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

Apella Resources Inc.

January 14, 2011 13:14 ET

Apella Resources Inc.: Iron-T Survey Increases Potential & Provides Numerous New Priority Drill Target Areas

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 14, 2011) - Apella Resources Inc. (TSX VENTURE:APA)(OTCQX:APAFF)(FRANKFURT:NWN) is pleased to announce that the company has received and interpreted the results of a GPS integrated ground magnetic field survey executed by Abitibi Geophysics Inc. from Val d'Or, Quebec, on Apella's Iron-T Vanadium-Iron-Titanium project near Matagami, Quebec. The objective of the survey was to assess the further potential for extensive Vanadium, Iron and Titanium mineralization; as well as aid in the lithological discrimination and structural mapping.

The magnetic survey was completed in November 2010. It covered the western part of the 3,995.57 ha Iron-T Project from Shallow Lake to the Bell River. The survey totaled 212 km of transversal lines, base lines and tie lines. This new survey covered about 50% of the total area of the Iron-T Vanadium-Iron-Titanium Project. The east-central and eastern parts of the Iron-T Project, which were the subject of Apella's 2009-2010 exploration drilling, had already been surveyed between 2007 and March 2010.

The entire Iron-T Vanadium-Iron-Titanium Project, consisting of 146 claims (totaling 3,995.57 hectares) has now been covered by ground magnetometic survey.

To date, the ground magnetic surveys carried out 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.

Apella's CEO Patrick D O'Brien, ICD.D comments, "We are further delighted by these new results as they relate to the potential the Iron-T provides. 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 identification of drillable anomalies spanning the NW-SE strike of the project is very compelling."

The recent ground magnetic survey was carried over lines at 100 metre spacings with readings taken every 2 seconds. The diurnal correction was made with a synchronized Mag base station. Observation of the Total Magnetic Intensity (TMI) was recorded and treated with Geosoft. Vertical gradient was calculated from the TMI.

From a detailed study of TMI and DT field maps, three new main zones have now been distinguished. Each zone exhibits a distinct magnetic character.

Zone #1: is referred to as the Shallow Lake area and located in the south-eastern part of the survey. This area is free from any specific anomalies of note, except in its southern portion where a NW-SE trending high magnetic lineament may represent a more recent intrusion or the flank of a fold.

Zone #2: shows a moderate magnetic signature. It covers an area in the central and the eastern part of the surveyed area. This zone could be related to layers of disseminated oxides of the Bell River Complex.

Zone #3: covers the central and western part of the survey. This zone is characterized by highly magnetic anomalies. The delineated anomalies show elongated and irregular shaped signatures. They are interpreted as iron formations.

Note: It is worth mentioning the presence of circular magnetic anomalies which could be related to a pipe-like intrusions.

Zone #3: contains two (2) highly prioritized target areas selected on the basis of their favourable magnetic signatures. Those two target areas contain ten (10) more specific targets recommended for drilling. Target #1 is significant in size, covering 3 km in length and up to 250 m in width. It contains several highly magnetic east-west oriented layers. In the south part of the surveyed area, Target # 2 presents a 4.3 km long highly magnetic layer which is oriented WNW-ESE. This lineament has a signature with amplitudes varying from 4000 to 6000 nT. It appears approximately 100 m in width. The western part of Zone # 2 shows high to strong magnetic anomalies showing amplitudes ranging from 6000 to 14000 nT. The three main magnetic axis are 1.5 km in length by 100 to 150 m in width and show some folding. They are very similar to the main zone which Apella drilled since 2009.

Early on, Apella's team had identified targetable areas over a strike length of approximately 15.5 kms. Due to the interpretation of the current 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.

The 10 drill targets now selected by the geophysicist will confirm the potential overall dimensional size of this world-class magmatic Fe-Ti-V oxide deposit.

Historically, the horizon hosting the Iron-T Project had been covered by both regional airborne magnetic and electromagnetic INPUT MK VI surveys conducted in 1977. Regional magnetic data over the Iron T Project was acquired at a nominal lines spacing of 200 metres and a nominal mean terrain clearance of 125 metres. In addition, the western half of the Iron-T Vanadium-Titanium-Iron property had been covered by a regional airborne gradiometric survey carried out in 1984. Magnetic data was acquired at a nominal lines spacing of 300 metres and a nominal mean terrain clearance of 150 metres. These airborne magnetic surveys outlined a broad magnetic anomaly up to 4000 nT above the background level and continuous in a WNW direction over the entire Iron-T Project claim assemblage.

The Iron-T Vanadium-Titanium-Iron Project 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.

Contact Information

  • Apella Resources Inc.
    W. Adrian Bakker
    Vice President of Corporate Communications
    Direct: 604-641-4474
    www.apellaresources.com