Apella Resources Inc.
TSX VENTURE : APA
FRANKFURT : NWN
OTCQX : APAFF

Apella Resources Inc.

December 06, 2010 11:18 ET

Apella Commissions Updated NI 43-101 Compliant Technical Report to Include a Revised Resource Estimate and Releases Additional Assay Results for Its Iron-T Vanadium-Iron-Titanium Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2010) - Apella Resources Inc. (TSX VENTURE:APA)(OTCQX:APAFF)(FRANKFURT:NWN) is pleased to announce that the Company has commissioned SGS-Geostat to prepare an updated NI 43-101-compliant technical report which will include and new resource estimation for the Company's Iron-T Vanadium-Iron-Titanium Project, at Matagami, Quebec. In addition the Company is pleased to report assay results related to earlier drill holes MA-10-11 and MA-10-20 which were extended and two new holes MA10-25 and MA-10-31.

The earlier NI-43-101-compliant report and resource calculation of 11.6 million tonnes presented to Apella by SGS-Geostat in August 2010 of 11.6 million did not include:

  • assay results from 15 additional drill holes
  • assay results from 2 extended drill holes
  • assay results from 85 channel samples taken from newly discovered zones

This updated NI 43-101-compliant technical report and resource estimate now commissioned will include the assay results obtained from the most recent 15 holes drilled since May 2010 and the 2 drill-hole extensions carried out on two holes from the earlier 2009-2010 drill programs. These new holes, coupled with the drill-hole extensions will add a total of 2,222 m (7,290 feet) of drill results to the new resource calculation. The 85 channel samples were derived in summer 2010 from the 3 newly discovered outcropping areas identified at the time of Apella's last diamond drilling.

Apella's Chairman, Patrick D. O'Brien, ICD.D comments: "These latest results will have a significant impact in our overall resource figures as we move the Iron-T forward. Coupled with the fact that ground geophysics have now just been completed over the entire western portion of the project we anticipate that all of the ground to the west of our previous drilling will amount to one very large drill target. We look forward to beginning the proposed 20,000 metres of definition drilling which will provide excellent potential to increase and upgrade the resource calculations for the Iron-T. The encouraging current and future expectations and predictions for the iron and vanadium markets are certainly compelling reasons to place the Iron-T project into high-gear."

About SGS-Geostat

SGS is the global leader and innovator in the specialties of inspection, verification, testing and certification services. Founded in 1878, SGS is recognized as the global benchmark in quality and integrity in business. SGS has decades of experience providing bankable analytical and metallurgical testing and consulting for a wide array of commodities globally. They can prepare, ship, and analyze essentially any matrix to assist in the discovery and definition of any ore deposit. With more than 59,000 employees, SGS operates a network of over 1,000 offices and laboratories around the world.

The New Results For The Extensions Of Drill Holes MA-10-11 and MA-10-20 Are As Follows:

MA-10-11 – EXTENDED HOLE RESULTS  
  FROM (m / ft) TO (m / ft) LENGTH (m / ft) Fe2O3% TiO2% V2O5% V2O5Eq
  150.49 / 493.73 188.44 / 618.24 37.95 / 124.51 27.85 6.69 0.42 0.76
  193.32 / 634.25 293.21 / 961.98 99.89 / 327.72 33.07 7.79 0.41 0.82
               
MA-10-20 – EXTENDED HOLE RESULTS  
  FROM (m/ft) TO (m/ft) LENGTH (m/ft) Fe2O3% TiO2% V2O5% V2O5Eq
  119.50 / 392.06 231.00 / 757.87 111.5 / 365.81 19.53 3.98 0.33 0.57
including 135.30 / 443.90 156.35 / 512.96 21.05 / 69.06 30.83 6.63 0.54 0.92
and including 208.65 / 684.55 216.91 / 711.65 8.26 / 27.10 29.07 7.18 0.60 0.96

The New Results For The Two Drill Holes MA-10-25 and MA-10-31 ARE AS Follows:

MA-10-25 DRILL HOLE – NEW RESULTS  
  FROM (m/ft) TO (m/ft)   LENGTH (m/ft) Fe2O3 % TiO2 % V2O5 % V2O5 Eq
  71.59 / 234.88 74.88 / 245.67   3.29 / 10.79 25.31 4.85 0.44 0.75
including 151.7 / 497.70 180.00 / 590.55   28.3 / 92.85 21.49 4.81 0.39 0.66
including 154.2 / 505.91 169.08 / 554.72   14.88 / 48.82 30.65 7.76 0.61 1.00
               
