Apollo Gold (TSE:APG) (AMEX:AGT) Starts Black Fox Mine Work

Apollo Gold (TSE:APG) (AMEX:AGT) has launched construction at its Black Fox Mine near Timmin, in preparation for mining underground ore, scheduled to start sometime in the third quarter of 2010.

Already completed at the projects are the electrical and engineering design work, along with the concrete foundations built for surface facilities, including the ventilation raise bore pad.

On order are also equipment needed to carry out production like three jumbo drills, three scoop trams, one 40-ton capacity haul truck and two 50-ton capacity haul trucks.

Those are scheduled to arrive in the third quarter, with production expected to reach about 750 tons a day by the latter part of 2010.

Apollo Gold (TSE:APG) Black Fox Mine Grade Improves

Apollo Gold (TSE:APG) said the grade at its Black Fox mine shows major improvement, signifying gold production at the project should gradually increase for the remainder of 2010.

Vice President of Operations at Apollo Gold, Tim G. Smith said about the operations at Black Fox, "We are now seeing a significant improvement in the grade. The average gold grade at the mill improved to approximately 3.0 gpt in March 2010 and further increased to almost 3.5 gpt in April 2010 and we continue to see the trend of higher grades in May. We are expecting progressively higher gold production for the remainder of 2010. "

Black Fox produced 190,000 tons of ore in the first quarter.

Estimated cash costs for the first quarter are expected to be reported from between $625 to $635 an ounce sold.