George - they are "accelerating" cash flow ....
apollogold.com
Denver, Colorado – September 9, 2009 - Apollo Gold Corporation (“Apollo”) (TSX: APG)
(NYSE Amex: AGT) is pleased to announce that it has signed an agreement with St Andrew Goldfields Ltd., (“St Andrew”) in which St Andrew will mill 100,000 tonnes of Apollo’s Black
Fox mine gold ore.
Apollo commenced mining open pit gold ore from its Black Fox mine in April 2009 and commenced milling of that ore at its Black Fox mill in May 2009.
To date, the Black Fox open pit mine has produced two categories of ore: (1) higher grade ore (containing plus 3 grams of gold per tonne) and (2) low grade ore (containing between 1 gram and 3 grams of gold per tonne).
The higher grade ores are being processed by the Black Fox mill and the low grade ores have been stockpiled at the mine. Currently, there are approximately 120,000 tonnes of excess
low grade ores stockpiled at the Black Fox mine site with an estimated gold grade of approximately 2.0 grams per tonne. These excess low grade ores will be trucked, using a
contractor, to St Andrew’s Holt Mill, which has a processing capacity of approximately 3,000 tonnes per day.
The Holt Mill is approximately 50 kilometers from the Black Fox mine. This toll milling arrangement is for an initial amount of 100,000 tonnes and any future milling of Black Fox ores by St Andrew would be the subject of a separate contract.
Apollo’s President and CEO, R. David Russell, stated, “This is a mutually beneficial contract for both parties. Apollo has the opportunity to produce additional ounces of gold and therefore cash flow from low grade ore tonnes which, in our long term plan, would not have been milled until
the end of the life of the mine, and St Andrew is able to generate funds from an asset not currently in use.”
apollogold.com
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