1 29 AUGUST 2012 ASX ANNOUNCEMENT High‐grade 69.7% Fe concentrates produced from Gabon Iron Project Highlights Apollo’s Gabon Kango North Project Davis Tube Recovery (DTR) tests return high grade iron concentrates averaging 69.7% Fe with very low impurities Excellent DTR mass recoveries averaging 49.2% indicate opportunity for lower‐cost production Field programme mapped and collected coarse grained, magnetite bearing rock chip samples from over 8km of sub‐ cropping iron ore mineralisation Airborne geophysical data infers over 15km of prospective strike; and Strong correlation of laboratory results with mapped iron‐ rich rock units and geophysical data provides Apollo with validation of the prospectivity the Kango North Project. Apollo Minerals Ltd (ASX: AON) (“Apollo” or “the Company”) is pleased to announce Davis Tube Recovery (“DTR”) results from rock‐chip samples collected from the 400km 2 Kango North Project area in Gabon, Central Africa (Figure 1). DTR results returned high grade iron grades ranging from 69.2% Fe to 70.0% Fe and averaging 69.7% Fe at a F 80 grind size of 75μm. Excellent recoveries were received ranging from 28.8% to 58.0% and averaging 49.2%, as shown in Table 1 and Figure 3. Dominic Tisdell, Chief Operating Officer said, “These 69% plus Fe results and high mass recoveries are very encouraging for Apollo. These metallurgy results, the fact we are near the rail and only 85km from the Port highlight the real potential to produce low‐cost, high‐grade iron products from the Kango North Project. While a lot of work remains, we are greatly encouraged by these initial results and are eager to unlock the full potential of the Project”. ASX Code: AON ABOUT APOLLO MINERALS Apollo Minerals is an iron ore explorer and developer with two key projects in the Australian iron ore provinces of the Pilbara (Western Australia) and Gawler Craton (South Australia) and a third in Gabon, Africa. Apollo’s South Australian tenements are also highly prospective for base and precious metals. Apollo’s projects are well situated close to infrastructure including railways and ports. Capital Profile Shares on issue 270.7 m Options on issue 73.5 m Iron Ore Projects Commonwealth Hill South Australia Mount Oscar Western Australia Kango North Gabon Base and Precious Metals Project Titan South Australia Apollo Minerals Limited ABN 96 125 222 924 50 Margaret Street Sydney NSW 2000 T: +61 2 9078 7670 F: +61 2 9078 7661 E: [email protected]Contact Dominic Tisdell Apollo Minerals Ltd T: +61 2 9078 7660 Tony Dawe Investor Relations T: +61 8 9388 0944 www.apollominerals.com.au For personal use only
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29 AUGUST 2012 ASX ANNOUNCEMENT
High‐grade 69.7% Fe concentrates produced from Gabon Iron Project
Highlights
Apollo’s Gabon Kango North Project Davis Tube Recovery
(DTR) tests return high grade iron concentrates averaging
69.7% Fe with very low impurities
Excellent DTR mass recoveries averaging 49.2% indicate
opportunity for lower‐cost production
Field programme mapped and collected coarse grained,
magnetite bearing rock chip samples from over 8km of sub‐
cropping iron ore mineralisation
Airborne geophysical data infers over 15km of prospective
strike; and
Strong correlation of laboratory results with mapped iron‐
rich rock units and geophysical data provides Apollo with
validation of the prospectivity the Kango North Project.
Apollo Minerals Ltd (ASX: AON) (“Apollo” or “the Company”) is
pleased to announce Davis Tube Recovery (“DTR”) results from
rock‐chip samples collected from the 400km2 Kango North Project
area in Gabon, Central Africa (Figure 1).
DTR results returned high grade iron grades ranging from 69.2% Fe
to 70.0% Fe and averaging 69.7% Fe at a F80 grind size of 75µm.
Excellent recoveries were received ranging from 28.8% to 58.0%
and averaging 49.2%, as shown in Table 1 and Figure 3.
Dominic Tisdell, Chief Operating Officer said, “These 69% plus Fe
results and high mass recoveries are very encouraging for Apollo.
These metallurgy results, the fact we are near the rail and only
85km from the Port highlight the real potential to produce low‐cost,
high‐grade iron products from the Kango North Project. While a lot
of work remains, we are greatly encouraged by these initial results
and are eager to unlock the full potential of the Project”.
