Pulacayo Project Feasibility Study - Apogee Silver

Pulacayo 1 000 t/d Phase I Feasibility Study - NI 43-101 Technical Report
090644-3-0000-20-IFI-100
technical report and was previously disclosed in the recent technical report by Cullen et al.
(2012).
9.2.8 Bulk Sampling and Metallurgical Testing
Apogee carried out a trial mining program during the first half of 2012 that was focused on
two hangingwall veins accessed at the 4 275 m level of the mine. This program produced
approximately 7,000 tons of mineralized material that was stockpiled at the Pulacayo site.
Both veins targeted for trial mining occur within the limits of the current mineral resource
estimate. Apogee holds the necessary environmental permits issued by the Bolivian
authorities to conduct mining and processing operations of up to 200 tons per day, which
includes the transport of mineralized material to an established concentrator outside the
project area.
During the second half of 2012, Apogee processed two bulk samples from the trial mining at
separate toll milling operations in the district. The first was carried out at Tatasi and the
second was carried out at facilities operated in Potosi by the Federación de Cooperativas
Mineras de Potosí (FEDECOMIN) and located approximately 180 road kilometres from the
Pulacayo site. Results of testing at both sites are discussed below in report Section 12. In
addition, a series of controlled laboratory bench and pilot scale tests in support of the
ongoing Feasibility Study (Apogee Press Release dated 29 May 2012) are underway at
Maelgwyn Minerals Services Africa (Pty) Ltd. in South Africa in order to replicate the process
flow and optimizing reagent recipes utilized during the FEDECOMIN bulk test (Apogee Press
Release dated 13 September 2012).
9.2.9 Commissioning of Project Feasibility Study
On 29 May 2012 Apogee announced that a contract for completion of a Feasibility Study of
an underground mine and concentrator plant at its 100% controlled Pulacayo Project had
been awarded to TWP. TWP is a member of the Basil Read Group, a leading engineering
and construction company in the world, with offices across South Africa, Australia, and Peru.
Feasibility study programs began in the middle of 2012 and results of these are presented in
this technical report. In light of initiation of the Feasibility Study programs, Apogee also
disclosed by press release on 29 May 2012 that it was no longer relying on results of the
previously completed PEA carried out by Micon.
10 DRILLING
10.1 Introduction
The first modern era drilling program at Pulacayo was initiated in 2002 by ASC and
subsequent drilling programs were undertaken by Apogee between 2006 and 2012. Data
from all programs is used in the current resource estimate and details of each program are
present below under separate headings.
TWP Sudamérica S.A. Av. Encalada 1257 Of. 801, Santiago de Surco Lima 33, Perú (51-1) 4377473
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