|
Apolo signs LOI for Nevada Mining Projects
FSC (Filing Services Canada) / Press Release
Vancouver, British Columbia, Canada - Apolo Gold & Energy, Inc. http://www.apologoldandenergy.com (APLL - OTCBB), has executed a Letter of Intent with Great American Minerals, Inc. (GAM) of Salt Lake City, Utah, for the acquisition of all of the outstanding shares of GAM in return for a yet to be determined number of restricted shares of common stock of Apolo. GAM is a private Company located in Salt Lake City, Utah, and the holder of numerous mining claims, primarily in Nevada. The number of restricted shares to be issued by Apolo, which would be delivered upon the closing of the Definitive Agreement, will be determined by mutual consent of the parties only after an independent value has been determined for the assets of GAM being acquired by Apolo. Both parties will use their best efforts to execute a Definitive Agreement by April 20, 2007, and close by June 20, 2007. As a condition of execution of the Definitive Agreement, the most significant GAM properties shall be evaluated at Apolo's cost for geological and economic value by a qualified independent third party prior to a final determination of the number of Apolo shares to be issued to GAM shareholders. GAM currently owns over 900 unpatented mining claims, and has Joint Ventures with Madison Minerals Ltd and Platte River Gold. There are 6 prominent properties located in Nevada and include a diverse asset base of properties hosting gold and silver, to strategic metal mineral resources such as vanadium and copper. The properties range from advanced exploration/development drilling projects to promising exploration targets. All properties are located in the prolific Battle Mountain - Eureka Trend in Nevada, also known as the Cortez Trend. Through a Joint Venture with Madison Minerals, Inc, GAM and Madison have acquired control of claims and patents for over 5,500 acres on the Battle Mountain - Eureka Trend in Nevada. GAM has a 40% interest in the joint venture which has the option of acquiring the property. This Joint Venture known as the Phoenix Joint Venture is strategically located directly north of and contiguous with Newmont Mining Corporation's Phoenix/Fortitude Mine Development complex, which is reported to host significant mineable reserves of gold. Other projects owned by GAM include the Treasure Hill Project, located in White Pine County between Ely and Eureka, Nevada; Black Kettle Vanadium Project located 8 miles south of Carlin in Elko County, Nevada; Modoc Project, located 3 miles from Newmont's Phoenix-Fortitude property and directly adjacent to the Phoenix JV Property; UNR Project, located in the Eureka Mining District; and the Platte River JV Project. GAM also owns claims in the High Grade District in the Warner Mountains, approximately 30 miles northeast of Alturas in Modoc County, in the northeast corner of California. This is a gold occurrence that has had very little exploration to date. Regarding the Treasure Hill Project, current drilling data indicates significant silver bearing mineralization of high grade material. Additional drilling will be required on this property to determine its potential. Prior to the closing of the Definitive Agreement, GAM will provide evidence of a firm commitment of financing in the amount of $8,000,000. A portion of these funds would be allocated to the retirement of debentures currently outstanding in GAM. The balance will provide sufficient financing to retire all outstanding obligations of both Apolo and GAM, and provide working capital of almost $4,000,000 for work program commitments and general working capital. As a further condition to closing, the parties have agreed to the election of a revised board of directors. Apolo also advises that it has signed an Agreement with Atna Resources, Ltd., wherein Apolo will execute a quit claim and return its rights regarding the Beowawe property in Nevada to Atna Resources Ltd. As a condition of this Agreement, Apolo has agreed to reimburse Atna $113,520 of expenditures made on its behalf and to issue to Atna 2,200,000 restricted common shares in lieu of unfulfilled work commitments for the past year. Upon settlement of the foregoing, Apolo will be released from further obligations regarding the Beowawe property. The Company is awaiting a geological consultants report on its NUP property in Sumatra, Indonesia prior to determining its continuing program for 2007.
