Apella Resources completes phase four drilling at Iron-T, updated resource expected

Apella Resources (CVE:APA) (OTCQX:APAFF) said Friday that it has completed the first round of its phase four drill program on the Iron-T project near Matagami, Quebec, with results pointing to a bigger resource - expected soon in an upcoming report.

The program included 19 diamond drill holes for a total of 2,893 metres, and Apella said it is encouraged by the "continued intersections of favourable mineralization".

Eleven of these most recent holes were infill holes that now connect several outside zones of mineralization to the company's main Genesis deposit on the Iron-T property, which is prospective for vanadium, iron and titanium.

The peripheral zones, which cover the eastern extension of Genesis, were not included in the company's resource estimate for the project from August last year, and therefore could increase the tonnage at Iron-T significantly.

2010 drill holes from these peripheral zones returned significant grades and intersects of mineralization.

Of the holes reported today, MA-11-42 intersected 1.5 metres of massive iron oxides, with 50% to 90% magnetite, while hole MA-11-43 returned two mineralized zones, one 6.90 metres thick of disseminated iron oxide, and the other 4.96 metres  of semi-massive iron oxide.

In addition, hole MA-11-49 interesected four mineralized zones, all either semi-massive or massive iron oxide.

After the exploration of the eastern extension of Genesis, the rig was moved to the most western part of the property in order to test a 5 kilometre long magnetic axis at depth, which comes off the main 16.5 kilometre deposit target area.

Six drill holes totalling 1,143 metres in length were drilled into this off shoot, with many finding homogeneous heavily disseminated iron oxide mineralization, of between 5% to 20%.

To date, four phases of exploration have now been completed at Iron-T, and based on the first two, the company has identified a minimum of 11.63 million tons of inferred resources.

Upgraded resource calculations for the project will be reported as soon as they become available from SGS-Geostat, Apella said.