Apollo Gold Announces Filing of NI 43-101 Pre-Feasibility Study



    DENVER, August 14 /CNW/ - Apollo Gold Corporation ("Apollo" or the
"Company") (TSX:APG) (AMEX:  AGT) announced today that it has filed a Canadian
National Instrument 43-101 ("NI 43-101") pre-feasibility study on SEDAR
(www.sedar.com) regarding the mineral resources and reserves at the Black Fox
Project ("Black Fox") located near Timmins, Ontario, Canada. This news release
should be read in conjunction with the release issued on July 2, 2007. This
mineral resource and reserve estimate was prepared by SRK Consulting Inc.,
Denver, Colorado. SRK has confirmed that the resource and reserve study
complies in all respects with NI 43-101 guidelines. Table 1 below summarizes
the Black Fox Indicated Resources: (All US$)

    The minable reserve was calculated based on a gold price of US$525/oz of
gold which is the trailing three year average gold price. The average total
cash cost per ounce of gold was calculated at $236 per ounce.

    
    Table 1: Black Fox Probable Reserve Statement - As of June 30, 2007

                                    Tonnes
    Mining Method   Cut-off Au g/t  (000s)   Grade g/t-Au  Contained oz Au
    ----------------------------------------------------------------------
    Open Pit                     1    3,362           5.8          625,000
    Underground(1)               3    1,108          10.6          377,000
    ----------------------------------------------------------------------
      Total                                                      1,002,000

    (1) Underground Reserves include dilution of 66,000 tonnes of
     indicated material with an average grade of 1.26 g/t Au.
    

    In addition to the reserves above, the 43-101 contains the following
indicated resources shown in Table 2 below:

    
    Table 2: Black Fox Indicated Resource Statement - As of June 30, 2007

    Mining Method(2)  Category      Cut-off g/t-Au    Tonnes  Grade g/t-Au
    ----------------------------------------------------------------------
    Open Pit          Indicated                  1   997,000           4.5
    Underground       Indicated                  3   667,000          10.1
    ----------------------------------------------------------------------

    (2) Mining Method is determined by relative location above or below
     the 9815m elevation
    

    Also, In addition to the reserves above, the 43-101 contains the
following inferred resources shown in Table 3 below:

    
    Table 3: Black Fox Inferred Resource Statement - As of June 30, 2007

    Mining Method(3)  Category   Cut-off g/t-Au      Tonnes   Grade g/t-Au
    ----------------------------------------------------------------------
    Open Pit          Inferred                1   3,255,500            4.7
    Underground       Inferred                3     929,000           12.3
    ----------------------------------------------------------------------

    (3) Mining Method is determined by relative location above or below
     the 9815m elevation
    

    The resource and subsequent reserve estimates are based on information
from 1,826 drill holes totaling 324,625 meters. All assays over 170 grams of
gold per tonne (5.5 oz of gold per ton) were capped at this level,
representing 0.25% of the assays.

    Combined Open Pit and Underground Economics

    The pre-feasibility study economics, using reserves only, assuming a gold
price of US$525 per ounce and assuming a milling capacity of 1,500 tonnes per
day has a Net Present Value ("NPV") of US$104 million at a 4% discount rate
and an Internal Rate of Return ("IRR") of 33%. The total cash cost per ounce
of gold produced is calculated at $236 per ounce. Various gold prices with
associated NPVs at a 4 % discount rates, and IRRs are as follows:

    
    Table 4 - NPV Values & IRR's (Pre-Tax)

         Gold Price                 NPV @ 4%                  IRR
          US $ / oz              US $ millions                 %
    ----------------------------------------------------------------------
             $525                     104                      33
    ----------------------------------------------------------------------
             $550                     122                      39
    ----------------------------------------------------------------------
             $575                     140                      46
    ----------------------------------------------------------------------
             $600                     159                      55
    ----------------------------------------------------------------------
             $650                     196                      76
    ----------------------------------------------------------------------
    

    
    Criteria used in the Economic Analysis:
    -------------------------------------------------

    Production Rate                                   1,500 tonnes per day
    Plant Gold Recovery                               96%

    Results:
    Total Cash Cost(4)                                $236 per ounce gold

    (4) See note on non-GAAP financial measures below
    

    
    Open Pit Mining Cost ($1.60/tonne of
     material)                                 $28.33 per tonne ore milled
    Underground Mining Cost                    $31.75 per tonne ore milled
    Mining G&A                                 $ 3.41 per tonne ore milled
    Toll Mill (only for associated tonnes)     $32.57 per tonne ore milled
    Owner Milling                              $13.26 per tonne ore milled
    G & A Cost                                 $ 3.90 per tonne ore milled
                                               ---------------------------

    Total Operating Cost                       $56.11 per tonne ore milled

    Note: Based on Life of Mine ("LOM") costs for open pit and underground
     mining as well as toll and owner operated milling.
    

    
    Capital Costs (LOM and sustaining capital)

        Processing Plant and Infrastructure             $ 71.0 million
        Pre-Stripping Open Pit                          $ 8.0 million
        Open Pit Equipment                              $ 8.0 million
        Underground Equipment                           $ 15.0 million
        Underground Mine Development                    $ 19.0 million
                                                    ------------------

    Total Capital (LOM and Sustaining Capital)          $121.0 million
    

    The pre-feasibility study assumes that mining would commence in 2009 with
ore being toll treated initially and then treated by an on-site mill from 2012
onwards. Apollo Gold is completing a bankable feasibility study that will
optimize the mining sequence and total capital requirements as well as timing
of capital requirements.

