -

Regional Exploration Locates Significant Mineralization at Mina Porfia - Mina Antimonia Prospects

Apogee Minerals Ltd. (TSX VENTURE:APE) has commenced regional exploration to evaluate the extensive system of mineralized veins on the La Solucion Project area, along strike from the La Solucion Mine on the Hampaturi Vein and within parallel mineralized vein structures. Mapping and sampling along the Veta Principal (Principal Vein) has identified significant gold-silver-lead-zinc mineralization associated within the vicinity of small historical mines, Mina Porfia and Mina Antimonia, with anomalous channel samples with values to 606g/t silver, 28.70% zinc, 1.35g/t gold and in excess of 1.00% antimony.

Apogee Vice President, Exploration Doug Currie commented: "The identification of significantly anomalous mineralization on the Principal Vein structure at Mina Porfia and Mina Antimonia is positive and continues to encourage the Company's views on the potential and prospectivity of the vein systems at the La Solucion Project. A diamond drill program with the objective of further quantifying this potential will be planned to begin shortly."

The Principal Vein structure is approximately 1.5km northeast of Mina Principal-Machuca. In the Mina Porfia area, results (Table 1, Figure 3) include two channel samples, 0.80m and 0.85m wide, with 15.80% and 22.80% zinc, respectively, and one channel sample 1.0m wide with 208g/t silver, 1.44% lead, 5.57% zinc and 1.37% copper. Several samples in the Mina Antimonia area have elevated gold values in excess of 1.0g/t Au, silver values between 100-606g/t Ag, zinc values to 28.70% Zn and antimony values in excess of 10,000ppm ( greater than 1.00%) Sb.

The metal zonation indicated from the limited sampling to date is typical of many Bolivian silver-zinc-lead systems. The gold and antimony at Mina Antimonia in association with the axis of a northwesterly trending anticline coincides with a nearby saddle-reef style gold mining centre in the same structural position to the west of the La Solucion Project area.

This work has outlined two prospective zones for follow-up exploration along the Principal Vein: an 800m strike length of potentially outcropping or near surface mineralization in the Mina Porfia-Mina Antimonia area and a 750m strike length of potentially buried mineralization between the San Francisco Fault and Mina Porfia (Figure 3).

Additional sampling, trenching and diamond drilling to evaluate these targets is being planned and will commence shortly. Further work is also in progress to apply a similar exploration strategy to other mineralized northeasterly trending structures on the La Solucion property. Consideration is being given to utilizing geophysics to refine drill targets, particularly where buried mineralization is interpreted.

Apogee recently announced that it had acquired 100% ownership of the La Solucion Project which includes the silver-lead-zinc producing La Solucion Mine (See Press Release dated May 17, 2006). The mine and 120 tonnes per day floatation mill have been producing at an average 100 tonnes per day for the past 13 years. Historically the mine has produced approximately 500,000 tonnes of ore with an average grade of 150 g/t silver, 7% zinc and 3% lead.

The La Solucion Project hosts a system of northeasterly trending veins, some of which can be traced for over 10km along strike (Figure 1). Within these veins there are high grade shoots of silver-zinc-lead mineralization which have been exploited by small scale modern mining. Initial production within the project area was from the Principal and Machuca Veins and, since 1993, from the current La Solucion Mine on the Hampaturi Vein.

Historically, no drilling has been performed within the mines or elsewhere on the project area and no mineral resources or reserves have ever been calculated. A diamond drilling program commenced late in 2005 to evaluate the zone beneath and along strike from current and historical production zones within the mine area with a focus on defining high grade mineralization and to establish a mineral resource.

