Apollo Gold on Course to Exceed Scheduled Gold Production

MIKE NIEHUSER, Beacon Rock Research (07/06/2009)
"Apollo Gold Corporation completed the first gold pour at its Black Fox gold project near Timmins, Ontario. The project is expected to surpass 1,500 tpd assumed in economic studies to 1,800 tpd in September 2009, reaching 2,000 tpd by year end. The Black Fox as originally contemplated was expected to produce 130,000 to 150,000 ounces of gold per year over 8.75 years. The Black Fox deposit has an estimated reserve of 1.33 million ounces of gold with expansion potential through conversion of in-pit Inferred resources, deeper exploration, or from the nearby Grey Fox target. Potential near-term catalysts for appreciation include the following:
  • Increase in gold production at Black Fox
  • Stable to increasing gold prices through 2009
  • Stabilizing operating expenses at lower levels
The Black Fox project is on budget and on schedule. We anticipate that the project should gain higher visibility following its grand opening celebration. Equity markets and demand for commodities may seasonally weaken in summer months, and the timing for increasing production may be just right for greater interest in gold production in the fall of 2009. We are reiterating our Buy rating, and upgrading the risk assessment to Moderate, with a near-term price target of US$1.00 per share."

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