COVER SHEET

COVER SHEET
4 0 6 2 1
S.E.C. Registration Number
A P E X
M I N
I NG
C O .
I N C
.
(Company's Full Name)
1 7 T H
F L O O R
F. O R T
I G A S
J R
P R E S T
R D
I G E
O R TI GA
T O W E R
S
P A S
I G C
I
T Y
(Business Address: No. Street City/Town//Province)
ROSANNA A. PARICA
706-2805
Contact Person
Company Telephone Number
1 2
3 1
SEC Form 17-C
0 6
2 4
Month
Day
FORM TYPE
Month
Day
Fiscal Year
Annual Meeting
Secondary License Type, If Applicable
Amended Articles Number/Section
Dept. Requiring this Doc.
Total Amount of Borrowings
of Stockholders
Domestic
To be accomplished by SEC Personnel concerned
File Number
LCU
Document I.D.
Cashier
STAMPS
ck ink for scanning purposes
Foreign
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C
CURRENT REPORT UNDER SECTION 17 OF THE
SECURITIES REGULATION CODE AND SRC RULE 17 (b)(3)
1.
July 9, 2010
2 . Commission Identification Number: 40621
3. BIR Tax Identification No.000-284-138
4.
Exact Name of Registrant as specified in its charter: APEX MINING CO., INC.
5.
Province, country or other jurisdiction of incorporation or organization: PHILIPPINES
6.
Industry Classification Code:
7.
Address of registrant’s principal office: 6th Flr., Manilabank Bldg., Ayala Avenue
Makati City
Postal Code: 1226
(SEC Use Only)
8. Telephone number, including area code: Tel. # 810-0882 Fax # 810-0887
9.
Former name, former address and former fiscal year, if changed since last report. NA
10. Securities registered pursuant to Sections 4 and 8 of the RSA
Title of Each Class
CLASS A
CLASS B
Number of Shares if Common Stock Outstanding
or Amount of Debt Outstanding
458,981,818
295,731,885
11. Indicate the item numbers reported herein: Item 9(b)
Items 9(b)
In today’s Annual Stockholders’ Meeting, Mr. Colin Patterson Chairman of Apex said that
the past year has been a remarkable milestone in the life of the company. APEX Mining
Company has
¾ declared its commercial operations after three years of rehabilitation and
development
¾ completed its equity transfer from Crew Gold Corporation to Mindanao Gold Ltd to
support your company on its financing and investing activities
¾ defined and established its ore resources and reserves in the Maco Mine Project
¾ created an inspiring vision and developed operating strategies that will make Apex a
“golden egg” that will be replicated across the region.
Mr. Patterson introduced Mindanao Gold as a major shareholder after Crew Gold made a
strategic decision to divest of its worldwide assets other than its one very large gold mine in
Africa. He added that Mindanao Gold is a special purpose company that was formed by the
privately owned Malaysian company ASVI Inc. to acquire all of Crew Gold’s Philippine
interests.
Mr. Patterson reported that the Maco mine production attained 148,417 tonnes at an average
grade of 5.88 Au, g/t compared to the 162,925 tonnes with a grade of 5.2 g/t of gold ores
produced in 2008. Ore produced were sourced from the stopes and from incidental ore from
development drives.
Likewise, he added that the development for 2009 achieved an aggregate total of 4,266
meters, 2,171 meters and 2, 095 meters were on vein drifting and waste development drives
respectively. The achieved development meter was lower compared to 5,993 meters attained
in 2008.
Mr. Patterson also explained that the lower production and development attained in 2009 was
primarily attributed to the dewatering and rehabilitation activities of the Maligaya and Sandy
mine as a result of the flash flood that occurred last January 2009. The mine operation only
normalized in April 2009 when the rehabilitation of the mine underground was completed
and the power supply system restored.
