DENVER, Aug. 15 /PRNewswire-FirstCall/ -- Apollo Gold Corporation
("Apollo" or the "Company") (Amex: AGT; TSX: APG) is pleased to
announce its operating results for the second quarter of 2007.
Apollo recorded a net income of $2.4 million, or $0.02 per share,
for the three months ended June 30, 2007, as compared to a net loss
of $2.6 million, or $0.02 per share, for the three months ended
June 30, 2006. The net loss for the six months ended June 30, 2007
was $2.2 million, or $0.02 per share, compared to a net loss of
$6.8 million, or $0.06 per share, for the same period in 2006.
Unless otherwise indicated, all dollar amounts are reported in US
currency. R. David Russell, President and CEO of Apollo, said, "I
am very pleased with the quarterly results and the fact that we
recorded our first ever income in a quarter, which is another
significant milestone indicating the progress that Apollo Gold has
made during 2007. The Montana Tunnels mine continues to perform
well leading Apollo to record both profit in the quarter and
positive cash flow from operating activities. I expect further
improvement from the mine during the second half of 2007." Second
Quarter 2007 Highlights * Apollo Gold's 50% share of production for
the quarter from the Montana Tunnels mine (which is a joint venture
with Elkhorn Tunnels, LLC) was: Gold 5,483 ozs Silver 86,267 ozs
Lead 1,892,000 lbs Zinc 3,488,000 lbs * Total cash costs per ounce
of gold for the quarter on a by-product basis were minus $237.
Total cash costs on a co-product basis were as follows: Gold $406
per oz Silver $8.11 per oz Lead $0.70 per lb Zinc $1.05 per lb *
The results of a new ore reserve at Black Fox were published
showing proven and probable reserves of 1,000,000 ounces of gold. A
Canadian National Instrument 43-101 ("NI 43-101") was filed on
August 14, 2007. Open pit reserves are 625,000 ounces of gold at an
average grade of 5.8 grams per tonne. Underground reserves are
377,000 ounces of gold at an average grade of 10.6 grams per tonne.
* At Black Fox, our third party consultant, SRK Consulting, Inc.
("SRK"), Denver, Colorado, has commenced work on a bankable
feasibility study which we expect to be completed in the first
quarter of 2008. * At Black Fox a 20,000 meter drill program
commenced in June 2007. The objective of the drill program is (a)
to expand the mineralization along strike and down dip of the
current reserves/resources, and (b) to infill drill certain targets
identified by the NI 43-101 with the objective of converting some
resources into reserves before completion of the bankable
feasibility study. (1) "Total cash costs" is a non-GAAP financial
measure. Please see the note regarding non-GAAP financial measures
at the end of this press release. Montana Tunnels Mine At the
Montana Tunnels mine the open pit remediation program was completed
in February 2007 and the mill resumed operations on March 1, 2007.
During the second quarter 2007, approximately 3,400,000 tons were
mined, of which 1,367,000 tons were ore, giving a strip ratio of
2.49. The mill processed 1,246,000 tons of ore at an average
throughput of 13,700 tons per day for the quarter and payable
production was 11,000 ounces of gold, 173,000 ounces of silver,
3,784,000 lbs of lead and 6,976,000 lbs of zinc. Apollo's share of
this production was 50%. The mine commenced a project to increase
mill throughput by 1,000 tons per day by re-commissioning a larger
primary crusher (last utilized in 2005) which is scheduled for
completion at the end of August 2007. Ore mined 1,367,000 tons
Waste mined 2,024,000 tons Total mined 3,391,000 tons Ore milled
1,246,000 tons Grade: Recoveries: Au ounces per ton 0.0136 Au 72.9%
Ag ounces per ton 0.2420 Ag 73.3% Pb % 0.2160 Pb 78.1% Zn % 0.4455
Zn 76.6% Forecast - We continue to believe that we will meet our
previously announced production forecast for the Montana Tunnels
mine for the period from March 1, 2007 to December 31, 2007 of
40,000 ozs of gold, 250,000 ozs of silver, 5,750,000 lbs of lead
and 12,500,000 lbs of zinc. Apollo's share of this forecasted
production would be 50%. Black Fox At the end of the second quarter
2007, a new mineral reserve and resource estimate was prepared by
SRK. SRK has confirmed that the reserve and resource study complies
in all respects with NI 43-101 guidelines. The table below
summarizes the Black Fox Total Mineral Reserve: Black Fox -
Probable Reserves as of June 30, 2007 Cutoff Grade Tonnes Grade
Contained Mining Method Au g/t (000) Au g/t Au Ounces Open Pit 1.0
3,362 5.8 625,000 Underground (1) 3.0 1,108 10.6 377,000 Total
Reserves 4,470 7.0 1,002,000 (1) Underground Reserves include
dilution of approximately 22% of which 66,000 tonnes of indicated
material with an average grade of 1.26 g/t Au was used and the
remaining amount of dilution material was assigned a grade of 0 g/t
Au The minable reserve was calculated based on a gold price of
US$525/oz which is approximately the three-year trailing average.
