Archive for the ‘Apella Resources’ Category
Comments on Some Companies
I like to comment on a few model portfolio companies and Grandich clients.
Please note I will not response to every comment somewhere in Cyberspace about any and all companies of mine. The amount of false, half-truths and misinformation comments provided by people with personal agendas is not something I give any mind to. I notice as this blog becomes more popular, there’s an element that is using it for agendas not in the best interests of most. Just know if there’s really a need to comment on a matter, yours truly will. Until then, don’t let these folks disrupt you.
Northern Dynasty Minerals – I’ve truly lost count on the number of actions those opposed to the Pebble Deposit have taken. To my knowledge none have succeeded and I believe this latest salvo shall meet the same result. It’s critically important for anyone who speculates in the mining and exploration industry to understand that environmental opposition is a way of life for some and will always be present. The environmentalists need media attention as it helps fund their causes.
Make no mistake about it I believe the environment is a critical issue in all mining and exploration manners. In this case, it’s important to understand this is not a lawsuit against NDM, its partner or the deposit.
It’s this group against the State of Alaska. I not only believe the case is without merit, but I anticipate a variety of people, groups, etc., to come out against this action as it goes to the heart of Alaska’s constitution. I’m no attorney (thank God) but I would not be surprise to learn that one or more groups enact an “intervener status” in this case.
I fully expect this latest action to end up where all other Pebble-related actions have gone – nowhere. At $6 U.S. or under the stock is a compelling speculation.
Nevsun Resources – Earlier today was an example of “super-overreaction” of a news story and some comments in cyberspace that led to some making an uninformed decision. The United States and Eritrea have been at odds for quite some time. A comment by Hillary Clinton that really was nothing new caused some emailers to state they sold on the news. That’s fine if they want to think this somehow has ratcheted up things but these sellers sold because they weren’t even aware this was already well known item and almost certainly discounted by the market. Once again emotional decisions are almost always poor ones. Yes, the situation could turn for the worse but so can I get hit by a car crossing the street. The thought process should have been is this news (no), and does it change the reasons for owning the stock (no)? Will there be some distracters burning the midnight oil hoping this situation does explode? Based on this blog-yes. But at this point it would be like sitting on your bed and not moving knowing sooner or later you’re going to hurt yourself somehow.
I would add to positions if we get a pullback under $1.50 U.S.
Continental Resources – Yet another no-new-news situation. Back in June at the Vancouver Resource show, three young adults stood outside the Convention Center with a bed sheet sign calling for no mining in Tibet. There were a couple reporters covering the “event”. Do these people have a right to express their opinion? Absolutely. Do they present a serious obstacle now? Absolutely not. Again, distracters will use any and all news to try and impact the uninformed. In this case, China is just too darn big and powerful for anybody or country to oppose it on major matters, let alone mining. Continental management has gone very tight-lipped and just says all systems are a go. Knowing Hunter-Dickinson as I do, I take them at their word.
Taseko Mines – The train has indeed left the station. Where it is on the tracks will be discussed in a conference call next Wednesday. I’ll be the one with the caboose hat on.
Grandich Client Companies
Apella Resources – Following up to my report earlier this week, again a naysayer with obvious lack of real understanding expresses a counter view in cyberspace and my email/phone lights up. This badly informed person tried to assert that the world was full of Vanadium and especially Australia.
What that anonymous party failed to mention is the fact that Windimurra was the only Vanadium project of real merit in Australia…though there may be other small ones that I’m unaware of. Windimurra has a proven 45-50 million tonnes, whereas Lac Dore alone contains a proven 102 million tonnes at higher average grades. Lac Dore is actually the second biggest V deposit in the world, ranking only behind Highveld in South Africa. Apella Resources expects Iron-T and Lac Dore North to be significantly larger than the Lac Dore. It is particularly important to note that as of recently, Windimurra went bankrupt due to separation issues with their ore(though I would want to do some digging to find out exactly what the issues were).. One more important point is that though China has significant Vanadium supplies, theirs are large low grade deposits and with growing demand they are now slowing exportation of Vanadium, and increasing import of additional supplies. When looking at all of these deposits, one of the most compelling points for Apella, is that all of our projects are surface or near surface mineralization making them open-pitiable. Any time you are looking at an underground operation for Vanadium, your grades must be very high to make it economic.