The Chairman also reported that the mill plant processed a total of 151,320 m-tonnes with an
average mill head of 5.13 gpt Au. This is 12% lower compared to the 2008 throughput of
171,760 m-tonnes. Likewise, gold ounces produced fell from 21,618 oz in 2008 to 20,727 oz
in 2009. The decrease in production was also a result of the flash flood incident in January
2009 as earlier mentioned. The mill operations only normalized March 9, 2009.
Outlook - 2010 and beyond
According to Mr. Patterson, the plan for 2010 is to gradually increase ore production from
underground mining operations to 700 m-tonnes per day by September 2010. The strategy is
to increase ore production from stopes out of the blocked reserves ready for mining. This
strategy has become viable with the testing and application of long hole drilling bulk mining
operations using the sequential top-down method to augment current conventional stoping,
re-fleeting of underground equipment by acquisition of additional new mining machinery and
the development of the other adjacent vein systems to replace the mined out reserves.
The ore production schedule and mine development plan are based on the latest resource
update and ore reserves available which were established by the Apex Geological staff and
the technical services group. The resource and ore reserves were reviewed and certified by
competent persons.
He also declared that the mill is programmed to increase throughput to about 700 m-tonnes
per day during the later part of 2010 and gradually increase the capacity thereafter. With this
plan, several process optimization and throughput improvement programs are underway to
include the following: commissioning of the 200-tonne fine ore bin, feasibility of acquiring
an oxygen plant, upgrading of CIL tanks and conveying systems, installation of tailings line
#3 and #4, acquisition and utilization of Cyanoprobe® and plant automation/computerization.
Further to this, we have commenced a scoping study to determine if we can increase the
output of the mine by additional 100%.
With pride, the Chairman announced that the Board of Directors and management are
committed to its vision of developing the Maco Mine as its “golden egg” and will eventually
lay similar other “golden eggs” in other regions as it makes major discoveries in these
regions, thereby increasing shareholder value. “As we look to the future with this vision,
Apex has potential substantial growth opportunities,” Mr. Patterson said.
The APEX Chairman particularly thanked their employees and contractors for their
commitment and dedication to their work . He also thanked their host communities and
Apex’s other external stakeholders for the partnership in their effort to create sustainable
value and opportunities. Finally, he also thanked their loyal shareholders for supporting them
in their undertaking to make the Maco Mine a viable and profitable project.
Back Ground Information
Location of operation:
Apex’s Maco Mine is located in Maco Municipality, in Compostela Valley Province in
Eastern Mindanao in the southern Philippines. Maco was formerly known as Masara but the
name change was effected in recognition of the entire municipality where mining occurs
rather than one particular village near the mine.
Number of Shares on market:
458,981,818
Latest PSE quote:
2.34 as of July 2, 2010
Board of Directors:
Colin D. Patterson
Peregrino S. Resabal
Deogracias Contreras
Rory Taylor
Baiverth Diabo
Rodolfo Cruz
Armando Castaňos
Chairman of the Board
Director/President & CEO
Consultant/Director
Director
Independent Director
Independent Director
Independent Director
Senior Officers:
Chairman of the Board and COO
President & CEO
Senior Vice President
Vice President –Operations/Resident Manager
Jr.
Vice President – Administration
Vice President – Finance/Treasurer
Corporate Secretary/Corporate Information Officer/
Compliance Officer
Colin D. Patterson
Peregrino S. Resabal
Arne Isberg
Valeriano B. Bongalos,
Emelita C. Fabro
Rodolfo G. Bravo
Rosanna A. Parica
APEX Property
Apex has two 25-year mineral production sharing agreements (MPSAs) with the government;
1,558.5-hectare and 679-hectare sites.
MPSA 234-2007-XI and MPSA 225-2005-XI were respectively granted on June 8, 2007 and
December 15, 2005 within Barangays Teresa and Masara, Maco, Compostela Valley. The
MPSAs grant the right to Apex for regional exploration of copper and associated mineral
deposits, and for the development and utilization for commercial purposes of gold and other
associated mineral deposits existing in the contract area.
