INTRODUCTION
Vanadium is a unique strategic metal that is often in high demand but short supply. Currently, with worldwide stocks declining, the race is on to find new sources. However, nearly all the new potential areas where Vanadium can be extracted are located in politically unstable or logistically remote regions. A junior resource firm laying claim to potentially some of the largest Vanadium deposits on earth, all of which are located in politically secure Quebec, Canada, is Apella Resources. The company is making strong headway with their Vanadium-Titanium-Iron projects.
APELLA’S VANADIUM PROJECTS UPDATE
Apella’s three Vanadium-Titanium-Iron projects are all located in the province of Quebec:
Lac Dore North Vanadium-Titanium-Iron Project
The Lac Dore North Vanadium-Titanium-Iron Project is 100-percent owned by Apella and encompasses 80 claims covering an area of approximately 2325 hectares (5745 acres). It covers the Northeast extension of the renowned Lac Dore Vanadium-Titanium-Iron Deposit, over a strike length of 2.6 kilometers (1.6 miles).
In July, Apella finished its initial 10-hole diamond drilling program on the site. As anticipated, the program successfully intersected disseminated to massive magnetite mineralization in boreholes numbered one through six. The company took advantage of this first round of drilling to use boreholes numbers seven thorough ten to test for the extremities of the potential mineralization.
The core from the drill program has now been cut and logged and 255 samples including blanks have been sent to ALS-Chemex in Val d’Or for processing.The results will be release once of the assays have been received and interpreted by Apella’s geologists. This information, coupled with the company’s existing database, should assist in establishing the next round of borehole drilling on the Lac Dore North Project, which the company plans to commence very shortly.
Lac Dore Vanadium-Titanium-Iron Project
Apella’s Lac Dore Vanadium-Titanium-Iron Project consists of claims covering the majority of the Lac Dore Deposit, the largest Vanadium deposit in North America and second-largest in the world.
In 2007 Apella staked 21 claims covering the deposit after discovering they had become open for staking. A competing staker, SOQUEM Inc., which coincidently is a wholly owned subsidiary of la Société générale de financement du Québec (“SGF”), a Corporation owned by the Province of Quebec., launched a challenge for 21 of the claims. This month, Apella received a preliminary report from the Ministere des Ressources naturelles et de la Faune du Quebec (herein “Quebec Ministry”) indicating that of the 11 claims awarded so far, nine are awarded to Apella with SOQUEM receiving just two. The outcome of the remaining 10 claims has yet to be decided.
From the preliminary report of the Quebec Ministry it is apparent that Apella fared far better than its sole staking competitor SOQUEM. The fact that a Quebec government entity would stake head to head against a free enterprise junior resource company like Apella is an anomaly in itself. Is this a new precedent for exploration in the well respected exploration locale of Quebec? Let’s hope not, but I hear it is not all that uncommon. It does seem counterproductive to enticing investment into the province. It is understood that SOQUEM Inc., who had previously owned the claims on behalf of the Quebec Government for decades, didn’t even appear as the registrant on the claim applications in fall 2007, but instead came forth weeks after the date of staking to take on Apella under the cover of a Power of Attorney.
Perhaps the award of only two of the 21 Lac Dore claims to SOQUEM will compel these two government entities to come to their senses and do the right thing: offer Apella their two claims and any additional rights in the Lac Dore staking decision. With these in hand, plus the previous award, Apella could likely arrange to secure the remaining 10 claims.
The nine claims awarded to Apella to date provide the company with a controlling interest in the Lac Dore Deposit mineralization – a significant position to start with. The company now has until September 15th, 2009 to provide the Quebec Ministry with its comments on the preliminary report. Apella’s ultimate goal is to bring all of the 21 claims under its control and finally move the original Lac Dore Vanadium-Iron-Titanium Deposit forward towards production.
Accessible by both road and rail, and close to power lines, the Lac Dore Deposit has been extensively explored and developed since its Vanadium content was recognized in the mid-1960s. It is believed to hold 5.5 billion pounds, or 2.27 billion kilograms, of Vanadium Pentoxide. In 2002 a feasibility study recommended development of a mine and processing facilities, with capital costs estimated at $364-million, including equipment and infrastructure.
