History

The Iron-T Vanadium Project cover parts of the Bell River Complex which is a large, layered Archean intrusion occurring in the Matagami mining district. The Complex consists of western and eastern lobs separated by the Olga granodiorite pluton. The Complex is poorly documented despite the fact that it played an important role as a heat source for the mineralization of several massive sulphide deposits in the Matagami mining camp.

The Bell River complex has been divided into three main zones: a basal anorthosite zone; a layered gabbro zone and a zone consisting of apophyses, subsidiary intrusions and border zone. The layered gabbro zone consists of distinctly layered Fe-Ti-oxide-rich gabbro, more or less leucogabbro, minor anorthosite and pyroxenite. Vanadium mineralization within the Bell River Complex occurs within Fe-Ti-oxide -rich horizons in the layered ferrogabbro zone of the upper part of the Complex. The horizon is well defined on the ground and in aeromagnetic survey maps by its high magnetic susceptibility. Oxide-rich gabbro horizons are about 10 m to 150 m wide with a subvertical dip. The gabbro is a mineralized cumulate with homogeneously disseminated oxide mineral contents of 20 to 60 modal % or homogeneous, massive bands with widths of several centimetres to tens of centimetres, with oxide mineral contents of 50 to 90 modal %. These mineralized bands form 60-80% of the layered gabbro zones. There is a sharp contact between mineralized oxide-rich gabbro and host gabbro- anorthosite sequences in the Bell River Complex. Vanadium mineralization occurs in oxide-rich horizons within the upper parts of layered complexes such as the Bushveld. The distribution and geological relationships of these oxide-rich layers clearly indicate that they are magmatic ore deposits and that their genesis is directly related to processes that were operating during the late stages of fractional crystallization. Previous exploration work carried out by Noranda Inc. during the 1990's delineated and confirmed the presence of iron, titanium and vanadium mineralizations over a distance of about 20 km. Channel sampling made on stripped outcrops as well as a limited diamond drilling campaign (4 ddh) have returned economic titanium and vanadium values. Chemical assays were confirmed by a microprobe analysis made by Lakefield Research (1998).

Vanadium values obtained vary from 0.02% to 1.25% V(2)O(5), Titanium values vary from 0.35 % to 51.84 % TiO(2) and Iron values vary from 17% to 57% Fe(2)O(3), being quite similar to the nearby 5.5 billion pound Lac Dore Project, the second largest Vanadium deposit in the world. Several assays made on channel samples were also assayed for gold, platinum and palladium. Some low values in platinum and palladium were obtained (up to 44 ppb) in samples showing higher chromium and cobalt grades in addition to higher vanadium and titanium values. Vanadium is a strategic metal. Most vanadium is consumed as ferrovanadium (FeV) and used in the production of high-quality and high-strength steel (piping in the oil industry, tools) and metal alloys (titanium-vanadium-aluminum alloys) which is used in the aerospace industry. Vanadium foil is used as a bonding agent in cladding titanium to steel and generally by the aerospace industry. Medical implants often contain vanadium alloys because of their excellent stability. It is also used for production of catalysts, ceramics, glasses, pigments electronics and batteries. New uses are continuously being discovered for this metal. Japan, Canada and Australia are currently developing the next generation of vanadium redox batteries to power electric vehicles. China, Russia and South Africa are the leading vanadium-producing nations, where the mining and processing of magnetite-bearing ores make up the predominant source of vanadium production.

Xstrata Rhovan Vanadium Mine, South Africa

The mineralization on Apella’s Iron-T project bares striking similarities to such world class deposits as the Rhovan Deposit in South Africa. Virtually all mined vanadium utilized in North America is sourced internationally and imported. A number of these source countries present a significant risk, politically, to future North American supply chains. From Apella’s perspective, this means its Canadian based projects present a rare opportunity and possibility to create a stable and reliable North American source and supply for vanadium and vanadium enriched magnetite iron ore. This would be in addition to the obvious opportunity of providing the vast developing markets of China, India and the far-east with ship-ready magnetite iron ore already enriched with vanadium at a premium price for their steel production. The type of Magnetite sourced Vanadium-Iron-Titanium deposits that Apella has the potential of identifying and developing is not all that common. In fact, this is a rare opportunity for Apella’s stakeholders.