MA-10-31 NEW DRILL HOLE – NEW RESULTS  
  FROM (m/ft) TO (m/ft)   LENGTH (m/ft) Fe2O3 % TiO2 % V2O5 % V2O5 Eq
  8.52 / 27.95 29.65 /97.28   21.13 / 69.32 29.63 7.62 0.55 0.92
  85.94 / 281.96 95.83 / 314.40   9.89 / 32.45 29.55 5.66 0.45 0.81
  102.20 / 3335.30 119.53 / 392.16   17.33 / 56.86 19.56 4.19 0.35 0.59
  123.28 / 404.46 127.05 / 416.83   3.77 / 12.37 19.52 4.15 0.33 0.57
  159.10 / 521.98 162.32 / 532.55   3.22 / 10.56 17.79 4.14 0.33 0.55
               

The previously released results for the other thirteen drill holes that will now also be included in the new SGS-Geostat resource calculation are presented below:

HOLE From To Interval
Meterage
Interval
Footage
Fe2O3 % TiO2 % V2O5 % V2O5Eq
MA-10-26 49.22 m 50.47 m 1.25 m 4.10 feet 31.20 % 5.81 % 0.39 % 0.66
MA-10-26 76.89 m 80.64 m 3.75 m 12.30 feet 26.26 % 3.55 % 0.28 % 0.50
MA-10-27 42.00 m 48.50 m 6.50 m 21.33 feet 41.57 % 7.24 % 0.60 % 0.96
MA-10-27 54.75 m 58.50 m 3.75 m 12.30 feet 28.56 % 4.46 % 0.35 % 0.59
MA-10-27 68.36 m 69.27 m 0.91 m 2.99 feet 26.96 % 3.81 % 0.30 % 0.53
MA-10-27 85.00 m 86.00 m 1.00 m 3.28 feet 29.27 % 4.63 % 0.34 % 0.59
MA-10-27 108.5 m 109.75 m 1.25 m 4.10 feet 26.82 % 3.90 % 0.34 % 0.57
MA-10-27 123.75 m 125.00 m 1.25 m 4.10 feet 28.07 % 4.17 % 0.36 % 0.60
MA-10-28 91.60 m 95.00 m 3.40 m 11.15 feet 34.93 % 5.34 % 0.46 % 0.76
MA-10-28 112.86 m 127.00 m 14.14 m 46.39 feet 31.30 % 4.98 % 0.41 % 0.68
MA-10-28 148.17 m 160.67 m 12.50 m 41.00 feet 25.34 % 3.81 % 0.36 % 0.57
MA-10-29 77.95 m 86.55 m 8.60 m 28.22 feet 25.99 % 3.71% 0.30 % 0.52
MA-10-29 93.80 m 94.80 m 1.00 m 3.28 feet 35.38 % 6.69 % 0.54 % 0.85
MA-10-29 104.46 m 105.71 m 1.25 m 4.10 feet 30.15 % 4.89 % 0.41 % 0.67
MA-10-29 131.71 m 147.14 m 15.43 m 50.62 feet 55.13 % 9.54 % 0.80 % 1.28
MA-10-30 61.25 m 78.05 m 16.80 m 55.12 feet 43.55 % 6.77 % 0.54 % 0.92
MA-10-30 83.62 m 97.40 m 13.78 m 45.21 feet 30.74 % 5.31 % 0.37 % 0.64
MA-10-30 115.65 m 131.61 m 15.96 m 52.36 feet 39.31 % 6.20 % 0.47 % 0.81
including 123.15 m 131.61 m 8.46 m 27.76 feet 43.33 % 6.98 % 0.56 % 0.93
MA-10-30 139.03 m 158.42 m 19.39 m 63.61 feet 41.18 % 6.97 % 0.53 % 0.89
MA-10-30 167.17 m 171.00 m 3.83 m 12.57 feet 24.03 % 3.11 % 0.32 % 0.52
MA-10-32 20.75 m 37.00 m 16.25 m 53.31 feet 36.93 % 5.36 % 0.32 % 0.63
MA-10-32 38.63 m 41.87 m 3.24 m 10.63 feet 46.95 % 6.02 % 0.41 % 0.81
MA-10-32 50.11 m 52.22 m 2.22 m 7.28 feet 44.52 % 5.33 % 0.45 % 0.84
MA-10-32 56.22 m 83.86 m 27.64 m 90.68 feet 37.87 % 6.26 % 0.41 % 0.74
MA-10-33 54.44 m 59.44 m 5.00 m 16.40 feet 46.33 % 5.06 % 0.32 % 0.70
MA-10-33 63.19 m 70.46 m 7.27 m 23.85 feet 37.33 % 5.44 % 0.33 % 0.65
MA-10-33 72.52 m 81.03 m 8.51 m 27.92 feet 46.91 % 7.24 % 0.55 % 0.95
MA-10-33 83.53 m 84.78 m 1.25 m 4.10 feet 26.53 % 3.85 % 0.30 % 0.53
MA-10-33 90.56 m 101.15 m 10.59 m 34.74 feet 30.94 % 4.71 % 0.33 % 0.60
MA-10-33 105.44 m 116.43 m 10.99 m 36.06 feet 28.33 % 4.11 % 0.30 % 0.55
including 90.56 m 116.43 m 25.87 m 84.55 feet 27.91 % 4.06 % 0.30 % 0.54
MA-10-35 54.02 m 56.52 m 2.50 m 8.20 feet 34.18 % 3.62 % 0.37 % 0.66
MA-10-35 60.31 m 66.46 m 6.15 m 20.18 feet 37.36 % 4.65 % 0.52 % 0.83
MA-10-36 37.03 m 41.73 m 4.70 m 15.42 feet 28.83 % 6.17 % 0.41 % 0.67
MA-10-36 75.99 m 111.0 m 35.1 m 115.16 feet 36.76 % 4.80 % 0.38 % 0.69
MA-10-37 60.75 m 61.90 m 1.15 m 3.77 feet 41.69 % 6.72 % 0.43 % 0.79
MA-10-37 69.69 m 70.94 m 2.54 m 8.33 feet 23.93 % 3.78 % 0.29 % 0.49
MA-10-37 77.19 m 99.17 m 21.98 m 72.11 feet 33.92 % 4.49 % 0.34 % 0.63
MA-10-38 7.05 m 8.13 m 1.08 m 3.54 feet 40.15 % 4.95 % 0.27 % 0.82
MA-10-38 29.60 m 30.85 m 0.36 m 1.18 feet 33.13 % 4.25 % 0.20 % 0.64
MA-10-38 62.25 m 63.25 m 1.00 m 3.28 feet 26.62 % 3.69 % 0.30 % 0.53
MA-10-39 69.55 m 72.88 m 3.33 m 10.93 feet 52.22 % 8.14 % 0.94 % 1.39
                 

