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Apollo Minerals – September 2018 Quarterly Report
Completed transaction to increase ownership of Couflens Project to 100% and commenced the re-installation of mine services
HIGHLIGHTS FROM THE SEPTEMBER 2018 QUARTER
• Completed the acquisition of the remaining 20% interest in the Couflens Project in France which includes the historical high grade Salau tungsten mine
• Commenced with a program to reinstall mine services at Salau. With the exception of ventilation, all work on the main level 1230 has now been completed
• Received firm bids from a shortlist of drilling contractors for the initial drilling campaign to test multiple high-grade tungsten and gold targets within the mine
• Commenced with geophysics programs to assist with the definition of exploration targets and to improve the Company’s understanding of regional geological structures
• Commenced baseline environmental impact assessment studies initially focused on water sampling • Strengthened local community relationships with a ceremony at site to commemorate the start of works, attended by former miners and senior local politicians
• Held introductory meetings with the newly appointed Prefect of Ariege
• The Couflens Project continues to deliver increasing economic and social benefits to the local region as the Company hired more local staff and contracted more local businesses for construction and study work
• Submitted plans in support of the final phase of health and safety risk assessments within the historical mine environment. The assessments will be conducted after the reinstallation of mine services and are subject to approvals
• Tungsten prices ended the quarter at US$284/mtu
LOOKING AHEAD
Salau Mine Area:
• Interpret geophysical data obtained from initial program and submit applications for further work • Review drilling proposals, select preferred bidder and submit drill program applications after the completion of health and safety risk assessments 2
• Complete the program to reinstall mine services after relevant approvals have been obtained • Continue with the final phase of health and safety risk assessments
• Advance applications for drilling at the Aurenere project in Spain as part of the ongoing Investigation Permit application CORPORATE:
• The Company held A$4.4 million in cash and no debt at the end of the quarter
For further information please contact:
Hugo Schumann Robert Behets
Tel: +44 207 478 3900
Tel: +61 8 9322 6322
Email: info@apollominerals.com
Proactive Investors – Outlook for tungsten developers ‘promising’ amid tightening supply – Apollo Minerals $AON
Mark Seddon, tungsten market expert and senior manager consulting services at Argus Media is joined in the Proactive studio by Apollo Minerals‘ (ASX:AON) Hugo Schumann and Andrew Scott.
Seddon talks through the main uses for the metal as well as the outlook for European developers and producers.”The supply side is dominated by China accounting for around 85% of supply so there are issues around security of supply”.
Meanwhile Schumann updates on developments with their Couflens project following the announcement they’ve received approval from the French government to acquire the remaining 20% interest in the asset.
Apollo Minerals ASX: #AON – French Govt approves transaction to increase Couflens project ownership to 100%
ASX RELEASE | 25 JUNE 2018 | ASX:AON
JUNE 25TH – FRENCH GOVERNMENT APPROVES TRANSACTION TO INCREASE OWNERSHIP OF COUFLENS TO 100%
Highlights
- Apollo Minerals has received approval from the French Ministry of Economy and Finance of its agreement to acquire the remaining 20% interest in the Couflens Project in France
- The Couflens Project includes the historical Salau mine which was one of the world’s highest-grade tungsten mines and remains open at depth and with gold upside
- Approval of the acquisition ensures Apollo Minerals will have full upside to the Couflens Project as the Company ramps up its major exploration campaigns and study programs
- The majority of the consideration for the remaining 20% is deferred to the future and payable upon the successful achievement of project milestones including production from the mine, thereby limiting the upfront cash outlay
- The simplified ownership structure of the Couflens Project will enable the Company to accelerate development of the project with streamlined decision making and greater optionality for future funding
Apollo Minerals Limited is pleased to advise that it has received approval from the French Ministry of Economy and Finance of the proposed acquisition of the remaining 20% interest in the Couflens tungsten-copper-gold project in the Pyrenees region of southern France, thereby increasing its ownership to 100%.
