Watts, Griffis and McOuat Limited (WGM) has completed an updated NI 43-101 report entitled, “A Technical Review of the Appia Energy Corp. Uranium Properties, Elliot Lake District, North Central Ontario, Canada”, dated 19 November, 2009. This report contains an updated NI 43-101 uranium resource as follows:
| S.G. | Average Grade | Contained | ||
| Zone | Classification Tons | (tons/m3) | (lbs. U308/ton) | (lbs. U308) |
| Banana Lake | Inferred | 3.14 | 0.912 | |
| Teasdale Lake | Indicated | 3.14 | 1.10 | |
| Inferred | 3.14 | 1.10 |
WGM recommends a $15 million staged exploration program on the Teasdale Lake Zone, Banana Lake Zone, Canuc, Bouck and Buckles Zones.
The property contains a historical resource of 215,985,000 tons in the Banana Lake, Canuc, Bouck and Buckles Zones grading 0.72 lbs. U308/ton containing lbs. ofU308. The Banana Lake resources estimated by WGM are part of this total. The foregoing historical resources are viewed as reliable and relevant based on the information and methods used at the time, however they do not satisfy the present classification requirements set out in National Instrument 43-101 (“NI 43-101
Neither Appia, nor its Qualified Persons, have done sufficient work to classify the historical estimate as a current mineral resource and are not treating the historical estimate as a current mineral resource. The historical resource should not be relied upon.
Appia also recently received a technical drilling and geological evaluation report on the Banana Lake Area, by Alan D. MacEachern, B.Sc., Consulting Geologist. Mr.
MacEachern, formerly Chief Geologist, Denison Mines Ltd., Elliot Lake, Ontario, has 39 years of experience with all aspects of Elliot Lake geology.
Mr. MacEachern concluded that the results of the recent drilling in the Banana Lake Area has increased both the known grade and thickness of the zone and he recommends extending drilling to the northwest. This area has a high probability of adding 150-300 million tons of potentially higher grade ore. Appia intends to drill test this area.
Shareholders are encouraged to visit Appia’s website (www.appiaenergy.ca) and review these two reports (password for both reports is appia2010).
Appia is very excited with the results from both of these reports, especially with the possibility of combining the very large uranium resource with the higher grade potential of the Banana Lake Zone.
Any positive outcome could have tremendous upside implication for Appia and its valuation.
Appia’s management believes that the foregoing results present a unique opportunity for Appia to investigate proceeding with going public, subject to market conditions and a favourable valuation during 2010.
Appia’s management would have preferred more favourable uranium market conditions under which to curry its going public transaction, but since there is no way of telling how long the present market conditions will persist, management has decided to explore its options and is meeting with brokers and other interested parties to assess the level of interest and decide as to the best course of action with which to proceed.
Appia’s management is making every effort to ensure Shareholders are informed of the process and the progress and we appreciate and encourage suggestions and feedback from the shareholders.
Independent Consulting Geologist, Al Workman, P. Geo., Vice President, Watts, Griffis and McOuat Ltd., supervised the resource estimation and is the qualified person under NI 43-101 who has reviewed and approved the technical information in this press release.
About Watts, Griffis and McOuat.
WGM is well qualified to provide the foregoing services. Since 1962, WGM has served the international mining community by completing projects in over 120 countries. Technical due diligence reviews, Mineral Resource/Reserve estimates and audits, valuations, mine planning, engineering and metallurgical investigations have each contributed to the firm’s worldwide reputation of excellence. These studies have been carried out for mining companies, governments, banks, law firms and intemational financial institutions. More information on the full range of WGM’s services and experience can be found on our website at www.wgm.ca.
About Appia Energy Corp.
Appia Energy Corp is a private Canadian energy company. Its main focus is to explore and advance the Elliott Lake uranium project to the development and production stages.
Tom Drivas, President: (tel) 416-876-3957, (fax) 416-218-9772 or (email) appia@appiaenergy.ca
Head Office:
25 Adelaide Street East, Suite 1010
Toronto, ON Canada, M5C 3A1
Tel: 416- 876-3957, Fax: 416 218-9772
Web Site: www.appiaenergy.ca
Contact: Tom Drivas, President
Email Address: appia@appiaenergy.ca
Best Wishes for the New Year!
Tom Drivas
President
Cautionary Note Regarding Forward-Looking Statements: This Press Release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made. Should one or more of these risks and uncertainties, such as actual results of current exploration programs, the general risks associated with the mining industry, the price of uranium and other metals, currency and interest rate fluctuations, increased competition and general economic and market factors, occur or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, or expected. We do not intend and do not assume any obligation to update these forward-looking statements, except as required by law. Shareholders are cautioned not to put undue reliance on such forward-looking statements.
