Apogee Silver Ltd.
TSX VENTURE : APE

Apogee Silver Ltd.

August 18, 2011 07:59 ET

Apogee Reports Assays from 15 Drill Holes Including 3.0 Meters Grading 468.7 g/t Silver, and Further Commences Underground and Oxide Drilling Programs at the Pulacayo Deposit

TORONTO, ONTARIO--(Marketwire - Aug. 18, 2011) - Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) is pleased to report assay results from 15 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 include:

  • PUD 195 which intersected 10.0 meters grading 133.70 g/t silver, 0.69 % lead, 0.02% zinc.

  • PUD 196 which intersected 1.0 meter grading 215.00 g/t silver, 3.45% lead, 1.86% zinc.

  • PUD 199 which intersected 4.0 meters grading 285.50 g/t silver, 3.67% lead, 5.03 % zinc.

  • PUD 201 which intersected 1.0 meter grading 171.0 g/t silver, 0.06% lead, 3.17% zinc.

  • PUD 206 which intersected 2.0 meters grading 137.0 g/t silver,0.04% lead, 0.20% zinc, and 3.02 g/t gold.

  • PUD 207 which intersected 3.0 meters grading 468.7 g/t silver, 0.04% lead, 0.11% zinc.

Drill holes outside of the currently estimated mineral resource were drilled along strike both to the east and to the west of the deposit comprising the previously released National Instrument 43-101 ("NI 43-101") resource. Since 2010, diamond drilling has successfully extended the deposit approximately 750 meters east of the current (See Press Releases dated, February 24th 2011, April 5th 2011, May 16th 2011, June 22, 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 63 drill holes east of the previously announced resource and 9 holes in the area to the west (See Figures 2 and 3 below).

Chris Collins, P. Geo., President of Apogee, states, "We continue to be very encouraged by the latest assay results from Pulacayo. The drill holes delineating the deposit along strike east of the current estimated resources continue to return high silver grades across widths that are expected to be minable. Assay results also include the initial results from drill holes along strike to the west of the current estimated resources including some very high grade silver intercepts. Additional drilling in this area is clearly warranted."

Apogee continues to evaluate the Pulacayo deposit with five drill rigs at the site. Three surface drills are completing the first phase of the resource expansion drilling which will total approximately 23,000 meters. An underground drill commenced in early August, 2011 and three drill holes have been completed to date. The underground drill is focused on providing detailed information in the areas of the deposit that are scheduled for pilot mining in the fourth quarter of 2011. A program to evaluate the near surface silver oxide potential also commenced in early August, 2011. At present there is one drill on this program but additional drills will be added as the planned sulphide resource expansion drilling wraps up."

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 % Au g/t
PUD–193 739,996 7,744,374 -47° 403.0 408.0 5.0 69.60 0.34 7.13 0.02
Incl. 403.0 404.0 1.0 260 0.69 8.78 0.04
PUD–194 739,943 7,744,418 -51° 407.0 408.0** 1.0 44.0 0.01 0.26 0.28
PUD–195 740,640 7,744,387 022° -27° 140.0 150.0 10.0 133.70 0.69 0.02 0.03
Incl. 140.0 143.0 3.00 156.67 0.85 0.01 0.02
Incl. 145.0 149.0 4.00 164.50 0.75 0.01 0.06
185.0 186.0 1.00 220.0 2.54 6.91 0.008
PUD–196 740,050 7,744,361 -49° 488.0** 489.0 1.00 215.0 3.45 1.86 0.22
PUD–197 740,689 7,744,374 022° -25° 173.0 177.0 4.00 13.25 0.55 1.61 <0.005
PUD–198 739,996 7,744,374 -52° 445.0 446.0 1.00 50.0 0.02 0.09 1.03
PUD–199 739,893 7,744,424 -44° 331.0 335.0 4.00 285.50 3.67 5.03 0.01
PUD–200 740,689 7,744,375 022° -40° 154.0 158.0 4.00 128.0 0.78 0.06 0.03
Incl. 155.0 157.0 2.00 226.0 1.47 0.07 0.05
179.0 180.0 1.00 113.0 0.25 0.47 0.03
PUD–201 740,050 7,744,361 -53° 520.0 521.0 1.00 171.0 0.06 3.17 0.77
524.0 525.0 1.00 154.0 0.04 0.23 0.28
PUD–202 740,741 7,744,361 022° -36° 79.00 93.00 14.00 55.7 0.23 <0.001 0.01
246.0 249.0 3.00 13.3 0.43 1.56 <0.005
PUD–203 739,893 7,744,424 -49° 419.0 420.0 1.00 107.0 0.09 0.61 0.02
422.0 427.0 5.00 109.8 0.05 0.44 0.04
Incl. 423.0 425.0 2.00 196.0 0.09 0.48 0.06
437.0 440.0 3.00 168.0 0.04 0.36 0.04
443.0 444.0 1.00 108.0 0.02 0.06 0.03
448.82 449.64** 0.82 507.0 0.85 0.15 0.18
PUD–204 740,740 7,744,360 022° -22° No significant sulphide mineralization
PUD–205 740,000 7,744,293 -45° 452 453 1.00 6.0 0.5 1.6 0.01
PUD–206 740,900 7744766 202° -61° 508 512 4.00 90.8 0.04 0.21 1.67
Incl. 508 510 2.00 137.0 0.04 0.20 3.02
PUD–207 739,893 7,744,374 -46° 475.15** 479.0 3.85 51.0 0.02 0.35 0.24
485.0 488.0 3.00 468.7 0.04 0.11 0.04
* True widths of the intersections listed above are estimated to range between 50% and 80% of the core lengths provided in the table above.
** Indicates an interval adjacent to historical mine workings.
Bold Intervals are interpreted to represent the Tajo Veta Structure. Italicized intervals indicate where mineralization is in the oxide zone.

The Pulacayo deposit is a thick east-west striking zone of conjugate veins, stockwork and disseminated sulphides that locally are up to 200 meters in thickness with a higher grade core that comprises the resource. The known strike length of the Tajo Vein System which hosts the Pulacayo deposit is approximately 2.7 km and to date only approximately 1,300 meters has been systematically drill tested (See Figure 2 below). 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.apogeesilver.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, the current drill program, 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, please visit the following link: http://media3.marketwire.com/docs/Figure1PulacayoP.pdf.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/Figure2Tajo.pdf.

To view Figure 3, please visit the following link: http://media3.marketwire.com/docs/Figure3Pulacayo.pdf.

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