Appia Confirms High-Grade REE, Uranium and Gallium at New Zones, Alces Lake and Announces Flow-Through Financing
500-2 Toronto St.
Toronto ON
M5C 2B6
PH: 416 546-2707
FAX: 416 218-9772
Email: [email protected]
Website: www.appiaenergy.ca
NEWS RELEASE
APPIA CONFIRMS HIGH-GRADE REE, URANIUM AND GALLIUM MINERALIZATION
FROM ERMACRE, OLDMAN AND HAWKER ZONES, ALCES LAKE PROPERTY AND
ANNOUNCES FLOW-THROUGH FINANCING
TORONTO, ONTARIO, September 3, 2020 - Appia Energy Corp. (the “Company” or “Appia”)
(CSE:API, OTCQB:APAAF, Germany: “A0I.F”, “A0I.MU”, “A0I.BE”) is pleased to announce the assay
surface sample results from the recently completed Phase I exploration program (the “ Program”) on the
Alces Lake high-grade rare earth element (“ REE”) property (the “ Property”), northern Saskatchewan. See
news release dated August 6, 2020, for a summary of the surface prospecting results.
Surface sample assay highlights include;
Ermacre: 4.209 wt% total rare earth oxide (“TREO”) and 0.012 wt% gallium oxide (“Ga2O3”) from an
outcrop grab sample
Oldman (Line 2): 1.117 wt% TREO and 0.011 wt% Ga2O3 over 4.69 m channel sample length, including
2.609 wt% TREO over 1.67 m
Ken: 0.591 wt% TREO from an outcrop grab sample
Hawker: 0.171 wt% uranium oxide (U3O8) from an outcrop grab sample.
See Table 1 for a summary of results from all 24 samples collected during the Program. Figure 1 provides an
overview for the sample locations.
Mr. James Sykes, Vice-President, Exploration and Development, comments: “Having confirmed our recently
discovered showings, Ermacre and Oldman, as high-grade REE surface exposures is very exciting for us.
Ermacre, which is located 600 m NW of the Charles zone(s), now represents the most northern occurrence of
high-grade REE mineralization exposed at surface on the Property. We will continue Phase II exploration
(diamond drilling) along the Ermacre-Hinge to Charles-Wilson corridor in search for continuity of the REE
minerals system (the “System”) and additional high-grade REE zones. The Oldman and Ken occurrences, 6.5
and 7.5 km SW of the Charles-Wilson zones, clearly demonstrate the extent to which the System can occur
along our Property’s 40 km-long geological trend. The confirmation of high-grades at Hawker is very
encouraging. The historic Hawker workings will be targeted further in order to maximize the Company’s
potential for both REEs and uranium”.
The Ermacre zone assay results are unique because of their enrichment in heavy REEs, such as dysprosium
(Dy) and terbium (Tb), when compared with the other samples. The Biotite Lake discovery (see News
Release – November 20, 2019) shares a similarly enriched heavy-to-light REE ratio with the Ermacre zone
when compared with other Alces Lake surface zones, suggesting that the two zones might be part of another
REE System.
High-grade gallium (defined here as >0.010 wt% Ga 2O3) has also been noted at both the Ermacre and Oldman
zones. The gallium concentrations here are similar to previously reported gallium results (see News Release –
January 23, 2020), suggesting that gallium concentration is possibly tied to the System across the Property.
ALCES LAKE
Since detailed exploration began at Alces Lake in 2017, a total of seventy-four (74) REE and uraniumbearing
surface zones* and occurrences* of the REE and U minerals system(s) (the “Minerals System”) have been
discovered on the Property. To date, less than 15% of the Property surface has been explored on the ground.
Surface channel and diamond drill samples from within six zones (Bell, Charles, Dante, Dylan, Ivan, Wilson)
return an average composite grade of 16.65 wt% TREO (see Table 1). The Ivan zone, in particular, hosts some
of the highest grades observed on the Property. Surface mineralization from the Ivan zone returned up to
53.01 wt% TREO over 1.97 m, or ~85% monazite, i.e., the mineral hosting the REEs. Diamond drill hole IV-
19-012 intersected 16.06 wt% TREO over 15.55 m, including 49.17 wt% TREO over 3.70 m. Critical
elements required for rare earth magnets (neodymium, praseodymium, dysprosium and terbium) account for
between 23% and 25% of the TREO. Rare earth magnets are used in a wide range of modern technological
applications. Hence, the rare earth magnet industry is projected to grow rapidly over the next 30 years in-line
with the adoption of electric vehicles and wind turbines, in particular. The Minerals System has been
discovered as far as 12 km away from the Company’s previous areas of diamond drilling, and the cumulative
showings represent approximately 10 km of a 45 km-long regional strike length. The scale and high-number
of surface discoveries suggests the Minerals System is widespread at surface, but it is not readily detectable by
eye or other surface geophysical methods due to overburden cover. The Company believes that the Minerals
System is even more connected, widespread, and voluminous beneath the surface
The Property encompasses some of the highest-grade total and critical rare earth elements (“ CREE”)
mineralization in the world. CREE is defined here as those rare earth elements that are in short-supply and
high-demand for use in permanent magnets and modern electronic applications such as electric vehicles and
wind turbines, (i.e: neodymium (Nd), praseodymium (Pr) dysprosium (Dy), and terbium (Tb)). The Alces
Lake project area is 17,577 hectares (43,434 acres) in size, and is 100% owned by Appia. The project is
located close to an old mining camp with existing support services, such as transportation (i.e., 15 km from
the nearest trail), energy infrastructure (hydroelectric power), a 1,200 m airstrip that receives daily scheduled
services, and access to heavy equipment. The project is also located in Saskatchewan, the same provincial
jurisdiction as a planned “first-of-its-kind” rare earth processing facility in Canada, which is scheduled to
become operational by 2022.