The approval, which was a Condition Precedent to Completion of the transaction, required the Ministry of Economy and Finance to confirm compatibility of the proposed transaction with decree 2006-648 of 2 June 2006 relating to mining titles.
Apollo Minerals initially acquired an 80% interest in the Couflens Project in 2017. Following positive exploration activities on site, which confirmed the presence of widespread tungsten (up to 8.25% WO3) and high-grade gold (up to 24.5 g/t), the Company entered into an agreement to acquire the remaining 20% interest in the Couflens Project.
In accordance with the terms of the Sale and Purchase Agreement, Apollo Minerals acquires the remaining 20% interest in the Couflens Project through the purchase of Variscan Mines SAS (“Variscan France”), a wholly owned subsidiary of Variscan Mines Limited (ASX: VAR).
Hugo Schumann, Executive Director, commented: “We are pleased that the French government has confirmed its approval of our proposed transaction, which was a Condition Precedent to closing. Our desire to increase our ownership in the Couflens Project to 100% reflects our growing appreciation of the high quality of the project and its significant exploration upside. We are now well placed to carry out our exploration and study programs backed by a strong cash balance and quality institutional shareholders.”
Apollo Minerals is funding the transaction using a combination of cash and future share payments based on the achievement of project milestones, as well as assuming the liabilities of Variscan France. The majority of the consideration is deferred and is weighted towards share based payments in the future, thereby limiting the upfront cash outlay.
Apollo Minerals will continue to advance its exploration activities including an airborne geophysics program, the completion of in-mine safety assessments and initial drilling campaigns targeting both tungsten and gold targets.
For further information contact:
Hugo Schumann Robert Behets
Tel: +44 207 478 3900 Tel: +61 8 9322 6322
Email: info@apollominerals.com.au 3
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
COMMERCIAL TERMS
Apollo Minerals will acquire the remaining 20% interest in the Couflens Project through the acquisition of 100% of the shares in Variscan France, a subsidiary of Variscan Mines Limited (“Variscan Australia”) (ASX: VAR), which holds a 20% interest in Mines du Salat SAS (“MdS”).
The Share Sale Agreement (“Agreement”) to acquire Variscan France includes consideration as follows:
- An upfront cash payment on signature of A$200,000
- Subject to the final quantum of liabilities of Variscan France (see item 4 below), staged cash payments to Variscan Australia over an 8-month period: i. Up to A$300,000 on completion ii. Up to A$250,000 on the date that is 4 months from the date of completion iii. Up to A$250,000 on the date that is 8 months from the date of completion
- Subject to item 4 below and shareholder approval, issuing Variscan Australia new fully paid ordinary shares (“Shares”) in Apollo Minerals based on the achievement of certain milestones at the Couflens Project: (a) First Milestone (Share Consideration): the earlier of (i) Tungsten Resource Milestone: A$250,000 of Shares in Apollo Minerals upon the announcement of a Mineral Resource Estimate of at least 25,000 tonne WO3 at an average grade of not less than 1% WO3 using a cut-off grade of not less than 0.3% WO3; or (ii) Mineral Resource Milestone: A$125,000 of Shares in Apollo Minerals upon the announcement of a Mineral Resource Estimate for tungsten for the Couflens Project at levels below those of the Tungsten Resource Milestone, or a Mineral Resource Estimate for gold; (b) Second Milestone (Share Consideration): A$500,000 of Shares in Apollo Minerals upon the announcement by the Company to ASX of a Scoping Study; (c) Third Milestone (Share Consideration): A$500,000 of Shares in Apollo Minerals upon the announcement by the Company to ASX of a Pre-Feasibility Study; (d) Fourth Milestone (Share Consideration): A$500,000 of Shares in Apollo Minerals upon the announcement by the Company to ASX of a Definitive-Feasibility Study; and (e) Fifth Milestone (Share Consideration): A$873,671 of Shares in Apollo Minerals upon the commencement of production at the Couflens Project. If shareholder approval has not been received by the date of the satisfaction of the relevant milestone, or if Apollo Minerals determines at its own discretion, it shall pay a cash equivalent for the relevant milestone consideration in lieu of the share consideration.