Projections:
Gold production for the first 6 months of this year is 12,142 ounces which represents an
increase of 41.4% over the same period for last year. Ore for the full year of 2010 is
projected to be 200,000 tonnes at an average grade of 5.43 g/t gold. Metals recovered from
processing plant for the whole year is projected to be 25,000 ounces of gold.
The ore production from underground will be sourced from the developed ore reserves in the
Bonanza / Masara vein systems in the Maligaya area and the Sandy vein systems in the
Malumon area. Most of the ore will be sourced from Longhole stoping in the Masara vein
system where the ore characteristics and ground conditions favour the use of this highly
productive method. The lower dipping vein systems, including the Sandy vein which is in
relatively soft ground, will be mined by conventional cut and fill mining, requiring immediate
backfilling of mined out stopes. Additional ore will be sourced from development in both
Maligaya and Sandy vein systems.
The estimated annual cash cost of production is projected at Php40,000 (US$860) per ounce
gold produced.
It is planned to increase ore production from the current 500 tonnes per day to 700 tonnes
per day, starting in September 2010 when additional plant capacity has been added, ore
blocks have been developed and the additional fleet of trackless mining equipment is fully
commissioned . To achieve the projected plan, Apex has placed an order for to the value of
some US$ 3.2 million for the purchase of new Trucks and Loaders to augment the current
fleet and to allow the rehabilitation of the older units for future production increases. It is
fully expected that this expense will be covered from the operational cash flow.
Manpower Headcount as of June 30, 2010
APEX Mining Company Regular Employees
Contractors
Total:
844
417
1,261
Updates on Community Relations Programs
Every year Apex Mines signs a Social Development and Management Program which has
been researched, studied and consulted with the impact communities and duly approved by
the Mines and Geosciences Bureau in coordination with local government. There is always
an addition to the planned programs, focusing on the Company’s corporate social
responsibility in matters of health and sanitation, sustainable livelihood projects, education,
infrastructure and agricultural projects.
Free Health Consultations
Health and Sanitation
Free medicine assistance, doctor and dental check-ups have been undertaken since 2006,
including the provision of transport in the case of emergency. Initiatives include operation
tuli (circumcision) and bloodletting activities in the impact barangays and neighboring towns;
Regular collection of domestic waste around the impact barangays is also on-going. Apex
Mines also helps to bring potable water to the community by constructing reservoirs in
various locations.
Women’s Canteen
Candle Making
Sustainable Livelihood Projects
The IP and non-IP women’s councils have been merged together to create a Federation. They
were given the capital and TESDA training to start their livelihood projects such as meat and
food processing. They have also ventured into meat and fish selling, as well as money
lending. The out of school youth were given candle making training to enable them to have
fun and while earning a little money.
School Supplies Distribution -
Automotive Training
Education
This year two of the company IP scholars graduated and five others are continuing their
studies. Another batch, composed of eight non-IP students, is in progress following the
signing of a MOA on July 10. The ALS or the acceleration program for elementary and high
school has been on going up to present. Ten out of school youths have been given
Automotive Skill Training conducted by TESDA.
Classroom Turn-over
Infrastructure
Another two classrooms were added at Teresa Elementary School last March, bringing more
pupils to school. Construction of a tribal hall for Brgy. Teresa and Tagbaros was also
undertaken and a building to serve as a tribal hall erected in Biucadan. Widening of the farmto-market roads for the outskirts of impact barangays has also been undertaken.
Coffee Seminar and Tour - Nestle
Agricultural Projects
Projects include rubber production seminar and distribution of rubber seedlings to the farmers
and the revival of coffee cultivation in the impact barangays through trainings conducted by
Nestle Philippines.
SIGNATURES
Pursuant to the requirements of the Securities Regulation Code, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.
APEX MINING CO., INC.
Registrant
Date: 9 JULY 2010
ROSANNA A. PARICA
Asst. Corporate Secretary