ATW Gold – Move over Donner Resources, ATW Gold is now the Rodney Dangerfield of juniors. Actually it had lots of respect but that has been called into question of late by some investors, justifiably or not. Deservingly or not, management needs to restore confidence and they can do so by delivering on their plans. I have every reason to believe they can and would use any further weakness as an opportunity to be part of an emerging gold producer.
A former client who I still follow is Eastmain Resources. I spoke about them on www.kereport.com Listen here.
And finally, what’s a penny really worth these days?
Apella Resources – Aggressive Speculators Take Note!
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
APELLA RESOURCES INC. – Has It’s Time Come?
Apella Resources, a junior resource firm specializing in vanadium exploration, is well-positioned to be at the forefront of this revitalization. With three vanadium properties held in the province of Quebec, Apella rightfully lays claim to possessing the largest array of potentially viable vanadium deposits in North America. The company is also invested in exploration for uranium, gold, and copper in both Quebec and Ontario. However, Apella’s primary focus moving forward is exploring and developing its vast vanadium holdings.
WHAT IS VANADIUM?
Vanadium is an element with dozens of applications. Best-known as a mineral used in high-strength steel alloys, it imparts strength and hardness while resisting corrosion. Vehicle axles, crankshafts, gears, surgical instruments, oil pipelines and high-speed tools are all real-world examples of applications utilizing steel tempered with Vanadium.
Vanadium is also a catalyst for sulfuric acid, plastic dyes, pigments, and glass; is used in superconducting magnets; and is utilized 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 will all benefit from vanadium batteries, as they are brought into the marketplace in the near future.
In addition, the resource is employed in the manufacture of high quality metal alloys that are used in everything from aerospace engines, airframes, rockets, and nuclear power plants to golf clubs.
Currently, South Africa, China, and Russia are the world’s primary producers of vanadium.
APELLA’S VANADIUM HOLDINGS
Apella has three vanadium properties, all located in the province of Quebec. The potential of these properties to move into full production can’t be underestimated.
Iron-T Vanadium-Titanium-Iron Project
The Iron-T Vanadium-Titanium-Iron property is located in the Bell River Complex near the town of Matagami, in the west-central region of Quebec. The property currently consists of 27 designated claim cells totaling 1,485 hectares, and covering one block of contiguous claims among Lozeau and Comporté townships. An additional 94 staked claims were also applied for in 2008 and remain subject to a processing period before approval.
Channel sampling on Iron-T Vanadium project
A recent examination of vanadium grade assays obtained from channel sampling on mineralized oxide zones shows that magnetite-bearing horizons with at least 33.6% Fe2O3 could return an average economical grade of 0.50% V2O5, which represents the typical grade of vanadium deposit. Excitingly, geological setting and mineralization encountered on the property indicates many similarities with typical world-class magmatic Fe-Ti-V oxide deposits associated with a layered intrusive complex. Most of these deposits are associated with mafic-ultramafic layered complexes such as the Lake Doré Complex in Chibougamau, Quebec; the Windimurra Complex in Australia; the Panzhihua layered intrusion in China; and the Bushveld Complex in South Africa.
The similarities between the Iron-T-Vanadium-Titanium-Iron property and typical world-class vanadium deposits justify an exploration program. Apella is planning to push ahead with a two-stage exploration program, budgeted at $1,250,590. The proposed program is oriented toward geological, geophysical and geochemical data acquisition which can lead to the discovery of an economic vanadium, titanium and iron deposit.
The nearby town of Matagami can provide housing, servicing, supplies, and consumable and transport facilities, including railway access, for an efficient mining operation.
Apella has optioned 100-percent of the Iron-T Vanadium-Titanium-Iron Project, under the terms of which the Company will pay $250,000 and issue 900,000 shares to the vendors, who retain a 3-percent Net Smelter Return (NSR) that can be purchased for additional consideration. The Company also agreed to spend at least $500,000 on exploration within the first two years. The Company and the vendors have since entered into an Area of Influence Agreement and have acquired or applied for additional nearby claims in order to expand the Iron-T Vanadium-Titanium-Iron Project.
