Apolo Gold plans Sumatra gold production

Vancouver-based exploration firm Apolo Gold Inc. said on Monday it had decided to proceed with production program in its Napal Umbar Picung (NUP) gold project in Sumatra following encouraging samples metallurgical test results.

The company said it planned to proceed with a production program processing 200?300 tons per day of mineralization and had contracted the use of a mill that will be used to process a concentrate of gold and silver. After processing is completed, the solutions will be passed through an electrowinning system. The resulting gold and silver Dore will then be refined and stamped in Indonesia.

According to the company, the program will be an open pit operation and based on 7.5 grams per ton, with production of 15,500 ounces of gold in the next 12 months. Current gold prices of US$385/oz will result in revenue of $6 million in the first year of operation.

The company also expected to recover 330,000 ounces of silver in same 12-month period. At $5.00 per oz, the proceeds from the sale of silver will cover all operating costs.

The company said it had assembled necessary personnel at the mine site and is making final preparations regarding commencement of production.(alex)