Apex completes phase 1 of gold minesite

Apex Mining Corp. has completed the first phase of the construction of its Masara gold mine in Southeastern Mindanao.

The property, located in Compostela Valley, is one of the most prolific gold belts in the Philippines.

In a disclosure to the Philippine Stock Exchange, Apex said the first phase of the plant, which can process 500 tons of ore per day, had been commissioned on Nov. 30.

The first phase was built to evaluate the different kinds of ore at the Masara mine site before the design of phase two is finalized.

The second phase, on the other hand, is expected to increase the plant’s capacity by 2,400 tons per day. Apex expects to complete its construction in the second quarter of 2007.

Apex said exploratory drilling had confirmed that the Masara mine had numerous veins. "Exploration drilling during 2006 seems to confirm the company’s initial view that Masara consists of numerous veins with strike length of up to two to three kilometers or more. Initial underground development on the Bonanza/Maligaya vein has so far demonstrated mining widths of 2.6m to 4m," the company said.

Due to early indications on higher tonnage and wider veins, the company decided earlier this year to postpone the start up at Masara so that the production capacity could be increased from 2,000 tons per day to 2,900 tons per day.

Apex said the new operations team at Masara has succeeded in overcoming tremendous challenges during this project’s implementation.

UK-based Crew Gold and its affiliate, Mapula Creek Gold Corp. acquired 72.8 percent of Apex in August 2005.

Crew Gold is confident the acquisition of Apex will assist the company in reaching its goal of becoming a mid-tier gold producer by 2007. The company believes the Philippines represents a considerable potential for additional opportunities which will contribute to its long-term growth plans.

With gold as its principal product, Apex is primarily engaged in mining gold, silver, copper, lead and other precious metals. It traces its roots to Samar Mining Co. Inc., which was mining and milling large, though low grade, ore zones containing copper, gold and silver and magnetite.