Apella Resources Inc and its Board of Directors report that the Company has engaged SGS to provide a maiden independent resource calculation and National Instrument 43-101 compliant report for Apella's 100% owned Iron-T Vanadium-Iron-Titanium Project. The initial resource calculation will be based on the data compiled by Apella during its Phase 1 and Phase 2 drilling programs.
The independent resource calculations will be prepared by SGS Canada Inc Geostat office of Montreal in Quebec in accordance with the guidelines of National Instrument NI 43-101 under the supervision of Mr Claude Duplessis P Eng manager. The classification of resources will be completed using the results of drilling and trenching carried out by Apella during the 2008, 2009 and 2010 field seasons which comprised new, infill and step-out drilling and trenching, as well as very limited drill data previously conducted by Noranda. As part of its independent calculations SGS Geostat will visit the Iron-T project within the next week.
The methodology to estimate the maiden mineral resources for the Iron T Project will be 3 D block modeling with inverse square distance interpolation. This estimation will be limited to mineralized envelopes interpreted on vertical cross sections and later meshed into solid shapes. Different lithologies will most likely be modeled and estimated separately. Two sources of drill holes will be used to estimate the mineral resources: limited historical drilling from the previous owners available in the public domain, and drill holes from the Apella 2009 and early 2010 drilling campaigns. Drill holes intersecting the mineralized envelopes will be composited into three meter composites. Each composite will be assigned a lithological unit based on the interpreted geology and corresponding 3 D solid. SGS Geostat will utilize BlkCad software designed by SGS Geostat for the resource estimation of the mineralization delineated by Apella on the Iron-T. SGS Geostat will use the orientations of the geological interpretations and the ore limits interpreted in plane and in section to define a search window.
