Apolo Gold to commence drilling program on Lampung gold property in 2003

Canadian junior mining company Apolo Gold Inc. announced on Monday independent geologist it hired had recommended a drilling program approximating US$ 350,000 consisting of 1,000 metres HQ size diamond drilling on its gold-silver property located near Bandar Lampung, on the Island of Sumatra. Seven drill targets had been identified.

Another independent geologist confirmed that the company is justified in carrying out further exploration of the high-grade veins. At present, there are seven north-south, shear related high-grade veins. These narrow veins are presently being mined by local workers to a depth of 40 metres. The possibility of low-grade disseminated gold mineralization being found in-situ between these high-grade veins should be investigated below the effects of the surface weathering. Should the average grade be around 1.5 grams per ton, then a highly profitable open pit mine could be developed.

The geologist had also recommended that drilling be done at lower elevations and specific drilling between Veins 1 and V1 in order to obtain sufficient data to ascertain whether there is sufficient disseminated gold mineralization below the surface weathered zone to develop an ore reserve that would be amenable to bulk mining. A very favorable low stripping ratio of 0.9:1 would result in extremely low mining costs per ton.

The company said it intended to pursue a drilling program early in 2003. (alex)