Apogee Silver Ltd.
TSX VENTURE : APE

Apogee Silver Ltd.

September 13, 2012 08:00 ET

Apogee Silver Achieves 86% Silver Recovery for Pulacayo Project Bulk Sample in Flotation Test at FEDECOMIN Mill

TORONTO, ONTARIO--(Marketwire - Sept. 13, 2012) - Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) announces a summary of the results from a 128 tonne bulk sample taken from stockpiled material at the Company's Pulacayo development project and processed at a concentrator in Potosi in early September 2012. The bulk sample was taken from the medium grade stockpile at Pulacyo which has been accumulated as part of the test mining program that was initiated at Pulacayo in the fall of 2011 (See Press Releases dated March 6, 2012 and July 16, 2012). The bulk sample was processed at the FEDECOMIN plant in Potosi, located 185 km by road from Pulacayo. The plant is owned and operated by the Federación de Cooperativas Mineras de Potosí, (FEDECOMIN), and has an installed capacity of 100 tonnes per day.

These bulk test results indicate a total silver recovery of 86.08% in lead and zinc concentrates and produced marketable lead and zinc concentrates with high silver grades, as set out in Table 1 below.

Neil Ringdahl, Apogee's CEO, stated, "An important milestone has been achieved by testing material at two different commercial scale plants, being the FEDECOMIN and the Tatasi concentrators. We have identified a process that produces excellent commercial grade concentrates and high recoveries. This test work will make an important contribution to the development of our ongoing feasibility study and will allow the Company to complete the design for a standalone mill flow sheet with a high level of confidence as to how it will perform with our ore. We are very encouraged that these results were achieved in an existing mill that was not designed specifically for Pulacayo mineralization. We anticipate there is excellent potential to improve the metallurgical performance, as we continue optimizing the process."

Apogee is currently in negotiations with FEDOCOMIN to process an additional 4,000 tonnes of the stockpiled mineralization from the Pulacayo stockpiles later this calendar year. In addition to this, a series of controlled laboratory bench and pilot scale tests in support of the ongoing feasibility study (See Press Release dated May 29, 2012) are underway at Maelgwyn Minerals Services Africa (Pty) Ltd. in South Africa in order to replicate the process flow and optimizing reagent recipes utilized during the FEDECOMIN bulk test.

Apogee continues to enjoy excellent support from the local community and our Bolivian partners, the Pulacayo Cooperative Miners and state owned COMIBOL (Corporation Minera de Bolivia).

Discussion of Bulk Sample Test Results

The FEDECOMIN flotation mill uses a conventional grinding and differential flotation process. It consists of two identical crushing, milling and differential flotation modules with jaw crushers feeding directly into the mill feed bins and the milled pulp directed to a cyclone with the overflow first reporting to the lead flotation circuit to produce lead concentrate and then to the zinc flotation circuit to produce zinc concentrate. The processing was completed under the supervision of John Grewar, MSAIMM, the Company's consulting Metallurgical Engineer. The calculated metallurgical balance resulting from the processing is summarized in the table below:

Table 1:

FEDOCOMIN Bulk Metallurgical Test, Concentrate Grades and Recovery (effective 01/09/2012)
Product Mass Yield (dmt) % Pb % Zn Ag
g/t
Metal Content % Recovery
Pb
(tonnes)
Zn
(tonnes)
Ag
(grams)
Pb Zn Ag
Mill Feed 123.84 1.88 2.09 168.0 2.33 2.59 20805 100 100 100
Lead Concentrate 2.35 68.86 5.62 5801.2 1.62 0.13 13612 69.40 5.09 64.27
Zinc Concentrate 3.59 8.03 53.37 1288.30 0.29 1.91 4620 12.37 73.95 21.81
Tailings 117.91 0.36 0.46 25.0 0.42 0.54 2948 18.23 20.96 13.92
Calculated Grade 123.85 1.88 2.09 171.03 2.33 2.58 21,180 100 100 100
% Variance 0 0 -1.8 % Total Recovery 81.77 79.04 86.08

A suite analysis for potential deleterious elements in the concentrate products was undertaken including iron, sulphur, silica oxide, cadmium, manganese, bismuth, arsenic, tin and copper, all of which return values that are within acceptable limits for most smelting and refining companies. The reagent suite and floatation regime used is not yet fully optimised, and further work is planned where it is hoped lead, zinc and silver recoveries can be further improved.