Encouraging silver-zinc-lead mineralization was intersected in four holes drilled on the southwestern extension of the Hampaturi Vein, up to 100m below and approximately 200m to the southwest of historical mining areas within the La Solucion Mine (See Press Release dated January 12, 2006). Highlights of mineralized drill hole intersections include:

- SH01 1m @ 3.61% Zinc, 0.12% Lead, 16g/t Silver, less than 0.05g/t Gold

- SH02 1m @ 2.02% Zinc, 0.22% Lead, 23 g/t Silver, 0.07g/t Gold

- SH03 5m @ 4.68% Zinc, 3.10% Lead, 80 g/t Silver, 0.43 g/t Gold
including 1m @ 7.23% Zinc, 8.17% Lead, 166 g/t Silver

- SH04 8m @ 1.86% Zinc, 1.59% Lead, 46g/t Silver
including 4m @ 1.45% Zinc, 1.68% Lead, 54g/t Silver and 1.13g/t Gold

The mineralized zone in hole SH-04, the best intersection, is variably comprised of quartz vein stockwork, sphalerite-galena-chalcopyrite-pyrite rich breccia, pyritic quartz vein and sulphidepoor quartz stockwork. The detection of up to 2.14g/t gold in SH-04 is considered very significant; although regionally there are known gold prospects, gold had not been previously noted as significant within the La Solucion Project area and no significant gold has been reported within concentrates produced by the La Solucion Mine.

Underground Development and Drilling at La Solucion Mine

The underground diamond drilling program to evaluate the zone beneath and along strike from current and historical production zones within the La Solucion Mine is continuing, with 3 diamond drill holes (455m) completed. Underground development within the mine to establish drill bays is progressing well with three of five planned drill bays and 359.75m completed. Work has commenced on the two remaining drives.

A program of approximately 3500m of underground diamond drilling, which commenced late February, is designed to intersect the projection of the mineralized Hampaturi Vein approximately 100m below current mining activities on the -45 level on drill holes spaced approximately 100m apart.

The first two holes, SH-09 and SH-10, totalling 325m, are complete and a third hole has commenced. Assay results of this drilling are not available; however, geological logging of the core has indicated that targeted Hampaturi Vein structure has been intersected. Alteration and mineralization has been intersected, with a broad zone of sphalerite, indicative of low grade zinc mineralization. The drill program continues.

Doug Currie commented: "The presence of the mineralized Hampaturi Vein structure in holes SH-09 and SH-10 beneath current mine workings at the La Solucion Mine is considered significant and a further indication of the potential to establish a NI43-101 compatible resource in 2006."

Elsewhere within the La Solucion Project area, regional exploration continues to evaluate the extensive system of mineralized veins along strike from the La Solucion Mine and within the many parallel mineralized vein structures, some of which can be traced up to 10 kilometres along strike, to define significant new or satellite deposits. Geological mapping, trenching and limited diamond drilling has been completed to evaluate several targets.

Mikaya Zone Prospect

The Mikaya Prospect is a significant outcropping of the Hampaturi Vein structure 5 km northwest of the La Solucion Mine portal. Following a surface channel sampling program which confirmed historical reconnaissance surface geochemical sample results, a four hole diamond drilling program was completed. Although the vein structure was intersected, no significant silver-lead-zinc was intersected. More work is being undertaken at Mikaya to better understand the underlying structure of this outcropping.

Recently, geological mapping has advanced the Company's understanding of potential structural and lithological controls on mineralization at La Solucion. Silver-lead-zinc mineralization is interpreted to be confined to the upper portions of the Upper Ordovician Amutara Formation black shale beneath the contact with the overlying Lower Silurian Cancaniri Formation quartzite, shale and diamictite in association with northeast trending extensional structures and late thrust events (Figure 2).

Building A Premier Emerging Silver Producer

Apogee Minerals Ltd. is 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 America 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.

This press release is available 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 asked 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.

Regulatory Footnotes:

Mr. Douglas A. Currie, MAusIMM, Apogee's Vice President-Exploration, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and is responsible for reviewing the technical disclosure in this press release.

All analytical work has been completed by ALS Chemex of North Vancouver, BC, Canada; ALS Chemex is a respected international analytical service which is accredited with NATA and complies with standards of ISO 9001:2000 and ISO 17025:1999. They employ a variety of international standards for quality control purposes.

Samples are transported from field projects to the ALS Chemex sample preparation facility in Oruru, Bolivia, by Company personnel or a reputable commercial carrier. All analytical testing is performed utilizing a variety of industry standard analytical techniques, including: (i) ALS Analytical Code ME-MS41 - 50 element analysis using aquaregia digest and ICPAES analysis, (ii) ALS Analytical Code AA46 & AA62 - specific element analysis using aquaregia digest and AAS determination (Ag, Zn, Pb, Cu, As) and, (iii) Analytical Code Au-AA26 - Gold using a 50g Fire Assay-AAS finish.