- Apollo Minerals has agreed to assume up to EUR400,000 of Variscan France liabilities. Any liabilities over EUR400,000 will be deducted from the staged future cash payments and share payments referred to in items 2 and 3 above.
The Agreement was dated 7 March 2018 and completion of the acquisition of Variscan France has to occur on or before 30 September 2018 and is subject to standard conditions precedent 4
for acquisition of a company in France, including government agency approvals, extinguishment of intercompany debts, Variscan Australia not accepting a superior offer from employees in accordance with their rights under the French Commercial Code which provides employees a right to make an offer to acquire VM France and completion under the separate agreement of Variscan Australia to retain its interest in 6 other tenements in France (described below).
Government agency approvals have now been received and Variscan employees have waived their rights to make an offer to acquire VM France. Completion of the Agreement is expected to occur within the next month after the satisfaction of final conditions precedent, which may be waived by Apollo Minerals.
The Agreement also contains usual warranties provided by the parties associated with an acquisition of this nature. The Agreement can be terminated by the Company if the conditions precedent are not satisfied by 30 September 2018 or if there is a breach of the Agreement or warranties provided by Variscan Australia. Variscan Australia can only terminate the Agreement if the Company is in breach of the Agreement.
As stated above, Apollo Minerals will acquire the remaining 20% interest in the Couflens Project through the acquisition of 100% of the shares in Variscan France, which holds an 20% interest in MdS.
Under a separate agreement Variscan Australia retains a 100% interest in 6 other tenements in France (and associated liabilities) that were held by Variscan France. The effect of this separate agreement is that only the 20% interest in Couflens PER will remain in Variscan France upon acquisition by Apollo Minerals. The French authorities have stipulated that the remaining 6 licenses must be relinquished within four months of 22 June 2018.
COMPETENT PERSONS STATEMENT
The information in this announcement that relates to Exploration Results from the Couflens Project in France and Aurenere Project in Spain is extracted from announcements on 29 November 2017, 5 February 2018 and 27 March 2018. These announcements are available to view on www.apollominerals.com.au. The information in the original announcement 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 announcement. 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.
Apollo Minerals #AON – Constellation Resources Prospectus
Constellation Resources Limited ACN 153 144 211
For an offer of 35,000,000 Shares at an issue price of A$0.20 each, together with one free attaching Option for every three Shares issued to raise A$7,000,000 (before costs)
Prospectus has been issued to provide information on the offer of 35,000,000 Shares to be issued at a price of A$0.20 per Share, together with one free attaching Option for every three Shares issued to raise A$7,000,000 (before costs) (Offer). The minimum subscription under the Offer is A$7,000,000.
The Offer comprises:
(a) a priority offer to Eligible Apollo Minerals Shareholders (Apollo Minerals Priority Offer); and
(b) an offer made by the Company at the Directors’ sole discretion (General Offer).
It is proposed that the Apollo Minerals Priority Offer will close at 5.00pm (AEST) on 14 June 2018 and the General Offer will close at 5.00pm (AEST) on 5 July 2018.
The Directors reserve the right to close the Apollo Minerals Priority Offer or the General Offer earlier or to extend their respective closing dates without notice. Applications must be received before these times.
This is an important document and requires your immediate attention. It should be read in its entirety. Please consult your professional adviser(s) if you have any questions about this document.
An investment in the Securities offered pursuant to this Prospectus should be regarded as highly speculative in nature, and investors should be aware that they may lose some or all of their investment. Refer to Section 8 for a summary of the key risks associated with an investment in the Securities.
