Apollo Gold Corporation

Apollo Gold Corporation

March 01, 2005 08:56 ET

Apollo Gold Announces Additional Drill Results with Continued High Grade Gold Intercepts from the Black Fox Project


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: APOLLO GOLD CORPORATION

AMEX SYMBOL: AGT
TSX SYMBOL: APG

MARCH 1, 2005 - 08:56 ET

Apollo Gold Announces Additional Drill Results with
Continued High Grade Gold Intercepts from the Black
Fox Project

DENVER, COLORADO--(CCNMatthews - March 1, 2005) -

Apollo Gold Corporation (TSX: APG) (AMEX: AGT) ("Apollo Gold" or the
"Company") is pleased to provide the following update to the surface and
underground core drilling programs at its Black Fox project near
Timmins, Ontario, Canada. The drilling results continue to demonstrate
the high grade gold nature of the mineralization and the continuity of
the system. One hole was especially impressive; 235-234 with 6.5 ft
(true width) of 5.33 oz gold per ton, 12.7 ft (true width) of 0.572 oz
gold per ton and 9.2 ft (true width) of 0.477 oz gold per ton, was
reported as part of the latest round of drill results. All reported core
drill results may be found on the Apollo Gold website
(www.apollogold.com).

The Black Fox project is located 75 km east of Timmins, Ontario, Canada,
along the Destor-Porcupine Fault System, a well known gold district that
has historically yielded over 75 million ounces of gold production. The
area is known for famous gold mines such as the Dome, Hoyle Pond and
Hollinger to the west and gold mines such as Holt McDermott and Harker
Holloway to the east. The major mines are multi-million-ounce gold
producers, in some cases approaching 10 million ounces of gold. Base
metals have also been discovered and mined in the footwall of the system
in select areas. An example would be the world-famous Kidd Creek Mine,
operated by Falconbridge. The Black Fox project, formerly the Glimmer
exploration project, was acquired by Apollo Gold in late 2002 during low
metal prices. "This was viewed as a great buy for the price paid at the
time and also was consistent with the overall strategic plan for Apollo
Gold to acquire and develop high-grade gold assets to replace older
lower-grade assets within the Company," states R. David Russell,
President and CEO of Apollo Gold.

During 2003 the initial surface exploration was started with geophysics
and 82,622 meters of core drilling. In 2004 the project was advanced
with additional surface drilling totaling 43,280 meters in 105 holes. In
2004 underground exploration was initiated on the 235 level. Apollo
accessed the underground via the existing ramp system and completed 1000
meters of new drifting in the hanging wall to establish drilling
platforms from which 41,065 meters (210 holes) of core drilling was
completed.

With the drilling success to date, an open pit reserve of 457,100 ounces
of gold (2,953,000 tonnes with a grade of 4.81 gm / tonne) has been
established and can be found within the current NI 43-101 on file. The
current drilling program is designed to upgrade the existing data base
and reserve base by close spaced drilling on 12.5 to 25 meter centers.
The 2005 exploration program includes additional underground and surface
drilling and a full-scale feasibility study report expected to be
completed in 2005. The feasibility study report will include both open
pit and underground reserves and further delineate the Black Fox project.

As part of the Black Fox Feasibility Study now in progress, Apollo has
contracted Francis F. Pitard to conduct a Heterogeneity Study on the
coarse gold distribution in the deposit. "A comprehensive report on the
sampling characteristics of our high grade gold ore is essential to
properly model the deposit," states Richard F. Nanna, Senior Vice
President of Exploration and Development.

The recently discovered gold/base metal zone will also continue to be
investigated with the surface drilling program. At this time the
mineralized zones are open along the strike of the fault and at depth.
New holes from this zone will be released when assays are obtained.

Highlights of the drilling program are shown in the table below.



