Apex Minerals Ltd (ASX: AXM)
ASX
RELEASE 17
March 2010
Apex to start mining at Golden Age after more
high-grade results
Drilling identifies high-grade zone
at Burgundy deposit
Apex Minerals (ASX:AXM) is
pleased to announce that it set to start mining at the historically-rich Golden
Age orebody at Wiluna after receiving more high-grade drilling results which
have continued to demonstrate extensions to the mineralisation.
The latest results from the drilling
program include:
· 7.15m at 16.3g/t (estimated 1.3m
true width)
· 6.2m at 56.3g/t (estimated 1.1m true
width)
The gold-bearing reef at Golden Age
has now been intersected in all 16 holes drilled so far, confirming the
continuation up-dip of a high-grade shoot within the mineralised reef
previously mined (see figures 1 and 2).
This zone currently measures 80m
long by 40m high with an average true width of between 1.2m and 1.5m.
Apex Managing Director Mark Ashley
said work on accessing the ore at Golden Age had started, with first ore
expected in April. At the same time, drilling would continue to outline the
extent of the mineralisation.
“The drilling program at Golden Age
is still in its relative infancy and we have a significant way to go before we
know the full magnitude of what may exist there,” Mr Ashley said.
“But the results so far are very
promising and warrant immediate development.”
Although the deposit is currently relatively small, it is expected to
generate significant margins as a result of it being high grade, free milling
(non-refractory) and close to existing underground infrastructure (approx 50m
of capital development off the Bulletin decline is required to access the ore
body).
The Wiluna processing facility has recently been reconfigured to enable
the processing of refractory (i.e. the traditional Wiluna underground deposits
requiring BIOX) and non-refractory ores separately. This was completed to
enable the assessment of treating the mostly non- refractory heap leach
material at Wiluna.
The Golden Age deposit has previously produced from underground 547,000
tonnes of ore at a head grade of over 9gpt for 160,000 ounces of gold contained
with 150,000 ounces of gold recovered for a 95% recovery. Mining ceased in about 2005.
TABLE 1 Golden Age - Phase 1 drill results
Hole id
|
DH
|
TW
|
Grade (g/t)
|
from
|
To
|
AWD0398#
|
5.4
|
1.3
|
0.6
|
118.8
|
124.2
|
AWD0399#
|
4.66
|
0.9
|
1.5
|
143.84
|
148.5
|
AWD0400#
|
1.9
|
0.5
|
0.9
|
116.1
|
118
|
AWD0401#
|
6.15
|
1.2
|
1.2
|
134.15
|
140.3
|
AWD0402#
|
7.7
|
1.2
|
35.4
|
191.5
|
199.2
|
AWD0403#
|
7.4
|
1.2
|
2.9
|
201.6
|
209
|
AWD0411
|
7.15
|
1.3
|
16.3
|
183.6
|
190.75
|
AWD0412
|
5.8
|
1.1
|
4.0
|
150.3
|
156.1
|
AWD0413
|
8.65
|
1.4
|
6.6
|
243.4
|
252.05
|
AWD0415A
|
7.84
|
1.5
|
2.1
|
146.4
|
154.24
|
AWD0416A
|
6.2
|
1.1
|
56.3
|
147.2
|
157.1
|
AWD0417
|
8.3
|
1.6
|
7.5
|
148.8
|
156.4
|
AWD0418
|
4.5
|
1.12
|
22.4
|
176
|
180.5
|
AWD0438
|
6.9
|
1.1
|
4.8
|
165.4
|
172.3
|
AWD0439
|
4.35
|
1.0
|
9.7
|
171.55
|
175.9
|
KEY: DW
= Downhole width (metres), TW = estimated true width (metres), AP = Assays
Pending
True
widths are estimate based of average dip and dip direction of the reef in this
area -40dip to 185azi
No top cut applied
#Previously announced
Note.
All previously quoted intersections have a revised estimate for True width
based on better geometric control of the overall dip and dip direction of the
reef as a result of the increased drill density. All intersections are now
quoted from hanging wall to footwall of the quartz reef inclusive of any barren
zones.
As a result of the success
of this Phase 1 drill campaign, exploration has been extended to further assess
the reef system to the east, up-dip and down-dip with the objective of scoping
out the extent and continuity of the known mineralization and to add to the
mineral resource at Golden Age.
Wiluna Update
Apex would also like to
provide an update on development elsewhere at the mine, particularly regarding
the status of its two newest mining areas, Burgundy and East Lode North
The improved underground
development rates seen in the last quarter have continued and enabled the
developed stocks inventory to increase by approximately 35% as shown in the
table below:
Developed Stocks
|
|
Tonnes
|
Grade
(g/t)
|
Contained
ounces
|
31st December
2009
|
125,000
|
4.9
|
23,000
|
28th February
2010
|
200,000
|
4.7
|
31,000
|
Stoping is continuing on
two levels in Calais (650 and 575) and on one level at Henry V North (712).