Link to full AON_Prospectus_Constellation-Resources-Limited
Apollo Minerals #AON attending the 5th Annual French Mining Day, dedicated to the role of Tungsten.
Apollo Minerals (ASX:AON) are in Paris tomorrow at the 5th Annual French Mining Day. The conference is dedicated to the role of tungsten, a strategic and critical metal, in European automotive, aerospace, drilling and military industries. Apollo’s Couflens tungsten and gold project in France has the potential to reduce European reliance on China who control around 80% the market.
Apollo Minerals $AON – Reopening the World’s Highest Grade Tungsten Mine, With Gold Upside
Capital Network Research note – May 14th 2018
Apollo Minerals Limited (ASX:AON) is an Australian Securities Exchange listed tungsten-gold company with projects in the Pyrenees region of Southern Europe. In May 2016 the company was restructured with new management and capital that enabled it to acquire an 80% interest in the Couflens Project (July 2017) in southern France and a 75% interest in the Aurenere Project (April 2018) in northern Spain.
The key metals sought are tungsten and gold….
Tungsten prices are increasing, up 54% in the last 12 months….
Management has an enviable track record in project development….
Valuation: Based on historical production figures, remaining resources, updated capital and operating costs….
Link to view the full research note: Apollo Minerals Limited – Reopening the world’s highest grade tungsten mine
Multichannel Podcast – Alan Green talks to Hugo Schumann, Chief Commercial Officer at Apollo Minerals ASX: #AON
Multichannel Podcast – Alan Green talks to Hugo Schumann, Chief Commercial Officer at Apollo Minerals ASX: #AON. Hugo discusses the recent A$6m fundraising and the participation of major mining institutional investors Blackrock and Old Mutual Global Investors. The funds will be used to explore and develop the Couflens project in S France, which includes Salau, the World’s highest grade tungsten mine. The project also includes a significant gold resource. Hugo also looks at the mining and labour reforms in France, and moves by French President Macron to streamline the mining license application process. Key investor takeaway points include: 1) Couflens is an early stage tungsten and gold project with big exploration upside 2) the project is underpinned by solid economics of the world’s highest grade tungsten mine 3) Company chaired by Ian Middlemas, who has a great track record chairing Papillon Resources and Berkeley Energia
Apollo Minerals (AON) CEO Hugo Schumann discusses the A$6m fundraise with Andrew Scott at Proactive Investors
Hugo Schumann of Apollo Minerals Limited (ASX:AON) talks to Andrew Scott at Proactive Investors. Hugo discusses the company’s recent suspension in trading as three prestigious mining funds came on board as part of a combined A$6 million fundraise.
Apollo Minerals (AON) – Institutional Placement to Raise A$6m
ASX RELEASE | 4 APRIL 2018 | ASX:AON
Institutional Placement to Raise A$6.0 Million
Apollo Minerals Limited (“Apollo Minerals” or the “Company“) is pleased to advise that the Company will make a placement to Institutional Investors of 26.1 million shares at A$0.23 per share to raise A$6.0 million before costs.
The placement is being made to leading European institutions including one of the world’s largest mining funds.
The issue price of A$0.23 represents a 13% discount to the 20-day VWAP of A$0.265.
The funds raised will be used to accelerate planned exploration programs including drilling and feasibility work at the Company’s Couflens Project in France and progressing the adjacent Aurenere Project in neighbouring Spain.
At the Couflens Project, the Company is focused on the potential reactivation of the historical Salau mine which was one of the world’s highest grade tungsten mines and is open at depth, with significant gold potential.
The Company is also planning drilling programs to test gold and tungsten exploration targets in the wider region across both the Couflens Project and Aurenere Project.
Recent work programs have confirmed the presence of widespread high grade gold (up to 33.9 g/t) and tungsten (up to 8.25% WO3) within the Company’s 97km• landholding in this highly prospective region of the Pyrenees.
