Iron-T 43-101 Report - Drill Program Proposed
Wednesday, 21 January 2009 06:30
Apella Resources Inc. (TSX.V Symbol - APA); (Frankfurt Symbol - NWN), and its Board of Directors are pleased to announce that the Company has completed and filed on SEDAR, a National Instrument 43-101 Report on the Audet-Optioned portion of its Iron-T Vanadium/Titanium/Iron project. The Iron-T Vanadium-Titanium-Iron property is located in the Matagami area in the west-central part of the Province of Quebec, Canada, approximately 780 km north of Montreal.
The property currently consists of 27 designated claim cells totaling 1,485 Ha and covering one block of contiguous claims among Lozeau and Comporté townships. An additional 94 staked claims were also applied for in 2008 and remain subject to a processing period before approval. The following paragraphs contain key excerpts from the NI43-101 Report. The report can be read in its entirety on SEDAR.Key points pertaining to the similarities between Iron-T and world-class magmatic Fe-Ti-V oxide deposits:
"Based on an examination of vanadium grade assays obtained from channel sampling on mineralized oxide zones by Apella, magnetite-bearing horizons with at least 33.6% Fe2O3 could return an average economical grade of 0.50% V2O5 which represents the typical grade of vanadium deposit."
"Geological setting and mineralization encountered on the Iron-T Vanadium-Titanium-Iron property located in the Bell River Complex indicates many similarities with typical world-class magmatic Fe-Ti-V oxide deposits associated with a layered intrusive complex. Most of these deposits are associated with mafic-ultramafic layered complexes such as the Lake Doré Complex in Chibougamau, Quebec; the Windimurra Complex in Australia; the Panzhihua layered intrusion in China and the Bushveld Complex in South Africa."
"The 6.5 km thick sequence of the Bushveld complex is the largest layered mafic intrusion in South Africa. About 39.5% of total world vanadium production (55 700 t in 2006 (USGS, 2006)) comes from the Bushveld Complex. The Fe-Ti-V oxide ores form concordant layers varying from 0.1 to 10 m in thickness within the Upper Zone but most of these layers are relatively thin and less than 30 cm in thickness. The lower contact of individual layers with their footwall is usually sharp. The upper contacts of individual layers are often gradational and show a gradual decrease of oxide content in the rock. Furthermore, oxide-rich layers are rarely composed entirely of Fe-Ti oxide and some layers or portion of layers may be composed of a fair amount of silicates.
"The economically important Main Magnetite Layer varies from 1.0 to 2.5 m in thickness and covers a strike length of 200 km in the western Bushveld Complex and 120 km in the Eastern Bushveld Complex (Reynolds, 1985). The Rhovan mine of Xstrata Alloys is a primary vanadium producer situated within the Western Lobe of the Bushveld Complex. The mine is located some 35 km ENE of Rustenburg, South Africa. The vanadium mineral resource and ore reserve of Rhovan mine reported by Xstrata Alloys as of September 2007 (Xstrata Alloys, 2008) are:
Proved Ore Reserves - 39.2 Mt @ 0.51% V2O5
Probable Ore Reserves - 10.5 Mt @ 0.53% V2O5
Measured Mineral Resources - 64.4 Mt @ 0.51% V2O5
Indicated Mineral Resources - 13.7 Mt @ 0.53% V2O5
Inferred Mineral Resources - 124.9 Mt @ 0.51% V2O5"
"The Lake Doré Complex is a Bushveld-type Archean layered mafic intrusion (Allard, 1976) located some 250 km due east of Matagami in the Chibougamau mining camp. The Lake Doré Complex is the most advanced project and the largest vanadium deposit in North America. It shows a geological setting and vanadiferous mineralization similar to the Bell River Complex. The Lake Doré Complex is 5 to 7 km in thickness and has been subdivided into three main units from base to top: The Lower Serie including the Anorthosite Zone; the Layered Serie; and the Upper Serie which includes the Granophyre and the Border Zone (Daigneault and Allard, 1990). The mineralized zones form a 50 to 200 m thick sequence within the Layered Serie. The sequence comprises ferrogabbro, ferropyroxenite and magnetite and hosts the highest grades of vanadium mineralization. Mineralized oxide horizons are also characterized by heterogeneous and rhythmic distribution within the Layered Serie (Taner, Ercit and Gault, 1998) and a gradual upward decrease of vanadium content and gradual upward increase of ilmenite (Daigneault and Allard, 1990). The magnetite horizons vary from 50 to 200 m in thickness and extend for 16 km along strike as inferred from airborne magnetic data. The Lake Doré Vanadium deposit is estimated to 100.0 Mt grading 0.49% V2O5 including 32.2 Mt of measured resources at 0.65% V2O5 (Girard and Allard, 1998)."
"Three lithological units have been distinguished within the Iron-T Vanadium-Titanium-Iron property."