Iron-T Vanadium-Titanium-Iron Project
The Iron-T Vanadium-Titanium-Iron Project covers a significant portion of the renowned Bell River Complex near the town of Matagami, in the west-central region of Quebec. The property consists of 134 designated claim cells totaling 10,600 acres. Previous work on the Iron-T delineated and confirmed the presence of significant Vanadium, Titanium, and Iron mineralization over a distance of about 20 kilometres. Apella’s most recent channel sampling program, the results of which are detailed in Apella’s news release of October 30th, 2008, also yielded economic grades of Vanadium, Titanium and Iron. The company has since filed, on SEDAR, a NI 43-101 report on the Iron-T Project.
In the coming weeks Apella plans to embark on an ambitious drilling program that is hoping to show similarities between the Iron-T Vanadium-Titanium-Iron property and typical world class Vanadium deposits such as Lake Doré Complex in Chibougamau, Quebec, the Windimurra Complex in Australia, the Panzhihua layered intrusion in China, and the Bushveld Complex in South Africa.
WHAT IS VANADIUM?
A mineral primarily used in high-strength steel alloys, Vanadium offers strength and hardness while resisting corrosion. Vehicle axles, crankshafts, gears, surgical instruments, oil pipelines and high-speed tools are all created utilizing the resource.
Vanadium is also an essential component used in next-generation high-capacity batteries that can be charged and recharged indefinitely while remaining environmentally friendly. Hybrid automobiles and wind/solar/nuclear energy sources should all benefit from Vanadium batteries, as they are brought into the marketplace in the near future.
Vanadium also serves as a catalyst for sulphuric acid, plastic dyes, pigments, and glass, and is used in superconducting magnets.
LOOKING AHEAD
The future looks bright for Apella’s Vanadium properties. As the global economy continues to recover, the appetite for resources strengthens, and technology plays a greater role in shaping the world of tomorrow, Vanadium prices could climb in the weeks and months ahead. Here are several examples of Vanadium’s potential:
• Green Automobiles – Vanadium has been proven to double the energy density of conventional lithium ion batteries (the type of batteries used in most electric vehicles currently under development). Suburu has already decided to choose Vanadium lithium ion batteries for their concept electric vehicle, the G4e. As Vanadium becomes a key ingredient in the process of manufacturing electric vehicles, demand for the resource can increase dramatically.
• Green Energy – U.S. President Barack Obama has pledged to double the production of alternative energy in the next three years. Wind, solar, and nuclear energy sources require batteries that can retain large amounts of energy, while being capable of being recharged thousands and thousands of times. High capacity industrial Vanadium Redox Flow batteries are eco-friendly, can be charged and recharged more than 10,000 times, and are capable of maintaining their charge almost indefinitely.
• Interior Climate Control – Vanadium Dioxide (VO2) is a ground-breaking substance that may revolutionize interior climate control. Scientists at the University of Western Ontario have discovered that at 68 degrees Celsius Vanadium Dioxide turns from being a semiconductor to a metal. In its metallic state it reflects infrared light, or heat, away. When this material is coated as a thin film onto glass it has the potential of decreasing the greenhouse effect within cars and homes. The substance is now being tested and studied in laboratories worldwide, and a commercially-viable product will be potentially available within the next several years.
IN CLOSING
Apella is securely positioned as Vanadium becomes an essential ingredient of the green revolution set to occur all around us. With the global economy coming back to life, other uses for the mineral, primarily involving steel, can also help to propel its use forward.
Apella has an experienced management team led by Patrick O’Brien, President/CEO; Adrian O’Brien, Director Of Business Development; and Dr. Christian Derosier, Vice-President of Exploration. Their expertise is supplemented by an Advisory Board composed primarily of geologists and mining engineers with extensive industry experience in eastern Canada. The newest addition to the Advisory Board is Dr. Mehmet Taner, a world renowned Vanadium expert credited with the discovery of the Bell River Vanadium Deposit which is part of the Company’s Iron-T project in Matagami, Quebec.
Through savvy management and foresight, Apella has potentially secured one of the largest combined sources of Vanadium in the world. The company is firmly poised to do great things in the future.
FOR FURTHER INFORMATION
T: 604-683-8990
F: 604-683-8903
Toll Free: 1-800-663-8990
E: info@apellaresources.com
www.apellaresources.com
Great information, investment for the future. Shall keep a close eye on it. Thanks.