The reactivation of the Salau mine has the potential to deliver one of Europe’s most critical raw materials to French and other European industries.
The Company expects to issue the placement shares on or about 11 April 2018 and will issue the shares under Listing Rules 7.1 (12.1 million shares) and 7.1A (14.0 million shares).
Following issue of the shares, the Company will have 166.0 million shares on issue and a remaining issue capacity under Listing Rule 7.1 of 7.8 million shares.
The placement is being managed by Tamesis Partners LLP in London.
For further information contact:
Hugo Schumann Robert Behets
Tel: +44 207 478 3900 Tel: +61 8 9322 6322
Email: info@apollominerals.com.au 2
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 has 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. 3
Information required under ASX Listing Rule 3.10.5A:
The Company expects to issue 12,095,536 shares under Listing Rule 7.1 and 13,991,421 shares under Listing Rule 7.1A. Following issue of the shares, the Company will have a remaining issue capacity under Listing Rule 7.1 of 7,791,596 shares and no remaining issue capacity under Listing Rule 7.1A.
The information required under ASX Listing Rule 3.10.5A is set out below:
(a) Dilution to existing shareholders as a result of the issue under Listing Rule 7.1A is 9.1%, dilution to existing shareholders as a result of the issue under Listing Rule 7.1 is 8.0% and the total dilution to existing shareholders is 15.7%. The securities to be issued under Listing Rule 7.1A will be issued to new security holders. The percentage of the post-placement capital will be as follows:
(i) 84.3% held by pre-placement security holders who did not participate in the placement; and
(iii) 15.7% held by participants in the placement who were not previously security holders (including 8.4% held by those who participated under Listing Rule 7.1A).
(b) The Company will issue 13,991,421 shares under Listing Rule 7.1A because the Placement is considered to be a more efficient mechanism for raising funds. The Placement will not expose the Company to additional costs, a protracted process and market volatility that may have been experienced with a pro-rata issue or other type of issue in which existing ordinary shareholders would have been eligible to participate;
(c) No underwriting arrangements are in place for the Placement under Listing Rule 7.1A; and
(d) A cash fee of 4.5% will be paid to brokers in connection with the Placement under Listing Rule 7.1A. In addition, 500,000 unlisted options exercisable at $0.30 each on or before 31 December 2020 will be issued to the managers of the Placement.
Competent Persons Statement
The information in this report that relates to Exploration Results is extracted from announcements on 29 November 2017, 5 February 2018 and 27 March 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.
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
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
| Appendix A – Summary of Significant Rock Chip Sample Results Sample number | Latitude | Longitude | Elevation
(m) |
WO3
(%) |
Au
(ppm) |
Cu
(ppm) |
Description |
| AUR04 | 42.75159404 | 1.113501973 | 1833 | < LOD | 0.01 | 39 | Marble with small beds of garnet |
