Apollo Consolidated Drills Duchess Upgrade Potential

THE DRILL SERGEANT: Apollo Consolidated (ASX: AOP) continues to progress drilling underway at the company’s 100 per cent-owned Lake Rebecca gold project east of Kalgoorlie in the West Australian goldfields.

Apollo Consolidated drilled 26 holes, 23 of which encountered reportable gold intercepts building on the company’s confidence around the existing 180,000-ounce gold Inferred Mineral Resource it reported in February this year for the Duchess deposit.

Of these 23 holes, seven intersected mineralisation beyond the optimised pit shell Apollo used to constrain the Mineral Resource leading it to consider the likelihood of expanding the deposit.

Exploration, infill, and extensional drilling carried out at the Duchess deposit delivered mineralised zones, including:

5 metres at 6.98 grams per tonne gold, including 1m at 31.48g/t gold;

7m at 3.9g/t gold;

9m at 3.15g/t gold, including 1m at 16.51g/t gold;

12m at 2.44g/t gold and 7m at 2.01g/t gold; and

7m at 2.1g/t gold.

“This part of the drilling activity was specifically related to the ongoing exploration and Mineral Resource definition program at the Duchess and Duke gold deposits, both of which have potential to add considerable valuable to a future commercial development of the Lake Rebecca project,” Apolllo Consolidated said in its ASX announcement.







Apollo Consolidated Drills Encouraging Gold Hit at Lake Rebecca

THE DRILL SERGEANT: Apollo Consolidated (ASX: AOP) reported on recent drilling results from the company’s 100 per cent-owned Lake Rebecca gold project near Kalgoorlie in Western Australia.

Apollo Consolidated received results from two diamond holes drilled as part of an ongoing drilling program at the Lake Rebecca project, both of which tested extensional targets below the Rebecca deposit.

The company’s ongoing extensional drilling continues to demonstrate the strength of the Rebecca mineralised system, which comprises three major sub-parallel structures containing zones of disseminated sulphide hosted gold mineralisation – Jennifer, Laura and Maddy.

The mineralised structures are interpreted to potentially represent limbs of a fold arrangement that has repeated structures in the central portion of the Rebecca deposit.

The Rebecca deposit contains a Mineral Resource of 775,000 ounces of gold at 1.3g/t gold and represents a substantial component of the combined in-situ pit-constrained Mineral Resources of 1.035 million ounces at 1.2g/t gold at the project.

Diamond hole RCDLR0454 was drilled to test a down-dip extensional target below the Maddy structure.

This encountered an intercept of 22 metres at 3.44 grams per tonne gold, including a central high-grade zone of 13m at 5.19g/t gold, including 1m at 32.26g/t gold.

This intercept came approximately 120m below previous Maddy hits and has given Apollo further confidence that mineralisation and potential high-grade zones continue below current Mineral Resources.

“Ongoing diamond drilling will build geological confidence around this intercept, as well as continuing to test down-dip extensions of high-grade intercepts on the Laura structure,” Apollo Consolidated said in its ASX announcement.

“Several additional pre-collar RC holes have been completed in preparation for this work.”

An additional 13 step-out exploration and pre-collar RC holes have been drilled in the Rebecca deposit area and the company is now awaiting assay results for these.

RC drilling will next progress to follow-up promising new gold intercepts encountered at the Duchess NE target and then onto conduct extensional drilling at the Duchess and Duke Mineral Resources.





Apollo Consolidated Encounters New Gold at Lake Rebecca

THE DRILL SERGEANT: Apollo Consolidated (ASX: AOP) reported Reverse Circulation (RC) drilling results from the company’s 100 per cent-owned Lake Rebecca gold p in Western Australia.

The recent results come from ongoing shallow exploration and infill drilling being carried out across the project area and has delivered new gold intercepts in several locations, each of which Apollo Consolidate d considers worthy of follow-up work.

These include:

25 metres at 1.23 grams per tonne gold and 15m at 1.4g/t gold encountered in in a new prospect located 1.2 kilometres north east of the established Duchess deposit.

Strike extensions from this position are open for one kilometre north and 200m south.

10m at 7.68g/t gold, including 3m at 21.57g/t gold in a shallow infill drill hole at the northern part of the Rebecca deposit.

This intercept was supported by 5m at 5.59g/t gold in adjoining hole RCLR0554.

