Apogee Minerals Ltd.
TSX VENTURE : APE

Apogee Minerals Ltd.

October 19, 2006 11:38 ET

Apogee Intersects High Grade Silver-Zinc at La Solucion Mine

on Track to Establish NI43-101 Resource and Expand Production

TORONTO, ONTARIO--(CCNMatthews - Oct. 19, 2006) - Apogee Minerals Ltd. (TSX VENTURE:APE) has intersected significant, high grade silver-zinc mineralization in the Hampaturi South Extension adjacent to the southwestern end of Apogee's 100% owned La Solucion Mine.



Mineralized intersections include:

- SH-21 6.0m (5.44m TT) 64.5g/t silver, 5.11% zinc, 0.68% lead,
0.04g/t gold
Incl 2.0m (1.81m TT) 113.5g/t silver, 13.40% zinc, 0.81% lead,
0.03g/t gold

- SH-22 8.0m (6.75m TT) 84.38g/t silver, 5.17% zinc, 0.59% lead,
0.05g/t gold
Incl 6.0m (5.06m TT) 101.5 g/t silver, 6.88% zinc, 0.71% lead,
0.06g/t gold

- SH-24 9.0m (7.35m TT) 64.0g/t silver, 1.64% zinc, 1.18% lead,
0.29g/t gold
Incl 2.0m (1.63m TT) 110.0g/t silver, 4.43% zinc, 4.05% lead,
0.89g/t gold

- SH-26 6.0m (5.34m TT) 35.83g/t silver, 2.17% zinc, 0.08% lead,
0.23g/t gold

(TT equal True Thickness)


Assay results received and visual observations of the mineralized structure indicate that a zone of silver-zinc-lead+/-anomalous gold mineralization measuring approximately 100-125m along strike, 125-150m down dip/plunge and averaging 4.3m in True Thickness has been identified; the zone is still open in all directions (Table 1; Figure 2). Upon completion of the current drill program in approximately 3-4 weeks a NI43-101 Mineral Resource will be calculated.

Apogee Vice President Exploration, Mr Doug Currie, commented: "We have been very encouraged by the initial results of drilling at Hampaturi South which commenced shortly after Apogee completed purchase of 100% interest in the La Solucion Mine. This zone has the potential to provide sufficient resources to support the intermediate expansion of the current 120 tonnes per day production rate. Historically there have been no resources or reserves over the mine's 14 year production history; these results demonstrate the potential to establish a substantial resource base which Apogee will work to expand with additional drilling."

This drilling followed up encouraging silver-zinc mineralization that was intersected in four drill holes completed late in 2005 on the extension of the Hampaturi Vein (Hampaturi Southwest), up to 100m below and 200m to the southwest of historical mining areas above the -45 Level within the La Solucion Mine. Results included two particularly significant intersections (See Press Release January 12, 2006):



SH-03 5m @ 80g/t silver, 4.68% zinc, 3.10% lead and 0.43g/t gold
Including 1m @ 166g/t silver, 7.23% zinc, 8.17% lead

SH-04 8m @ 46g/t silver, 1.86% zinc, 1.59% lead
Including 4m @ 54g/t silver, 1.45% zinc, 1.68% lead
and 1.13g/t gold


The current drill program was initially planned to follow-up the intersections in SH-03 and SH-04. Visually encouraging mineralization was identified in the first hole drilled above SH-03, SH-21, and an aggressive program of drilling commenced to attempt to define a mineralized block of approximately 150m by 150m, with intersection points spaced at approximately 25m intervals. The mineralized intersections range from 2m to 9m; the average true thickness is approximately 4.3m.

A total of 3301.3m of drilling has now been completed in 23 holes, with 13 of 15 holes for which assay results have been received successfully intersecting mineralization. This "hit rate" is considered very good considering the "pinch and swell" nature of the mineralized structure. Two diamond drills continue to evaluate this very prospective zone.

Mineralization at La Solucion is related to the Hamapturi Vein, one of several major sub-parallel veins trending 050-060 degrees, dipping 60-85 degrees to the SE and NW, which extend for several kilometers across the project area (Figure 1). The veins, locally potentially as thick as 10m but generally more likely to average 5-8m, vary from massive quartz, barren of mineralization, to quartz-siderite veins with sphalerite, galena, chalcopyrite and lesser bornite, covellite, stibnite and varying amounts to abundant pyrite. High grade zinc/lead/silver "ore" mineralization averages 1-2m within brecciated zones along the edges of the quartz-siderite veins. The La Solucion Mine produces approximately 2,300 tonnes of ore each month averaging 49g/t silver, 1.3% lead and 4.5% zinc (2005 average). Having recently acquired 100% interest in the mine, Apogee management is in the process of producing a new Business Plan that will focus on improving revenue, increasing efficiencies, and delineating a NI43-101 Resource Estimate that will expand production in intermediate and long-term stages.