Apolo Gold & Energy, Inc. For further information, please contact: Brant W. Little B.B.A. Advisor to the Board [email protected] or 604-687-4150 Fax: 604-687-4155 http://www.apologoldandenergy.com Safe Harbor Statement
Apolo Gold & Energy, Inc. Vancouver, B.C. V6C 1T2
Maximum News Dissemination by Filing Services Canada Inc. 403-717-3898 Fax: 403-717-3896
May also be read here:
http://www.sys-con.com/read/341678.htm
Additional related reading:
Apolo signs MOU for producing gold mine in China
July 19, 2006
Apolo Gold & Energy, Inc. 1209-409 Granville Street Vancouver, B.C. V6C 1T2 604-687-4150 Fax: 604-687-4155 http://www.apologoldandenergy.com
Yingchang has granted Apolo an exclusive period of 90 days to review mining data and conduct whatever testing Apolo feels is necessary to assess the potential of the property which is located about 100 miles north of Chengdu, the capital city in Sichuan. This is an 8.5 square kilometer concession, whose deposit was discovered in 1993 with operations starting in 2004. Located about 8,500 feet above sea level, production in 2004 amounted to one (1) tonne of gold and in 2005 amounted to three (3) tonnes of gold. Each tonne contains approximately 32,000 ounces of gold. Total production for 2005 was approximately 96,000 ounces. Geologically, the ore is in brecciated sediments along an east west near vertical structure and is an open pit mine with heap leaching of the ores. It is a seasonal operation and currently operates about 3,000 tonnes per day and in 2005 mined 900,000 tonnes of ore. The mining grade is reportedly 4.6 grams of gold per tonne. Mining equipment includes blasthole drills, hydraulic excavators and a fleet of 130 dump trucks. There are approximately 400 employees at the site and the property is supplied with grid power, even though it is located at the head of a remote valley. The President of Apolo Gold & Energy Inc, Peter Bojtos P.Eng, and a consulting geologist visited the site in March 2006 and spent some time observing the current operation and meeting with the owner and mine personnel. After reviewing several other opportunities, this project was determined to be of greatest interest. The visit to various properties in China in March 2006 was arranged by Apolo Gold Inc's newest director, Mr. David Yu, of Hong Kong, who also became a significant investor. After completion of its due diligence and completion of its internal report, the Company will advise Yingchang as to its intention regarding a definitive agreement. Yingchang have indicated that up to 100% ownership will be available to Apolo should it decide to proceed. Mr. Bojtos states that "this is a large producing property that has exciting exploration potential for the future and Apolo will have the option of owning the property in its entirety." On July 17, 2006, the Company and Dutchess Private Equity Fund II, LP agreed to terminate the investment agreement between them. An 8-K has been filed regarding this termination and the Company is in the process of filing a Registration Withdrawal Statement with the SEC.
Apolo Gold & Energy, Inc. For further information, please contact: Brant W. Little B.B.A. Advisor to the Board 604-687-4150 http://www.apologoldandenergy.com/ Fax: 604-687-4155 Safe Harbor Statement
All statements contained herein, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company's behalf, that are not statements of historical fact, constitute "forward-looking statements" and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties are outlined in the Company's Annual Report on Form 10-K for 2005 as filed with the Securities and Exchange Commission. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
=====
Geology
The Beowawe property east of Reno, Nevada, encompasses one of the largest and hottest active hot spring systems in the Great Basin. Geological and geochemical data suggests that the hot spring system has migrated approximately 8 km westward along the Malpais Fault over a period of 15 million years.
Apolo Gold & Energy Inc has a mineral tenement license for an exploration and exploitation (production) permit on "NUP" (733.9 hectares). Apolo Gold & Energy Inc has an agreement with an Indonesian partner wherein Apolo has an 80% interest in the project and is entitled to recover 100% of all exploration costs before its partner participates in any profits. The "NUP" project is located on the edge of a caldera, where epithermal gold deposits are known to occur. Gunung Pongkor, on West Java, recently in production (1995) and on same Sunda Fault Zone as "NUP" has reported reserves of 6M tones @17.1 g/t gold and 154 g/t silver (estimated over 3,000,000 oz of contained gold reserves and 31, 000,000 oz silver. The property is a volcanic-hosted low-sulphidation epithermal gold-silver deposit of Mio-Pliocene age, hosted within the Sunda magmatic arc and spatially associated with the Sumatra Fault System. Most of the Sunda Arc deposits on Sumatra display very high silver-to-gold ratios (up to 40 to 1). North of the Company's project on "NUP" along this Sumatra Fault is located the richest gold mines in Indonesia, the Lebong Donok and the Lebong Tandai, which have produced total gold production of 130 tonnes gold averaging 15.6 g/t and 79 g/t silver. "NUP" underground exploration continues as this Camp zone area is open to the South, and to depth. The Company intends to carry out additional drilling in this zone once additional financing is secured, and will continue in the area of drill hold's #3 and #8 to intercept the zone to a further depth of at least 200 meters. This will consist of 12 to 15 drill holes to delineate this zone. While the Company is pursuing the vein to the South, it also intends to follow the vein to the North where the vein is known to extend at least 320 meters.
The Beowawe property encompasses one of the largest and hottest active hot spring systems in the Great Basin. Surficial sinters and near-surface siliceous veins are still being precipitated. Geothermal exploration holes, which are reported to have intersected 30 meters grading 10 g/t gold and 60 meters grading 6 g/t gold, demonstrate unusually high gold concentrations are present in the system. Geological and geochemical data suggests that the hot spring system has migrated approximately 8 km westward along the Malpais Fault over a period of 15 million years. Multiple chalcedonic quartz veins up to five meters across are exposed for more than one km on the property. The most prominent exposures occur along White Canyon in the central portion of the land package. Pyrite-rich breccias occur along and peripheral to the veins. This chalcedonic vein system is overprinted by a more recent hydrothermal system, where fluids have traveled along the Malpais fault system. Apolo will be carrying out a drilling program in the summer of 2006 as part of its Exploration Agreement with Atna Resources Ltd.
Copyright 2006, Apolo Gold & Energy, Inc.
http://www.apologoldandenergy.com/index.php?option=com_content&task=view&id=59&Itemid=2
|
