Apella Resources Inc.
TSX VENTURE : APA
FRANKFURT : NWN

Apella Resources Inc.

April 06, 2010 13:58 ET

Apella's Iron-T Project Continues to Deliver

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 6, 2010) - Apella Resources Inc. (TSX VENTURE:APA)(FRANKFURT:NWN) -

44.87 METRES (147.21 FEET) ASSAYING 44.63% Fe2O3, 9.39% TiO2, and 0.57% V2O5

28.28 METRES (92.78 FEET) ASSAYING 52.14% Fe2O3, 10.62% TiO2, and 0.82% V2O5

33.44 METRES (109.71 FEET) ASSAYING 39.80% Fe2O3, 7.45% TiO2, and 0.58% V2O5

15.60 METRES (51.18 FEET) ASSAYING 48.09% Fe2O3, 9.26% TiO2, and 0.72% V2O5

109.10 METRES (357.94 FEET) ASSAYING 29.25% Fe2O3, 4.47% TiO2, and 0.36% V2O5

Apella Resources Inc. and its Board of Directors are pleased to announce that the Company has received the remainder of its drill results of its Phase 2 of diamond drilling on its Iron-T Vanadium-Iron-Titanium project. These new results from the eastern extension of the Iron-T continued to provide positive results.

Core sample assays for these four 2010 drill holes have now been reviewed and Apella confirms that it has intersected further highly significant disseminated, semi massive and massive vanadiferous mineralization on its Iron-T Vanadium-Iron-Titanium Project.

Those four drill holes extend this mineralized zone over more than 500m and have returned impressive widths and values. Three of the four holes have been collared on the same N-S line in order to test and confirm a thickening of the strong magnetic anomaly. This is a very important element as the company moves toward zoning out tonnage in order to delineate a mineable resource.

In its Phase 2 of diamond drilling the company submitted 549 drill samples, including 226 from 4 of the last 5 holes; which included numerous random blanks for analysis. The assays returned in Phase 2 by ALS Chemex ranged from a low of approximately 0.10 Fe2O3 to highs of over 70% Fe2O3; a low of 0.70 TiO2 to highs in the range of 15.92% TiO2; and lows in the range of 0.07% V2O5 to highs in the range of 1.21% V2O5. Of the 549 Fe2O3 assays received 234 exceeded 30% Fe2O3, 166 exceeded 40% Fe2O3, 81 exceeded 50% Fe2O3, and 107 were in the 50% to 71% Fe2O3 range. Of the TiO2 assays 307 assays exceeded 3% TiO2, 209 exceed 5% TiO2, and 70 samples exceeded 10% TiO2. Of the 59 samples 362 exceeded 0.20% V2O5, 199 exceeded 0.40% V2O5, 157 exceeded 0.50% V2O5, 51 exceeded 0.75% V2O5 and 9 exceed 1.00% V2O5. The assays in the upper percentiles continue to increase in quantity and grade as the number of drill holes increases.

Mr. Patrick D. O'Brien, ICD.D, Chairman, states, "We have now proven that the Iron-T hosts mineraliztion in quantity and quality. Apella's geological team has advised management that it plans to produce and submit to management an updated 43-101 compliant report on the Iron-T within the next couple of weeks and at that time determine and provide management with an initial inferred resource figure for the Iron-T based on the 24 holes of diamond drilling to date."

Dr. Christian Derosier, P. Geo, Consulting Geologist, and Qualified Person for the Iron-T project states, "The excellent drilling results obtained in 2009 and 2010 encourages the geologists to prepare an estimation to date of mineral resources for the Iron T project, which will be compliant with NI 43-101."

The following is a chart outlining the new assay results from these latest four holes #MA-10-20 through #MA-10-24. As well, this chart includes the other six holes from the Phase #2 drilling that were announced in Apella's release March 30, 2010. Following the chart will be a brief description of the details pertaining to the most recent four holes.

2010 DIAMOND DRILLING PROGRAM - IRON T
SIGNIFICANT ASSAY RESULTS
Composite assay results with interval value greater than 0.20% V2O5
(Average true width can be determined by multiplying the core length below by 0.59 )
As of April 6th, 2010
DDH NUM FROM (m) TO (m) LENGTH (m) FROM (ft) TO (ft) LENGTH (ft) Fe2O3 (%) TIO2 (%) V2O5 (%)
MA-10-20 19.81 47.22 19.00 64.99 154.92 62.34 35.81 6.46 0.50
Including 19.81 35.41 15.60 64.99 116.17 51.18 48.09 9.26 0.72
MA-10-20 102.45 114.00 11.55 336.12 374.01 37.89 17.31 2.25 0.18
MA-10-21 24.94 139.29 114.35 81.82 456.99 375.16 29.25 4.47 0.36
Including 27.44 55.69 28.25 90.03 182.71 92.68 35.36 4.37 0.37
MA-10-21 59.95 65.01 5.06 196.69 213.29 16.60 52.07 9.54 0.80
MA-10-21 65.01 97.01 32.00 213.29 318.27 104.99 18.38 2.53 0.19
MA-10-21 97.01 130.45 33.44 318.27 427.98 109.71 39.80 7.45 0.58
Including 97.01 104.25 28.28 318.27 342.03 92.78 52.14 10.62 0.82
MA-10-21 130.54 139.29 8.75 428.28 456.99 28.71 14.08 1.51 0.14
MA-10-22 30.46 36.98 6.52 99.93 121.33 21.39 16.55 2.33 0.15
MA-10-22 36.98 63.46 26.48 121.33 208.20 86.88 41.10 7.26 0.54
MA-10-23 26.46 40.21 13.75 86.81 131.92 45.11 18.85 2.65 0.16
MA-10-23 47.18 92.05 44.87 154.79 302.00 147.21 44.63 9.39 0.57
MA-10-23 105.50 114.50 9.00 346.13 375.66 29.53 24.02 3.67 0.31

