Apollo Gold Announces Second Quarter 2007 Results With Improved Production and Profits



    DENVER, August 15 /CNW/ - Apollo Gold Corporation ("Apollo" or the
"Company") (TSX:APG) (AMEX:  AGT) is pleased to announce its operating results
for the second quarter of 2007. Apollo recorded a net income of $2.4 million,
or $0.02 per share, for the three months ended June 30, 2007, as compared to a
net loss of $2.6 million, or $0.02 per share, for the three months ended June
30, 2006. The net loss for the six months ended June 30, 2007 was $2.2
million, or $0.02 per share, compared to a net loss of $6.8 million, or $0.06
per share, for the same period in 2006. Unless otherwise indicated, all dollar
amounts are reported in US currency.

    R. David Russell, President and CEO of Apollo, said, "I am very pleased
with the quarterly results and the fact that we recorded our first ever income
in a quarter, which is another significant milestone indicating the progress
that Apollo Gold has made during 2007. The Montana Tunnels mine continues to
perform well leading Apollo to record both profit in the quarter and positive
cash flow from operating activities. I expect further improvement from the
mine during the second half of 2007."

    Second Quarter 2007 Highlights

    
        --  Apollo Gold's 50% share of production for the quarter from the
            Montana Tunnels mine (which is a joint venture with Elkhorn
            Tunnels, LLC) was:
                    Gold                 5,483 ozs
                    Silver              86,267 ozs
                    Lead                1,892,000 lbs
                    Zinc                3,488,000 lbs

        --  Total cash costs(1) per ounce of gold for the quarter on a
            by-product basis were minus $237. Total cash costs on a
            co-product basis were as follows:
                    Gold                $406 per oz
                    Silver              $8.11 per oz
                    Lead                $0.70 per lb
                    Zinc                $1.05 per lb

        --  The results of a new ore reserve at Black Fox were published
            showing proven and probable reserves of 1,000,000 ounces of
            gold. A Canadian National Instrument 43-101 ("NI 43-101") was
            filed on August 14, 2007. Open pit reserves are 625,000 ounces
            of gold at an average grade of 5.8 grams per tonne.
            Underground reserves are 377,000 ounces of gold at an average
            grade of 10.6 grams per tonne.

        --  At Black Fox, our third party consultant, SRK Consulting, Inc.
            ("SRK"), Denver, Colorado, has commenced work on a bankable
            feasibility study which we expect to be completed in the first
            quarter of 2008.

        --  At Black Fox a 20,000 meter drill program commenced in June
            2007. The objective of the drill program is (a) to expand the
            mineralization along strike and down dip of the current
            reserves/resources, and (b) to infill drill certain targets
            identified by the NI 43-101 with the objective of converting
            some resources into reserves before completion of the bankable
            feasibility study.
    

    Montana Tunnels Mine

    At the Montana Tunnels mine the open pit remediation program was
completed in February 2007 and the mill resumed operations on March 1, 2007.

    During the second quarter 2007, approximately 3,400,000 tons were mined,
of which 1,367,000 tons were ore, giving a strip ratio of 2.49. The mill
processed 1,246,000 tons of ore at an average throughput of 13,700 tons per
day for the quarter and payable production was 11,000 ounces of gold, 173,000
ounces of silver, 3,784,000 lbs of lead and 6,976,000 lbs of zinc. Apollo's
share of this production was 50%. The mine commenced a project to increase
mill throughput by 1,000 tons per day by re-commissioning a larger primary
crusher (last utilized in 2005) which is scheduled for completion at the end
of August 2007.

    
        Ore mined               1,367,000 tons
        Waste mined             2,024,000 tons
        Total mined             3,391,000 tons

        Ore milled              1,246,000 tons

        Grade:                                    Recoveries:
            Au ounces per ton   0.0136                Au             72.9%
            Ag ounces per ton   0.2420                Ag             73.3%
            Pb %                0.2160                Pb             78.1%
            Zn %                0.4455                Zn             76.6%
    

    Forecast - We continue to believe that we will meet our previously
announced production forecast for the Montana Tunnels mine for the period from
March 1, 2007 to December 31, 2007 of 40,000 ozs of gold, 250,000 ozs of
silver, 5,750,000 lbs of lead and 12,500,000 lbs of zinc. Apollo's share of
this forecasted production would be 50%.