BLACK FOX
Drilling Update March 1, 2005
(Assays completed by Swastika Labs Ltd)
----------------------------------------------------------------------
True Assay True Assay
Hole I.D. From To Width Width (oz/ton Width (gm/tonne
/ Section (Feet) (Feet) (Feet) (Feet) Au) (Meters) Au)
----------------------------------------------------------------------
05BF402
9813E 482.2 484.8 2.6 2.6 1.172 0.80 40.18
----------------------------------------------------------------------
05BF410
9800E 543.3 546.9 3.6 3.6 0.130 1.10 4.44
----------------------------------------------------------------------
05BF412 52.5 66.1 13.6 13.6 0.532 4.2 18.23
9838E 119.9 123.2 3.3 3.3 0.202 1.0 6.92
166.9 171.7 4.8 4.8 0.119 1.5 4.08
174.6 183.0 8.4 8.4 0.096 2.6 3.30
188.1 191.4 3.3 3.3 0.185 1.0 6.35
----------------------------------------------------------------------
05BF413
9863E 345.0 349.3 4.3 4.3 0.390 1.3 13.36
----------------------------------------------------------------------
235-182 518.9 528.7 9.8 6.9 0.218 2.1 7.48
10237E 596.3 606.1 9.8 6.9 0.117 2.1 4.01
----------------------------------------------------------------------
235-198
10000E 599.9 603.2 3.3 3.1 0.346 0.9 11.86
----------------------------------------------------------------------
235-199
10000E 431.0 434.9 3.9 3.6 0.677 1.1 23.23
----------------------------------------------------------------------
235-202 789.2 798.2 9.0 9.0 0.241 2.8 8.28
10500E 819.0 826.1 7.1 7.1 0.163 2.2 5.60
838.0 841.6 3.6 3.6 0.150 1.1 5.13
----------------------------------------------------------------------
235-207 560.9 565.8 4.9 2.9 0.175 0.9 5.99
10263E 634.7 639.6 4.9 2.9 2.113 0.9 72.44
----------------------------------------------------------------------
235-214 306.0 310.0 4.0 3.9 1.830 1.2 62.74
10025E 346.4 357.2 10.8 10.5 0.371 3.2 12.73
----------------------------------------------------------------------
235-215 355.6 365.1 9.5 9.0 0.299 2.76 10.25
10025E 380.5 397.9 17.4 16.5 1.360 5.04 46.64
----------------------------------------------------------------------
235-218
10438E 661.9 669.1 7.2 5.9 0.464 1.8 15.90
----------------------------------------------------------------------
235-219
10438E 623.2 632.7 9.5 8.6 0.315 2.6 10.81
----------------------------------------------------------------------
235-220
10438E 583.8 590.7 6.9 6.6 0.168 2.0 5.75
----------------------------------------------------------------------

----------------------------------------------------------------------
True Assay True Assay
Hole I.D. From To Width Width (oz/ton Width (gm/tonne
/ Section (Feet) (Feet) (Feet) (Feet) Au) (Meters) Au)
----------------------------------------------------------------------
235-225 659.3 663.9 4.6 3.7 0.222 1.1 7.63
10438E 741.9 757.7 15.7 12.6 0.237 3.8 8.11
----------------------------------------------------------------------
235-226
10500E 930.2 961.0 30.8 26.2 0.302 8.0 10.37
----------------------------------------------------------------------
235-227 729.8 738.0 8.2 7.6 0.107 2.3 3.65
10500E 806.8 811.1 4.3 4.0 0.305 1.2 10.45
847.9 882.3 34.4 32.1 0.207 9.8 7.10
890.5 892.5 2.0 1.9 0.384 0.6 13.17
----------------------------------------------------------------------
235-234 852.2 859.4 7.2 6.5 5.332 2.0 182.8
10525E 867.6 881.7 14.1 12.7 0.572 3.9 19.60
911.8 922.0 10.2 9.2 0.477 2.8 16.37
----------------------------------------------------------------------