Specific commentary on the semi-massive to massive intersects, from the new results is as follows:

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 19.00m. From 19.81m to 47.22m, the hole returned 35.81% Fe2O3, 6.46% TiO2 and 0.50% V2O5 including an impressive 15.60m (51.18 ft) of 48.09% Fe2O3, 9.26% TiO2 and 0.72% V2O5. Lower grade intersections were obtained from 47.22m to 89.34m, and from 102.45 to 114.00m which returned 17.31% Fe2O3, 2.25% TiO2 and 0.18% V2O5. Due to the excellent results obtained in the upper part of drill hole MA-10-20. Drill hole MA-10-22 was collared at about 20m north of drill hole MA-10-20.

Drill hole MA-10-21 was drilled to 144m in length and was collared at about 85m South of Hole MA-10-20 in order to intersect the very wide magnetic anomaly in that location. The hole successfully intersected an almost continuous mineralized zone from 24.94m to 139.29m with some impressive vanadium intersections. This wide intersection yielded a very encouraging 109.10 meters (357.94 ft) of 29.25% Fe2O3, 4.47% TiO2 and 0.36% V2O5.

This intersection included:

  • 28.25m (92.68 ft) from 27.44m to 55.69m, grading 35.36% Fe2O3, 4.37% TiO2 and 0.37% V2O5;
  • 5.06m (16.6 ft) from 59.95m to 65.01m grading 52.07% Fe2O3, 9.54% TiO2 and 0.80% V2O5;
  • 32.0m (104.99 ft) from 65.01m to 97.01m grading 18.38% Fe2O3, 2.53% TiO2 and 0.19% V2O5;
  • 33.44m (109.71 ft) from 97.01m to 130.45m grading 39.80% Fe2O3, 7.45% TiO2 and 0.58% V2O5; including 28.28m (92.78 ft) grading 52.14% Fe2O3, 10.62% TiO2 and 0.82% V2O5; and
  • 8.75m (28.71 ft) from 130.54m to 139.29m grading 14.08% Fe2O3, 1.51% TiO2 and 0.14% V2O5.
  • The highest Vanadium pentoxide value obtained in this hole is 1.12%. This value is shouldered by four V2O5 values higher than 0.87%.

Drill hole MA-10-22 was drilled to 69m in length and collared at about 25m north of hole MA-10-20 in order to verify at depth the extension of the very good intersection obtained close to the surface. From 30.46m to 36.98m the hole intersected disseminated to semi-massive layers of oxide. Assays returned 6.52m (21.39 ft) of 16.55% Fe2O3, 2.33% TiO2 and 0.15 V2O5. This intersection is followed from 36.98m to 63.46m by more massive layers yielding 26.48m (86.88) of high grade mineralization assaying 41.10% Fe2O3, 7.26% TiO2 and 0.54% V2O5. From 63.46m to the end of hole, disseminated mineralization was encountered. This hole needs to be revisited and extended to 145m.

Drill hole MA-10-23 was collared at the mid-distance between MA-10-20 and MA-10-19. At this location, the magnetic anomaly is weaker, due to a thicker overburden. This hole started at 26.46m with a low grade intersection which returned 13.75m (45.11 ft) of 18.85% Fe2O3, 2.65% TiO2 and 0.16% V2O5. From 47.18m to 92.05m, the hole returned 44.87m (147.21 ft) grading 44.63% Fe2O3, 9.39% TiO2 and 0.57% V2O5; including several samples of 1.25m (4.10 ft) in length higher than 0.70% V2O5. As well, 9.0m (29.53 ft) grading 24.02% Fe2O3, 3.67% TiO2 and 0.31% V2O5 was intersected between 105.50m and 114.50m down hole.

Drill hole MA-10-24 was collared at about 50m West of MA-09-10, on the western side to the mineral deposit. The hole has been ended at 48m in the overburden, and the area will be revisited and extended during the next program. This hole encourages Apella's geologists to test the weakest magnetic anomalies existing on the property.

The above results from Phase 2, clearly indicates that the mineralized zones extend to the East and are still open in both directions and at depth.

Results of the magnetometer survey carried out over the East and West extensions, simultaneous to the drilling, are anxiously awaited.

NOTE: The Company would also like to make note of a significant 6m (19.69 ft) intersection from drill Hole-10-17 that was not specifically highlighted in Apella's March 30th news release. This very high grade drill intersection yielded average grades of 83.58% Fe2O3, 18.46% TiO2, and 1.1425% V2O5.

Over the next week or so Apella will be posting to its website, 1) a chart outlining all of the most important drill hole intersections for the all of it drill holes on the Iron-T to date (Phase 1 and Phase2); a chart detailing all of the individual assays received to date; certain drill log diagrams and is considering providing some of the specific modeling as it is prepared.

The above drill intersects for the 4 holes are compiled from 226 core samples that were submitted with blanks to ALS-Chemex for assaying, a commercial laboratory with ISO 9001:2000 certification. All samples were assayed for major elements including total iron and titanium dioxide by lithium borate fusion to dissolve resistive minerals followed by X-Ray fluorescence spectrometry (ME-XRF06 package). Vanadium content was also determined by X-ray fluorescence using ore grade procedures (V-XRF10).

The QC/QA program implemented by the Apella's QP, was applied.

Dr. Christian Derosier, P. Geo, Consulting Geologist, is the Qualified Person responsible for the scientific and technical work for the program as defined under National Instrument 43-101 and has reviewed this press release.

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.

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

Patrick D. O'Brien – Chairman

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

"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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