Apella Resources (CVE:APA) (OTCQX:APAFF) said Monday that it has acquired a "game-changing" vanadium-iron-titanium discovery near Timmins, Ontario.
The company said the purchase was made after its geology team assessed the merits of the property for the potential to mirror Apella's existing Lac Dore, Lac Dore North and Iron-T deposits. Favourable conclusions were delivered to management, Apella said, with the acquisition recommended.
The new property was discovered by the prospecting team of R. Laviolette and G. Dumoulin while exploring the Timmins region in May.
The asset comprises two distinct mineralized zones, namely the West and East Structures, each presenting potential to host economic vanadium-iron-titanium deposits, Apella said.
The West Structure covers a two kilometre long east-west oriented gabbro sill, which can be delineated by the most recent airborne magnetic and electromagnetic survey carried out by the Ontario Geological Survey.
Meanwhile, the Eastern Structure covers a northwest-southeast oriented magnetic anomaly, which also corresponds to a three kilometre long gabbro sill that is similar to the sill of the Western Structure, the company said.
The mineralization observed by the company's geologists is similar to the newly discovered Northwestern Zone on Apella's Iron-T project that sits just across the Quebec-Ontario border, it said, where recent drilling results confirmed mineralization across the entire 22.5 kilometre strike length.
At the new site, a layered gabbro zone was sampled by the original prospecting team, as well as by Apella's geology team. Results were as high as 1.15% vanadium equivalent, with other notable samples coming in at 0.7% and 0.8%.
"Although the results are not complete, we already can see that the two grab samplings return almost the same V2O5 values, especially where twin samples were taken. Assays look very similar to those obtained by Apella on its 100% owned Iron-T Project during the last drilling program and more particularly on its newly discovered NW-SE Zone," the company said in a statement.
Vanadium is an essential element in high-quality steel and also has applications in energy storage and green technology.