Apogee Silver Ltd.
TSX VENTURE : APE

Apogee Silver Ltd.

April 05, 2011 08:00 ET

Apogee Intersects 2.0 Meters Grading 3,163.00 g/t Silver and 4.40 Meters Grading 584.47 g/t Silver at the Pulacayo Deposit

TORONTO, ONTARIO--(Marketwire - April 5, 2011) - Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) reports assay results from eight additional diamond drill holes from the ongoing drill campaign at the Pulacayo deposit located in southwest Bolivia (See Table 1 below). All of the reported holes were drilled from surface.

The highlights from these holes include:

  • DDH PUD 170 intersected 2.0 meters grading 3,163.00 g/t silver, 0.07% lead, 0.93% zinc, and a second zone adjacent to the "Veta Tajo" zone which intersected 4.0 meters grading 212.0 g/t silver, 2.11% lead, and 2.19% zinc.

  • DDH PUD 173 intersected 4.40 meters grading 584.47 g/t silver, 0.88% lead and 3.88% zinc in a zone adjacent to the "Veta Tajo"

  • PUD 176 intersected 5.10 meters grading 109.47 g/t silver, 0.02% lead and 0.34% zinc in the "Veta Tajo" zone and a second adjacent zone which intersected 7.0 meters grading 226.29 g/t silver, 0.39% lead and 0.83% lead.

The holes were drilled to continue delineation of the deposit along strike east of the previously released National Instrument 43-101 ("NI 43-101") resource. Diamond drilling, undertaken in 2010, has successfully extended the deposit an additional 350 meters east of the current resources (See Press Releases dated January 15th 2010, March 15th 2010, April 19th 2010, July 13th 2010, August 9th 2010, September 20th 2010, January 18th 2011, February 24th 2011 and the NI 43-101 technical report dated December 2008 and filed under the SEDAR profile of the Company at www.sedar.com). The Company has now completed a total of 41 drill holes in the area east of the previously released NI 43-101 resource (See Figure 2 and 3 below).

Chris Collins, P. Geo., President of Apogee, states, "We remain very encouraged by the latest results from the ongoing drilling program at Pulacayo. We continue to encounter excellent silver grades over significant widths. Our near term focus will be on completing the delineation drilling in the area east of the current resources to a sufficient level of detail to support a revised NI 43-101 resource estimate. Three drills are currently working in this area. In addition a fourth diamond drill rig has been contracted and will be mobilized to the property in early April. The fourth drill rig, an LM 90, is capable of testing the deposit where it remains open at greater depth and open along strike to the west. We expect this fourth drill to start drilling in the area along strike west of the deposit by mid April."

Table 1: Summary of Significant Intercepts
 
 
Hole
No. 
UTM
E
(m)
  UTM
N
(m)
   
Az.
   
Dip
From 
(m)
 
To
(m)
  Core
Length
(M)*
 
Ag
g/t
   
Pb
%
 
Zn
%
PUD-168 740884   7744316   022°   -48° 117.0 132.0   15.0 32.93   0.43 1.09
                251.0 261.0   10.0 3.60   0.18 0.62
PUD-170 740884   7744316   022°   -38° 100.0 104.0   4.0 212.0   2.11 2.19
                237.0 239.0   2.0 3163.0   0.07 0.93
PUD-171 741137   7744149   022°   -43° 136.0 138.80   2.8 70.34   0.39 0.01
PUD-172 741061   7744227   022°   -48° 134.0 145.0   11.0 23.46   0.34 0.11
Incl.               142.0 145.0   3.0 58.67   0.08 0.01
PUD-173 740861   7744262   022°   -43° 232.0 236.4   4.4 584.47   0.87 3.88
Incl.               234.0 235.0   1.0 1400.0   1.09 8.48
                338.0 339.4   1.4 1.00   0.11 0.75
PUD-174 741099   7744190   022°   -40° 164.42 165.0   0.58 114.0   0.57 0.03
PUD-175 740013.   7742241   022°   -35° 121.0 131.0   10.0 47.6   0.06 0.01
Incl.               129.0 130.0   1.0 109.0   0.10 0.002
PUD-176 740914   7744261   022°   -45° 182.0 183.8   1.8 120.0   0.22 1.40
                232.0 239.0   7.0 226.29   0.39 0.83
                269.0 270.0   1.0 359.0   1.49 21.10
                294.0 299.1   5.10 109.47   0.02 0.34
Incl.               298.0 299.1   1.10 243.0   0.06 1.43
 
* True widths of the intersections are estimated to be approximately between 70% and 85% of the core lengths provided in the table above.

The Pulacayo Deposit is a thick east-west striking zone of conjugate veins, stockwork and disseminated sulphides that locally are up to 200 meters thick with a higher grade core that comprises the resource and may locally exceed 60 meters in thickness. The known strike length of the Tajo Vein System which hosts the Pulacayo deposit is close to 3 kilometers and it remains open at both ends along strike (Figure 2). Mineralization comprises sphalerite, galena and tetrahedrite in sulphide-rich veins ranging from a few centimeters to greater than one meter thick and heavily disseminated sphalerite, galena and tetrahedrite between the veins.

Quality Control

The Company employs a quality assurance/quality control protocol on all aspects of the diamond drilling, sampling and analytical procedures. The Quality Control and all aspects of the exploration program are supervised by Apogee's Exploration Manager Mr. Hernan Uribe, who holds a Masters of Applied Science in Mineral Exploration from the Imperial College of Science And Technology, Royal School of Mines, London England. The scientific and technical information presented in the press release has been reviewed and approved by Chris Collins P. Geo. President of Apogee and a qualified person, as defined by NI 43-101.

For detailed project information please refer to Apogee's web site at www.apogeeminerals.com.

About Apogee Silver Ltd

Apogee Silver Ltd. is a mineral exploration and development stage company listed on the TSX Venture Exchange under the symbol APE. Apogee targets advanced silver-zinc-lead projects in South America that demonstrate potential to be developed to production. Currently its projects are located in the historic silver producing regions of southwest Bolivia and northern Chile.

Its most advanced project is the 100% owned Pulacayo-Paca project in Bolivia. This project includes the property that covered 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, the development of and the anticipated timing with respect to the Pulacayo-Paca project, and statements regarding exploration prospects. 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: financing not being available at desired prices; 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.

On Behalf of the Board,

G. Scott Paterson, Chairman

To view Figure 1: Pulacayo Project Location Map, please visit the following link: http://media3.marketwire.com/docs/apgfig1.pdf

To view Figure 2: Tajo Vein System, Plan View, please visit the following link: http://media3.marketwire.com/docs/apgfig2.pdf

To view Figure 3: Vertical Longitudinal Section Pulacayo Deposit, please visit the following link: http://media3.marketwire.com/docs/apgfig3.pdf

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