The average total cash cost per ounce of gold was calculated at
$236 per ounce. In addition to the reserves above, the NI 43-101
contains the indicated and inferred resources shown in the tables
below: Black Fox - Indicated Resources as of June 30, 2007(1)
Cutoff Category Grade Tonnes Grade Mining Method* Au g/t (000) Au
g/t Open Pit Indicated 1.0 997 4.5 Underground Indicated 3.0 667
10.1 * Mining method is determined by relative location above or
below the 9,815m elevation. Black Fox - Inferred Resources as of
June 30, 2007(2) Cutoff Category Grade Tonnes Grade Mining Method*
Au g/t (000) Au g/t Open Pit Inferred 1.0 3,256 4.7 Underground
Inferred 3.0 929 12.3 * Mining method is determined by relative
location above or below the 9,815m elevation. (1) Cautionary Note
to US Investors concerning estimates of Indicated Mineral
Resources. This press release uses the term "indicated mineral
resources". We advise US investors that while the term is
recognized and required by Canadian regulations, the US Securities
and Exchange Commission ("SEC") does not recognize it. US investors
are cautioned not to assume that any part or all of the mineral
deposits in these categories will ever be converted into mineral
reserves. (2) Cautionary Note to US Investors concerning estimates
of Inferred Mineral Resources. This press release uses the term
"inferred mineral resources". We advise US investors that while the
term is recognized and required by Canadian regulations, the SEC
does not recognize it. "Inferred mineral resources" have a great
amount of uncertainty as to their existence, and great uncertainty
as to their economic and legal feasibility. It cannot be assumed
that all or any part of an inferred mineral resource will ever be
upgraded to a higher category. In accordance with Canadian rules,
estimates of inferred mineral resources cannot form the basis of
feasibility or other economic studies. US investors are cautioned
not to assume that part or all of the inferred mineral resource
exists, or is economically or legally minable. Since we report our
mineral reserves to both NI 43-101 and SEC Industry Guide 7
standards, it is possible for our reserve figure to vary between
the two. Where such a variance occurs it will arise from the
differing requirements for reporting mineral reserves. For example,
the NI 43-101 has a minimum requirement that reserves be supported
by a pre-feasibility study, whereas SEC Industry Guide 7 requires
support from a full feasibility study done to bankable standards.
The Black Fox project thus reports reserves under NI 43-101, but
reports no reserves under SEC Industry Guide 7 as a final bankable
feasibility study has not been completed. Consolidated Financial
Results Summary (All Dollars in US, 000's unless otherwise stated)
Three months ended Six months ended June 30, June 30, 2007 2006
2007 2006 Income (loss) from continuing operations for the period
$2,436 $(2,568) $(2,211) $(6,521) Loss from discontinued operations
for the period -- -- -- (250) Net income (loss) for the period
$2,436 $(2,568) $(2,211) $(6,771) Basic and diluted net income
(loss) per share from (US$): Continuing operations $0.02 $(0.02)
$(0.02) $(0.06) Discontinued operations -- -- -- -- $0.02 $(0.02)
$(0.02) $(0.06) Basic weighted-average shares outstanding (in
millions) 143.5 121.4 143.1 119.2 Diluted weighted-average shares
outstanding (in millions) 144.7 121.4 143.1 119.2 Apollo Gold
Corporation Apollo is a gold mining and exploration company which
operates the Montana Tunnels mine, which is a 50% joint venture
with Elkhorn Tunnels, LLC, the Black Fox advanced stage development
project in Ontario, Canada, and the Huizopa project, an early stage
exploration project in the Sierra Madres in Chihuahua, Mexico.
Contact Information: Investor Relations - Marlene Matsuoka Phone:
720-886-9656 Ext. 217 Toll Free: 1-877-465-3484 E-mail: Website:
http://www.apollogold.com/ FORWARD-LOOKING STATEMENTS This press
release includes forward-looking statements the meaning of section
21E of the United States Securities Exchange Act of 1934, as
amended, with respect to our financial condition, results of
operations, business prospects, plans, objectives, goals,
strategies, future events, capital expenditure, and exploration and
development efforts. Forward-looking statements can be identified
by the use of words such as "may," "should," "expects," "plans,"
"anticipates," "believes," "estimates," "predicts," "intends,"
"continue," or the negative of such terms, or other comparable
terminology. These statements include comments regarding future
production, throughput rates, further improvement at the Montana
Tunnels mine ("Mine"), cash flow from the Mine, the timing of
completion of the large primary crusher at the Mine, and the timing
of completion of and results of feasibility studies at Black Fox.
These forward looking statements are subject to numerous risks,
uncertainties and assumptions including unexpected changes in
business and economic conditions, the results of current and future
exploration activities, and other factors disclosed under the
heading "Risk Factors" in Apollo's Annual Report on Form 10-K for
the year ended December 31, 2006 and elsewhere in documents that
Apollo files from time to time with the Toronto Stock Exchange, the
American Stock Exchange, the United States Securities and Exchange
Commission and other regulatory authorities. There can be no
assurance that future developments affecting the Company will be
those anticipated by management. The forecasts contained in this
press release constitute management's current estimates, as of the
date of this press release, with respect to the matters covered
thereby. Apollo disclaims any obligation to update forward-looking
statements, whether as a result of new information, future events
or otherwise. NON-GAAP FINANCIAL MEASURES The term "total cash
cost" is a non-GAAP financial measure and is used on a per ounce of
gold basis. Total cash cost is equivalent to direct operating cost
as found on the Consolidated Statements of Operations and includes
by- product credits for payable silver, lead, and zinc production.
We have included total cash cost information to provide investors
with information about the cost structure of our mining operation.
This information differs from measures of performance determined in
accordance with GAAP in Canada and in the United States and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. This measure is not
necessarily indicative of operating profit or cash flow from
operations as determined under GAAP and may not be comparable to
similarly titled measures of other companies. DATASOURCE: Apollo
Gold Corporation CONTACT: Investor Relations, Marlene Matsuoka of
Apollo Gold Corporation, +1-720-886-9656 Ext. 217, or
+1-877-465-3484, Web site: http://www.apollogold.com/
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