LoadStar Copper Project Acquisition

Monday, 01 June 2009 12:15

Apella Resources Inc. (TSX.V: APA); (Frankfurt Symbol: NWN) and its Board of Directors are pleased to announce the acquisition of an assemblage of Ontario mineral claims which includes the LoadStar Copper Project which is situated in Montgomery Twp., approximately 70 miles (112 km) east of Sault Ste. Marie, Ontario and 116 miles (185 km) west of Sudbury, Ontario.

The acquisition also includes three other non-contiguous prospective properties in the same region; the CopperKing Project situated in Gladstone Township, the Copperton Project in Bridgland Township, and the CopperMet Project in Wells Township. The transaction consists of an option for certain claims and an outright purchase on others. The claim package encompasses eighty-nine (89) claim units (3,519 acres / 1,424 hectares).

The LoadStar Project was formerly known as the Mother Lode Prospect (by Destoria Mines Limited). The mineralology on the property is comprised of a vein system of quartz veins striking N75W, dipping vertical to 60° to the south, and occurring in the Gowganda series of rocks: coarse grained quartzite and slates are intruded by sills of diabase and large intrusions of coarse gabbro. There is an extensive system of quartz veins generally striking east-west across Montgomery Township. Pre 43-101 copper grades along this main north vein zones are reported of up to 21.87% Cu, with most assays on the North Vein reported running from 1% to 5% Cu across 4 to 14 feet (4.27 m); and traced for up to 18,000 feet (5,500 m) and open in both directions. The South Vein runs parallel and up 500 feet (152 m) from the North Vein and can be traced for over 2,500 feet (762 m) and up to 20 feet (6.1 m) in width.

An exploration program was carried out in 1952 by Destoria Mining Limited, comprised of 23 drill holes totaling approximately 6,212 feet (1893 m). The intersections of the Main Vein above the 150 feet (45.7 m) level, were recovered in seventeen holes at nearly regular intersections over a strike length of 1,768 feet (539 m). Six holes were drilled down below the 150 foot (45.7 m) level in the central section of the occurrence. Three of these deeper drill holes intersected the Main Vein at about the 250 foot (76.2 m) horizon and three intersections lie at about the 475 foot (144.8 m) horizon. Fourteen of the historic drill holes intersected the Main Vein which yielded encouraging copper intersections. The arithmetical average of the intersections is 2.55% Cu (copper) over an average core length of 9.8 feet (2.99 m).

In addition to the 1952 drilling program, other drill holes were bored in 1961 totaling 699 feet (213 m), 621 feet (189 m) in 1962-63, and 10 holes totaling 2,933 feet (894 m) in 1964. As the company’s compilation continues further detail will be provided.

Although pre-43-101, two extensive copper ore bodies have been reported as outlined by drilling indicating a tonnage of 210,000 tons. Ore blocks calculated in three of these blocks called East, Central and West are as follows:

• East Zone average width of 6.05 feet (1.84 m) @ 1.48% Cu with 27,000 tons indicated from surface to 150’
• Central Zone 1 average width of 6.12 feet (1.87 m) @ 2.62% Cu with 38,000 tons indicated from surface to 150’ depth
• Central Zone 2 average width of 5.21 feet (1.59 m) @ 2.72% Cu with 32,000 tons indicated from surface to 150’ depth
• West Zone average width of 14.90 feet (4.54 m) @ 0.88% Cu with 68,000 tons indicated from surface to 150’ depth

The pre-43-101 Ontario Ministry of Northern Development and Mines 1969 Circular Number 12 makes note of 2 ore shoots on the LoadStar property; noting the first to contain 135,150 tons grading 2.32% Cu across 7.0 feet (2.13 m) over 1,068 feet (325.5 m) in length and the second 75,000 tons grading 1.0% copper across 20 feet (6.10 m) over 300 feet (91.4 m) in length.

The CopperKing Project, situated in nearby Gladstone Township, is reported in the pre-43-101 Ontario Ministry of Northern Development and Mines 1969 Circular Number 12 as producing some 22.2 tons of test ore grading 1.4% Cu for test purposes and 138.1 tons grading 0.96% Cu in 1962. It also reported on 1,785 pounds of copper recovered from 28.8 tons in 1917.

