Apogee Silver – Exploring Silver Mining Regions in South America

Overview

Apogee Silver Ltd. (TSXV:APE) is a Toronto, Canada based junior exploration and development company with a strategic focus on advanced stage silver, zinc, and lead deposits in world class mineral districts in South America. Their primary focus is the Pulacayo-Paca Property located in southwestern Bolivia. The property includes the historic Pulacayo mine, which was the second largest silver mine in Bolivia’s history with historical production exceeding 600 million ounces of silver.

Investment Highlights

  • Proven Assets: Apogee has advanced stage projects with three NI 43-101 resource inventories, including for both the Pulacayo and Paca Deposits in Bolivia’s prolific Potosi District and for the Cachinal Deposit in northern Chile. At Pulacayo a NI 43-101 Preliminary Asssment returned a positive preliminary economic analysis for the development of an underground mine and milling complex.
  • Polymetallic Deposits: Whilst silver accounts for more than 50% of the resource inventories of payable metals the deposits are also leveraged to zinc and lead prices which provides an effective level of portfolio diversification and exposure to broader industrial, consumer and business cycles.

Key Properties

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Pulacayo-Paca Project, Bolivia

Apogee’s primary focus is the Pulacayo-Paca Property, which is an advanced stage silver-zinc lead stage exploration project located in southwestern Bolivia, approximately 20 km east of the city of Uyuni, in the historical San Cristobal-Potosi Silver Belt. This region was host to significant historical and current silver production, including the three largest silver deposits in Bolivian history (Cerro Rico de Potosi, San Cristobal, and Pulacayo). The project is a joint venture with Golden Minerals Company (formerly Apex Silver).

Silver mineralization was  the first deposit discovered at Pulacayo in 1833 and the Huanchaca Mining Company was formed in 1857. During nearly continuous operation between 1883 and 1959 the deposit is estimated to have approximately 678 million ounces of silver, 200,000 tonnes of zinc and 200,000 tonnes of lead between 1883 and 1958. It was the second largest silver mine in Bolivia and one of the most important in Latin America during this time.

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Apogee’s efforts are being directed on two main target areas. At the Pulacayo Deposit drilling has successfully demonstrated significant mineral resources in disseminated, vein let, and stockwork mineralization over extensive widths in between and adjacent to the narrow high grade veins exploited by the historical production. Additional unexploited high grade shoots have also been intersected. To date Apogee has systematically drilled only 700 meters of the nearly 2700 meter strike length of the mineralized system at Pulacayo as defined by the historical workings.

A National Instrument 43-101 Mineral Resource estimate for the Pulacayo Deposit by Micon International Ltd. was released in October 2008 and is summarized below:

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In addition to ongoing drilling programs designed to increase the mineral resources at the Pulacayo Deposit, Apogee has completed a Preliminary Assessment for the Pulacayo Project including a preliminary economic analysis. This analysis, which was undertaken by Micon International Ltd., was released in June of 2010 and is supported by a NI 43-101 Technical Report. The analysis demonstrated a pre-tax IRR of 24% and NPV of $US 50 Million for the development of an undeground mine at Puacayo.

The Paca Deposit is located approximately 8 km north of the Pulacayo deposit and is also part of the joint venture with Golden Minerals Company. It is an epithermal silver zinc lead deposit similar to Pulacayo. The first recorded exploration efforts at Paca included the development of an exploration Adit by the operators of the Pulacayo Mine in the 1950’s. Apogee Silver commenced drilling in the area in 2006 and since that time has completed 13,630 meters of drilling in 76 holes.

A National Instrument 43-101 Mineral Resource estimate for the Paca Deposit by Micon International Ltd was released in March 2007 and is summarized below:

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  1. The quantity and grade of reported inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these inferred resources as an indicated or measured mineral resource. It is uncertain if further exploration will result in upgrading them to an indicated or measured mineral resource category.

The conceptual scope of the Paca deposit is that mineralization will be mined by means of an open pit and delivered to a processing facility at nearby Pulacayo. The Paca deposit is a potential feed stream for a potential future processing facility at Pulacayo.

Cachinal Silver Project, Chile

The Cachinal Project is a resource delineation stage silver-zinc-gold exploration project located 175 km southeast of Antofagasta in Northern Chile. The property is within the Paleocene gold belt of northern Chile which is host to both low and high sulphidation silver and gold deposits, the most significant of which is Yamana’s El Penon Gold Deposit 60km to the north of Cachinal. Apogee Silver acquired on option to earn 100% of Valencia Ventures interest in the Cachinal Project in October 2009.

The area was an important mining center in the early part of the last century with historical production from several operations between 1882 and 1930 estimated at more than 32 million ounces of silver. An aggressive exploration program carried out by Valencia between 2004 and 2007 has resulted in the delineation of a significant silver-zinc-gold deposit at Cachinal.

