Apolo Gold updates NUP development progress

Canadian junior miner Apolo Gold Inc. announced on Thursday it had completed its assessment of the mill to be used when production commences on the Napal Umbar Picung (NUP) gold property in Lampung province, Southern Sumatra.

The company advised that it has entered into a lease/purchase agreement regarding the mill and that payment for the mill will be made from proceeds of production.

According to the company the mill requires only minor repairs before commencement of the production program that is expected to start by the middle of January 2004.

The company announced that it has contracted for the underground production adit that is now being driven a minimum of 300 ft to intercept the high-grade zone of gold and silver between shaft #4 and Shaft #5 where diamond drilling intercepted the high grade zone 150 ft below the surface. These intercepts resulted in values of 18.4 grams of gold and 158 grams per ton of silver in shaft #4 and 13.6 grams of gold and 24 grams of silver per ton.

Diamond drill hole #3 intercepted two meters of 64.6 grams of gold and 1350 grams of silver per ton and Hole #8 intercepted two meters of 8.16 grams of gold and 221.5 grams of silver per ton, both at 150 ft below the surface.

Initial production from this high-grade zone is estimated at 80,000 tons of gold-silver mineralization based on 7.5 grams gold and 163 grams silver per ton, said the company. PRA Associates conducted the metallurgical testing and advised that gold recovery was estimated up to 95 percent and silver recovery up to 70 percent.

The company expects to produce 15,500 oz of gold and 330,000 oz of silver in its first year of production.(alex)