|
Vancouver, BC - May 16, 2011
Apella Resources Inc. (TSX.V Exchange:
"APA"), (U.S.A. OTCQX Exchange: "APAFF"), and
(Frankfurt Exchange: "NWN") is pleased to announce that as
of May 10, 2011, Apella has successfully
completed the first 16 diamond drill holes (2,443 metres)
of its Phase 4 exploration/development program on its Iron-T
Vanadium-Iron-Titanium Project; located 10 km southeast of Matagami, Quebec. The Phase 4 diamond drilling
program is continuing according to schedule.
Twelve of the first sixteen holes completed
to date, totalling 1803 meters, are
considered development drill holes. They have been located on four
transversal sections across the main mineralized zone already
outlined by previous drilling. These new infill holes, drilled at 50m
intervals now connect several peripheral zones of mineralization, to Apella's main Genesis deposit on the Iron-T. The
peripheral zones of mineralization were not included in SGS's August,
2010 NI-43-101 resource estimate. It is anticipated, that with this
infill drilling Apella will meet its
objective of joining these additional zones to its main Genesis orebody and simultaneously increasing the tonnage
significantly. Apella's 2010 drill holes
into these peripheral zones returned significant grades and
intersects of mineralization. The four sections are covering the
eastern extension of the main Genesis deposit.
One hole of the current Phase 4 drill holes
(MA-11-57) has been set-up on the eastern end of another mineralized
zone referred to as "II Zone" which runs parallel to the
Genesis zone, about 50 m North. This hole also represents part of the
current, systematic development drilling, planned for the main
Genesis zone. It forms part of the overall objective of increasing
tonnage quickly and substantially, and bringing the Genesis deposit
to a measured and indicated status as soon as possible.
Another of the current drill holes
(MA-11-56), 150 m in length, was set-up on top of a hill coinciding
with a strong magnetic anomaly interpreted as the western extension
of the Main Deposit. On the slopes of this hill, several outcrops
discovered in 2010 by Apella, show
disseminated oxides. This hole is located about 1 km west of the
western most hole (MA-10-37) drilled by Apella
in 2010, a hole which confirmed the extension of the main deposit in
a NWN direction, exactly as anticipated by Apella.
All current drill holes bored to date have
shown alternations of the gabbro with
disseminated to massive layers of magnetic oxides, which Apella finds very encouraging. An interesting
fact is the observed disseminated oxide layers are much thicker than
the semi-massive to massive layers. This indicates that the
mineralization should provide significant thickness enhancing
compatibility for open pit mining.
The drilling has now been moved to the
western extension of the Iron-T Project in order to evaluate at depth
a 5 km long magnetic axis which was confirmed by the 2010 surface
magnetic survey. This magnetic axis is oriented NW exactly as also
detected in early airborne magnetic surveys flown between 1948 and
2007. Although these significant magnetic signatures were clearly
visible, this magnetic axis has never been drill tested or even
mapped until now. Six drill holes totalling
900 m in length are planned for the evaluation of the associated
magnetic layers. It is expected that these layers may add a
significant resource of Vanadium-Iron-Titanium mineralization to the
overall Iron-T Project. Achieving additional tonnage outside the main
deposit in the Genesis Zone will also demonstrate the consistency of
the mineralization at depth along the 22.5km strike length of the
Iron-T Project. Drill holes have been set-up at about 1000 m
intervals along this extension and drilling will continue for the
next two weeks.
In other news, all the 2009-2010 drill holes
have now been surveyed by the firm Corriveau
J.L. and Associates Inc. from Val d'Or, Quebec. Most of those holes
have also been verified for vertical and/or lateral deviations with a
gyro-sonde. This work has been carried out
as part of the new and revised resource calculations and NI-43-101
presently being completed by SGS-Geostat.
All drill core is
logged in Apella's core shack in Matagami, Quebec. Once logged, the intersections
retained for analysis are sawn, bagged and shipped to the ALS-Chemex laboratory in Val d'Or, Quebec for
processing. Blanks and standard samples are inserted in the batches
at random. Roger Moar, P.Geo
and QP is logging the core and supervising the field operations. Apella's 2011 Phase 4 program is being carried
out under the supervision and auspices of Apella's
Chief Geologist Dr. Christian Derosier, P.Geo and QP.
Apella Resources has completed three previous
drill programs, Phases 1, 2 and 3 on the Iron T Project. Based on
Phases 1 & 2 Apella has already
identified a minimum of 11.63 million tons of inferred tonnage. From
the results to date it is quite clear that the Iron-T Deposit is very
similar to other igneous-layered intrusion type deposits such as in
the Lac Dore and Bushveld complexes. Those
complexes currently host the two largest vanadium deposits in the
world.
One of the key competitive advantages
associated with Apella's Iron-T and Lac
Dore assets is their potential to host and produce significant
amounts of vanadium, iron, and titanium ore. This reduces the risk
associated with deposits of a single commodity type. It should allow
the operator to remain sustainable in less stable metal markets, as
opposed to being reliant on one single source of revenue, like
vanadium alone. In addition, there is further security in the fact
that all three of the commodities associated with Apella's
assets are primary targets (co-products). Thus, the supply of the
vanadium from Apella's assets would not
simply be a by-product susceptible to the rise and fall of primary
commodity being mined, such as vanadium presently being derived from
the uranium sector. This type of triple metal (specifically
vanadium-iron-titanium) deposit is an anomaly in itself within the
North American mining sector. Comparable world deposits that
are currently in production are situated in South Africa, Russia and
China; areas which are subject to geopolitical issues, power
interruptions, water shortages and labour
strife.
Apella Resources has set ambitious tonnage targets
for identifying economically mineable resources on its Iron-T and Lac
Dore Projects which it believes are attainable. Apella's
confidence is based on the airborne and ground geophysical data that
is now available and it's highly successful drill results to date. Apella's Iron-T and Lac Dore projects are
vertical structures, as opposed to the thin, flat-lying structure of
the world-leading Bushveld deposits in
South Africa. These vertical structures provide a significant
advantage over the world-leading Bushveld
complex; the ability to utilize the much cheaper open pit mining
process.
Apella will report on the upgraded resource
calculations and metallurgy for the Iron-T Project as soon as it
becomes available from SGS-Geostat.
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"
Patrick D. O'Brien, ICD.D - Chairman
S.E.C. Exemption 12(g) 3-2(b) File No.
82-3822, Standard & Poors Listed, Dun
& Bradstreet Listed.
"Neither the 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."
For more information please contact,
W. Adrian Bakker
Vice President of Corporate Communications
Apella
Resources Inc. APA - TSX-V
Suite 1600, The Bower Building
543 Granville Street
Vancouver,
BC V6C 1X8
Ph: 604-683-8990
Direct: 604-641-4474
|