Historical mining of the Hampaturi South Extension was limited to the area above the -45 Level. No information on the historical mine production or grades are available. Historical channel sampling of the -45 Level provides the only information available (Figure 2). The Hampaturi South mineralized extension appears to dip at approximately 70 degrees to the southeast. Insufficient information is available to define the plunge on the mineralization.

Elsewhere on the La Solucion project, underground development and drilling which commenced late February to evaluate the zone beneath and along strike from current and historical production zones within the La Solucion Mine is nearing completion. Further drilling will be necessary to follow-up the results of this program.

Apogee has also commenced regional exploration to evaluate the extensive system of mineralized veins on the property and has identified several prospective drill targets, such as the Porfia and Antimonia prospect areas where anomalous channel samples with values to 606g/t silver, 28.7% zinc and 1.35g/t gold have been located (See Press Release May 24, 2006). An IP geophysical survey is underway to evaluate other targets which have recently been identified and drilling has commenced at the Porfia-Antimonia and Mina Principal zones.

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 is listed on the TSX Venture Exchange under the symbol APE. Apogee 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.

The 100%-owned La Solucion Mine has a 14 year production history and hosts a 120 tonne per day flotation mill. The Pulacayo-Paca project is a Joint Venture with Apex Silver Mines Ltd. on the second-largest silver mine in the history of Bolivia with over 600 million ounces of past production. The Buena Vista Project is a high-grade gold-silver project with historic production dating back over 200 years.

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 development or results may vary materially from those in these "forward-looking statements".



TABLE 1
La Solucion Project
HAMPATURI SOUTH

------------------------------------------------------------------------
Azi- Inter-
Coordinates Elev- muth Dip section
Hole No ---------------- ation Depth (deg- (deg- From To Width
E N (mASL) (m) rees) rees) (m) (m) (m)
------------------------------------------------------------------------
SH-01 605,216 8,185,914 4,236 172.20 330 -65 96.00 97.00 1.00
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-02 605,318 8,185,948 4,231 151.10 330 -55 102.00 104.00 2.00
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-03 605,317 8,185,947 4,232 191.00 298 -55 115.00 120.00 5.00
------------------------------------------------------------------------
Incl 115.00 119.00 4.00
------------------------------------------------------------------------

------------------------------------------------------------------------
122.00 124.00 2.00
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-04 605,319 8,185,948 4,231 180.00 8 -55 124.00 132.00 8.00
------------------------------------------------------------------------
Incl. 126.00 131.00 5.00
------------------------------------------------------------------------
Incl. 128.00 131.00 3.00
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-21 605,316 8,185,947 4,231 144.00 298 -36 88.00 94.00 6.00
------------------------------------------------------------------------
Incl. 89.00 91.00 2.00
------------------------------------------------------------------------
Incl. 92.00 94.00 2.00
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-22 605,316 8,185,946 4,231 126.00 298 -47 98.00 106.00 8.00
------------------------------------------------------------------------
Incl. 100.00 106.00 6.00
------------------------------------------------------------------------
Incl. 100.00 105.00 5.00
------------------------------------------------------------------------
Incl. 101.00 104.00 3.00
------------------------------------------------------------------------
Incl. 102.00 104.00 2.00
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-23 605,316 8,185,947 4,231 165.00 286 -65 141.00 148.00 7.00
------------------------------------------------------------------------
Incl. 141.00 142.00 1.00
------------------------------------------------------------------------
Incl. 143.00 147.00 4.00
------------------------------------------------------------------------
Incl. 144.00 146.00 2.00
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-24 605,317 8,185,947 4,231 139.00 315 -55 97.00 99.00 2.00
------------------------------------------------------------------------

------------------------------------------------------------------------
103.00 112.00 9.00
------------------------------------------------------------------------
Incl. 108.00 112.00 4.00
------------------------------------------------------------------------
Incl. 110.00 112.00 2.00
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-25 605,315 8,185,945 4,231 213 270 -55 No significant results
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-26 605,316 8,185,946 4,231 129 319 -47 83.00 89.00 6.00
------------------------------------------------------------------------
Incl. 83.00 85.00 2.00
------------------------------------------------------------------------
Incl. 84.00 87.00 3.00
------------------------------------------------------------------------