Vanadium grades listed above from the Rhovan Mine in the Bushveld Complex, South Africa by the 43-101 author should be carefully noted and compared for their similarities to those assays reported by Apella Resources Inc. in its October 30, 2008 press release for samples recently taken from trench samples on the Iron-T Vanadium-Titanium-Iron Project. Apella's recently released Iron-T assays are listed below for ease of reference.
| Sample Number | Fe% | P% | S% | TiO2% | V% | V2O5% |
|---|---|---|---|---|---|---|
| 224925 | 39.60 | <0.001 | 0.581 | 9.96 | 0.330 | 0.589 |
| 224926 | 43.30 | <0.001 | 0.198 | 11.45 | 0.370 | 0.660 |
| 825401 | 11.45 | 0.007 | 0.425 | 1.86 | 0.077 | 0.137 |
| 825402 | 8.87 | 0.012 | 0.287 | 1.39 | 0.053 | 0.095 |
| 825403 | 24.70 | <0.001 | 0.626 | 5.50 | 0.203 | 0.362 |
| 825404 | 39.00 | <0.001 | 0.245 | 10.15 | 0.378 | 0.675 |
| 825405 | 27.10 | 0.001 | 0.511 | 5.75 | 0.208 | 0.371 |
| 825406 | 32.80 | <0.001 | 0.503 | 7.42 | 0.251 | 0.448 |
| 825407 | 37.60 | <0.001 | 0.525 | 9.30 | 0.300 | 0.536 |
| 825408 | 39.20 | <0.001 | 0.572 | 9.79 | 0.317 | 0.566 |
| 825409 | 31.90 | 0.001 | 0.941 | 7.01 | 0.222 | 0.396 |
| 825410 | 22.30 | 0.001 | 0.309 | 4.93 | 0.180 | 0.321 |
| 825411 | 32.70 | <0.001 | 0.432 | 8.15 | 0.290 | 0.518 |
| 825412 | 36.10 | <0.001 | 0.183 | 9.24 | 0.331 | 0.591 |
| 825413 | 36.00 | <0.001 | 0.716 | 8.65 | 0.309 | 0.552 |
| 825414 | 38.20 | 0.002 | 0.595 | 9.36 | 0.323 | 0.577 |
| 825415 | 41.20 | <0.001 | 0.566 | 10.65 | 0.340 | 0.607 |
| 825416 | 43.60 | <0.001 | 0.392 | 11.50 | 0.365 | 0.652 |
| 825417 | 32.30 | 0.001 | 0.544 | 7.40 | 0.241 | 0.430 |
| 825418 | 27.20 | <0.001 | 0.127 | 6.76 | 0.239 | 0.427 |
| 825419 | 47.10 | <0.001 | 0.279 | 12.90 | 0.459 | 0.819 |
| 825420 | 26.70 | <0.001 | 0.250 | 6.00 | 0.221 | 0.394 |
| 825421 | 35.90 | <0.001 | 0.552 | 8.70 | 0.310 | 0.553 |
| 825422 | 39.40 | <0.001 | 0.608 | 9.48 | 0.329 | 0.587 |
| 825423 | 45.30 | <0.001 | 0.399 | 12.20 | 0.380 | 0.678 |
| 825424 | 37.80 | <0.001 | 0.462 | 9.40 | 0.305 | 0.544 |
| 825425 | 35.60 | <0.001 | 0.524 | 8.65 | 0.270 | 0.482 |
Roger Moar reports "The Iron-T Vanadium-Titanium-Iron property is not subject to any environmental liabilities."
Key points pertaining to the 43-101 author's final recommendations for the Iron-T Project:
"The author has concluded that similarities between the Iron-T Vanadium-Titanium-Iron property and typical world class vanadium deposits associated to layered mafic to ultramafic intrusions justifies an exploration program. The two-stage exploration program proposed is designed to further define prospective areas of vanadiferous mineralization within the Upper zone of the Bell River Complex. The Iron-T Vanadium-Titanium-Iron property is without a known economical vanadium deposit. Since the vanadium content is closely correlated with iron contents of the host rock, magnetic geophysical methods are considered to be the most effective and inexpensive approach to locate favourable horizons that may indicative of vanadiferous mineralization"
"A two-stage exploration program totaling $1,250,590 is proposed to further define prospective areas of vanadiferous mineralization within the Iron-T Vanadium-Titanium-Iron property. The proposed program is oriented toward geological, geophysical and geochemical data acquisition which can lead to the discovery of an economic vanadium, titanium and iron deposit. The proposed program is an exploration program mainly oriented toward geological, geophysical and geochemical data acquisition which can lead to the discovery of economic vanadium deposit."
"The author has reviewed the proposed program for the Iron-T Vanadium-Titanium-Iron property as recommended and is of the opinion that the properties have sufficient merit to justify the program and budget as proposed. Positive results obtained during Phases I and II will necessitate more exploration and development drilling which in turn will permit to calculate resources and bring the property to the prefeasibility level."
The NI-43-101 report was written by Roger Moar, P.Geo an independent qualified consulting geologist, under the auspices of the qualified person for the purpose of this news release, Dr. Christian G. Derosier, MSc., DSc, P.Geo..
The Iron-T Vanadium-Titanium-Iron property is 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 provide housing, servicing, supplies, consumable and transport facilities including railway access for an efficient mining operation.
Vanadium is a strategic metal and is used in the production of high-quality metal alloys, like strengthened steel, because of its property as an active grain refiner and as a strong deoxidant and can impart strength, hardness and wear resistance to steels. The vanadium industry is relatively new and new uses are continually being discovered for the metal. Following are the a number of the main uses of vanadium by various industries: iron and steel, high-strength steels, full alloy steels, tool steels, carbon steels, stainless and heat resistant steels, cast irons, titanium alloys, superalloys and hard-facing alloys, aerospace engines and airframe materials.
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ON BEHALF OF THE BOARD OF DIRECTORS OF APELLA RESOURCES INC.
"Patrick D. O'Brien"
Patrick D. O'Brien - Chairman
S.E.C.Exemption12(g)3-2(b) File No. 82-3822, Standard & Poors Listed, Dun & Bradstreet Listed.
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