Additional Trenching Results – To be included in the new resource calculation are as follows:

85 channel sample results outlined from the 3 new discovery zones will also be taken into consideration in the new report and resource calculation.

In July 2010, Apella stripped, washed, mapped and channel sampled three freshly discovered V-Fe-Ti occurrences it had identified on the Iron-T. The three stripped areas are referred to as T-1, T-2 and T-3 and reviewed below in reverse order. All of grades obtained as outlined below in Tables A & C from the discovery zones T-1 and T-3 exceed the conservative breakeven criteria of 0.48% V2O5 Eq as outlined in the recent SGS-Geostat Report. Samples reported below from the T-3 discovery zone exceeded the breakeven of 0.48% V2O5 Eq by a considerable margin ranging from 62.5% to 133%.

Discovery Zone T-3: corresponds to a mineralized outcrop discovered while carrying out the last drilling programme. This highly mineralized outcrop is located 25 m (82 feet) north of Apella drill hole MA-10-15. The showing clearly displays numerous semi-massive to massive oxide layers (20-40 cm thick), and corresponds to a high magnetic anomaly Apella refers to as the II Zone. The extensive T-3 stripping is 35 m (115 feet) long by 20 m (65.62 feet) wide. Semi-massive to massive oxide layers have been observed and sampled. Because of the rounded nature of the outcrops, with their steep slopes due to the presence of strong fractures, the channel sampling has been made on short lengths. A total of four channels were sawn covering a total length of 23.75 m (78 feet). At this location, channel samples are 1.50 m (5 feet) long. Results obtained are as follows:

TABLE A:  
STRIPPING SAMPLE LENGTH METRES LENGTH FEET Fe2O3% TiO2% V2O5% V2O5Eq %
T-3A 11.75 38.55 41.64 % 7.73 % 0.42 % 0.78 %
T-3B 4.50 14.76 53.51 % 8.85 % 0.65 % 1.12 %
T-3C 3.00 9.00 46.47 % 9.24 % 0.51 % 0.92 %
T-3D 4.50 14.76 51.81 % 10.32 % 0.54 % 1.00 %

Discovery Zone T-2: stripping corresponds to mineralization discovered by prospecting during the last drilling campaign. At the time, a grab sample was taken in a massive oxide layer and assayed (see Apella's Press Release of Thursday June 17, 2010). It returned 46.48% Fe2O3, 8.14% TiO2 and 0.64% V2O5. The T2 stripping is 60 m (196.85 feet) by 15 m (50 feet) wide. A total of 32 channel samples, each 1.25 m (4.10 feet) long, were taken, covering a length of 40 m (131 feet). Results are as follows:

TABLE B:  
STRIPPING CHANNEL LENGTH METRES LENGTH FEET Fe2O3% TiO2% V2O5% V2O5Eq %
T-2A 3.75 12.30 27.07 % 3.80 % 0.20 % 0.43 %
T-2B 36.55 120.0 25.22 % 3.66 % 0.20 % 0.41 %

Even though the initial channel sample results obtained show that the T-2 stripping crosses a low grade zone with thin massive oxide layers these results justify a verification of the grade at depth by one or two drill holes.