The showing on the CopperKing is a quartz carbonate vein with chalcopyrite mineralization. The vein ranges from two to seven feet (2.10 m) and exposed at intervals for a strike length of 1,200 feet (365.8 m). It is open at both ends along strike. At the western end is a continuous surface showing for a length of 150 feet (45.7 m) averaging 3.5% copper across a width of four feet (1.20 m). An old shaft dating back to either 1903 or 1911, approximately 250 ft (76.2 m) deep shows copper ore from the dump. To the east of this shaft, the vein is exposed for 100 feet (30.5 m) carrying chalcopyrite. The country rock is diabase with granite intrusions. The ore deposition is chalcopyrite in a quartz-carbonate vein which has been traced for a strike length of 1200 feet. The vein strikes N80°E and dips 85°N. Sampling across a 5 foot (1.53 m) vein near the deep test pit assayed 7.94% copper (Cu), with trace gold (Au), titanium (Ti) and manganese (Mn). Ti graded 0.16% and Mn 0.34%.

Historical drilling on the property includes four holes near the test pit. These holes were drilled in 1951. Six other holes totaling 2068 feet were drilled in 1956 by International Cobalt and Silver Mining Company Ltd. Four additional holes were drilled in the vicinity of the test pit with just trace amounts of copper.

A Self-Potential survey was started in May 20th, 1985 and completed in October 16th, 1985 for a total of 2.25 miles and 130 readings.
In 1972 an underground sampling program was initiated on the old working. A total of 400 tons was excavated and sampling results on the walls of the west zone were as follows:

1. 7.0 feet (2.14 m) average assay 2.54% copper
2. 5.0 feet (1.53 m) average assay 4.25% copper
3. 5.0 feet (1.53 m) average assay 7.60% copper
4. 6.0 feet (1.83 m) average assay 5.29% copper
5. 4.0 feet (1.22 m) average assay 4.49% copper
6. 3.0 feet (0.91 m) average assay 2.25% copper

The pre-43-101 Ontario Ministry of Northern Development and Mines 1969 Circular Number 12 explains that on the Copperton project there was historic sampling on the South Vein which returned an average grade of 1.87% Cu over an average width of 7.1 feet (2.16 m) and a length of 732 feet (223.11 m).

The terms of the Agreement are as follows:

• Purchased Claims – 7 Claims (60 Claim Units)
  • $10,000 Cdn. cash upon Exchange approval;
  • 100,000 common shares upon Exchange approval;
  • 2.5% Net Smelter Return Royalty (NSR) in favour of the Vendors;
  • Purchaser has Right to Purchase on 1% of the NSR (40% overall) for $500,000 Cdn;
  • Purchaser has a First right of Refusal on the remaining 1.5% of the NSR (60% overall);
  • A 2km Area of Influence.
• Optioned Claims – 3 Claims (29 Claim Units)
  • $10,000 Cdn. cash within 5 days of Exchange approval;
  • $10,000 Cdn. cash by May 31st, 2009;
  • $20,000 Cdn. cash on or before First Anniversary;
  • $20,000 Cdn. cash on or before Second Anniversary;
  • 100,000 common shares within 5 days of Exchange approval;
  • 100,000 common shares on First Anniversary;
  • 2.5% Net Smelter Return Royalty (NSR) in favour of the Vendors;
  • Purchaser has Right to Purchase on 1% of the NSR (40% overall) for $1 million Cdn;
  • Purchaser has a First right of Refusal on the remaining 1.5% of the NSR (60% overall);
  • A 2km Area of Influence.

All shares issued under these terms would be subject to a 4-month hold period per the TSX Venture Exchange policies. This agreement is subject to approval of the TSX Venture Exchange.

The Company cautions that all grades and tonnages mentioned in this release are historical and noted for reference purposes only. They do not comply with National Instrument 43-101. Apella will need to carry out extensive exploration of this project in order to verify the validity of these numbers.

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 This e-mail address is being protected from spambots. You need JavaScript enabled to view it 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”
Patrick D. O’Brien – Chairman

S.E.C. Exemption 12(g)3-2(b) File No. 82-3822, Standard & Poors Listed, Dun & Bradstreet Listed

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. 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