News: Apollo Minerals sells non core asset, funds directed to Titan IOCG project

Apollo Minerals (ASX:AON) will sell its Mt Oscar Iron Project in the Pilbara region of Western Australia for $500,000 cash in a sale of a non core asset.

The first tranche of $250,000 was received on executing the binding sale agreement with the second due on the closing date of the transaction no later than 10 January 2015.

Apollo will retain a royalty of 1% of any future gross mine gate revenue less $0.50 per tonne on iron ore products and 2% of net smelter revenue on all other mineral products.

As at the end of the September quarter 2014 Apollo had a cash balance of $1,595,000. 

Funds raised will be directed towards exploration at its flagship Titan IOCG Project in the Olympic Dam corridor of South Australia where drilling recently intersected potentially significant IOCG related alteration.


Promising exploration

Last week, diamond hole 14NB001, drilled as part its maiden IOCG0-targeted program at the Eaglehawk Joint Venture, intersected the very top of a magnetite rich IOCG system which remains open in all directions.

Significant IOCG alteration and mineralisation has been identified along a discontinuous length of around 60 metres to the end of hole.

Sulphides are evident along veins and in disseminated form through alteration zones.

Alteration and mineralisation in this hole may be of the same style as IOCGs in the nearby Mount Woods Domain, host to the major Prominent Hill IOCG mine.

Assays from this hole are due by the end of November while a number of targets are now being reviewed for further IOCG potential.