Apella Resources Inc.
TSX VENTURE : APA
FRANKFURT : NWN

Apella Resources Inc.

July 01, 2009 09:30 ET

Apella Resources Inc.: Drilling to Commence on Lac Dore North Iron-Vanadium-Titanium (Fe-V2O5-Ti) Project, Chibougamau, Quebec

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 1, 2009) - Apella Resources Inc. (TSX VENTURE:APA)(FRANKFURT:NWN) and its Board of Directors are pleased to announce that Phase 2 of its 2009 exploration work has commenced on its Lac Dore North Iron-Vanadium-Titanium (Fe-V-Ti) Project. Apella's crews have now completed all of the necessary access road building and improvements that were necessary for access. Drill contracts have been signed and the initial 10-hole NQ-core drill program will commence on July 4th.

The Lac Dore North encompasses 18 claims covering an area of approximately 300 hectares (741 acres), covering the northeast extension of the renowned Lac Dore Vanadium-Titanium-Iron (Fe-V-Ti) Deposit, over a strike length of 2.6 kilometers (1.6 miles). The nearby, 5.5 billion pound Lac Dore (Fe-V-Ti) deposit, is reported to be the world's second largest vanadium deposit.

Crews are also on site completing the Phase 1 work which Apella announced on June 19th. The 10-hole drill program will be coupled with a comprehensive mapping program.

Readers are referred to Apella press release of January 22, 2009 in which Apella reported its exceptional Iron-Vanadium-Titanium (Fe-V2O5-TiO2) results obtained from its extensive clearing and channel sampling program carried out in the area about to be drilled. Vanadium values obtained ranged from 0.05% to 0.610%, which after conversion to V205, returned values from 0.089% to 1.089%. The average grade of Vanadium Pentoxide (V205) is 0.55% V2O5. Titanium (Ti02) values range from 1.33% to 12.30%; the average grade of Titanium (Ti02) is 6.40% Ti02. Iron (Fe) values range from 13.23% to 56.50% Fe; the average grade of Iron (Fe) is 32.81% Fe.

During that fall 2008 exploration program, Apella's field crew stripped and cleared off two large areas, covering several hundred square meters of magnetite-bearing mineralization, as well as four smaller zones. The stripped areas cover part of the P1 Zone which is found at the base of the Layered Series of the Lac Dore Anorthositic Complex. Normally this zone varies from 30 to 90 meters in thickness. It is the only zone which contains economic values of Vanadium. The P1 Zone is made of an alternation of leucocratic ferrogabbro, magnetite rich ferrogabbro, ferropyroxennite, magnetite rich pyroxenite and magnetites. The channel sampling cut part of this alternation like a horizontal drill hole. It is consequently normal to obtain samples presenting rich and low Vanadium contents.

For ease of reference, the samples obtained by Apella in its fall 2008 channel sampling program are listed in the table below:



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Trench Number Sample ID Fe % V % V2O5 % TiO2 %
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V1-1 825431 30.60 0.387 0.691 7.42
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V1-2 825432 39.90 0.409 0.730 10.20
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V1-3 825433 37.20 0.401 0.716 8.58
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V1-4 825434 30.20 0.337 0.602 6.94
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V1-5 825435 31.20 0.341 0.609 7.07
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V1-6 825436 45.00 0.503 0.898 10.25
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V2-1 825437 53.40 0.610 1.089 12.30
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V2-2 825438 45.90 0.521 0.930 10.35
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V2-3 825439 48.60 0.544 0.971 11.05
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V2-4 825440 50.30 0.565 1.009 11.65
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V2-5 825441 36.60 0.400 0.714 8.43
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V2-6 825442 45.50 0.517 0.923 10.75
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V3-1 825443 24.10 0.178 0.318 4.26
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V3-2 825444 17.05 0.164 0.293 3.49
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V3-3 825445 29.40 0.324 0.578 6.42
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V3-4 825446 34.80 0.393 0.702 7.72
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V3-5 825447 28.60 0.321 0.573 6.17
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V4-1 825448 35.60 0.390 0.696 7.40
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V4-2 825449 32.50 0.357 0.637 6.93
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V4-3 825450 26.20 0.257 0.459 5.15
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V5-1 825451 29.20 0.319 0.569 6.32
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V6-1 825452 34.30 0.385 0.687 7.80
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V6-2 825453 39.50 0.447 0.798 8.86
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V6-3 825454 46.60 0.543 0.969 10.70
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V6-4 825455 19.05 0.193 0.345 3.97
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V6-5 825456 22.00 0.214 0.382 4.60
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V7-1 825457 46.80 0.536 0.957 10.25
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V8-1 825458 23.90 0.242 0.432 4.97
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V8-2 825459 17.20 0.155 0.277 3.18
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V8-3 825460 17.50 0.168 0.300 3.36
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V8-4 825461 13.75 0.128 0.228 2.77
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V9-1 825462 40.50 0.437 0.780 8.51
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V9-2 825463 36.90 0.395 0.705 7.81
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V6-0 825464 13.24 0.070 0.125 1.93
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V6-6 825465 34.42 0.270 0.482 5.80
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V6-7 825466 29.61 0.220 0.393 5.03
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V6-8 825467 30.77 0.160 0.286 3.62
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V6-9 825468 30.21 0.190 0.339 4.09
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V6-10 825469 13.72 0.050 0.089 1.33
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V6-11 825470 15.96 0.090 0.161 2.36
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V6-12 825471 30.00 0.230 0.411 5.00
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V6-13 825472 13.63 0.070 0.125 1.83
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V6-14 825473 19.45 0.110 0.196 2.71
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V6-15 825474 32.15 0.240 0.428 5.39
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V6-16 825475 27.09 0.180 0.321 4.28
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V6-17 825476 24.31 0.160 0.286 3.98
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V6-18 825477 27.26 0.190 0.339 4.47
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V6-19 825478 52.10 0.430 0.768 8.91
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V6-20 825479 49.01 0.430 0.768 8.75
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V6-21 825480 28.00 0.220 0.393 4.64
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V6-22 825481 43.41 0.340 0.607 7.09
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V6-23 825482 53.26 0.440 0.785 9.19
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V6-24 825483 25.40 0.180 0.321 3.94
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V6-25 825484 31.70 0.260 0.464 5.59
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V6-26 825485 27.13 0.200 0.357 4.58
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V10-1 825486 33.09 0.270 0.482 5.84
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V10-2 825487 39.95 0.280 0.500 5.98
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V10-3 825488 56.50 0.440 0.785 9.19
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V10-4 825489 56.20 0.450 0.803 9.25
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V10-5 825490 21.17 0.140 0.250 3.35
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The samples above were analyzed by ALS-Chemex laboratories in Val d'Or, Quebec and in Perth, Australia, using two different methods. The first method is aimed at Iron ore. It consists of a fusion followed by X-Ray fluorescence spectrometry (ME-XRF-11). The accuracy for Vanadium is 0.001%. However, shipping the samples to Australia required a long quarantine period which does not allow for results prior to a three month time period. Consequently, the Company requested that the laboratory propose a method of assaying providing almost the same results but with a much shorter waiting period. The second batch of samples were treated by fusion (lithium metaborate) followed by X-Ray fluorescence (ME-XRF-06). Results were obtained within three weeks using this method.

The qualified person for the purposes of this news release is Dr. Christian G. Derosier, P.Geo.

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

This news release shall not constituite an offer to sell or the solicitation of an offer to buy securities in any jurisdiction. "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward looking statements that are not historical facts and are subject to risks and uncertainties which could cause actual results to differ materially from those set forth in or implied herein.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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