Apolo Gold acquires another Sumatra gold property

Canadian junior miner Apolo Gold Inc. said it had executed agreement of a gold exploration property known as ?KBU? owned by PT Karya Bukit Utama and PT Metro Astatama; located in the Region of Babakan Loa, District of Kedondong, South Lampung, and Southern Sumatra.

The property consists of 933.3 hectares and is directly adjoining the current property NUP, which is scheduled to start production soon. The KBU has Production Permits in place, and has had significant previous work performed on it.

Apolo paid PT. Karya Bukit Utama US$50,000 plus a payment schedule over the next 5 years of $2,450,000 and will issue a total of 3,000,000 restricted common shares to PT Metro Astatama.

According to the company, major previous work has been undertaken on the KBU, including 38 trenches across the mineralization zones, 12 shafts and at least 1,200 feet of underground work completed. For the past 12 years, there have been 42-diamond drill holes completed. Previous public calculations by professional engineers/geologists have indicated that the KBU resource contains an initial inferred resource in excess of 1,000,000 ounces of gold equivalent, valued at current prices.

?This Agreement will alter the terms of use of the mill previously announced. As the mill is located on the KBU property and as a result of the property agreement with KBU, the mill will now be available for use as part of the property acquisition,? said the company, referring to previous deal to purchase or hire the mill for NUP production.(alex)