Apollo Minerals (AON) – High grade gold and tungsten sampling results from Aurenere

ASX RELEASE | 27 MARCH 2018 | ASX:AON 

HIGH GRADE GOLD AND TUNGSTEN SAMPLING RESULTS FROM AURENERE 

Apollo Minerals Limited (ASX:AON) is pleased to report the results from an initial reconnaissance field campaign carried out within the Aurenere Project located in northern Spain. 

The program was carried out by NeoMetal Spania S.L in September 2017 and included sampling of an outcrop of pyrrhotite rich skarn in the northeast of the Project area. 

Apollo Minerals recently entered into an agreement to acquire 75% of the share capital of NeoMetal, which holds the rights to the 100% interest in the Project. Having announced the acquisition of its interest in the Project, the Company has been able to verify the results from the NeoMetal field program and is reporting them herein. 

Highlights: 

 High grade gold (up to 33.90 g/t) and tungsten (up to 5.49% WO3) results returned from an initial reconnaissance field campaign at the Aurenere Project 

 The Aurenere Project is contiguous with the Company’s Couflens Project in neighbouring France, and provides an extension of strike along a highly prospective corridor for tungsten and gold 

 Systematic rock chip sampling was carried out over an outcrop of pyrrhotite rich skarn located at the contact between a granodiorite intrusion and carbonate-bearing sediments 

 Best gold results, with the associated tungsten assays, include: 

o 33.90 g/t gold with 2.03% WO3 

o 26.00 g/t gold with 1.48% WO3 

o 20.90 g/t gold with 1.38% WO3 

o 20.60 g/t gold with 0.10% WO3 

o 20.20 g/t gold with 0.60% WO3 

o 20.10 g/t gold with 0.08% WO3 

o 19.95 g/t gold with 1.18% WO3 

 Recent field campaigns at the Couflens Project have highlighted significant potential for shear hosted gold mineralisation to be associated with large fault structures extending to the west of the Salau mine area towards the Aurenere Project 

For further information contact: 

Hugo Schumann Robert Behets 

Tel: +44 207 478 3900 Tel: +61 8 9322 6322 

Email: info@apollominerals.com.au 2 

Regional Geology of Couflens and Aurenere Projects 

Aurenere Prospect – Geology and Gold Rock Chip Sampling Results3 

AURENERE PROJECT OVERVIEW 

Apollo Minerals Limited is pleased to report the results of an initial reconnaissance field campaign at its recently acquired Aurenere Project in northern Spain. 

The Project comprises an Investigation Permit application that covers a 55km2 area along strike from, and adjacent to, the Company’s Couflens Project across the border in France, which includes the historic Salau mine, previously one of the world’s highest-grade tungsten mines which remains open at depth and with potential gold upside. 

Initial Reconnaissance Field Campaign and Results 

An initial reconnaissance field campaign was carried out in September 2017 by NeoMetal Spania S.L to assess a previously identified skarn occurrence located in the northeast of the Project area (“Aurenere Prospect”). 

The reconnaissance field program included detailed geological and structural mapping, rock chip sampling of outcrop, and input of the data into an ArcGIS software package to facilitate data integration and interpretation. 

An outcrop of pyrrhotite rich skarn located at the contact between a granodiorite and carbonate-bearing sediments, measuring approximately 100m2 in area, was mapped and systematically sampled. 

A total of 68 select rock chip samples were collected on an approximately 1m by 1m grid over the skarn outcrop and submitted for gold and multi-element (including tungsten and copper) analysis. The assays have now been verified by the Company and are reported herein. 

Assay results returned for these rock chip samples have confirmed the presence of high grade gold (up to 33.90 g/t) and tungsten (up to 5.49% WO3) mineralisation associated with the pyrrhotite rich skarn (Figures 1 and 2). 

