The Gold Report

Apogee Silver Ltd. TICKER: APE:TSX.V Visit Company Website Apogee Silver Ltd. targets advanced South American silver/zinc/lead projects that demonstrate production potential. Currently, the company's projects are located in the historic silver-producing regions of southwest Bolivia and northern Chile. Apogee's most-advanced project is the Pulacayo-Paca project in Bolivia, which is an option to JV with Golden Minerals Company. This project includes the property that contains the second-largest silver mine in the history of Bolivia, with over 600 Moz. of past production.

The information provided below is from analysts, newsletters and other contributors. Please contact the company and visit its website before making an investment decision.

Expert Analysis

The Gold Report Interview with Marshall Auerback (10/19/11) "Pinetree is getting its exposure to silver from Apogee Silver Ltd. The company's primary focus is the Pulacayo-Paca Property located in southwestern Bolivia. The property includes the historic Pulacayo mine, which was the second-largest silver mine in Bolivia's history with historical production exceeding 600 Moz. of silver. Although there are some risk with dealing in Bolivia, there are still many operating mines and we feel the deposit warrants the risk."

Alka Singh, Dahlman Rose & Company, LLC (9/28/11) "We are initiating coverage on Apogee Silver Ltd. with a Buy recommendation and 12-month target price of $1.25. . .the company's Pulacayo deposit hosts an NI-43-101-compliant resource of 35 Moz. pure silver. In the next 12 months, we expect exploration to increase the resource estimate to over 80 Moz.; we expect production to begin at the Pulacayo-Paca project in 2014. . .and believe that the resource at the project will continue to grow with exploration and that it will ultimately support a 12+ year mine life. . .we expect silver production to grow from 2.6 Moz. in 2014 to over 4 Moz. in 2017, at a cash cost of under US$9/oz."

The Gold Report Interview with Mike Starogiannis (6/6/11) The Gold Report: You like Apogee Silver Ltd, which has projects in South America. Isn't it aggressive to be bullish on a company whose main asset, the Pulacayo Silver Project, is in Bolivia?

Mike Starogiannis: Bolivia has seen a rise in political uncertainty in recent months. There's talk of nationalizing assets, but it's our firm belief that much of that talk was political posturing on the part of the current government to curry favor with the unions. Furthermore, Apogee's underlying property interests are already owned by Bolivian Mining Corporation, the state-owned mining company. So, the asset doesn't have the same level of exposure to nationalization as some other projects in Bolivia.
TGR: Don't you also think there is short-term potential for another 30 Moz. silver equivalent there?

MS: That's right. Apogee is now doing a systematic infill and step-out program in the heart of the mine proper, where there is already an existing resource; basically, it is a step-out to that resource. And it appears to be hitting consistent grades and widths. Volumetrically, based on some of our in-house estimates, we believe there is immediate upside to show a bump up in the resource within the next 12 months. More >

The Gold Report Interview with Matthew Zylstra (3/9/11) "Silver exploration companies trade at much cheaper valuations based on ounces in the ground, about one-fifth on average. I have looked into them, and there are a few that I like— Apogee Minerals (is one). I just think that on an enterprise value to resource in the ground valuation, [silver exploration companies] are significantly cheaper than the producers, but of course there are number of factors that must be looked at, including management, characteristics of the deposit and infrastructure." More >

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