Twelve rock samples were collected over an 8km strike along the main N5 road where easy and direct
access is achievable. These rocks are described as quartz‐feldspar magnetite schists and gneisses,
comprised of medium to coarse grained magnetite (Figure 2). It is considered that the coarse grained
nature of the iron bearing rocks could be amenable to low cost processing and produce a high‐quality
iron product (>69% Fe) for the export market. The samples have been cleared through quarantine
and received by Amdel Bureau Veritas group of laboratories in Adelaide. Analysis of samples is
underway and includes base metals geochemistry including gold, copper and uranium, and DTR and
QEMSCAN metallurgical test work. Final results are expected in September 2012.
In the Kango North region a deep weathering profile exists over most of the property, and it is this
substantial weathering horizon which may give rise to other altered and oxidised forms of iron
mineralisation including haematite, goethite and limonite that may contain higher, direct shipping ore
(“DSO”) grade iron mineralisation. It is typical for the highly altered and enriched haematite units to
be weakly magnetic to non‐magnetic and these units are not readily identified by geophysical
magnetic surveys. Occurrences of these types of altered rock units are known to exist in Gabon and
are a primary target for exploration at Kango North.
Figure 2 Rock chip sample (2.6kg) taken from the Kango North Project area showing coarse
grained magnetite in quartz‐feldspar‐magnetite gneiss.
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Acquisition and re‐processing of airborne geophysical data
Apollo was successful in acquiring regional geophysical data from a historic geophysical survey
conducted from 2005 to 2009 by a consortium led by the Bureau de Recherchers Geologiques et
Minieres (“BRGM”). The geophysical survey included airborne magnetics and radiometrics.
The raw data acquired by Apollo has been received and is being re‐processed by Perth‐based
Southern Geoscience Consulting (“SGC”) to produce a detailed interpretation of the airborne data. A
series of anomalous target zones have been identified which coincide with the area recently sampled
by Apollo (Figure 3).
The main south‐eastern anomaly has a strike length of approximately 8km and is situated close to
access to the main N5 road providing a direct route to infrastructure. Other areas of significant
potential in the northwest and southeast have also been identified as being worthy of follow‐up
exploration. The Company is eager to further test these target zones and fully assess the exploration
and development potential of the Project.
Final geochemical analysis, metallurgical QEMSCAN test work and 2D profiling of geophysical data is
progressing with final results expected in September.
The ongoing project work programme is being evaluated in light of the encouraging results being
received.
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Figure 3 Re‐processed airborne magnetic data showing NE‐SW trending anomalous zones outlines in red, and DTR Mass Recovery results from rock‐chip samples.
The information in this Report that relates to Exploration Results is based on information compiled by Mr Derek Pang who is a member of the Australian Institute of Mining and Metallurgy. Derek Pang has over 15 years’ experience in mineral exploration and is a full time employee of Apollo Minerals Limited. Derek has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Derek consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
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ABOUT APOLLO’S PROJECTS
Apollo Minerals Ltd (ASX Code: AON) is an iron ore and minerals explorer and developer with projects
in South Australia, Western Australia and Gabon, western Central Africa. The Company’s key focus is
to develop an iron ore project at each of Apollo’s project sites, with primary focus currently on the
Commonwealth Hill region, SA.
The Commonwealth Hill site lies on
the northwest margin of the Gawler
Craton in South Australia and is
situated close to existing
infrastructure including the Darwin‐
Adelaide railway line, Stuart
Highway, Port Pirie and Port
Adelaide.
Drilling has identified a coarse
grained magnetite deposit hosting a
JORC Indicated and Inferred mineral
resource estimated at 72 mt @
25.9% Fe and an initial exploration
target of 325mt – 550mt @ 25‐35%
Fe. Previous work has highlighted the
possibilities of producing a premium
quality iron concentrate and sinter
fines product.
The Mt Oscar Iron Project is located in north‐western part of the Pilbara Craton in north‐west Western
Australia, and is approximately 30 km from the coast. The iron rich horizons are strike‐continuous for
up to 5.5km and are locally up to 160m thick with an average interpreted thickness in excess of 60
meters. Recent metallurgical work has demonstrated that the production of marketable products is
possible i.e. >60% Fe, <8% (Al2O3 + SiO2).
Apollo has a 70% interest in the Kango North exploration licence in Gabon, West Africa, which
comprises of rocks from the northern portion of an Archaean craton, recognized as the North Gabon
Massif. These rocks are known to host a number of iron‐ore deposits in Gabon and in neighbouring
countries including ‐ Belinga, M’Bilan, Mbalam, Avima, Kango, Zanaga, Mayoko and Mayoko‐
Moussondji projects.
The Company is actively pursuing exploration across its tenements with the aim of furthering
development and adding growth to shareholder value.
