With a mine under development in the Timmins region, the Colorado-based Apollo Gold Corporation has emerged from the third quarter with a net income of $500,000 compared to $2.1 million for the same period in 2007.
Net income for the year-to-date sits at $2.9 million, versus the net loss of $100,000 for the same period in 2007.
This has largely been derived from the joint-venture with Elkhorn Tunnels LLC at an open pit gold mine in Jefferson City, Montana.
The Timmins-area project, known as Black Fox, is expected to see a March 2009 mine start-up, with the mill and ore processing to begin in April 2009. By the second quarter of 2009, the open pit will produce 1,500 tonnes of ore per day. Underground operations have been deferred until after 2009.
Apollo has made a series of financial commitments for Black Fox since September 30, 2008. These include leasing $13.5 million of mining equipment, and spending an additional $2.5 million for improving the Black Fox mill complex. A $12.2 million contract was signed for pre-stripping for the open-pit, while a $3.7 million contract was signed for the construction of waste water ponds.
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