Phase 2 of the 2020 summer exploration program comprises:
- 2,000 to 3,000 m of diamond drilling following the strike extension of the Wilson, Charles and Ivan
zones, and reconnaissance drilling on select regional geological and geophysical targets of interest;
- additional regional ground prospecting, mapping and sampling over areas of interest
- excavated overburden removal and outcrop washing
Non-Brokered Flow-Through Private Placement
The Company is also pleased to announce the offering of a non-brokered private placement of up to 4,000,000
flow-through units (the “ FT Units”) at $0.25 or up to 4,000,000 working capital units (the “ WC Units”) at
$0.20 or a combination thereof to a maximum of 4,000,000 units (the “Offering”).
Each FT Unit is priced at $0.25 and consists of one (1) common share and one-half (0.5) of a share purchase
warrant. Each full warrant (“ Warrant”) entitles the holder to purchase one (1) common share (a “ Warrant
Share”) at a price of $0.35 per Warrant Share until eighteen (18) months from closing.
Each WC Unit is priced at $0.20 and consists of one (1) common share and one-half (0.5) of a share purchase
warrant. Each full warrant (“ Warrant”) entitles the holder to purchase one (1) common share (a “ Warrant
Share”) at a price of $0.30 per Warrant Share until eighteen (18) months from closing.
Proceeds from the Offering are expected to be used for exploration of the Company’s uranium and rare earth
element properties in Saskatchewan.
All securities to be issued under the Offering will be subject to a statutory four month hold period.
Three (3) insiders of the Company will subscribe for a total of 670,000 FT Units for $167,500 of the Offering
and 200,000 WC Units for $40,000. The insider private placements are exempt from the valuation and
minority shareholder approval requirements of Multilateral Instrument 61-101 (“ MI 61-101”) by virtue of the
exemptions contain in section 5.5(a) and 5.7(1) (a) of MI 61-101 in that the fair market value of the
consideration for the securities of the Company to be issue to the insiders does not exceed 25% of its market
capitalization.
The Company anticipates closing on the arm’s length portion of the Offering of 2,680,000 FT Units for
$670,000 and 450,000 WC Units for $90,000 next week.
All assay results were provided by Saskatchewan Research Council’s (“ SRC”) Geoanalytical Laboratory, an
ISO/IEC 17025:2005 (CAN-P-4E) certified laboratory in Saskatoon, SK, for multi-element and REE analysis.
All analytical results reported herein have passed rigorous internal QAQC review and compilation. The
technical content in this news release was reviewed and approved by Dr. Irvine R. Annesley, P.Geo, Advisor
to Appia’s Board of Directors, and a Qualified Person as defined by National Instrument 43-101.
About Appia
Appia is a Canadian publicly-listed company in the uranium and rare earth element sectors. The Company is
currently focusing on delineating high-grade critical rare earth elements (“REE”) and uranium on the Alces
Lake property, as well as prospecting for high-grade uranium in the prolific Athabasca Basin on its Loranger,
North Wollaston, and Eastside properties. The Company holds the surface rights to exploration for 65,601
hectares (162,104 acres) in Saskatchewan.
The Company also has a 100% interest (subject to a 1% Uranium Production Payment Royalty and a 1% Net
Smelter Return Royalty on any precious or base metals payable, provided that the price of uranium is greater
than US$130 per pound) in 12,545 hectares (31,000 acres), with rare earth element and uranium deposits over
five mineralized zones in the Elliot Lake Camp, Ontario. The Camp historically produced over 300 million
pounds of U 3O8 and is the only Canadian camp that has had significant rare earth element (yttrium)
production. The deposits are largely unconstrained along strike and down dip.
Appia’s technical team is directed by James Sykes, who has had direct and indirect involvement with over 550
million lbs. U3O8 being discovered in five deposits in the Athabasca Basin.
Appia has 73.9 million common shares outstanding, 89.9 million shares fully diluted.
For more information, visit the Appia’s website at www.appiaenergy.ca.
Cautionary Note Regarding Forward-Looking Statements : This News Release contains forward-looking statements
which are typically preceded by, followed by or including the words “believes”, “expects”, “anticipates”,
“estimates”, “intends”, “plans” or similar expressions. Forward-looking statements are not guarantees of
future performance as they involve risks, uncertainties and assumptions. We do not intend and do not assume
any obligation to update these forward- looking statements and shareholders are cautioned not to put undue
reliance on such statements.