East Lode North
Progress has been made in
the East Lode North (“ELN”), the third independent mining area at Wiluna, with
underground development completed, providing access to the deposit. Most of the
first level of ore development has been completed, which has identified several
pods of ore not previously included in the reserves. ELN is scheduled to begin
stoping in April.
Burgundy
The Burgundy deposit
represents the fourth independent mining area at Wiluna. Activities to date
have focused on providing access to the deposit. This was achieved in January.
Development on ore has commenced on one level (650), with a second level (625)
due to be intersected prior to the end of the quarter. As a result of
geotechnical advice, mining at Burgundy will be a bottom-up approach, which has
required an increase in the initial capital development compared with the
original plan. However, stoping is scheduled to commence during the June
quarter as previously indicated. Recent grade control drilling has
established the existence of a previously unidentified high-grade zone (see
figures 3 and 4) with significant results including:
· 4.3 metres @ 32.5g/t in hole AWD0390
· 4.1 metres @ 15.8g/t in hole AWD0391
· 5.9 metres @ 11.3g/t in hole AWD0347
· 4.9 metres @ 9.2g/t in hole AWD0389
All widths are estimated true widths. See Appendix 1
for further drilling info.
“Our objective is to have a highly diversified mining
centre at Wiluna which will underpin reliable, consistent and flexible
production with healthy margins and respectable mine life,” Mr Ashley said.
“The Golden Age drilling
intersections are the result of the first exploration program since 2008 and
highlight the enormous potential of the area.
“We are pushing ahead with
exploration at Golden Age from underground headings to establish whether this
could form the basis of a new long term ore source for the Wiluna operations.”
Mr Ashley said.
Mark
Ashley
Managing
Director
Contact:
Office +61 (0)8 6311 5555
Mobile +61 (0)411470104
Important Notice
This press release is not an offer
of securities for sale in the United States. No security of Apex has been
registered under the United States Securities Act of 1933, as amended (the
“U.S. Securities Act”), and no such security may be offered or sold in the
United States absent registration under the U.S. Securities Act and applicable
state securities laws or an exemption from registration under the U.S.
Securities Act and such laws.
Competent
Person’s statement
The
information in this report that relates to Exploration Results and Mineral
Resources is based on information compiled by Mr. Andrew Thompson who is
an employee of the company, Mr. Thompson is a Member of the Australasian
Institute of Mining and Metallurgy and has sufficient experience of relevance
to the styles of mineralisation and the types of deposits under consideration,
and to the activities undertaken, to qualify as Competent Persons as defined in
the 2004 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr.
Thompson consents to the inclusion in this report of the matters based on
information in the form and context in which it appears.
Assay
results are obtained from Intertek (formerly known as Genalysis) in Perth.
Samples are prepared using single stage pulverization of the entire sample.
Gold assays are obtained using either a 30g or 50g lead collection fire assay
digest and atomic absorption spectrometry (AAS) analysis techniques or, in the
case of reef quartz such as the core of the Golden Age Reef, large volume
leachWELL digest and atomic absorbtion spectrometery (AAS). The LeachWELL
technique is a strong accelerated cyanide leach of a 1Kg sample, designed to
minimize the analytical variability in samples containing coarse nuggety gold.
Full analytical quality assurance - quality
control (QAQC) is achieved using a suite of certified standards, laboratory
standards, field duplicates, laboratory duplicates, repeats, blanks and grind
size analysis. Assays quoted in announcements may be of a preliminary nature. Assays
used in resource estimates have undergone full QAQC.
The spatial location of samples from underground
holes is derived using surveyed rig setups and Reflex multi-shot downhole
surveys. True widths are calculated using the mean dip and strike of the
mineralization from 3D wireframe models and downhole surveys.
Quoted drill intersections are based on
situation specific criteria, which include using a lower cutoff of 1g/t or 2g/t
gold and acceptable levels of internal dilution.
Mineral Resources have been estimated using
standard accepted industry practices. All Resources have been estimated via
Block Ordinary Kriging using 2m composite samples. Top cuts have been
applied to the composites and are considered appropriate for the nature and
style of mineralization in all cases. Directional grade variography was
modeled for all zones based on 2m composites. Geological and mineralization
modeling has been achieved by 3D modeling of footwall and hangingwall. Grade
interpolation (via Block Ordinary Kriging) was then undertaken using a multiple
estimation pass strategy.
Mineral Resources are quoted on the basis of a
4.5g/t Au lower cutoff (LCOG) for underground resources. Where quoted, Mineral
Resource tonnes and ounces are rounded to appropriate levels of precision,
causing minor computational errors.
Mineral Resources are classified on the basis of
drillhole spacing, geological continuity and predictability, geostatistical
analysis of grade variability, sampling, analytical, spatial and density QAQC
criteria and demonstrated amenability of mineralization style to proposed
processing methods.
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