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  • Apollo Minerals' Base Metals Prospect Shows Similarities To Olympic Dam  0 comments
    Feb 25, 2013 8:06 PM

    Apollo Minerals' (ASX: AON) Acacia East Base Metals Prospect is revealing key geophysical characteristics common to high quality uranium-rich iron oxide copper gold (IOCGU) deposits in South Australia.

    These characteristics were discovered in a recently completed ground gravity survey at the prospect, which forms part of the Titan Base-Precious Metals Project.

    The survey identified isolated, near surface, ultra-high density domains supportive of supergene enrichment zones and a potential high grade cap.

    The vertical profile interpretation represents a "classic IOCGU alteration" model similar to the archetypal Olympic Dam Deposit, owned and operated by BHP Billiton (ASX: BHP).

    The Acacia East ground gravity survey was successful in delineating a very large, dense body measuring up to +2.3mgal, and covering an area of about 4.2 kilometres by 1.6 kilometres in size at its widest points.

    This dense body is believed to have a vertical extent of over 2,500 metres.

    The Acacia East target is centred on a discrete 2 kilometre by 2 kilometre zone of magnetite destruction likely to be associated with a large-scale hydrothermal system located immediately alongside a regionally significant structure - the Coorabie Fault.

    A co-incident gravity high, magnetite alteration, high strength electromagnetic conductors and surface base metals anomalism adjacent to major regional fault represent an ideal setting for a high quality IOCGU target.

    Further examination of limited surface outcrop immediately west of the modelled nearer-surface GS1 EM Conductor suggests zones of intense brecciation of the host rocks at surface followed by haematite veining and alteration.

    Dominic Tisdell, chief operating officer, commented: "The success of the gravity survey at Acacia East achieves another important milestone for increasing our confidence that this target has the potential to be an important discovery.

    "While by no means definitive, the combination of the classic alteration patterns we're seeing in the geophysics and the strong EM conductors are everything you would want to see at this early stage of exploration.

    "The next step is to understand what our recent surface geochemistry program tells us once results are in. We expect drilling to quickly follow."

    Acacia East represents a high priority drill target for Apollo, and the company plans to begin first phase drilling at the prospect this quarter.

    Final results from other prospects surveyed are pending.

    Raising cash

    Apollo Minerals has received firm commitments to raise $650,000 as part of a broader capital raising of up to $1.65 million to fund exploration at its Titan Base and Precious Metals Project.

    Proceeds will be used for further exploration of Titan and targets including geophysics, surface sampling and a drilling program.

    Institutional and sophisticated investors have committed to subscribe for 16.25 million new shares at A$0.04 each to raise the $650,000.

    Apollo has also launched a Share Purchase Plan to raise up to A$1 million on the same terms as the placement.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

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