Mar 4 2013
Apogee Silver Ltd. ("Apogee" or the "Company") today announces an update in relation to its Pulacayo development and that it has filed a National Instrument 43-101 Technical Report (the "Technical Report") on SEDAR (www.sedar.com) for the Feasibility Study of the Company's 100% controlled Pulacayo Project in the Potosi Department of Bolivia (the "Project").
Pulacayo Development Update
Commencing on January 23, 2013, the Company conducted further bulk-scale flotation tests undertaken on mineralized material from the Project, at the FEDECOMIN toll concentrator. Recovery results have been improving and the Company was able to deliver approximately 41.4 dry tonnes of lead-silver concentrates in February 2013 for sale to the Consorcio Minero S.A. (Cormin) Oruro warehouse, also in Bolivia. Cormin is a wholly-owned subsidiary of the Trafigura Group. Proceeds of approximately US$ 229,000 representing approximately 85% of the gross value for this shipment are expected to be received shortly.
Zinc-silver concentrates were also produced but were not shipped due to warehousing capacity issues on the part of the buyer. It is expected such issues will be resolved shortly. The outstanding payment for the balance of the concentrates shipped in February 2013 is expected in June 2013, once final analysis of the concentrates is completed. Similarly, outstanding payments for concentrates sold in December 2012 and January 2013 are expected in April 2013.
Apogee plans to continue with its trial mining and bulk scale flotation test work ahead of ramp up to anticipated commercial production later in 2013.
After a successful community consultation meeting held in December 2012 (see the Company's press release dated January 14, 2013), the "Environmental Impact Assessment - Specific Analytical Study" (IAES-AE) was submitted to the Ministry of Mining, Metallurgy, and Environmental Authority Sector for review and comment on January 14, 2013. The IAES-AE forms the basis for the Company's application for an environmental permit, submitted by independent consultants MEDMIN S.A., that would allow expanded mineral extraction, the construction of a concentrator and a tailings storage facility at the Project. Included in the application is a comprehensive and independent report on the proceedings of the community consultation meeting, in which the Company received full support for the development of the Project.
Management Changes
Apogee announces that its former President, Mr. Christopher Collins, resigned for personal reasons. Apogee's Chief Executive Officer, Neil Ringdahl, stated "On behalf of the board and management of Apogee, I would like to thank Mr. Collins for his valuable contributions and tireless efforts in helping guide the Company and for being a valuable advisor with respect to its mineral resources. We wish him the very best for the future."
The Company further announces that Mr. Francois Perron, a Director of Apogee Silver Ltd., will act as interim Chief Financial Officer of the Company replacing Mr. David Hunter. The Company has commenced a search for a permanent Chief Financial Officer.
Technical Study Filed on SEDAR
The Technical Report, entitled "NI 43-101 Technical Report - Pulacayo Project Feasibility Study", has been prepared by TWP Sudamérica S.A. ("TWP"). The Technical Report has an effective date of January 17, 2013 and will be available under the Company's profile on SEDAR at www.sedar.com and on the Company's website at www.apogeesilver.com.
The results of the Technical Report were originally announced in a news release dated January 17, 2013, and since that date no material amendments have been made to the Technical Report other than the following correction: The lead metal in the feasibility study and used in the calculation of the Probable Reserve Estimate should have read US$0.86/lb and not US$0.89/lb as previously stated.
Independent Qualified Persons
Professor Jim Porter is a Fellow of the Southern African Institute of Mining and Metallurgy and Director of the Centre for Mechanised Mining Systems at the University of the Witwatersrand, and accordingly a qualified person under National Instrument 43-101. He is responsible for the Mineral Reserve Estimate and has reviewed and approved the mineral feasibility study section of this press release.