Apollo sees new gold mine on the horizon.

• Author: Stewart, Nick
• Position: SPECIAL REPORT: MINING

After spending five years drilling the Black Fox property 64 km east of Timmins, Apollo Gold Corporation is on the verge of re-opening one of the region's older gold mines.

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"We expect this project to be well on its way following the feasibility study and moving forward into the future," Ryan Lougheed, project manager, says.

"We're certainly very happy with the work that's been completed here, we're very positive."

Acquired from Exall Resources Ltd. and Glimmer Resources Inc. in 2002, the dormant Glimmer mine produced 211,000-ounces of gold from 1997 through 2001 and with new open pit operation and an onsite milling facility the two are expected to produce 1,500-tonnes per day.

The projected mine life won't be available until the bankable feasibility study is completed in the first quarter of 2008, just when permitting is expected to be approved. A pre-feasibility study has indicated the mine life, capital costs of the processing plant and related infrastructure would total $71 million. The same study estimated $50 million to pre-strip the open pit, develop the underground mine and purchase equipment for both. An industry study completed earlier this year indicates the property hosts reserves of a million ounces of gold. Two-thirds, or 625,000 ounces, are accessible via open-pit, while the remainder (377,000 ounces), is underground.

Lougheed says the grades have shown promise: the open-pit portion is said to have a grade of 5.8 grams per tonne (g/t), while the underground grades average at 10.6 g/t.

The project would employ roughly 150 personnel as part of its regular operations, with an undetermined number of contractors.

Since beginning drill work in 2002, Apollo has completed 220,000 metres of core drilling on the site.

A detailed 20,000-metre drill program is currently underway at the property in order to convert resources to reserves, and expand the mineralization along strike and down-dip.

These additional reserves...