Would get more excited if it was a HD team at the helm
Just in case anyone still wants to try the DTO trade, we are close to a buy signal on the hourly MACD. This works about 2 out of 3 times, so it can still fail [word of warning].
I just bought a some at 73.32 with a stop just below yesterday’s low at 71.88. Good risk / reward ratio right now, IMHO.
Took a small gamble, into a small position with HOD @ 10.82. Thanks Klaus—Maybe. I was going to do it anyway so here we go.
HOD moves not quite as sharply as DTO. Does anyone know the bullish stock or opposite of DTO?
Have done a lot of DD on APA. It seems that it could have a resource of Vanadium worth well over $50 billion in the ground on just the Lac Dore(never mind the titanium and iron ore values). The two other properties have the potential to have a lot more. With its current market cap at below $20 million its a tad cheap.
or what is the same as HOU?
Dave
HOD is opposite HOU
Gary,
thanks for your reply but i want to know the opposite of DTO,
as HOD is the opposite of HOU.
Klaus,
I take it you moved out of DTO yesterday and then moved back in today. I didn’t know what to do today, I was out and then back in of HOD. I will be staying in for the inventory numbers tomorrow now. The commodities are going nuts. I don’t know what to make of it all. The US dollar really broke down yesterday, of course when the TSX was closed. Can you believe the volatility of Nat. Gas. It is all over the place. I was thinking of shorting it come 1′ish but chickened out. LOL! It would have been a good play, in hindsight. I think I will be shorting it from these levels come Thursday, depending on what it does up till then. What are you thinking? What are your internals saying? Thanks, and talk to you later.
Ryan
Ryan,
I thought about dumping DTO yesterday, but because of the gap down at the open, I waited for the close. Since it closed near the open, it set up the POSSIBILITY of an island reversal (or morning star pattern in candlestick logo). For today, I put my stop just below yesterday’s low (a move there would kill hope for a reversal pattern). Added to the position when the hourly MACD gave a buy signal.
I’m keeping my stop at 71.88. I will raise my stop if it moves up. If I don’t get stopped out, my exit will be an hourly sell signal on the MACD. I’m not normally so jumpy with my trading, but I watch these leveraged ETFs like a hawk.
Nat gas looks like it wants to bottom on the daily charts, but the hourly charts are topping, so I don’t really know what to think. I’m going to stay away from it until the Thursday casino.
The market internals I use are for the total US market. Right now they are extremely positive.
David – the opposite of DTO is DXO
hey Klaus,
thanks for the reply.
I just started to try and learn about reading charts. It looks like alot of reading but i can see from what you are saying it does work. Does the MACD actually give you a buy signal? What is the signal?
David,
If you look at the MACD, you’ll see 2 lines – a “fast” moving average and a “slow” one. When the fast crosses the slow, that is the buy or sell signal (depending on whether it crosses up or down). MACD is one of those old tried and true indicators. I find it works about 55-65% of the time, depending on other factors, such as how deeply the stock is oversold or overbought.
Regarding chart reading, I never made money trading until I learned how to trade technically. For me it was well worth learning. I think it helps improve one’s odds in the wall street casino.
Klaus,
Thanks so much for this info. I hope i can also learn and make some money. Hope you were successful today.
Peter, can you please comment on the current news release from ATW. Does this not mean we will be reduced again in the low .50 becasue of this new shareownbe?
Anna
[...] INTRODUCTION Vanadium is a unique strategic metal that is often in high demand but short supply. Currently, with worldwide stocks declining, the race is on to find new sources. However, nearly all the new potential areas where Vanadium can be extracted are located in politically unstable or logistically remote regions. A junior resource firm laying claim to potentially some of the largest Vanadium deposits on earth, all of which are located in politically secure Quebec, Canada, is Apella Res Visit link: Apella Resources – Aggressive Speculators Take Note! [...]
This looks good. Commerce Resources (CCE), highlighted by Bob Moriarty this week looks even better, hitting on REEs Tantalum & Niobium.
There is more Vanadium in Australia and nearer to production than Apella than any banker would care to finance. Vanadium is so abundant it’s not even funny.
Hocus pukus _ A Mouth can be a very dangerous weapon. Your posts are always full of holes and your latest is no different.
There was no mining or production of vanadium in Australia during 2007. While there are a number of vanadium deposits in Australia, Windimurra, WA, has been the only deposit mined in recent years. Most of the world ’s mine production of vanadium during the year was from South Africa (39%), China (32%) and Russia (27%).