------------------------------------------------------------------------
92.00 94.00 2.00
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-27 605,316 8,185,947 4,231 117 320 -35 No significant results
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-29 605,318 8,185,947 4,231 141.0 334 -35 77.0 78.0 1.00
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-30 605,216 8,185,914 4,236 124.0 330 -50 67.0 68.0 1.0
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-32 605,218 8,185,914 4,235 107.0 359 -42 62.0 66.0 4.0
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-33 605,215 8,185,912 4,235 130.0 18 -35 73.0 79.0 6.0
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-34 605,213 8,185,912 4,235 112.0 297 -46 Results not received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-35 605,217 8,185,914 4,235 130.0 6 -66 Results not received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-36 605,219 8,185,915 4,235 116.0 25 -51 Results not received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-37 605,215 8,185,913 4,235 120.0 294 -69 Results not received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-39 605,319 8,185,948 4,231 135.0 10 -30 Results not received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-40 605,319 8,185,948 4,231 173.0 0 -65 Results not received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-41 605,319 8,185,948 4,231 152.0 325 -65 Results not received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-48 605,216 8,185,948 4,235 134.0 297 -60 Results not received
------------------------------------------------------------------------



------------------------------------------------------------------------
Interpreted
True
Hole No Thickness Au Ag Zn Pb
(m) (g/t) (g/t) (%) (%)
------------------------------------------------------------------------
SH-01 0.70 less than 0.05 16.00 3.61 0.12
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-02 1.62 0.07 53.00 1.02 0.40
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-03 3.12 0.43 80.20 4.68 3.10
------------------------------------------------------------------------
Incl 0.62 NA 91.00 5.25 3.79
------------------------------------------------------------------------

------------------------------------------------------------------------
1.56 NA 37.50 0.49 1.90
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-04 5.13 0.61 40.00 1.83 1.60
------------------------------------------------------------------------
Incl. 3.21 0.55 58.60 2.16 2.46
------------------------------------------------------------------------
Incl. 1.92 0.79 53.33 2.84 2.16
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-21 5.44 0.04 64.50 5.11 0.68
------------------------------------------------------------------------
Incl. 1.81 0.03 113.50 13.40 0.81
------------------------------------------------------------------------
Incl. 1.81 0.06 65.00 1.75 1.20
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-22 6.75 0.05 84.38 5.17 0.59
------------------------------------------------------------------------
Incl. 5.06 0.06 101.50 6.88 0.71
------------------------------------------------------------------------
Incl. 4.22 0.06 109.40 8.25 0.79
------------------------------------------------------------------------
Incl. 2.53 0.10 144.33 11.96 1.22
------------------------------------------------------------------------
Incl. 1.69 0.06 101.50 6.88 0.71
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-23 4.47 0.15 11.43 2.06 0.40
------------------------------------------------------------------------
Incl. 0.64 0.55 56.00 3.61 2.14
------------------------------------------------------------------------
Incl. 2.55 0.10 4.25 2.46 0.14
------------------------------------------------------------------------
Incl. 1.28 0.14 6.00 3.80 0.25
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-24 1.63 0.52 12.00 0.88 0.09
------------------------------------------------------------------------

------------------------------------------------------------------------
7.35 0.29 64.00 1.64 1.18
------------------------------------------------------------------------
Incl. 3.27 0.60 66.25 3.38 2.31
------------------------------------------------------------------------
Incl. 1.63 0.89 110.00 4.43 4.05
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-25 No Significant Results
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-26 5.34 0.23 35.83 2.17 0.08
------------------------------------------------------------------------
Incl. 1.78 0.60 75.00 2.86 0.10
------------------------------------------------------------------------
Incl. 2.67 0.21 22.00 2.83 0.07
------------------------------------------------------------------------

------------------------------------------------------------------------
1.78 0.64 19.00 0.33 0.41
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-27 No Significant Results
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-29 0.56 35 0.02 0.03
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-30 0.06 48 2.46 2.58
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-32 0.09 41.5 1.09 0.11
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-33 0.04 25.0 1.13 0.10
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-34 Results Not Received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-35 Results Not Received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-36 Results Not Received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-37 Results Not Received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-39 Results Not Received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-40 Results Not Received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-41 Results Not Received
------------------------------------------------------------------------

------------------------------------------------------------------------
SH-48 Results Not Received
------------------------------------------------------------------------


Please note: A map titled: "Geological Map La Solucion" is available on CCNMatthews' website at the following link: http://www.ccnmatthews.com/docs/apogee1019a.pdf

Please note: A map titled "Drill Intersections Hampaturi South La Solucion Project" is available on CCNMatthews' website at the following link: http://www.ccnmatthews.com/docs/apogee1019b.pdf

Contact Information

  • Apogee Minerals Ltd.
    John Carlesso
    President & C.E.O.
    (416) 861-5881
    or
    Apogee Minerals Ltd.
    Mark Feeney
    Director of Business Development
    (604) 786-2587