Apella Resources Inc.
TSX VENTURE : APA
FRANKFURT : NWN

Apella Resources Inc.

May 05, 2010 10:30 ET

Apella Resources Inc.: Drilling Commences Iron-T Vanadium-Iron-Titanium Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2010) - Apella Resources Inc. (TSX VENTURE:APA)(FRANKFURT:NWN) is pleased to announce that crews and equipment have arrived on site to initiate Phase 3 of diamond drilling on the Iron-T Vanadium-Iron-Titanium Project in Quebec, Canada. The 2,160 metre, 17-hole Phase 3 program will be Apella's most extensive program at Iron-T to date. Phase 3 will follow up on the very positive findings and geophysical targets identified during the Phase 1 and Phase 2 drill programs. Apella released the results from Phase 1 and Phase 2 in its December 15th, 2009, March 30th, 2010, and April 6th 2010 news releases. In Phase 3 there will be no need to include line cutting and geophysics, as did Phases 1 and 2, as Apella has an adequate number of drill targets delineated for the time being.

Phase 3 will now bring the total number of holes drilled by Apella on the Iron-T to 39 holes. In Phase 3, two previously drilled holes will be extended considerably and 15 new holes will be drilled.

Phase 3 drilling will include; A) a number of step-out drill holes for the purpose of increasing the potential tonnage calculations and upgrade of the mineralization, B) holes to increase tonnage of the known mineralization and Apella's knowledge of some of the isolated and weak mag anomalies, 3) extension drilling on two previously drilled holes to identify possible and potentially economic extensions of the identified, significantly mineralized zones previously drilled. For the majority of the planned Phase 3 drill-holes the azimuth will be 180 and the plunge will be at -45°. The holes are expected to range between 100 metres and 175 metres in length.

Two holes of Phase 3 Apella are designed to extend drill-hole number MA-09-11 from Phase 1 in 2009 and drill-hole number MA-10-20 from Phase 2. Apella plans to extend MA-09-11 from 150 m to 280 m in length and MA-10-20 from 114 m to 219 m in length, near doubling the length of each.

The previous work on these two holes provided the following results:

  • Drill intersections from MA-09-11 as released on December 15, 2009 were as follows:
    • MA-09-11 – 34.08 metres (111.81 feet) 35.33% Fe2O3, 5.69% TiO2, and 0.38% V2O5 ; including 28.10 metres (92.19 feet) 36.81% Fe2O3, 6.13% TiO2, and 0.41% V2O5
    • MA-09-11 – 36.48 metres (119.69 feet) 32.99% Fe2O3, 4.96% TiO2, and 0.33% V2O5 ; including 14.82 metres (48.62 feet) 39.94% Fe2O3, 6.15% TiO2, and 0.41% V2O5, and 7.6 metres (24.93 feet) 41.52% Fe2O3, 6.61% TiO2, and 0.41% V2O5 
  • Drill intersections previously released for drill-hole MA-10-20 returned the following results:
    • Drill hole MA-10-20 was drilled to114 metres in length and collared at about 450 m ESE of drill hole MA-10-19. The first mineralized layer was intersected at 19.00 m. From 19.81 m to 47.22 m, the hole returned 35.81% Fe2O3, 6.46% TiO2 and 0.50% V2O5 over 27.41 m (89.93 ft) including an impressive 15.60 m (51.18 ft) of 48.09% Fe2O3, 9.26% TiO2 and 0.72% V2O5. Lower grade intersections were obtained from 47.22 m to 89.34 m, and from 102.45 to 114.00 m which returned 17.31% Fe2O3, 2.25% TiO2 and 0.18% V2O5. Drill hole MA-10-22 was collared at about 20 m north of drill hole MA-10-20.

Patrick D. O'Brien, ICD.D, Chairman states; "We expect the Phase 3 drill program to build considerably on the known mineralization Apella has already identified on the impressive Iron-T project. Drill results to date have certainly met the company's objective of identifying numerous significant and perhaps economically mineralized vanadium-iron-titanium zones on the Iron-T."

ON BEHALF OF THE BOARD OF DIRECTORS OF APELLA RESOURCES INC.

Patrick D. O'Brien, ICD.D – Chairman

S.E.C. Exemption 12(g) 3-2(b) File No. 82-3822, Standard & Poors Listed, Dun & Bradstreet Listed.

Apella invites the public to visit its website at http://www.Apellaresources.com or e-mail us at apella@apellaresources.com to be added to the Company's e-mail list for press releases and updates.

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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