apollo minerals to fast track exploration

Apollo Minerals To Fast Track Exploration At Mount Oscar Iron Project
5 July - Proactive Investor

Australian iron ore exploration company Apollo Minerals (ASX: AON) plans to fast‐track exploration of its 100% owned Mount Oscar project and will soon commence a Reverse Circulation (RC) drilling program comprising 4 holes for 980m in Banded Iron Formation (BIF) Unit A where instances of larger magnetite grainsize have been observed.

The company has also announced that highly experienced mining executive Peter McNally has joined the companys Board as Executive Director to lead Apollos project teams, effective 1st July 2010.

McNally brings more than 35 years experience in the resources sector to Apollo and has extensive experience in leading project teams in the development of new mining projects, has held directorships in a number of successful mining companies and held managerial positions with the North Limited Group of Companies spanning over 15 years experience in iron ore projects.

The flagship Mount Oscar Project is reaching a number of critical milestones in its development timetable.

Sevag Chalabian, Apollo Chairman, said we are very pleased to have Peter on board. With his previous experience in leading the development of mining projects and his time at North Limited Group is highly valuable and relevant to the company as we move forward with the development of our flagship Mount Oscar project.

Apollo has commenced the evaluation of other iron ore opportunities and has engaged additional management and technical personnel to bolster its exploration and development team that will be based in its Perth office.

The Mt Oscar project is located close to existing infrastructure and large iron projects in the Pilbara region of Western Australia and currently has an exploration target resource of 350mt 650mt at 30‐37% Fe1.

The company has identified significant Fe mineralisation in Banded Iron Formation (BIF) from the Stage 1 drilling program that was completed in 2009/2010.

Commencement of Stage 2 of the companys exploration drilling program will begin in 4Q 2010, following heritage clearance, environmental approval and development of access tracks.

Interpretation of recently completed geological structural mapping of the entire target area of the project together with surface sampling has identified promising Fe targets in the southern section of the target area known as BIF Unit A.

Instances of material containing larger magnetite grainsize were observed at Unit A and the Stage 2 drilling program will be targeting these areas.

The planned Stage 2 drilling program at BIF Unit A is along strike from the adjacent Fox Resources (ASX: FXR) TMI Anomaly 1 where final product grade of 63.6% Fe and 7.5% SiO2 was reported in 2009.

Along strike and similar mineralogical conditions the metallurgical performance and product grade of the Stage 2 drilling program is anticipated to be similar to that reported by Fox Resources.

The first‐pass drill programme comprises four holes for 980m with the holes spaced along BIF Unit A to achieve coverage.

The company said the drilling has been planned on the basis of geophysical interpretation which indicates that Unit A comprises two BIF horizons with total thickness of approximately 90m in the western portion of Apollo ground, near Anomaly 1, and this reduces to one BIF horizon of 75m as Unit A extends to the east.

As part of the companys plans to fast track exploration and development of the Mount Oscar Project it has recently appointed an Exploration Manager (John Bridson) to manage the exploration team and (David Button) to manage environment, safety, health and indigenous affairs.

These appointments follow the recent engagement of iron ore experts Chris Robinson of Hematite Consultants Pty Ltd and Derek Maccauley of Promet Engineers, to advance the implementation of its exploration and development studies.

In early June 2010 Apollo and NYSE AMEX listed China Armco Metals Inc (Armco) (AMEX:CNAM) completed an agreement for Armco to take up to a 19.9% interest in Apollo at a total subscription cost of A$4.3m.