just went into prenr, page-4

Apex Minerals NL
Level 1, 10 Ord Street, West Perth, Western Australia 6005
PO Box 682 West Perth, Western Australia 6872
Tel: 61 8 6311 5555 Fax: 61 8 6311 5556 [email protected]
ASX Code: AXM www.apexminerals.com.au ABN 22 098 612 974
ASX/MEDIA ANNOUNCEMENT MONDAY 4th MAY, 2009
Apex Shareholder Update - April Production
• Targeted commercial gold production achieved in April at 10,000 ounces
• Plant throughput rate of approximately 850,000 tonnes per annum (above target)
• Underground ore production 50% higher than previous month to over 40,000 tonnes
with a grade increase of 15%
• Gold poured was 9,500 ounces (14% increase from March)
Overview
Wiluna achieved a major milestone in April having reached its initial gold production rate target of
120,000 ounces per annum and as a result commencing commercial production. Accordingly, as of
1st April, gold sales and operating costs will be shown in the Income and Expenditure statement
whereas all revenue and expenses up to this date have been capitalised.
In addition, the company has recently reviewed its manning levels required for ongoing operations
at Wiluna following the completion of mining in the East Pit open cut and completion of the ramp up
to steady state operations. As a consequence of this review, the operating workforce at Wiluna has
been reduced by approximately 30 personnel (or approximately 10% of the operating workforce)
comprising Apex employees and contract personnel.
Processing
The processing plant continued operating well during April with 70,000 tonnes of ore treated at an
average grade of 5.3 g/t Au (grams gold per tonne), equating to an annualised throughput rate of
approximately 850,000tpa (tonnes per annum). Monthly plant throughput since January is shown in
Figure 1.
Figure 1. Wiluna Monthly Plant Throughput
Monthly Plant Throughput
0
10000
20000
30000
40000
50000
60000
70000
80000
January February March April
Month
Tonnes
-
1.0
2.0
3.0
4.0
5.0
6.0
Grade (g/t Au)
Tonnes Grade
2
The grade of ore treated has continued to improve as the production rate from higher grade
underground ore sources increases.
Gold poured in April was 9,500 ounces. Gold production, which includes estimated increase in gold
in circuit stocks, has increased to Apex’s initial production target of 10,000 ounces per month. Plant
recovery for April is estimated to be 84%. The Company has undertaken circuit surveys and test
work that confirm the potential to improve plant throughput, recoveries and costs going forward and
these are now being pursued.
Mining
Open Pit
Open pit mining continued in East Pit with production of 63,000t @ 4.1 g/t Au being achieved in
April. Completion of mining activities occurred on 3rd May with the contractor demobilising
immediately thereafter.
As detailed in the March quarterly report, most of this ore has been stockpiled on the ROM pad and
will supplement ongoing underground feed for several months.
East Lode North Decline
Preparations have commenced to locate a portal site for the East Lode North underground mine at
the base of the East Pit following the completion of open pit mining activities. Decline development
is expected to begin in May. The decline will access an initial reserve of approximately 350,000t @
5.5 g/t Au situated approximately 300 metres to the north of the expected portal site.
On its path to the East Lode North orebody the decline will pass alongside mineralisation extending
immediately below ore recently mined in East Pit. Drives will be developed from the decline to allow
for close spaced drilling to assess this mineralisation.
In addition, a drive will be developed to the south of the portal location to allow infill drilling of the
highly prospective mineralisation intersected in previous drilling immediately below East Pit and
adjacent to historic workings.
Underground
Underground ore production from the Calais zone above the 600RL level was 40,000t @ 5.3 g/t Au
in April. This represents a 50% increase in tonnes and a 15% increase in grade relative to March’s
underground production.
The production rate achieved from the Calais zone above the 600RL level in April equates to an
annualised rate of approximately 500,000tpa which will be sustained until the new orebodies at
Henry 5 North, Henry 5, Calais below 600RL and East Lode North have been developed. As a
result of these developments, the underground production rate is expected to increase to 70,000
tonnes per month in the second half of 2009. Until then the treatment plant will be supplemented
with the stockpiled open pit ore.
Capital decline development towards Henry 5 North has continued and accesses to the first
production level at the 712RL level commenced at month’s end. Ore driving in the northern end of
the 712 level is expected to commence in late May with ore driving in the south end expected to
commence in June. Infill diamond drilling continues to confirm previous resource estimates in the
area.
Capital development required to access ore in Calais and Henry 5 below 600RL commenced in
April. Ore driving on the first stoping levels at approximately 575RL is expected to occur in the
September quarter.
Underground ore production since January is shown in Figure 2.
3
Figure 2. Wiluna Monthly Underground Production
Monthly Underground Production
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
January February March April
Month
Tonnes
0.0
1.0
2.0
3.0
4.0
5.0
6.0
Grade (g/t Au)
Tonnes Grade
ROM and Developed Ore Stocks
ROM stocks at the end of April were 253,000t @ 3.3 g/t Au. Ore remaining in stopes in production
or already developed in Calais above 600RL is 165,000t @ 6.0 g/t Au. The combination of ROM
and underground developed stocks is 420,000t @ 4.4 g/t Au for a total of approximately 59,000
ounces of contained gold.
tonnes x g/t Au Au (oz)
Developed Underground
Calais Stopes above 600mRL 165,000 @ 6.0 31,800
ROM Stocks
Open Pit – medium grade 182,000 @ 3.8 22,300
Open Pit – low grade 71,000 @ 2.2 5,000
Sub-Total 253,000 @ 3.3 27,300
Total 420,000 @ 4.4 59,100
Mark Ashley
CEO and managing Director
Contact: Mark Ashley Ph: +61 8 6311 5555 Mobile: 0411 470 104