Discovery Zone T-1: is the widest and most extensively stripped area of the three discovery zones. The stripping on T-1 identified outcropping over an area about 100 m (328 feet) long by 30 m (98.40 feet) wide. It crosses a strong magnetic anomaly. Observed mineralization corresponds from disseminated through to narrow massive oxide layers. Six channels have been sawn and a total of 40 channel samples were taken for analysis. Each channel sample is 1.25 m long (4.10 feet). Total sampled length is 60 m (197 feet). Results are as follows:

TABLE C:  
STRIPPING CHANNEL LENGTH METRES LENGTH FEET Fe2O3% TiO2% V2O5% V2O5Eq %
T-1A 5.00 16.40 32.48 % 5.43 % 0.30 % 0.59 %
T-1B 2.50 8.20 28.21 % 4.53 % 0.24 % 0.49 %
T-1C 11.50 37.73 33.36 % 5.08 % 0.34 % 0.63 %
T-1D 20.00 65.52 31.73 % 5.28 % 0.26 % 0.53 %
T-1E 7.50 24.61 29.85 % 4.67 % 0.24 % 0.50 %
T-1F 3.75 12.30 30.70 % 5.07 % 0.26 % 0.52 %

Apella believes that there is good potential to expand the mineral resource at Iron-T significantly with drilling along strike and at depth.

The Iron-T Vanadium-Iron-Titanium Project currently consists of 146 claims totaling 3,995.57 Ha covering one continuous block of claims straddling Lozeau, Comporte and Isle Dieu townships, Quebec, Canada. The central part of the claims is located 10 km ESE of the town of Matagami. The property is accessible via an all-weather gravel road N805. The Iron-T Vanadium-Iron-Titanium project is not subject to any environmental liabilities. Apella has a 100% interest in all of the Iron-T mineral claims.

Apella has a considerable competitive advantage over other such projects globally because:

  • All 3 of it high-grade Vanadium-Iron-Titanium are located in the Province of Quebec, Canada - the most favoured mineral exploration and mining locale on the planet. Apella is not subject to the implications and complications of dealing in global areas of unstable and unpredictable political climates as a number of its competitors are.
  • Quebec provides Apella with a cash refund of approximately 36% of every dollar spend on exploration in the province, something unmatched world-wide.
  • The existing resource Apella has identified to date on its Iron-T Project occupies only a small footprint of the overall property and magnetic signature obvious from air and ground surveys carried out to date.
  • All the necessary infrastructure including accommodation, transportation (by rail and road), power, water etc. are all within a few km of each of Apella's three projects.
  • The Company believes its Iron-T, Lac Dore, and Lac Dore North Vanadium-Iron-Titanium projects have a significant advantage over other potential primary vanadium producers globally because Apella's high-quality mineral bodies not only provide excellent vanadium grades but also exceptional iron and titanium credits which would collectively provide considerable operating credits to an operations bottom line. This is an opportunity lacking from nearly all of the up and coming competitive deposits worldwide.
  • Particularly advantageous to Apella is the fact that to date Apella has managed to advance its three Canadian Vanadium-Iron-Titanium projects without the need to short-sell its future profit potential by prematurely entering into highly dilutive joint-ventures or alternatively entering into unfavourable premature off-take agreements whereby future production might have been sold and committed at pricing far short of future potential.
  • Apella has not allowed itself to jeopardize its control position of these valuable assets by entering in any form of dilutive financing and bridge loan arrangements as some of its competitors have been compelled to do.
  • Apella has managed to retain a 100% interest in all of its projects and the associated ore and is now able to capitalize on higher anticipated V2O5 and iron prices.

This press release has been reviewed by Dr. Christian Derosier, P. Geo., Consulting Geologist and Qualified Person for the Iron-T project under National Instrument 43-101.

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

Patrick D. O'Brien, ICD.D – Chairman

SEC Exemption 12(g)3-2(b) File no. 82-3822, Standard & Poors Listed, Dun & Bradstreet Listed

Neither 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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