Lac Dore North Vanadium-Titanium-Iron Project
The Lac Dore North Vanadium-Titanium-Iron Project is 100-percent owned by Apella and encompasses 18 claims covering an area of approximately 300 hectares (741 acres), covering the Northeast extension of the renowned Lac Dore Vanadium-Titanium-Iron Deposit, over a strike length of 2.6 kilometers (1.6 miles).
Historic stripping and channeling on the Lac Dore deposit
Recently a channel sampling program was completed with a total of 60 samples taken, representing a total length of sampling of approximately 90 meters. The results are as follows:
• Vanadium values from 0.05% to 0.610%, which after conversion to V205, returned values from 0.089% to 1.089%; the average grade of Vanadium Pentoxide (V205) is 0.55%.
• Titanium (Ti02) values range from 1.33% to 12.30%; The average grade of Titanium (Ti02) is 6.40%.
• Iron (Fe) values range from 13.23% to 56.50%. The average grade of Iron (Fe) is 32.81%.
This mineralization exposed appears to have striking similarities to that which surfaces at the adjoining 102-million-tonne/5.5-billion-pound Lac Dore Vanadium-Titanium-Iron deposit that Apella staked in August, 2007.
Lac Dore Vanadium-Titanium-Iron Project
In the summer of 2007 Apella staked 57 claims covering a large portion of the Lac Dore Deposit, the largest vanadium deposit in North America and the second-largest in the world. The company staked the claims after discovering they had become open. A competing staker launched a challenge for 21 of the claims, which remains unresolved. However, Apella is confident that its staking was of the highest standard and has presented eyewitness, video, and audio evidence to the Mining Recorder, who has since recommended that 10 of the competitor’s claims be rejected at the outset for non-compliance of the Mining Act.
Channel sampling on Lac Dore North Vanadium-Titanium-Iron Project
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.
Once the staking issue is resolved, Apella plans to move forward in bringing the Lac Dore Vanadium-Titanium-Iron Project up to current NI 43-101 standards, and moving the project toward the next stage of development.
LOOKING AHEAD
Apella’s vanadium properties hold tremendous promise. Despite the current economic crunch, the potential for vanadium to pick up steam in a hurry should not be discounted. There are several possible scenarios that could see vanadium demand spike, thereby propelling Apella’s stock price into the stratosphere:
The Coming Automobile Revolution
With nearly all major auto manufacturers set to unveil hybrid and/or fully electric vehicles by 2012, the demand for durable batteries is increasing. 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 should increase dramatically.
The Advent of 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.
The move towards electric transportation should also enhance the appeal of Vanadium Redox Flow batteries, as power providers rush to find feasible and cost-effective ways to store vast quantities of electricity required for application overnight to charge thousands of parked electric vehicles.
Political Instability
The world’s current primary vanadium sources are South Africa, China, and Russia. All three have the potential to be viewed as unreliable suppliers of the resource:
• South Africa is currently embroiled in a massive political crisis involving the ruling ANC and a new breakaway party, COPE. With presidential elections around the corner, the potential for violence cannot be ruled out.
• Russia’s recent dispute with the Ukraine over natural gas revenues resulted in a major gas shortage in Europe. Russia’s willingness to use resources as instruments of foreign policy is calling into serious question the country’s reliability as a trading partner.
• Although a rising giant, China still has huge social and political challenges ahead.
With all of Apella’s vanadium properties located in Canada, the question of reliability of supply is non-existent. Canada is one of the most politically stable and thoroughly industrialized nations on earth, with a qualified and productive workforce.
BOTTOMLINE
Apella has a very bright future as vanadium becomes a resource of choice for the “green” revolution set to occur all around us. When the economy picks up, other uses for vanadium, primarily involving steel, should also help propel the value of the mineral forward.
Apella has an experienced management team led by Patrick O’Brien, President/CEO; Adrian O’Brien, Vice President; 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.
Despite the current economic crisis, Apella has potentially secured the largest combined source of vanadium in the world. This is a company poised to make a serious and dramatic push forward in the weeks and months ahead.
