Strategy

The start of 2006 saw Apex embark on an in-depth feasibility study aimed at defining the economic potential of the Maco vein system.  The feasibility study involves an analysis of the geology of the deposits and an extensive diamond drilling program directed at probing the continuity, strike-and-dip wise of the known structures, as well as determining the type of gold mineralization within these structures.

The exploration program also seeks to verify the gold resources/reserves obtained from available mining and geological records and to prove additional resources/reserves that exist on the property. 

The drilling program initially targeted three of the major structures, namely: the Bonanza-Maligaya-Maria Inez vein system; the St. Benedict system; and the Don Fernando-Don Joaquin system.  So far, the drilling program has established the continuity of these structures, with positive structure intersections running to about 78% against about only 22% “dry” or negative intersections recorded.  The 2007 exploration program focused on providing infill drilling to better define the known and most accessible resources with a lesser emphasis on drilling for extensions.  The extension and interpretation of the orebodies has been mainly through surface mapping and review of historical data.

The potential extent of the copper porphyry is influencing the long-term location of the tailings management facility and the siting of a new process facility capable of the tonnage throughput if the copper porphyry is shown to be viable.  For this reason, the expansion plans for the current site remain relatively modest at 1,000 t/d to 1500 t/d, with mining focusing more on higher-grade throughput than higher tonnage throughput.