Apollo Gold Corporation (TSX: APG), whose Black Fox mine is located 64 kilometres east of Timmins, has signed an agreement whereby 100,000 tonnes of the company's gold ore will be milled by St. Andrew Goldfields Ltd.
In April 2009, Apollo began mining gold ore from its Black Fox open pit, which has produced two categories of ore: higher-grade ore containing more than three grams of gold per tonne (g/t), and low-grade ore containing between one and three grams of g/t. Higher-grade ore is processed by the Black Fox mill, while low-grade ore is stockpiled at the mine.
The stockpiled ore, which now sits at 120,000 tonnes at an estimated two g/t, was initially to be milled at the end of the life of the mine. Instead, 100,000 tonnes of the stockpile will now be trucked to St Andrew's Holt Mill, 50 kilometres away.
The Holt Mill has a processing capacity of 3,000 tonnes per day. Any future milling of Black Fox ores beyond the 100,000 tonnes laid out in this agreement would be the subject to a separate contract.
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