Drill Hole Location
-------------------

-------------------------------------------------------------------
Hole I.D. T.D.(m) Northing Easting Elevation Azimuth Incl.
-------------------------------------------------------------------
05BF402 308.70 9824.88 9812.58 9998.21 36.00 -50.00
-------------------------------------------------------------------
05BF410 218.00 9924.92 9799.99 9998.85 36.00 -49.00
-------------------------------------------------------------------
05BF412 122.00 9987.01 9837.94 9999.45 36.00 -49.00
-------------------------------------------------------------------
05BF413 125.3 9987.96 9863.02 10000.43 36.00 -50.00
-------------------------------------------------------------------
235-182 235.50 9875.51 10237.02 9769.57 42.00 -86.50
-------------------------------------------------------------------
235-198 212.00 9787.06 10000.58 9766.25 40.20 -65.30
-------------------------------------------------------------------
235-199 236.00 9786.93 10000.58 9766.30 37.80 -68.30
-------------------------------------------------------------------
235-202 287.00 9821.04 10504.87 9778.62 34.20 -44.80
-------------------------------------------------------------------
235-207 225.30 9875.63 10263.03 9770.34 32.50 -89.30
-------------------------------------------------------------------
235-214 206.00 9797.60 10025.50 9765.25 36.00 -56.00
-------------------------------------------------------------------
235-215 216.50 9796.92 10025.16 9766.75 36.30 -62.80
-------------------------------------------------------------------
235-218 248.50 9875.77 10437.89 9776.22 35.00 -12.00
-------------------------------------------------------------------
235-219 235.00 9875.76 10437.93 9776.13 35.00 -21.50
-------------------------------------------------------------------
235-220 224.30 9875.68 10437.93 9775.90 35.00 -27.00
-------------------------------------------------------------------
235-225 267.00 9875.70 10437.90 9775.00 37.00 -79.10
-------------------------------------------------------------------
235-226 346.60 9821.11 10504.96 9777.63 35.00 -75.00
-------------------------------------------------------------------
235-227 310.30 9821.27 10504.95 9777.87 33.50 -64.00
-------------------------------------------------------------------
235-234 329.00 9821.24 10524.62 9777.94 36.00 -70.00
-------------------------------------------------------------------



This press release has been reviewed and approved for release by Richard
Nanna, Professional Geologist, and the Company's Senior Vice-President,
Exploration and Development and designated "Qualified Person" under NI
43-101.

About Apollo Gold

Apollo Gold is a gold mining company with operating mines in Nevada and
Montana and an advanced stage development project, Black Fox, along the
productive Destor-Porcupine Fault east of the Timmins Gold Camp in
Ontario, Canada. Apollo has also recently started a new exploration
project in the Sierra Madre Mountains of Mexico on a project referred to
as Huizopa.

Gold production in 2004 from the Company's three currently operating
mines accounted for 106,000 ounces of gold production with by-products
of silver, lead and zinc. The production targets as previously announced
for 2005 will be approximately 140,000 ounces of gold production as well
as by-product metal as in 2004. The key to Apollo Gold future production
plans call for the addition of the Black Fox project to the production
portfolio in late 2006 and early 2007. Production of the Black Fox
project envisions an open pit as well as an underground mine and milling
facility. The completion of the feasibility study in 2005 will further
define the size, production levels and economics of the full Black Fox
project.

Forward-Looking Statements

This press release includes certain "Forward-Looking Statements" within
the meaning of section 21E of the United States Securities Exchange Act
of 1934, as amended. All statements regarding potential mineralization,
reserves, exploration results, and future plans and objectives of Apollo
Gold, are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove
to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from these
forward-looking statements include: the outcome of assays and additional
exploration sampling and drilling efforts, delay in permits or
approvals, technical or permitting problems, unanticipated drilling
problems or costs, variations in ore grade, and other factors disclosed
under the heading "Risk Factors" in Apollo Gold's 10-K for the year
ended December 31, 2003, and elsewhere in Apollo Gold documents filed
from time to time with the Toronto Stock Exchange, The American Stock
Exchange, The United States Securities and Exchange Commission and other
regulatory authorities.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Apollo Gold Corporation
    Dave Young
    VP Business Development
    (720) 886-9656, ext. 55 or Toll Free: 877-465-3484
    info@apollogold.com
    www.apollogold.com