Best gold results from the sampling program, with the associated tungsten assays, include: 

 33.90 g/t gold with 2.03% WO3 (Sample AUR21) 

 26.00 g/t gold with 1.48% WO3 (AUR113) 

 20.90 g/t gold with 1.38% WO3 (AUR117) 

 20.60 g/t gold with 0.10% WO3 (AUR118) 

 20.20 g/t gold with 0.60% WO3 (AUR13) 

 20.10 g/t gold with 0.08% WO3 (AUR07) 

 19.95 g/t gold with 1.18% WO3 (AUR09) 

 17.00 g/t gold with 0.30% WO3 (AUR14) 

 15.85 g/t gold with 0.79% WO3 (AUR16) 

 15.15 g/t gold with 2.54% WO3 (AUR18) 

Best tungsten results recorded, with the associated gold assays, include: 

 5.49% WO3 with 1.22 g/t gold (AUR10) 

 3.27% WO3 with 7.33 g/t gold (AUR32) 

 3.24% WO3 with 12.05 g/t gold (AUR12) 

 2.54% WO3 with 15.15 g/t gold (AUR18, reported above) 

 2.30% WO3 with 13.95 g/t gold (AUR107) 

 2.03% WO3 with 33.90 g/t gold (AUR21, reported above) 

4 

Figures 1 and 2: Aurenere Prospect – Geology and Rock Chip Sampling Results 

All assay results for the rock chip samples, along with details of the sample locations and geological descriptions, are summarised in Appendix A. 

Geological Setting and Exploration Potential 

The Salau deposit, located approximately 6km to the east of the Aurenere Project, is a tungsten-bearing (primarily scheelite) skarn developed at the contact between Devonian carbonate-bearing sediments and a Permian-aged granodiorite stock. The skarn formed within both the carbonate-bearing sediments and, to a much lesser degree, the granodiorite. 

Within the Salau mine and surrounding area, where the skarns are observed to be intersected by east-west trending fault structures/shear zones, the mineralisation is typically sulphide-rich (mainly massive pyrrhotite, chalcopyrite and sphalerite) and contains substantially higher values of tungsten (up to 8.25% WO3), gold (up to 24.5 g/t) and copper (up to 0.94%). 

The thick package of prospective carbonate-bearing sediments which host the Salau deposit strike in an east-west direction through the Couflens Project area and extend across the border into the Aurenere Project. 

A number of small outcropping granodioritic bodies are observed to intrude these prospective host rocks within both the Couflens and Aurenere Project areas. Scheelite and/or pyrrhotite mineral occurrences are noted in the vicinity of these granodiorite intrusions. 

Within the Aurenere Project area specifically, the small outcrop of pyrrhotite rich skarn located at the contact between a granodiorite and carbonate-bearing sediments has returned high grade tungsten (up to 5.49% WO3) and gold (up to 33.90 g/t) assays results from rock chip sampling of the skarn outcrop at the Aurenere Prospect as reported above. 5 

A scheelite and pyrrhotite mineral occurrence, with accompanying lead, zinc and molybdenum, has also been recorded within the carbonate-bearing sediment package at Indice 8 to the south (Figure 3). 

Figure 3: Regional Geology of Couflens and Aurenere Projects 

Figure 4: Interpreted Regional Long Section and Exploration Targets 6 

The presence of a thick package of carbonate-bearing sediments, locally intruded by small granodioritic bodies with associated scheelite and/or pyrrhotite mineral occurrences, highlights the potential for new tungsten-gold discoveries within the highly prospective corridor extending for over 10km along strike to the west of the Salau deposit into the Aurenere Project area (Figures 3 and 4). 

Potential also exists for shear hosted gold mineralisation to be associated with large fault structures extending to the west of the Salau mine area towards the Aurenere Project. 

Work Program for the Couflens and Aurenere Projects 

The main focus of the Company remains the potential reactivation of the historical Salau tungsten mine which was one of the world’s highest grade tungsten mine and forms the central part of the Couflens Project in France. At the same time, high grade gold and tungsten targets within the broader region, including both France and Spain, will be advanced to the drill ready stage. 

