Apogee Minerals Ltd.
TSX VENTURE : APE

Apogee Minerals Ltd.

February 21, 2007 08:30 ET

Apogee Reports 43-101 Indicated Resource at 100% Owned La Solucion Silver-Zinc Mine

INDICATED RESOURCE OF 116,300TONNES AT 5.1% ZINC, 54 G/T SILVER, 1.2% LEAD

TORONTO, ONTARIO--(CCNMatthews - Feb. 21, 2007) - Apogee Minerals Ltd. (TSX VENTURE:APE) has received a NI 43-101 Resource Estimate totalling 116,300 tonnes grading 5.1% zinc, 54g silver/t, 1.2% lead in the Indicated category for the Hampaturi South Zone at its 100% owned La Solucion Mine.

Apogee President & CEO John Carlesso commented: "Apogee completed its purchase of 100% interest in the La Solucion Mine in May, 2006 and quickly accelerated exploration to establish a mineral resource which would form the basis for expansion of the current 120 tonne per day mining operation. We have now achieved that objective, establishing the first mineral resource estimation in the 17 year mining history of the mine. Details of an expansion plan to develop the Hampaturi South Zone will be released shortly. This, combined with the recent announcement of our Optimized Open Pit Resource Estimate at the Paca project, quantifies the success our exploration programs achieved in 2006."

On February 19, 2007 Apogee announced a 43-101 Inferred Mineral Resource of 18.4 million tonnes of 43 g silver/t, 1.16% zinc, and 0.68% lead, or a silver equivalent grade of 181 g/t silver using metal prices of $US 10.43/oz silver, $US 1.30/lb zinc, and $US 0.55/lb lead.


The mineral resource is located on the southwestern extension of the Hampaturi Vein and approximately 150m from the portal of the La Solucion Mine (Figure 1). Mineral resources have been estimated within extensions of the main Hampaturi structure, as follows:



INDICATED MINERAL RESOURCES
HAMPATURI SOUTH ZONE

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Tonnes Zinc Silver Zinc Lead
Equivalent g/t % %
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Indicated Resource 116,300 6.1 54 5.1 1.2
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Contained Metal 121,200oz 11.22M lbs 2.46M lbs
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"Zinc Equivalent" was calculated using the following formula: ZnEq equals
Zn(%) + Ag(g/t)(i)0.008 + Pb(%)(i)0.4
"Contained Metal" was calculated using the following metallurgical
recoveries: 60% silver, 85% zinc and 80% lead; no consideration of mining
or metallurgical dilution
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Drilling to date indicates that the limits of mineralization are not yet defined and Apogee believes the current resource can possibly be augmented with further drilling. More detailed drilling will also be required to confirm continuity of mineralization between intersections and to plan stope outlines.


Referring to recent drill results from shallow drilling beneath the - 45 Level of the La Solucion Mine, not included in this mineral resource estimate (see Apogee Press Release dated 15 February, 2007; Figure 3), Apogee's Vice President, Exploration, Doug Currie, added: "We are very pleased with the success we have had locating additional mineralization around the current mining zone and in defining the Hampaturi South resource. In addition to potential extensions of the current resource area, which is open at depth, we also believe there is excellent potential to define additional mineralization in plunge parallel structures and in other zones along the strike of the Hampaturi structure."

Apogee has recently commenced drilling of a new target zone, Hampaturi Southwest, located 200m further southwest along the Hampaturi structure from Hampaturi South, where surface sampling of the exposed Hampaturi structure has returned anomalous mineralization.

The mineral resource estimation has been prepared by Mr Reno Pressacco, P.Geo., of Micon International Limited of Toronto, Canada, in accordance with CIM Standards for Mineral Resources and Mineral Reserves (2005), utilizing a 2.5% Zinc Equivalent cut-off grade over a 1.0m minimum true thickness and a weighted average density of 3.18t/cu-m (Figure 2). The Zinc Equivalent grade was calculated using metal prices of $US10.43/oz silver, $US1.30/lb zinc and $US0.55/lb lead and metallurgical recoveries of 60% for silver, 85% for zinc and 80% for lead. The 2.5% cut-off grade was chosen based on current mine operating costs of $US56.00/tonne. The current resource is based on drilling completed and results received to hole SH-55.

Information pertaining to the resource estimate is included in a NI43-101 Technical Report by Mr. Pressacco titled, "Technical Report on the Mineral Resource Estimate for the Veta Hampaturi Sur, La Solucion Mine, La Paz, Bolivia", which will be filed shortly on SEDAR. Mr Pressacco has provided his consent for reference to his report in this press release.

Mineralization at La Solucion is related to the Hampaturi 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.

Encouraging silver-lead-zinc mineralization was intersected in four drill holes completed late in 2005 on the extension of the Hampaturi Vein up to 100m below and 200m to the southwest of historical mining areas above the -45 Level within the La Solucion Mine (See Press Release January 12, 2006). The current drill program was initially planned to follow-up the intersections in SH-03 and SH-04. Detailed results of this work have been reported in Apogee Press Releases dated October 19 and November 29, 2006, and February 15, 2007.

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, which produces approximately 2,300 tonnes of ore each month averaging 44g/t silver, 1.3% lead and 4.11 % zinc (2006 average), has a 17 year production history and hosts a 120 tonne per day flotation mill. Apogee management is focused on modernizing mining methods, improving revenue, increasing efficiencies, and delineating a mineral resource that will support expanded production in the intermediate and long-term time frames.

Apogee's 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.

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"

To view the Figure 1 Geological Map La Solucion, please click on the following link: http://www.ccnmatthews.com/docs/solumap221.pdf

To view the Figure 2 Hampaturi map, please click on the following link: http://www.ccnmatthews.com/docs/geomap221.pdf

Contact Information

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