Apogee Minerals Ltd.

Apogee Minerals Ltd.

January 18, 2011 08:00 ET

Apogee Intersects 21.0 Meters Grading 479.43 g/t Silver at Pulacayo and Commences Additional Metallurgical Study on the Pulacayo Deposit

TORONTO, ONTARIO--(Marketwire - Jan. 18, 2011) - Apogee Minerals Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) reports assay results from 6 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 156 intersected 6.40 meters grading 217.49 g/t silver, 0.99% lead and 1.36% zinc within a 37.0 meter interval grading 74.65 g/t silver, 0.33% lead and 0.82% zinc.
  • DDH PUD 158 intersected 5.00 meters grading 172.26 g/t silver, 0.64% lead and 0.59 % zinc within a 10.0 meter interval grading 127.13 g/t silver, 0.34% lead and 0.37% zinc.
  • DDH PUD 159 intersected 21.00 meters grading 479.43 g/t silver, 0.41% lead and 0.58 % zinc within a 34.0 meter interval grading 342.82 g/t silver, 0.41% lead and 0.54% zinc.

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, where diamond drilling, ongoing since January 2010, has successfully extended the deposit an additional 350 meters. (See Press Releases dated January 15th 2010, March 15th 2010, April 19th 2010, July 13th 2010, August 9th 2010, September 20th 2010, 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 twenty-six drill holes in this 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 continue to be very excited by the results from our ongoing drilling which has expanded the deposit to the east. Delineation drilling of the east extension of the deposit indicates good continuity. The grades and widths of the drill intersections encountered in this area are comparable to the grades and widths observed in the area comprising the resource (See Press Release dated June 24, 2010 and the NI 43-101 Technical Report dated June 25th 2010 and filed under the SEDAR profile of the Company at www.sedar.com). We are confident that the drilling in this area will result in a significant addition to the previously estimated mineral resource and expect this will further enhance development potential of the deposit."

Diamond drilling ongoing at the site is now targeting extensions to the Pulacayo deposit further east of these 26 drill holes. (Figure 3).

Table 1 Summary of Significant Intercepts
Hole No. UTM E
PUD–156 740614 7744321 22 -38 241.0 278.0 37.0 74.65 0.33 0.82
Incl.       241.0 253.0 12.0 163.92 0.54 0.88
  Incl.     246.60 253.00 6.40 217.49 0.99 1.36
    Incl.   246.6 249.0 2.40 420.88 2.16 2.22
PUD–157 740450 7744335 22 -38 322.15 327.0 4.85 25.68 0.13 0.56
PUD–158 740510 7744311 20 - 38 336.00 346.00 10.0 127.13 0.34 0.37
Incl.     338.00 345.00 7.00 155.47 0.47 0.45
  Incl.     340.00 345.00 5.00 172.26 0.64 0.59
PUD–159 740560 7744307 20 -41 320.00 354.00 34.00 342.82 0.41 0.54
Incl.         333.00 354.00 21.00 479.43 0.41 0.58
  Incl.       343.00 354.00 11.00 789.73 0.60 0.62
    Incl.     348.00 353.00 5.00 1568.20 0.75 0.48
PUD–160 740510 7744311 20 -34 312.00 315.00 3.00 76.00 0.13 0.68
PUD–161 740656 7744294 22 -43 312.00 315.00 3.00 42.67 0.67 1.67
          325.00 340.00 15.00 59.55 0.12 0.18
Incl.         327.26 337.00 9.74 69.97 0.08 0.14
* True widths of the intersections are estimated to be approximately 80% of the core lengths provided in the table above.

The company also reports that it has initiated a program of metallurgical test work to augment the results of the work completed by Micon International Ltd. as part of the Preliminary Assessment, ("PEA"), of the Pulcayo Deposit. (See Press Release dated June 24, 2010 and the NI 43-101 Technical Report dated June 25th 2010 and filed under the SEDAR profile of the Company at www.sedar.com.) This work is being conducted under the supervision of John H. Starkey, P. Eng., Principal Consulting Engineer, Starkey and Associates Inc., Consulting Engineers. Mr. Starkey is a highly respected professional metallurgist with over 45 years of mineral processing experience both in operations and design projects in Canada and throughout the world. The metallurgical test work will be undertaken at Inspectorate Exploration and Mining Services Ltd., Metallurgical Division, in Richmond B.C. Several composite samples from the Pulcayo Deposit are currently in transit to the lab. In addition to the metallurgical testing program Mr. Starkey has been retained by the Company to complete process engineering audits of a number of mineral processing facilities in the Potosi District of Bolivia which have been identified as candidates for potential early toll milling of the Pulacayo ores. This work is in progress. 

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 Vice President of Exploration, Joaquin Merino, P. Geo, a qualified person as defined by NI 43–101. Mr. Merino has reviewed and approved the scientific and technical information presented in this press release.

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

This release has been reviewed and approved by Chris Collins, P. Geo., President of Apogee and a qualified person as defined by NI 43-101.

About Apogee Minerals Limited

Apogee Minerals 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 Pulacayo-Paca project in Bolivia, which is an option to joint venture with Golden Minerals Company. 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, statements regarding the drill program at Pulacayo, development of the Pulacayo project, statements regarding exploration prospects and results, and requirements for additional capital. 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/ape0118fig1.pdf.

To view Figure 2: Tajo Vein System, Plan View, please visit the following link: http://media3.marketwire.com/docs/ape0118fig2.pdf.

To view Figure 3: Pulacayo Deposit Vertical Longitudinal Section, please visit the following link: http://media3.marketwire.com/docs/ape0118fig3.pdf.


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