| AUR05 | 42.75162899 | 1.113519995 | 1833 | 0.50 | 4.74 | 237 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR06 | 42.75160996 | 1.113558970 | 1831 | 0.42 | 9.30 | 1209 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR07 | 42.75162002 | 1.113582021 | 1833 | 0.08 | 20.10 | 45 | Quartz vein with abundant arsenopyrite |
| AUR08 | 42.75162103 | 1.113527035 | 1830 | 0.60 | 5.34 | 176 | Skarn and massive sulphides (pyrrhotite) |
| AUR09 | 42.75163603 | 1.113556037 | 1830 | 1.18 | 19.95 | 951 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR10 | 42.75157702 | 1.113531981 | 1828 | 5.49 | 1.22 | 2904 | Massive sulphides (pyrrhotite) |
| AUR11 | 42.75163402 | 1.113590989 | 1828 | 0.21 | 1.79 | 1436 | Skarn and massive sulphides (pyrrhotite) |
| AUR12 | 42.75164198 | 1.113633988 | 1818 | 3.24 | 12.05 | 1494 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR13 | 42.75165296 | 1.113622002 | 1818 | 0.60 | 20.20 | 1068 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR14 | 42.75164600 | 1.113623008 | 1818 | 0.30 | 17.00 | 169 | Quartz vein with abundant arsenopyrite |
| AUR15 | 42.75163201 | 1.113556959 | 1828 | 0.17 | 3.51 | 263 | Massive sulphides (pyrrhotite) |
| AUR16 | 42.75163896 | 1.113580009 | 1831 | 0.79 | 15.85 | 1265 | Quartz vein with abundant arsenopyrite |
| AUR17 | 42.75169102 | 1.113588978 | 1832 | 1.30 | 5.19 | 554 | Skarn and massive sulphides (pyrrhotite) |
| AUR18 | 42.75162698 | 1.113659972 | 1819 | 2.54 | 15.15 | 2139 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR19 | 42.75166897 | 1.113619991 | 1834 | 0.37 | 14.80 | 2046 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR20 | 42.75175497 | 1.113589983 | 1831 | 0.51 | 10.85 | < LOD | Quartz vein with abundant arsenopyrite |
| AUR21 | 42.75160301 | 1.113670031 | 1818 | 2.03 | 33.90 | 1877 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR22 | 42.75162899 | 1.113686040 | 1820 | 0.03 | 0.16 | 111 | Skarn and massive sulphides (pyrrhotite) |
| AUR23 | 42.75177198 | 1.113585960 | 1828 | 0.91 | 10.10 | 1060 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR24 | 42.75180300 | 1.113590989 | 1829 | < LOD | 0.02 | 41 | Marble |
| AUR25 | 42.75179202 | 1.113617979 | 1829 | 0.73 | 11.10 | 469 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR26 | 42.75157199 | 1.113652010 | 1820 | 0.03 | 1.30 | 47 | Quartz vein with pyrrhotite |
| AUR27 | 42.75177701 | 1.113602975 | 1831 | 1.22 | 9.05 | 428 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR28 | 42.75174902 | 1.113610016 | 1829 | 0.79 | 6.76 | 966 | Quartz vein with abundant arsenopyrite |
| AUR29 | 42.75156403 | 1.113656033 | 1822 | 0.02 | 6.81 | 197 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR30 | 42.75175103 | 1.113579003 | 1831 | 0.68 | 11.65 | 312 | Massive sulphides (pyrrhotite, arsenopyrite) with goethite alteration |
| AUR31 | 42.75175304 | 1.113626026 | 1832 | 0.65 | 13.60 | < LOD | Quartz vein with abundant arsenopyrite |
| AUR32 | 42.75159203 | 1.113671958 | 1823 | 3.27 | 7.33 | 1080 | Massive sulphides (pyrrhotite, arsenopyrite) with goethite alteration |
| AUR33 | 42.75170803 | 1.113606999 | 1829 | 0.70 | 10.75 | 941 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR34 | 42.75158297 | 1.113715963 | 1823 | 0.01 | 0.07 | 42 | Granodiorite |
| AUR35 | 42.75160099 | 1.113676988 | 1823 | 0.11 | 2.97 | 159 | Massive sulphides (pyrrhotite) with goethite alteration |
