Apella Resources Inc.
TSX VENTURE : APA
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Apella Resources Inc.

March 07, 2011 14:00 ET

Apella Resources Inc.: Drill Rig Returns to Iron-T Vanadium-Iron-Titanium Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2011) - Apella Resources Inc. (TSX VENTURE:APA)(OTCQX:APAFF)(FRANKFURT:NWN) is pleased to announce that the company approved the next phase of diamond drilling to commence in March 2011, on its 146 claim, 3,995.97 ha Iron-T Vanadium-Iron-Titanium Deposit situated near Matagami, Quebec.

This latest phase of diamond drilling will include approximately 2,300 metres, comprised of an expected 23 holes at a length of 100m each. Apella will perform in-fill drilling in the area it has already outlined and inferred 11.6 million tonnes of mineralization. In addition a number of step-out holes targeted at the western extension of the overall geophysical anomalies will be drilled. The 10 drill targets selected by the geophysicist will confirm the potential overall dimensional size of this world-class magmatic Fe-Ti-V oxide deposit. The Iron-T is ideally situated in the ore-rich Bell River complex where the close proximity to rail and power will prove important.

The company's recent 212 km GPS integrated ground magnetic field survey, along 100m centres, identified an array of extensive Vanadium, Iron and Titanium drill targets reaching to the western extension boundary area of the Iron-T. This new survey covered about 50% of the total area of the Iron-T Vanadium-Iron-Titanium Deposit. The east-central and eastern parts of the Iron-T Deposit, which were the subject of Apella's 2009-2010 exploration drilling, had already been surveyed between 2007 and March 2010. To date, the ground magnetic surveys carried out covering the entire property have shown a direct relationship with the Vanadium, Iron, and Titanium mineralization, and most importantly, more precise locationing of the anomalies and more accurate shapes of the anomalies. The identification of drillable anomalies spanning the NW-SE strike of the project is very compelling.

Early on, Apella's team had identified targetable areas over a strike length of approximately 15.5 kms. Due to the interpretation of the recent surveying, and past data, Apella is now confident that the targetable anomalies can now be extended to cover a strike of more than 22 kms, when including both the earlier identified 15.5 kms of the WNW to SSE strike and the new NNW to SSE derivative anomaly previously not included.

Apella's CEO Patrick D O'Brien, ICD.D comments, "Our team's efforts to date on the Iron-T have been highly successful. Apella's updated NI 43-101 which includes the Company's last 15 holes of drilling, trench sampling, metallurgy and the latest tonnage estimate is currently being completed by SGS-Geostat and anticipated to be released prior to the completion of this next phase of drilling. We are delighted with the potential the Iron-T is exhibiting."

Apella's earlier NI-43-101-compliant report and resource calculation of 11.6 million tonnes was presented to Apella by SGS-Geostat in August 2010. The inferred 11.6 million resource described in that report 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 newly updated NI 43-101-compliant technical report, metallurgy and resource estimate now being completed by SGS-Geostat will include the assay results obtained from Apella's most recent 15 holes drilled in 2010 and the 2 drill-hole extensions carried out in 2010 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 be completed. There are also 85 channel samples which were derived in summer 2010 from the 3 newly discovered outcropping areas identified at the time of Apella's last diamond drilling.

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 TO LENGTH       V2O5
  (m/ft) (m/ft) (m/ft) Fe2O3% TiO2% V2O5% Eq
  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 TO LENGTH       V2O5
  (m/ft) (m/ft) (m/ft) Fe2O3% TiO2% V2O5% Eq
  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 TO LENGTH       V2O5
  (m/ft) (m/ft) (m/ft) Fe2O3% TiO2% 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 TO LENGTH       V2O5
  (m/ft) (m/ft) (m/ft) Fe2O3% TiO2% 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:

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

The Iron-T Vanadium-Titanium-Iron Deposit is ideally located in the Matagami area in the west-central part of the Province of Quebec, Canada, approximately 780 km north of Montreal. Matagami, situated in the administrative region of Northern Quebec, is the major town in the area and can provides housing, servicing, supplies, consumable and transport facilities including railway access for an efficient mining operation. The property is accessible via Matagami located approximately 780 km of Montreal, 250 km from Val d'Or and 185 km from Amos along regional highways. Matagami is accessible via Regional Highway 109 which links Amos to the Bay James Highway. The central part of the Iron-T Vanadium-Titanium-Iron property is located 10 km ESE of the town of Matagami. Access to the property itself is via all-weather gravel road N805 which links Lebel-sur-Quévillon to Matagami.

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.

Additional information is contained on the Company's website at www.apellaresources.com.

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

Patrick D. O'Brien, ICD.D – Director

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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