Apollo Restarts Montana Tunnels


Apollo Gold restarted milling operations at its Montana Tunnels open-pit gold mine near Helena, Montana, in early March 2007. The company stopped mining at Montana Tunnels in October 2005, following movement in a pit wall. The plant continued to process stockpiled ore until May 2006, when it was placed on care and maintenance. Montana Tunnels is now a 50:50 joint venture between Apollo and Elkhorn Tunnels, with Apollo acting as the manager. The Montana Tunnels mill includes crushing, grinding, gravity gold, flotation, and filtration circuits. The mill is expected to process an average of 15,000 st/d for the balance of 2007. Products produced will be gold and silver doré, a leadsilver- gold concentrate, and a zinc-silvergold concentrate. Both concentrates will be transported via rail to the Teck- Cominco smelter at Trail, British Columbia. The doré will be refined in Salt Lake City by Johnson Matthey. Pit wall stabilization work and construction of a new haulage ramp began at Montana Tunnels in August 2006 and were completed in January 2007. During this process, Apollo moved waste rock from the pit bottom to expose the orebody and stockpiled some lower grade ore alongside the mill. As of Feb. 28, 2007, 333,000 st of lower-grade material and 45,000 st of reserve-grade ores were stockpiled for future processing. During 2007, ore delivery from the mine to the mill is expected to exceed mill capacity, which will result in an increase in the stockpiles. As of Dec. 31, 2006, ore reserves at Montana Tunnels totaled 35.7 million st, containing 551,700 oz of gold and 414 million lb of zinc.