    Black Fox

    At the end of the second quarter 2007, a new mineral reserve and resource
estimate was prepared by SRK. SRK has confirmed that the reserve and resource
study complies in all respects with NI 43-101 guidelines. The table below
summarizes the Black Fox Total Mineral Reserve:

    Black Fox - Probable Reserves as of June 30, 2007

    
                      Cutoff Grade    Tonnes       Grade       Contained
    Mining Method        Au g/t       (000)        Au g/t      Au Ounces
    ----------------- ------------ ------------ ------------- ------------
    Open Pit              1.0         3,362          5.8        625,000
    Underground (1)       3.0         1,108         10.6        377,000
                                   ------------               ------------
    Total Reserves                    4,470          7.0       1,002,000

        (1) Underground Reserves include dilution of approximately 22% of
         which 66,000 tonnes of indicated material with an average grade
         of 1.26 g/t Au was used and the remaining amount of dilution
         material was assigned a grade of 0 g/t Au
    

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

    In addition to the reserves above, the NI 43-101 contains the indicated
and inferred resources shown in the tables below:

    Black Fox - Indicated Resources as of June 30, 2007(1)

    
                                       Cutoff Grade   Tonnes      Grade
    Mining Method(3)       Category       Au g/t       (000)      Au g/t
    ------------------- -------------- ------------ ----------- ----------
    Open Pit              Indicated        1.0          997        4.5
    Underground           Indicated        3.0          667        10.1

    (3) Mining method is determined by relative location above or below
     the 9,815m elevation.
    

    Black Fox - Inferred Resources as of June 30, 2007(2)

    
                                         Cutoff Grade   Tonnes    Grade
    Mining Method(3)         Category       Au g/t      (000)     Au g/t
    --------------------- -------------- ------------ ---------- ---------
    Open Pit                 Inferred        1.0        3,256       4.7
    Underground              Inferred        3.0         929       12.3

    (3) Mining method is determined by relative location above or below
     the 9,815m elevation.

        (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 ("SEC") 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
         SEC 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.
    

    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.

    
    Consolidated Financial Results Summary
    (All Dollars in US, 000's unless otherwise stated)

                                      Three months ended Six months ended
                                           June 30,          June 30,
                                      ------------------ -----------------
                                        2007      2006     2007     2006
                                      --------- -------- -------- --------
    Income (loss) from continuing
     operations for the period           $2,436 $(2,568) $(2,211) $(6,521)
    Loss from discontinued operations
     for the period                           -       -        -     (250)
                                      --------- -------- -------- --------
    Net income (loss) for the period     $2,436 $(2,568) $(2,211) $(6,771)
                                      --------- -------- -------- --------

    Basic and diluted net income
     (loss) per share from (US$):
      Continuing operations              $ 0.02 $ (0.02) $ (0.02) $ (0.06)
      Discontinued operations                 -       -        -        -
                                      --------- -------- -------- --------
                                         $ 0.02 $ (0.02) $ (0.02) $ (0.06)
                                      --------- -------- -------- --------

    Basic weighted-average shares
     outstanding (in millions)            143.5   121.4    143.1    119.2
    Diluted weighted-average shares
     outstanding (in millions)            144.7   121.4    143.1    119.2
    

    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,
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.

    FORWARD-LOOKING STATEMENTS

    This press release includes forward-looking statements the meaning of
section 21E of the United States Securities Exchange Act of 1934, as amended,
with respect to our financial condition, results of operations, business
prospects, plans, objectives, goals, strategies, future events, capital
expenditure, and exploration and development efforts. 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. These statements include comments regarding future production,
throughput rates, further improvement at the Montana Tunnels mine ("Mine"),
cash flow from the Mine, the timing of completion of the large primary crusher
at the Mine, and the timing of completion of and results of feasibility
studies at Black Fox. These forward looking statements are subject to numerous
risks, uncertainties and assumptions including unexpected changes in business
and economic conditions, the results of current and future exploration
activities, and other factors disclosed under the heading "Risk Factors" in
Apollo's Annual Report on Form 10-K for the year ended December 31, 2006 and
elsewhere in documents that Apollo files from time to time with the Toronto
Stock Exchange, the American Stock Exchange, the United States Securities and
Exchange Commission and other regulatory authorities. There can be no
assurance that future developments affecting the Company will be those
anticipated by management. The forecasts contained in this press release
constitute management's current estimates, as of the date of this press
release, with respect to the matters covered thereby. Apollo disclaims any
obligation to update forward-looking statements, whether as a result of new
information, future events or otherwise.

    NON-GAAP FINANCIAL MEASURES

    The term "total cash cost" is a non-GAAP financial measure and is used on
a per ounce of gold basis. Total cash cost is equivalent to direct operating
cost as found on the Consolidated Statements of Operations and includes
by-product credits for payable silver, lead, and zinc production. We have
included total cash cost information to provide investors with information
about the cost structure of our mining operation. This information differs
from measures of performance determined in accordance with GAAP in Canada and
in the United States and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with GAAP. 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.

    (1) "Total cash costs" is a non-GAAP financial measure. Please see the
note regarding non-GAAP financial measures at the end of this press release.




For further information:

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

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APOLLO GOLD CORPORATION

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