Why do little idiots like you love to challenge world authority’s like Peter? Is it penis envy or just a chance to make your pitiful life seem important?
RE Windimurra Vanadium Deposit in Australia.
The metalurgy is totally different, and as the Windimurra Vanadium is very difficult to extract, that company went broke, and its now not trading.
To even compare or mention the Lac Dore deposit to Windimurra is like comparing an apple to a rock.
Also if the demand and supply is so abundunt, how come Evraz (quite some months back, if I were to quess I would say about 10)from Russia tried to corner the vanadium market, and was forced by the world market to sell some off? You can search Evraz for that story.
I see that no one must have gone to the SEC link I left on the study of the Lac Dore Deposit, because that says a lot.
RE the study on the Lac Dore deposit, here is a post by the Quebec minister of mines. This is when Vanadium was trading at less than $3.00 per lb. and now at over $10. The Lac Dore deposit has over 5 billion lbs of Vanadium plus minable grade iron ore, and Titanium. The feasibility study cost $12 million.
At .16 the market cap of APA is only about 16 million.
“On April 22, 2002, McKenzie Bay International Ltd. reported the positive conclusion of a feasibility study on the Lac Doré vanadium project, southeast of Chibougamau. Engineering firm SNC Lavalin Inc. concluded its feasibility study with a recommendation to develop an open pit mine, and a processing plant, on the site of the Lac Doré vanadium deposit. The study reveals that the Lac Doré project could produce high-purity vanadium destined for the production of vanadium electrolyte “VE”. Based on a marketing study by Secor, there is a strong demand for vanadium batteries requiring high-purity VE, which indicates an excellent economic potential.”
I just bailed out of HOD, always leave at wrong time. could have had a
better margin if I would have bailed out at 11.12. Funny how the old mind gets in a rut and you can’t talk it back.
APA and interior climate control.
Peter did a real good job on his write up of APA and the uses for Vanadium. You can easily read over the interior climate control, and miss this major point. Here is the quote from Peter.
” Interior Climate Control – Vanadium Dioxide (VO2) is aground-breaking substance that may revolutionize interior climate control. Scientists at the University of Western Ontario have discovered that at 68 degrees Celsius Vanadium Dioxide turns from being a semiconductor to a metal. In its metallic state it reflects infrared light, or heat, away. When this material is coated as a thin film onto glass it has the potential of decreasing the greenhouse effect within cars and homes. The substance is now being tested and studied in laboratories worldwide, and a commercially-viable product will be potentially available within the next several years.”
So from what Peter has said, we could see windows in all cars, all residential windows facing south, office space all going to Vanadium Dioxide to save us from that scorching sun, and the heat that goes with it. Could you imagine the savings on excess heat in the summer in our homes, and the extra fuel economy savings, by not having to use the air conditioners in our cars as much. I have just heard that our hydro company in BC is looking into this in a major way and expects it to be in the market in 2 years. You can bet the USA will pick up on this one with a green plan to cut down on fossile fuels.
Now when the green investors get wind of this one, we will have even more up days.
They are going to need a lot of vanadium, and I wonder were they will get the supply from??
Wahaha. You little boys crack me up.
You have become real experts on Vanadium by reading wikipedia and google searches. Interior Climate Control “potentially available in the next several years”. Is that before the second coming ? What about the Vanadium Redox battery ? There was such a “strong demand” it went bust.
And if you were so knowledgeable why didn’t you all pile all your and your mama’s savings into Vanadium last October or even March ?
Lac Dore? You mean the deposit that Mckenzie Bay tried to finance for years it eventually decided to go into wind power instead. LOL
But why argue? Your “advisor” is an unbiased and real Vanadium world authority; a geologist and metallurgist as well as an expert on Oil and the non-manipulation of the Gold market – ok on that one he now admits he may have been wrong so we can forgive him since Bill Murphy did.
In the meantime Oil and Coeur D’alene keep going up.
Why don’t you boys take the opportunity to double down on your shorts ?
I see you’re posting under a new name. You haven’t been right since Peter took profits in your favorite stock CDE. So what do you do? You post an inmature response. Grow up.
[...] Resources – Following up to my report earlier this week, again a naysayer with obvious lack of real understanding expresses a counter view in cyberspace [...]