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of
the CSE) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Tom Drivas , President, CEO and Director: (tel) 416-546-2707, (fax) 416-218-9772 or (email)
James Sykes , VP Exploration & Development, (tel) 306-221-8717, (fax) 416-218-9772 or (email)
Frank van de Water , Chief Financial Officer and Director, (tel) 416-546-2707, (fax) 416-218-9772 or
(email) [email protected]
Figure 1 – Alces Lake property; Summer 2020 surface assay results
Table 1 – Alces Lake property; Summer 2020 surface grab and channel sample TREO assay results
Zone Line From
(m)
To
(m)
Interval
(m)
La2O3
wt%
CeO2
wt%
Pr6O11
wt%
Nd2O3
wt%
Sm2O3
wt%
Eu2O3
wt%
Gd2O3
wt%
Tb4O7
wt%
Dy2O3
wt%
Ho2O3
wt%
Er2O3
wt%
Yb2O3
wt%
Lu2O3
wt%
Y2O3
wt%
Ga2O3
wt%
ThO2
wt%
U3O8
wt%
TREO
wt%
CREO
wt%
Ermacre Outcrop
(Grab) 0.908 1.965 0.239 0.821 0.128 0.001 0.059 0.005 0.017 0.002 0.004 0.002 0.000 0.057 0.012 0.506 0.012 4.209 1.084
Oldman 2 0.69 5.38 4.69 0.262 0.535 0.061 0.211 0.029 0.001 0.012 0.001 0.001 0.000 0.000 0.000 0.000 0.003 0.007 0.137 0.005 1.117 0.275
includes 0.69 2.36 1.67 0.617 1.250 0.142 0.492 0.067 0.001 0.028 0.002 0.003 0.000 0.001 0.000 0.000 0.007 0.011 0.313 0.011 2.609 0.640
Oldman 3 0.25 0.87 0.62 0.210 0.467 0.053 0.181 0.026 0.001 0.011 0.001 0.001 0.000 0.000 0.000 0.000 0.003 0.006 0.090 0.005 0.955 0.237
includes 0.25 0.50 0.25 0.482 1.070 0.121 0.413 0.059 0.001 0.024 0.002 0.003 0.000 0.001 0.000 0.000 0.007 0.009 0.204 0.009 2.182 0.539
Oldman 1 2.49 3.21 0.72 0.094 0.193 0.023 0.079 0.011 0.000 0.005 0.000 0.001 0.000 0.000 0.000 0.000 0.003 0.005 0.053 0.002 0.409 0.103
Ken Outcrop
(Grab) 0.141 0.285 0.032 0.104 0.013 0.000 0.007 0.001 0.002 0.000 0.001 0.000 0.000 0.006 0.006 0.068 0.002 0.591 0.138
Hawker Outcrop
(Grab) 0.011 0.023 0.003 0.010 0.002 0.000 0.001 0.000 0.001 0.000 0.001 0.001 0.000 0.007 0.004 0.009 0.171 0.060 0.014
Hawker Outcrop
(Grab) No Significant Results
Lamp
Dyke
Outcrop
(Grab) No Significant Results
Regional Outcrop
(Grab) No Significant Results
The REEs Thulium (Tm) and Promethium (Pm) are not reported because they are both extremely scarce in nature, and Pm forms as a product of spontaneous fission of U-238
TREO = Total Rare Earth Oxide = sum of La2O3+CeO2+Pr6O11+Nd2O3+Sm2O3+Eu2O3+Gd2O3+Tb4O7+Dy2O3+Ho2O3+Er2O3+Yb2O3+Lu2O3+Y2O3
CREO = Critical Rare Earth Oxide = sum of Pr 6O11+Nd2O3+Eu2O3+Tb4O7+Dy2O3
Highlighting Nd grades associated with high-grade TREO
Highlighting Pr grades associated with high-grade TREO
Highlighting "high-grade" TREO and CREO (i.e. >1.897* wt% TREO)
Indicates light rare earth elements
Indicates heavy rare earth elements
Highlighting "high-grade" uranium (i.e. >0.100 wt% U 3O8)
Conditions Used for Reporting Composite Results
- cutoff grades are = 0.1 wt% TREO, "includes" = 1.0 wt% TREO, Hawker samples = 0.1 wt% U 3O8
- maximum internal dilution along channel sample lines does not exceed 2.0 m
- true thickness has not been determined for channel sample lines
*Note: >1.897 wt% TREO represents >75th percentile for global REO deposit grades of advanced stage-projects (excluding Gakara, Steenkampskraal and Mount Weld CLD deposits). The global REO deposit information was derived from publicly available
information as of January 31, 2018, from individual company websites, SEDAR technical report filings, and the Technology Metals Research Advanced Rare Earth Projects Index (http://www.techmetalsresearch.com/metrics-indices/tmr-advanced-rare-
earth-projects-index/)