Milling at Tatasi

In July 2012, Apogee transported over 600 tonnes of mineralized material to the Tatasi concentrator from the medium and high grade stockpiles at Pulacayo for test work and toll milling (see Press Release dated July 16th 2012). This concentrator is also situated in the Department of Potosi and has the capacity to process up to 200 tonnes per day.

In late July 2012, the Company processed a 48 tonne, medium grade bulk sample under the supervision of John Grewar, MSAIMM, Apogee's consulting metallurgist with mixed results.

Two additional bulk sample tests were completed at the Tatasi plant during late August 2012 and early September 2012. The tests at the Tatasi plant to date were delayed and did not produce satisfactory results for a variety of reasons, including issues relating to acidic water being used in the plant and issues relating to effectively controlling mixing reagents in the proper quantities. Apogee is continuing to work with the Tatasi plant operators to modify the process based upon the parameters from the very successful FEDECOMIN bulk test. The Company expects to process additional material from the Pulacayo stockpiles in the fourth quarter of 2012.

Quality Control

The Company employs a quality assurance/quality control protocol on all aspects of the diamond drilling, sampling and analytical procedures.

Analyses of all surface and underground diamond drill hole and surface channel samples for inclusion in mineral resource estimates are completed at the accredited facilities of ALS Chemex at Oruro, Bolivia and Lima, Peru. In order to achieve the analytical turnaround time required to facilitate geological control on underground development mining, samples from selected underground diamond drill holes and channel samples at the face are submitted for analysis to Laboratorio Quimico Conde Morales located in Oruro, Bolivia. This lab is not an accredited laboratory. The quality control protocol on these samples is the same as that used in the sampling and analysis intended for inclusion in mineral resource estimates. The analytical pulps from these samples are retrieved for cross-check analysis and validation at the accredited laboratory of AlS Chemex in Lima Peru. In order to facilitate the analytical turnaround time required for process control during bulk metallurgical testing samples are analysed at SpectrAA Laboratario Quimico Instrumental, which is located in Potosi, Bolivia and which services the extensive mineral processing industry located in Potosi. This lab is not an accredited laboratory. The residual material from these analyses is retrieved for cross-check analysis and validation at accredited facilities. The metallurgical balance has been reviewed by John Grewar, MSAIMM, a metallurgist with a NDT in Extractive Metallurgy from Technicon Witwatersrand in South African and brings over 33 years of experience in metallurgy. Since 2007, Mr. Grewar has had industry relevant experience at base metal (Zn/Pb/Ag) mines in South America including Cerro de Pasco and Pachapaqui mines in Peru.

The quality control is carried out under the supervision of Chris Collins, P. Geo. a qualified person as defined by NI 43-101. 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. There are currently 301,066,809 common shares of Apogee issued and outstanding.

Its most advanced project is the 100% controlled Pulacayo-Paca project in Bolivia. This project includes the property that covered the second-largest silver mine in the history of Bolivia with a historical estimate of 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 anticipated timing of the feasibility study and the mineral resource estimate, the potential effect of the metallurgical results, the impact and anticipated timing of future metallurgical results, potential effect of the toll milling and trial mining process and impact upon the future development of the property, the potential of the Cachinal property, 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 anticipated timing with respect to completion of the diamond drill program, the current drill program, anticipated timing with respect to the trial mining 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,

Neil T. Ringdahl, Chief Executive Officer

To view Figure 1 Apogees Silver Ltd Bolivia and Chile Project Locations, please visit the following link: http://media3.marketwire.com/docs/APE0913.pdf

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