Salau Mine Area (Couflens Project in France): 

 Finalise 3D modelling of the geology, mineralisation zones and principal ore; controls 

 Complete mine area and old tailings area risk assessments; 

 Mapping and sampling of mineralisation exposed in previously developed mine areas; 

 Underground drilling to confirm known zones of mineralisation and test for extensions of these zones; and 

 Estimation and reporting of a Mineral Resource in accordance with the JORC Code. 

Regional exploration (Couflens and Aurenere Projects): 

 Further surface exploration programs to assess the identified tungsten and gold prospects and advance them to the drill ready stage; 

 Generation of new targets within the broader project areas and extensions to already identified zones of mineralisation; 

 Drill planning and permit applications; and 

 Continuing to progress the formal grant of the Investigation Permit for the Aurenere Project. 

Competent Persons Statement 

The information in this report that relates to Exploration Results from the Aurenere Project is based on information compiled by Robert Behets, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Behets is a holder of shares and options in, and is a director of, Apollo Minerals Limited. Mr Behets has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Behets consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 

The information in this report that relates to Exploration Results from the Couflens Project is extracted from announcements on 29 November 2017 and 5 February 2018. These announcements are available to view on www.apollominerals.com.au. The information in the original announcements that related to Exploration Results were based on, and fairly represents, information compiled by Mr Robert Behets, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Behets is a holder of shares and options in, and is a director of, Apollo Minerals Limited. Mr Behets has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. 7 

About Apollo Minerals 

Apollo Minerals Limited is developing the Couflens Project and the Aurenere Project which, when combined, cover a 97km2 area in a highly prospective region of the Pyrenees. 

The Couflens Project in located in the Pyrenees region of southern France and comprises a 42km2 license area, within which lies the high grade historical Salau tungsten mine. 

The mine was one of the world’s highest grade tungsten mines, producing approximately 930,000 tonnes at 1.5% WO3 for around 11,500 tonnes of WO3 in concentrate, prior to its closure in 1986 following the rapid fall in the tungsten price caused by Chinese dumping of tungsten into global markets. 

Apollo Minerals is focussed on two parallel work programs at the Couflens Project: 

(1) Brownfields activities within, and immediately adjacent to, the historical Salau tungsten mine. The deposit remains open at depth with previous drilling below the base of the existing underground development confirming continuation of the mineralised system. Both the underground development and infrastructure will be examined to determine the most efficient method to progress mine exploration, development activities and potential mine reactivation; 

(2) Continuation of an aggressive regional exploration program, focused initially on gold. Recent field campaigns have returned grades of up to 24.5 g/t gold from rock chip samples. Exploration will be focused on the multiple fault structures recognised within the major granodiorite intrusion at Salau and the discovery of shear hosted gold mineralisation associated with large fault structures extending along a 5km corridor to the west of the Salau mine area. 

Progress made with both work programs enhanced the Company’s understanding of the geology and regional scale exploration potential of the area. 

As a result, the Company has signed agreements to acquire the remaining 20% of the Couflens Project, which will increase its ownership to 100%, and to acquire a 75% interest in the Aurenere tungsten-gold project in the Lleida province in northern Spain. 

The Aurenere Project comprises an Investigation Permit under application which covers an area of 55km2, along strike from and adjacent to, the Company’s Couflens Project. The Aurenere Project hosts an extension of the highly prospective corridor for tungsten and gold which strikes east-west through the Couflens Project and into the Aurenere Project area. 

Apollo Minerals is developing its Projects in accordance with the highest standards of environmental, social, health and safety, and economic management. 

All work programs are carried out with a strong commitment to both sustainable development and proactive stakeholder engagement as the Company seeks to develop and maintain positive relationships with its host communities and stakeholders. 8 

Apollo Minerals Limited | ASX code: AON | ABN: 96 125 222 924 | www.apollominerals.com.au PERTH Level 9, BGC Centre, 28 The Esplanade Perth, WA 6000 | +61 8 9322 6322 | +61 8 9322 6558 LONDON Unit 3C, Princes House, 38 Jermyn Street London, SW1Y 6DN | +44 203 903 1930 | +44 207 434 4450