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