Apollo believes these results combine to flag potential for high-grade structures in this part of the deposit.

25m at 1.09g/t gold encountered in a step-down drill hole to test at the eastern part of Duke deposit.

Apollo Consolidated has RC exploration and pre-collar drilling continuing, with over 100 sites currently prepared for drilling.

Two additional step-out diamond ‘tails’ the company completed at the Rebecca deposit are now being prepared for analysis.

Apollo is conducting the drilling with the aim of building on the maiden combined in-situ pit-constrained Mineral Resources it released in February of 27.1 million tonnes at 1.2g/t gold for 1.035 million ounces of gold (at a 0.5g/t Au cut-off).

This is made up of:

Rebecca: 19.1 million tonnes at 1.3g/t gold for 775,000 ounces (53% Indicated);
Duchess: 5.7 million tonnes at 1g/t Au for 180,000 ounces; and
Duke: 2.3 million tonnes at 1.1g/t Au for 80,000 ounces.





Apollo Consolidated to Divest Northern Cote d’Ivoire Interests

THE BOURSE WHISPERER: Apollo Consolidated (ASX: AOP) is soon to be $7 million richer having agreed conditional terms for the proposed sale of its 20 per cent interests in Exore Resources’ (ASX: ERX) Bagoe and Liberty projects in northern Cote d’Ivoire to Ibaera Capital Fund LP.

Under the terms of the proposed sale, Apollo will receive consideration of US$4.5 million ($7M at the current exchange rate) in cash upon completion of the transaction.

The sale is subject to Exore not exercising its pre-emptive rights under the terms of the existing Joint Venture agreement or waiving those rights during a 30-day pre-emption period.

If this condition is satisfied, completion will occur within 15 business days after in-country approvals have been received and the relevant registration process has taken place.

“We consider this an attractive opportunity to realise the somewhat hidden value of this asset,” Apollo Consolidated managing director Nick Castleden said in the company’s announcement to the Australian Securities Exchange.

“Our previous decisions to focus on building value at Rebecca have been supported by strong subsequent results, and in our view this represents an attractive premium relative to the value of the interests inferred from recent ERX share price trading values.

“We welcome the additional non-dilutionary funding that, on completion, would bring our cash position to well over $20 million.

“Importantly we still retain the valuable 1.2 per cent royalty over the advanced Seguela project in central Cote d’Ivoire, which is the subject of a recently announced Preliminary Economic Assessment on its one million ounces Mineral Resource by owner and operator Roxgold Inc (TSX: ROXG).”





Independence Group Teams up with Apollo Consolidated at Louisa Nickel Sulphide Project

THE BOURSE WHISPERER: Independence Group (ASX: IGO) has entered a farm-in and joint venture with Apollo Consolidated Limited (ASX: AOP).

Apollo Consolidated announced the deal in relation to the company’s early-stage Louisa project located near Fitzroy Crossing in the West Australian Kimberley Province.

Independence is a highly-regarded nickel-copper sulphide producer and explorer that is actively exploring for nickel-copper sulphide mineralisation in the region.

Under the term sof the agreement, a wholly-owned subsidiary of Independence will spend initial expenditure of a minimum of $350,000 on the project within 24 months.

Once the initial expenditure has been reached the subsidiary may elect to continue to spend an additional $3 million within four years to earn a 75 per cent interest in the project, otherwise the subsidiary can withdraw at its election at any time provided the project tenement remains in good standing.

Apollo considers Independence Group’s interest to be a ringing endorsement of its conceptual targets in the emerging nickel-copper sulphide province.

“The entrance of Independence into the project is an endorsement of the potential for magmatic mineralisation styles in the area and will allow this potential to be rapidly evaluated by an active and highly respected nickel-copper sulphide exploration team,” Apollo Consolidated said in its ASX announcement.

Apollo said the arrangement allows it to prioritise exploration efforts at its gold discoveries at the Lake Rebecca gold project near Kalgoorlie.

Should a discovery be made at Louisa under the farm-in, Apollo retains the ability to participate as a 25 per cent partner, an equity position it believes could deliver value to shareholders.

Independence intends to apply its in-house geophysical team and state-of-the-art geophysical tools to the evaluation of the prospective mafic and ultramafic intrusions identified on the tenements.

Remote sensing work is scheduled to commence in the December 2019 Quarter, followed by field programs during the 2020 dry season.