Silver's Pulacayo Silver & Base Metals Project Receives Approval from Bolivia's Ministry of Environment & Water - Video News Alert on InvestmentPitch.com
Vancouver, British Columbia--(Newsfile Corp. - October 17, 2013) - Apogee Silver Ltd. (TSXV: APE) (PINKSHEETS: AGEEF) , announced that Bolivia's Ministry of Environment and Water has approved the Environmental Impact Assessment for the Pulacayo silver and base metals project in southwestern Bolivia. This approval, subject to the receipt of regulatory approvals and sufficient funding, will allow the company to begin mine and concentrator construction with a targeted production rate of up to 560 tonnes per day.
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The recently published feasibility study, available on Sedar.com, anticipated a buildup, over three years, to a production rate of 1,000 tonnes per day through two designed 500 tonne per day concentrator modules. Upon reaching 500 tonnes per day, the company believes it will be able to successfully modify this environmental permit given that part of the current permit already incorporates a 1,000 tonne per day tailings storage facility.
The feasibility study, based of US$28 silver, estimates an initial CAPEX of $55 million, capable of supporting a mining rate of 1,000 tonnes per day for 10 years with cash operating costs of US$11.20 per ounce and all-in costs of US$15.66 per ounce. This includes base metal credits using US$0.86 a pound for lead and US$1.00 a pound for zinc.
Based on annual production of approximately 2.3 million silver equivalent ounces, the company anticipates an internal rate of return of 47.1% pre-tax and 32.1% post-tax.
The Feasibility Study included approximately 49% of the silver ounces from the total Pulacayo Project mineral resource with the company planning to expand its operation once in production. Additional mineral growth from exploration drilling on down-dip and strike defined targets adjacent to the current resource is also anticipated. Also excluded is the potential presented by the Paca resource just 7 kilometres away.
In 2011 and 2012 more than 31,000 metres of additional surface and underground exploration drilling resulted in significant increases in the NI 43-101 resources.
The company has successfully conducted bulk underground trial mining activities and transported ore to Potosi for toll milling operations where silver recoveries of up to 86% were achieved. In 2013, 291 tonnes of lead-silver concentrates and 377 tonnes of zinc-silver concentrates were successfully exported to the port of Arica in Chile, which realized pre-production sales of more than US$1.6 million.
Initial earthworks for the concentrator are completed and a 1.3 kilometre access road from the concentrator site to a newly paved, government-funded highway has been built, significantly improving access to the project. Infrastructure includes an airport within 25 kilometres, new electrical substation within 27 kilometres, existing reservoir only 12.6 kilometres away, and rail lines from Potosi to ports in Chile.
Neil Ringdahl, President and CEO commented, "We are very pleased about the approval of the Pulacayo Project. This completes an extensive regulatory process and represents an essential step in bringing the Pulacayo Project to production. We wish to acknowledge the Pulacayo Cooperative and local communities for their valuable input and support, as well as the Bolivian authorities for their expeditious review and approval."
The company continues to actively pursue financing partners and/or financing alternatives for the development of this project.
Apogee Silver currently trades at $0.02, and with 378 million shares outstanding, the company is capitalized at $7.6 million. For more information please visit the company's website www.apogeesilver.com, or contact Neil Ringdahl at 647-339-4484 or email firstname.lastname@example.org.
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