| AUR36 | 42.75167199 | 1.113616973 | 1826 | 0.23 | 6.41 | 86 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR37 | 42.75162497 | 1.113655027 | 1824 | < LOD | 5.78 | 1625 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR38 | 42.75164299 | 1.113616973 | 1824 | 0.55 | 0.10 | 70 | Endoskarn with abundant massive sulphides |
| AUR102 | 42.75158498 | 1.113583026 | 1820 | 0.99 | 0.05 | 238 | Skarn and massive sulphides (pyrrhotite) |
| AUR103 | 42.75162899 | 1.113518989 | 1840 | 0.40 | 0.60 | 295 | Skarn and massive sulphides (pyrrhotite, chalcopyrite) |
| AUR104 | 42.75158599 | 1.113552013 | 1819 | < LOD | 0.03 | 487 | Marble with some veinlets of chalcopyrite |
| AUR105 | 42.75163201 | 1.113564000 | 1836 | 1.82 | 0.83 | 85 | Skarn and massive sulphides (pyrrhotite) |
| AUR106 | 42.75158096 | 1.113589983 | 1819 | 0.45 | 0.71 | < LOD | Skarn and massive sulphides (pyrrhotite) |
| AUR107 | 42.75162103 | 1.113554025 | 1835 | 2.30 | 13.95 | 263 | Skarn and massive sulphides (pyrrhotite, arsenopyrite) |
| AUR108 | 42.75156998 | 1.113614039 | 1818 | 0.04 | 0.28 | 109 | Marble with some disseminated sulphides (pyrrhotite) |
| AUR109 | 42.75156202 | 1.113637006 | 1832 | 0.02 | 2.52 | 355 | Massive sulphides (pyrite) |
| AUR110 | 42.75160301 | 1.113576991 | 1834 | 0.10 | 7.57 | 651 | Massive sulphides (pyrite, arsenopyrite) |
| AUR111 | 42.75158004 | 1.113596018 | 1819 | 0.56 | 11.95 | 65 | Massive sulphides (pyrrhotite, arsenopyrite) with goethite alteration |
| AUR112 | 42.75163603 | 1.113643963 | 1833 | 0.04 | 3.99 | 1320 | Quartz vein with abundant arsenopyrite and pyrite |
| AUR113 | 42.75162002 | 1.113667013 | 1819 | 1.48 | 26.00 | < LOD | Massive sulphides (pyrrhotite, arsenopyrite) with goethite alteration |
| AUR114 | 42.75160301 | 1.113603981 | 1832 | 0.06 | 7.02 | 1838 | Massive sulphides (pyrite, arsenopyrite) |
| AUR115 | 42.75158800 | 1.113651004 | 1817 | 0.27 | 4.96 | 309 | Skarn and massive sulphides (pyrrhotite, arsenopyrite) |
| AUR116 | 42.75159102 | 1.113604987 | 1833 | 0.01 | 1.61 | 145 | Skarn and massive sulphides (pyrrhotite) |
| AUR117 | 42.75159203 | 1.113644969 | 1819 | 1.38 | 20.90 | < LOD | Skarn and massive sulphides (pyrrhotite, arsenopyrite) |
| AUR118 | 42.75154098 | 1.113557965 | 1831 | 0.10 | 20.60 | 2994 | Massive sulphides (pyrite, arsenopyrite) |
| AUR119 | 42.75156101 | 1.113640023 | 1817 | 0.77 | 5.23 | 675 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR120 | 42.75154500 | 1.113579003 | 1832 | 0.01 | 1.23 | 1021 | Massive sulphides (pyrrhotite) |
| AUR121 | 42.75151801 | 1.113641029 | 1817 | 1.15 | 0.55 | < LOD | Massive sulphides (pyrrhotite) |
| AUR122 | 42.75157803 | 1.113644969 | 1830 | 0.02 | 1.33 | 37 | Marble with some disseminated sulphides (pyrrhotite) |
| AUR123 | 42.75157702 | 1.113645975 | 1830 | 0.12 | 3.83 | 1133 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR124 | 42.75152799 | 1.113658966 | 1817 | 0.26 | 6.72 | 661 | Massive sulphides (pyrrhotite, arsenopyrite) |
| AUR125 | 42.75158398 | 1.113652010 | 1827 | 0.01 | 0.52 | 48 | Centimetric quartz vein with abundant arsenopyrite |
| AUR126 | 42.75150703 | 1.113671958 | 1817 | < LOD | 0.59 | 52 | Centimetric quartz vein with abundant arsenopyrite |
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