    Recommendations

    Contained within the 43-101 there are two main recommendations made by
SRK. "Black Fox should continue to be developed to the feasibility level. The
following recommendations for the project should be considered by Apollo":

    --  Continue with the advanced feasibility level studies for the project
including commissioning the bankable feasibility project as soon as possible;

    --  Continue to core drill specific areas of the ore body to further
upgrade and extend the geological modeling for the project;

    The report further states "At the time of this report, SRK has provided
Apollo a listing of approximately 62 drillholes totaling 10,000m of additional
required drilling. The main focus of this campaign is to target infill areas
of known mineralization in order to convert inferred resource into indicated
category and subsequently incorporate into a reserve."

    Following a review of the 43-101 Apollo Gold has implemented the
recommended drilling program at Black Fox starting August 2007.

    Apollo Gold Corporation

    Apollo is a gold mining and exploration company which operates the
Montana Tunnels Mine, which is a 50% joint venture with Elkhorn Tunnels, LLC,
in Montana, the Black Fox advanced stage development project in Ontario,
Canada, and the Huizopa project, an early stage exploration project in the
Sierra Madres in Chihuahua, Mexico.

    This press release has been reviewed and approved for release by Dr. Bart
Stryhas, Professional Geologist, of SRK Consulting; David Young, Professional
Mining Engineer, Associate Consultant for SRK Consulting; and Richard Nanna,
Professional Geologist, Apollo's Senior Vice-President, Exploration and
Development. Each of Dr. Stryhas, Mr. Young and Mr. Nanna is designated a
"Qualified Person" under NI 43-101.

    Since we report our mineral reserves to both NI 43-101 and SEC Industry
Guide 7 standards, it is possible for our reserve figure to vary between the
two. Where such a variance occurs it will arise from the differing
requirements for reporting mineral reserves. For example, the NI 43-101 has a
minimum requirement that reserves be supported by a pre-feasibility study,
whereas SEC Industry Guide 7 requires support from a full feasibility study
done to bankable standards. The Black Fox project thus reports reserves under
NI 43-101, but reports no reserves under SEC Industry Guide 7 as a final
bankable feasibility study has not been completed.

    (1) Cautionary Note to US Investors concerning estimates of Indicated
Mineral Resources. This press release uses the term "indicated mineral
resources". We advise US investors that while the term is recognized and
required by Canadian regulations, the US Securities and Exchange Commission
does not recognize it. US investors are cautioned not to assume that any part
or all of the mineral deposits in these categories will ever be converted into
mineral reserves.

    (2) Cautionary Note to US Investors concerning estimates of Inferred
Mineral Resources. This press release uses the term "inferred mineral
resources". We advise US investors that while the term is recognized and
required by Canadian regulations, the US Securities and Exchange Commission
does not recognize it. "Inferred mineral resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to their economic
and legal feasibility. It cannot be assumed that all or any part of an
inferred mineral resource will ever be upgraded to a higher category. In
accordance with Canadian rules, estimates of inferred mineral resources cannot
form the basis of feasibility or other economic studies. US investors are
cautioned not to assume that part or all of the inferred mineral resource
exists, or is economically or legally minable.

    FORWARD-LOOKING STATEMENTS

    This press release includes "Forward-Looking Statements" within the
meaning of section 21E of the United States Securities Exchange Act of 1934,
as amended. Forward-looking statements can be identified by the use of words
such as "may," "should," "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "intends," "continue," or the negative of such terms,
or other comparable terminology. All statements regarding estimated reserves
and resources; net present values of the Black Fox project and anticipated
internal rates of return; assumptions regarding Black Fox plant gold recovery,
cash costs, operating costs, mining costs and capital expenditures;
assumptions regarding development of a mine at Black Fox and the timing of
mining and processing operations at Black Fox; completion and timing of a
bankable feasibility study regarding Black Fox are forward-looking statements
that involve various risks and uncertainties. There can be no assurance that
such statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from these
forward-looking statements include: the results of independent Canada NI
43-101 reports, the outcome of assays and additional exploration sampling and
drilling efforts; delays in completing or less favorable than anticipated
results of a bankable feasibility study on Black Fox; increases in anticipated
cash costs, operating costs, mining costs, capital expenditures and other
costs; decreases in anticipated plant gold recoveries and gold prices; delays
or problems in construction, permitting and start-up; variations in ore grade,
mining, or processing problems or issues, and other factors disclosed under
the heading "Risk Factors" and elsewhere in Apollo documents filed from time
to time with the Toronto Stock Exchange, The American Stock Exchange, The
United States Securities and Exchange Commission and other regulatory
authorities. All forward-looking statements included in this press release are
based on information available to Apollo on the date hereof. Apollo assumes no
obligation to update any forward-looking statements.

    Non-GAAP financial measures. In this press release, we use the term
"total cash cost per ounce". The term "total cash cost," is considered a
non-GAAP financial measure as defined in the United States Securities and
Exchange Commission (the "SEC") Regulation S-K Item 10 and should not be
considered in isolation or as a substitute for measures of performance
prepared in accordance with GAAP. These terms are used by management to assess
performance of individual operations and to compare our performance to other
gold producers. The term "total cash cost" at Black Fox is equivalent to
direct operating cost as would be found on the Consolidated Statements of
Operations. This measure is not necessarily indicative of operating profit or
cash flow from operations as determined under GAAP and may not be comparable
to similarly titled measures of other companies.




For further information:

For further information: Apollo Gold Corporation Marlene Matsuoka,
720-886-9656 Ext. 217 Toll Free: 1-877-465-3484 Investor Relations E-mail:
info@apollogold.com Website: www.apollogold.com

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