A National Instrument 43-101 Mineral Resource estimate for the Cachinal Deposit by SRK Consulting (Canada) Inc. was released in March of 2008 and is summarized below:

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Management

Neil Ringdahl – CEO and Director
Coming from a strong operational background, Neil Ringdahl is a Mining Engineer with 17 years experience held senior management positions with a number of companies including Anglo Platinum, Golden Star Resources, and an executive position with Peruvian base metals producer Volcan Companía Minera. Most recently, he was country manager for Ancash Mining (now a Korea Zinc subsidiary). On behalf of the defaulting creditors, he was responsible for taking the company through the administration process. He also financed and managed the construction and commissioning of its silver/base metals concentrator and mine. Neil has led a number of mining and project teams on mines across South America and Africa. He spent five years as a consultant specialising in strategic and tactical mine planning on various diamond, precious and base metals mines around the world.

G. Scott Paterson – Chairman and Director
Mr. Paterson is Vice Chairman of NeuLion Inc. (formerly JumpTV), having been Chairman from January 2002 until October 2008. NeuLion is a world leader in IPTV, counting the NFL, NHL, NBA and the NCAA as key clients and is a board member of several public companies. He is also Chairman of the Merry Go Round Children’s Foundation and a Governor of Ridley College. From 1998 to December 2001, Mr. Paterson was Chairman and CEO of Yorkton Securities Inc., which under his leadership became Canada’s leading technology investment bank, raising over $13 billion in equity for Canadian companies as managing and co-managing underwriter. Mr. Paterson has served as the past Chairman of the Canadian Venture Stock Exchange and as a former Vice Chairman of the TSX. In 2009, Mr. Paterson obtained the ICD.D designation by graduating from the Rotman Institute of Corporate Directors at the University of Toronto.

Chris Collins, P.Geo., MBA – President
Mr. Collins has more than 20 years of service within the minerals sector, including a distinguished career with Noranda Inc. (“Noranda”) where he was involved in the feasibility study of lead-zinc-silver deposits in Canada including hands on experience working in Noranda’s underground operations. He was also involved in advanced projects in Chile, Brazil and Norway. More recently Chris was the Vice President of Exploration with Gold Eagle Mines Ltd. until its recent takeover by Goldcorp Inc. Chris has also held a senior position with ALS Chemex and has a strong understanding of quality assurance and quality control concepts. Chris has a B.Sc. in Geology from Memorial University of Newfoundland and an MBA from Saint Mary’s University.

Marilia Bento – Vice President of Corporate Development
Over 20 years of experience in the financial industry and Canadian capital markets, most recently as managing Director at Macquarie Capital Markets Canada Ltd. in the position of the Head of Equity Capital Markets Canada. From June 2000 to November 2007 Ms. Bento was on the Board of Directors of Orion Securities Inc.

David Hunter, C.A. – Chief Financial Officer
Experienced with some of the largest national accounting firms. He has extensive experience in setting up financial systems for growing companies. Aside from public accounting experience, he has served in senior financial roles including Chief Financial Officer, Vice President, Director and Controller in both public and private companies.

David Gower, P. Geo – Director
David Gower has over 20 years of experience in exploration with Falconbridge, Noranda (now X-strata) most recently as Director of Global Nickel and PGM exploration. He was a member of the Senior Operating Team responsible for mining projects with Falconbridge. He has led exploration teams which were responsible for brownfields discoveries at Raglan and Sudbury, Matagami, Falcondo – DR, and greenfield discoveries at Araguaia in Brazil, Kabanga in Tanzania and significant increases in known resources at Kabanga in Tanzania and El Pilar in Mexico.

Peter Bojtos, P.Eng. – Director
Mr. Bojtos has held senior executive positions with various mining companies over the past 30 years. He is currently a Director of several other public natural resource companies and brings to the Company an international background in various facets of the mining industry from acquisitions to exploration, production and financing. Mr. Bojtos received a Bachelor of Science Honors degree from the Leicester University in England.

Francois Perron – Director
President and Chief Executive Officer of Alexis Minerals Corporation and was previously the President and Chief Executive Officer of Golden Goose Resources. Previously he was involved in the financial markets as a resource-focued portfolio manager for NBC Alternative Investments Caisse de dépôt et placement du Québec.

Chantal Lavoie, P.Eng. – Director
Mr. Lavoie is a Professional Mining Engineer with extensive experience in mining operations and projects. Mr. Lavoie has spent the last eight years at De Beers Canada Inc. (“De Beers”) where he was responsible for the Canadian operations of De Beers including Snap Lake and Victor mines, the Gahcho Kue project and was acting CEO of De Beers. Mr. Lavoie has also worked for Barrick Gold Corporation at Goldstrike in Nevada and Aur Resources Inc. at the former Louvicourt mine.

Gustavo Miranda – Country Manager
15 yrs mining industry experience, college professor of Mining Law, previously worked for Pan American Silver developing the San Vicente project, current member of the drafting committee of the new Bolivian Mining Law and is very well connected with Bolivian mining authorities.

Carlos Prieto Voglschmidt – Manager of Finance and Information
Certified Public Accountant, 15 years experience in Accounting and Corporate Finance. Previously worked for Pan American Silver Corp, has international certifications CIA, CCSA and CGAP.