Apogee Minerals Ltd.
TSX VENTURE : APE

Apogee Minerals Ltd.

May 17, 2006 10:02 ET

Apogee Becomes a Producer with 100% Acquisition of La Solucion Mine

TORONTO, ONTARIO--(CCNMatthews - May 17, 2006) -

Silver-Zinc-Lead Mine Has Current Production Capacity of 40,000 Tonnes Per Year

Apogee Minerals Ltd. (TSX VENTURE:APE) has acquired 100% of the silver-zinc-lead producing La Solucion Mine (see Press Release announcing the transaction dated February 23, 2005). The mine and 120 tonnes per day flotation mill, built in 1992 at a capital cost of US$1.6 million, has been producing at a rate of 100 tonnes per day for the past 13 years. The ore has graded an average of 7% Zinc, 3% Lead, and approximately 150 g/t Silver.

Historically the mine has produced roughly 500,000 tonnes, or approximately 11 million ounces of silver equivalent. As it is currently, the mine is producing roughly 900,000 ounces of silver equivalent. Operating costs at the mine are approximately US$27/tonne or approximately US$2.81 per ounce of silver equivalent.

Apogee President and CEO John Carlesso commented: "We have accelerated the completion of this acquisition to receive the benefit of the cashflow the mine is generating in the current metal price environment. This cashflow will strengthen our finances, help fund our ongoing exploration activities, and limit the potential of a further dilution requirement for shareholders from our ongoing programs. Our first priority at the mine will be to improve operational efficiencies toward increasing production levels and decreasing costs. Improving mine safety for our employees will also be a key priority. We continue to view La Solucion as having the potential to contain significant silver-zinc resources which, upon definition, could result in an expansion of the mining operations and the production facilities. Owning an operating mine that is producing cash should also underscore for shareholders the value inherent to our company."

The company is currently in the midst of a Phase II exploration program at La Solucion to outline a NI 43-101 compliant resource estimate. The company will soon provide an exploration update on the activities at the mine and on the property.

Building A Premier Emerging Silver Producer

Apogee Minerals Ltd. is a Canadian producer of silver-zinc-lead and also carries out exploration and development activities. The 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.

Contact Information

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