News: Apollo Minerals marks busy year, set to ramp up drilling

Apollo Minerals (ASX:AON) has in the last 12 months secured over $10 million in joint venture and equity financing while progressing its South Australian IOCG and African iron ore projects.

Chairman Richard Shemesian has played a key role in building shareholder value with a number of companies and looks set to repeat this with Apollo to start drilling in the two areas.

Companies which he helped transform into producers or were acquired included ASX listed Redport that was taken over by Canada’s Mega Uranium for $125million in 2006 and iron ore producer Aztec Resources which was acquired by Mount Gibson Iron (ASX:MGX) for $300 million in 2007.

Financing

One of the key achievements was the company entering into a $3.4 million joint venture with Robert Friedland’s High Powered Exploration Inc to find major Iron Oxide Copper Gold deposits at the Commonwealth Hill joint venture project in South Australia’s Gawler Craton.

It has also secured $4 million from international group Zoradox Limited to fully fund exploration at the Kango North iron ore project in Gabon in return for a 50.01% interest in the project.

The company has also arranged over $3 million in equity raisings this year.

Past Activity

Apollo activity has resulted in an unprecedented level of activity in the Gawler Craton since the 1990s.

This includes the largest induced polarisation survey ever conducted in South Australia using HPX’s proprietary ‘Typhoon’ technology that identified several large-scale, high priority IOCG drill targets.

HPX has also carried out test drilling at Commonwealth Hill while rotary air blast drilling and gravity surveys have been completed in the separate Mars Aurora Tank and Eaglehawk joint venture areas.

Field work has also commenced at Kango North.

The Road Ahead

With funding in place and previous exploration work, Apollo has built the foundation for further activity in its IOCG-focused play in South Australia and the Kango North Iron Project in Gabon.

The company is now preparing to start within weeks gold-copper drilling at the Mars Aurora Tank JV project, which has similarities in size and style to the nearby Prominent Hill IOCG deposit about 110 kilometres to the east.

It will also carry out with HPX, a combined 1,000 metre reverse circulation and diamond core program to test prospective IOCG drill targets from the recent Typhoon IP survey.

In West Africa, Apollo is preparing to start an initial $750,000 drill program to delineate a major exploration target and DSO iron at the Kango North project.

Analysis

The upcoming drilling will unlock the potential of Apollo Mineral’s IOCG assets in South Australia and the Kango North Iron Project in Gabon.

In addition, its joint venture with Robert Friedland’s HPX for Commonwealth Hill provides not only a partner with technical know-how, but also the financial muscle to exploit the next Prominent Hill or Carrapateena.

Share price catalysts ahead include:

-    Mars Aurora Tank drilling results;
-    Results from the planned drill program with HPX at Commonwealth Hill; and
-    Kango North drilling results.

In short, success with any of these programs will make Apollo’s market cap. of circa $11.3 million look decidedly low moving forward.