Apolo Gold indicates low grade, large tonnage reserves at Lampung gold project

Canadian junior mining firm Apolo Gold Inc. said first phase drilling at its Napal Umbar Picung (NUP) gold property in Sumatra?s Lampung province gave initial indication of low grade, large tonnage operation.

The company reported in its SEC filing early this week that the bulk-sampling program of 350x300 m with the depth of 70 m had identified 20,000,000 tonnes of mineralized material. Indicated findings to date are 1.32 grams of gold per tonne and 15 grams of silver per tonne.

More exploration is required to confirm initial findings. The area identified for initial sampling represents about 4 hectares out of the 733.9 hectares comprising the NUP property. The Company has access to a 300 ton a day mill in the area that will allow it to carry out the bulk-sampling program to process the high-grade lenses previously identified, said the company.

Apolo said it intended to raise additional capital in order to carry out the bulk- sampling program by exploring loans, equity and joint ventures as possible alternatives.

The company currently does not have sufficient funds to carry out its proposed programs and there is no assurance that the necessary funds required would be raised, said Apolo.

Apolo Gold has 80 percent interst in NUP gold project. (alex)