Apollo Gold Corporation

Apollo Gold Corporation

April 06, 2006 07:00 ET

Apollo Gold Reports on Huizopa Exploration Project

DENVER--(CCNMatthews - Apr 6, 2006) -

Apollo Gold Corporation ("Apollo") (TSX: APG) (AMEX: AGT) reports that Minera Sol de Oro SA de CV, Apollo's wholly owned Mexican subsidiary (the "Company"), has entered into an agreement with the Ejido Huizopa (the "Ejido").

Pursuant to the agreement, and in consideration for certain payments to the Ejido, the Company has a right to use Ejido land covering the 12,800 hectares of the Company's mining concessions in Huizopa for all activities necessary for the exploration, development, and production of potential ore deposits in our Huizopa project area. The Company may, in the future, apply for a change of use of land without any additional obligations to the Ejido. In addition, the Company may traverse through adjoining and nearby Ejido land outside the boundaries of the Huizopa mining concessions for the purpose of constructing, operating, and maintaining improvements or facilities necessary for the Huizopa project.

Apollo's President and CEO, R. David Russell, commented: "An Ejido is a fundamental Mexican political unit that operates at the rural level. Mexican law gives Ejidos control of surface access to specific defined geographic boundaries. As such, Ejido consent is required to access land for mineral resource development at our Huizopa project. The Company has enjoyed strong support from the Ejido members and also the private land owners in our Huizopa project area who have a long-term interest in the Company developing the region's mining potential. This agreement was an important step that we had to complete in order to engage in future exploration and development at our Huizopa project."

The Company's exploration concessions are located in northern Chihuahua, Mexico, within the Sierra Madre Gold Belt and encompass a district-size system of two sub-parallel, volcanic hosted vein systems containing gold-silver bearing quartz. The concessions are directly between two major precious metal deposits, i.e, the Mulatos Mine in the state of Sonora (Alamos Gold Inc.) and the Dolores ore body in the state of Chihuahua (Mine Finders Corporation Ltd.).

The eastern-most vein system, the Adelina Vein, is exposed over a distance of about 2 km, whereas the western-most vein system, the Huizopa-Escondida Vein, outcrops over a distance of about 5 km. Veins are composed of predominantly quartz-adularia-calcite and altered breccia fragments of volcanic wall rocks. In most outcrops, the veins exhibit classic vein textures consistent with low-temperature epithermal conditions and suggest the veins are largely un-eroded with considerable ore zone depth potential. Surface exposures of silicified breccia veins are up to 10 meters wide. Veinlets of quartz and/or calcite around the veins form stock-work zones. Argillic alteration that form "clay blooms" may extend away from the veins up to several tens of meters. Within these "clay blooms" are additional silicified zones that may represent the narrow tops of poorly exposed veins. Hence, there is a reasonable expectation for the discovery of stacked vein sets.

Historically, the Huizopa area is reported to have produced high-grade gold-silver ore grading up to 40 grams gold and several hundred grams silver and grab samples from several relict ore piles in the area support these reported values. Targets include both underground and open pit type targets. Erosion has produced topographic relief with some vein outcrops more than 200 meters above the valley base with areas of quartz stock-work veinlets and broad argillic alteration suggesting open pit potential. The high-level nature of the quartz mineralogy in the veins suggest down dip potential for hundreds of meters.

As a result of the agreement with the Ejido, the Company expects to commence a two-part exploration program in 2006, given the necessary funds. During the second quarter 2006, the Company plans to expand its geologic mapping to take in obvious mineralized structures on strike with the two main vein systems. To date, the Company has mapped 2,200 hectares around the main veins systems. Geochemical sampling will continue to better define drilling targets and locate new target zones for gold-silver mineralization. Ground geophysical surveys will be conducted in several areas with favorable geologic expressions. In the third quarter 2006, the Company plans to commence a diamond drilling campaign to determine precious metal grades and the vertical and horizontal extent of the veins. All field work will be conducted from the Company's on site field camp constructed adjacent to a renovated airstrip.

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

Apollo Gold Corporation

Apollo is a gold mining and exploration company with a mine in Montana, the Black Fox advanced stage development project in Ontario, Canada, and the Huizopa Project, an early stage exploration project in the Sierra Madre Gold Belt in Chihuahua, Mexico.

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 change of use of land, continuing good relations with representatives of the Ejido, the ability to discover an ore zone or, if an ore zone is discovered, the depth potential of such ore zone, the ability to discover stacked vein sets, the susceptibility of the property to open pit mining, the down dip potential of the property, the ability of the Company to expand the mapping, determine precious metal grades and the location of veins and future plans and objectives of Apollo, 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 results of independent Canadian NI 43-101 reports, the outcome of assays and additional exploration sampling and drilling efforts, delay in permits or approvals, technical, delay in permits or approvals, technical or permitting problems, variations in ore grade, mining, or processing problems or issues, the availability of funding on acceptable terms for the future exploration and development Huizopa and other Apollo mines and projects, and other factors disclosed under the heading "Risk Factors" and elsewhere in Apollo 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.

Contact Information