Apella Resources Inc.
TSX VENTURE : APA
FRANKFURT : NWN

Apella Resources Inc.

July 07, 2010 15:08 ET

Apella Resources Inc.: Drilling Extends Depth of Vanadium-Iron-Titanium Mineralization at Iron-T by 143 Metres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2010) - Apella Resources Inc. (TSX VENTURE:APA)(FRANKFURT:NWN) and its Board of Directors are pleased to announce that highly significant disseminated, semi massive and massive vanadiferous mineralization has been intersected in two more drill holes during the third round of drilling on its Iron-T Vanadium-Iron-Titanium project near Matagami, Quebec. Positive assay results from the two additional drill holes have been received and highlights include 99.89 metres (327.7 feet) of 0.41% Vanadium Pentoxide (V2O5), 47.28% Iron Oxide (Fe2O3) and 7.79% Titanium Dioxide (TiO2). One hole previously drilled during the Company's first drilling program was extended to 306 metres (1003 feet) in order to determine the depth of mineralization. As anticipated, this extension intersected two additional thick layers of mineralization at depth. The second hole confirmed the presence of significant vanadiferous mineralization 50 metres north of previously known mineralization. These 2 successful drill holes will contribute to significantly increase the size of the mineral resource. Drilling to date has so far been contained to a small area of approximately 1 – 1.5 kilometres along strike of the perceived 10.5 kilometre (6.5 miles) mineralized strike length. No infill drilling has been undertaken to date but is intended to be part of the next phase of drilling.

Highlights from these two holes include:

Extension of Hole MA-09-11  

  • 99.89 metres (327.7 feet) of 0.41% Vanadium Pentoxide (V2O5), 47.28% Iron Oxide (Fe2O3) and 7.79% Titanium Dioxide (TiO2)
  • 37.95 metres (124.51 feet) of 0.42% Vanadium Pentoxide, 39.82% Iron Oxide and 6.69% Titanium Dioxide

Hole MA 10-31

  • 3.75 metres (12.3 feet) of 0.33% Vanadium Pentoxide, 27.90% Iron Oxide and 4.15% Titanium Dioxide
  • 3.22 metres (10.5 feet) of 0.33% Vanadium Pentoxide, 25.43% Iron Oxide and 4.14% Titanium Dioxide

Extension of Hole MA-09-11

Hole MA-09-11, originally drilled during the first drilling program, intersected two mineralized layers between 14.90 metres and 150.49 metres. This hole was extended to 306 metres and two thick additional layers were discovered. Results from the initial drill hole and the follow-up extension confirm the existence of vanadiferous mineralization to a depth of 293.21 metres as follows:

  From To Length V2O5 Fe2O3 TiO2 Comments
Initial
Results
14.90 m 51.38 m 36.48 m
119.7 ft
0.33% 32.99% 4.96% Including14.82 m
(48.62 feet) at
0.41% V2O5
39.94% Fe2O3
6.15 % TiO2
116.41 m 150.49 m 34.08 m
111.8 ft
0.38% 35.33 % 5.69% Including 28.10 m
(92.19 feet) at
0.41% V2O5
36.81% Fe2O3
6.13% TiO2
New
Extension
150.49 m 188.44 m 37.95 m
124.51 ft
0.42% 39.82% 6.69%  
193.32 m 293.21 m 99.89 m
327.7 ft
0.41% 47.28% 7.79% Including 54.69 m (179.40 feet) at
0.49%
V2O5
52.21% Fe2O3
9.58% TiO2

Hole MA-10-31

Hole MA-10-31 was collared on the same section than MA-10-17 and at 50 metres to the north. It was drilled to a depth of 177 metres and intersected multiple semi-massive oxide layers. Highlights from this hole include the following:

From To Length V2O5 Fe2O3 TiO2
123.18 m 128.28 m 3.75 m
12.3 ft
0.33% 27.90% 4.15%
159.10 m 162.32 m 3.22 m
10.5 ft
0.33% 25.43% 4.14%

Additional Results

Results of the other 11 drill holes conducted during the third round of drilling are forthcoming and will be released upon receipt by the Company.

Resource Calculation

SGS Geostat is continuing their report associated with the first mineral resource calculation for the Iron-T Project. Apella expects to release the findings of the resource calculation soon. The resource calculation will be based only on the drilling completed prior to the most recent 15 hold drill program just completed. The current 15 drill hole program is not calculated into the SGS report but will contribute significantly to future and follow up resource calculations.

Current Program

The geological team has now initiated stripping of two newly discovered surface showings to the north of recent drilling by the Company. These outcrops are currently being be mapped and sampled and the Company expects to report its findings in the next week or two.

The 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

Apella Resources invites the public to visit its website at 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 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.

Contact Information