All diamond drill core is geologically logged and sampled by Company geologists then is cut in half using a diamond saw and sampled in one(1) meter sample intervals; the archive portion of the sample is securely stored at each project site. The Company has initiated a QA/QC program consisting of utilizing standards, duplicate and blank samples and laboratory cross-checks and routinely repeats sample analysis.

Trench samples are chip-channel samples taken over a 5-10cm wide channel cut in the bottom of an excavated trench. Sample intervals are normally 2m composites in zones of alteration or mineralization and 5m composites through unaltered selvedges.

Statements in this release that are not historical facts are "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".



Table 1
Significant Chip & Channel Sample Results
La Solucion Project Regional Evaluation
Mina Porfia - Mina Antimonia Prospects

---------------------------------------------------------------------
Sample No Type Width Au Ag Pb Zn Cu As Sb
(g/t) (g/t) (%) (%) (%) (ppm) (ppm)
---------------------------------------------------------------------
MINA PORFIA
---------------------------------------------------------------------
10009 Chip 0.01 95.7 0.26 0.77 2.13 92.9 61.7
---------------------------------------------------------------------
10012 Channel 0.80 0.01 34.4 0.21 15.80 0.23 55.2 94.6
---------------------------------------------------------------------
10021 Channel 0.85 0.03 41.6 2.33 22.80 0.20 40.8 106
---------------------------------------------------------------------
10022 Channel 1.00 0.01 208 1.44 5.57 1.37 91.6 286
---------------------------------------------------------------------

---------------------------------------------------------------------
MINA ANTIMONIA
---------------------------------------------------------------------
10003 Channel 1.20 0.02 143 2.18 0.05 0.15 152.5 126
---------------------------------------------------------------------
10007 Channel 1.10 0.01 46.4 0.10 3.41 0.37 29.9 230
---------------------------------------------------------------------
10027 Channel 0.90 1.35 149 0.56 0.02 0.02 1.03% 2850
---------------------------------------------------------------------
10029 Chip 0.08 244 ?? 28.70 0.19 775 392
---------------------------------------------------------------------
10032 Channel 0.80 0.53 606 2.05 4.76 0.44 7150 936
---------------------------------------------------------------------
10033 Channel 0.70 0.20 24.3 0.27 0.45 0.07 9920 8390
---------------------------------------------------------------------
10034 Channel 0.75 0.42 49.9 0.08 0.04 0.03 3370 great-
er th-
an 10,
000
---------------------------------------------------------------------
10035 Channel 0.72 1.02 101 0.09 0.05 0.02 1.09% 1855
---------------------------------------------------------------------
10036 Channel 0.65 0.30 159 5.39 0.33 0.03 2880 786
---------------------------------------------------------------------
10037 Chip 0.17 30.4 0.09 0.06 0.04 371 great-
er th-
an 10,
000
---------------------------------------------------------------------
10062 Channel 1.20 0.73 91.5 5.93 0.20 0.11 1.47% 259
---------------------------------------------------------------------

---------------------------------------------------------------------
Other Targets
---------------------------------------------------------------------
10041 Channel 1.00 0.12 3.7 0.00 0.00 0.00 1855 great-
er th-
an 10,
000
---------------------------------------------------------------------
10048 Channel 0.80 0.04 4.34 0.00 0.00 0.00 460 great-
er th-
an 10,
000
---------------------------------------------------------------------
10052 Channel 1.10 0.32 244 0.01 0.02 0.31 6310 595
---------------------------------------------------------------------
10074 Chip 0.10 116 1.98 13.05 2.68 958 1385
---------------------------------------------------------------------


To view Figure 1, please click on the following link on CCNMatthews' website:

http://www.ccnmatthews.com/docs/apo1.pdf

To view Figure 2, please click on the following link on CCNMatthews' website:

http://www.ccnmatthews.com/docs/apo2.pdf

To view Figure 3, please click on the following link on CCNMatthews' website:

http://www.ccnmatthews.com/docs/apo3.pdf

Contact Information

  • Apogee Minerals Ltd.
    John Carlesso
    President and C.E.O.
    (416) 861-5881