Appia Reports High Concentrations of Gallium, Alces Lake
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 REPORTS HIGH CONCENTRATIONS OF GALLIUM WITHIN THE RARE
EARTH ELEMENT MINERALIZATION SYSTEM, ALCES LAKE PROPERTY
TORONTO, ONTARIO, January 23, 2020 - Appia Energy Corp. (the “Company” or “Appia”)
(CSE:API, OTCQB:APAAF.US, Germany: “A0I.F”, “A0I.MU”, “A0I.BE”) is pleased to announce the
preliminary findings from an investigation into the element gallium that has been observed within the high-
grade rare earth element mineralization system (the “ mineralization system ”) on the Alces Lake property,
northern Saskatchewan.
High concentrations of gallium oxide were identified in the 2017 Alces Lake prospecting lithogeochemical
results. An average of 138.75 ppm (0.014 wt%) and maximum of 348.15 ppm (0.035 wt%) Ga 2O3 was
calculated from 23 samples (n=23) after applying a cut-off of 4.0 wt% Total Rare Earth Oxide (“ TREO”) to
the full suite of sample results (n=53) (see Table 1). Gallium is one of the few elements besides uranium,
thorium, lead, scandium and phosphorus that exhibits a similar positive linear correlation with total rare earth
oxides, suggesting not only that gallium is part of the mineralization system but could be directly related to
monazite (i.e., the higher the concentration of TREO, the higher the concentration of gallium).
Ten samples with a variety of TREO grades from the 2018 Alces Lake exploration program were sent to ACT
Labs in Ancaster, Ontario, for inter-lab quality assurance element grade checks. ACT Labs confirmed high
concentrations of gallium, but the ACT Labs results returned much higher values than those from the 2017
samples simply due to the different analytical digestion techniques used.
The ACT Labs gallium results were as expected, with a range of 21.51 ppm to 1,150.64 ppm Ga 2O3 and
showing a positive linear correlation with TREO (see Table 1). Five samples with greater than 4.0 wt%
TREO produce an average value of 599.78 ppm (0.060 wt%) Ga2O3.
Gallium is one of several elements deemed “critical” by the United States Government (i.e., restricted supply
by China, Kazakhstan and Ukraine, and in high-demand) that is used in numerous modern technological
applications, in wireless communications such as 5G, cell phones, laser diodes, semiconductors, solar energy
magnetic materials, and military defense. A significant potential exists for bottlenecks in the gallium supply
chain because of rapid growth in areas of green/clean energy technologies.
As much as 90% of primary global gallium supply is a by-product of processing of bauxite (alumina ore) with
lesser amounts derived from sphalerite (ZnS) production. It takes multiple cycles of bauxite processing before
the gallium content reaches its production starting concentration point of approximately 100 – 125 ppm
Ga2O3.
Production of gallium is therefore limited by global factors and economics that influence the production of the
principal mineral commodities (i.e., aluminum or zinc).
Much like rare earth elements (“ REE”), gallium is widely dispersed in nature but rarely found in
economically extractable quantities. For example, the Apex mine, southwestern Utah, USA, was the only
primary mined source of gallium (and germanium) until its closure in 2011 by Teck Resources Limited. The
mine operated intermittently over 100 years since 1884. A historic estimate for the average concentration of
gallium was 0.032 wt%, with locally occurring grades up to 0.148 wt% gallium.
In 2011, the price for low-grade gallium oxide (99%) peaked at US$1,150/kg. In 2017, the average price for
low-grade gallium oxide was US$135-$140/kg. Currently, the price of high-grade gallium metal (99.99%) is
greater than US$220/kg.
Mr. James Sykes, Appia’s Vice-President, Exploration and Development, comments: “The naturally
occurring high-concentrations of gallium associated with REEs emphasizes the potential value that exists at
Alces Lake. The Alces Lake mineralization system is endowed with critical metals that are needed for
emerging commercial technological and military defense applications. We observe naturally occurring
gallium concentrations that are much higher than those occurring as concentrated by-products from bauxite
and sphalerite ores. The grades we have observed are comparable to those of the Apex mine, the only primary
mined source of gallium. The gallium extracted during the REE processing stage represents another potential
revenue stream for Alces Lake”.
Appia will continue its gallium studies in the coming weeks/months, starting with re-analysing of high-grade
REO samples for the presence of gallium. Positive analytical numbers could result in an advanced study by a
Master’s student from the University of Saskatchewan to determine the presence/economic potential of
recovering gallium at Alces Lake.
The 2017 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. The multi-element analysis, which includes gallium, uses a tri-acid (HF:HNO 3:HClO4)
total digestion technique to dissolve most elements, with the exception of refractory minerals, such as
monazite. Since monazite was not fully dissolved, the gallium values are under-represented using this
methodology. The REE analysis uses a lithium metaborate fusion to dissolve refractory minerals, such as
monazite, but gallium was not reported with this method. The 2018 assay results were provided by ACT
Labs, an ISO 17025 accredited laboratory in Ancaster, ON, for multi-element and REE analysis. Both multi-
element and REE analysis used a lithium borate fusion to dissolve refractory minerals, including both gallium
and REEs using the same digestion method, and shows a better correlation of gallium to REO.
All analytical results reported herein have passed rigorous internal QA/QC 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-traded 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 57,048
hectares (140,968 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 73.8 million common shares outstanding, 94.7 million shares fully diluted.
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]
TABLE 1 – GALLIUM AND TOTAL RARE EARTH OXIDE LITHOGEOCHEMICAL RESULTS FROM SELECT SAMPLES 2017 AND 2018
Sample Zone Year Ga2O3
(wt%)
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%)
TREO
(wt%)
CREO
(wt%)
102020 Hinge 2017 0.004 0.971 2.211 0.211 0.875 0.109 0.001 0.063 0.006 0.014 0.001 0.010 0.001 0.034 4.508 1.107
102021 Hinge 2017 0.011 1.888 4.263 0.454 1.679 0.225 0.001 0.111 0.009 0.024 0.001 0.017 0.001 0.055 8.729 2.168
102034 NW Wilson 2017 0.009 0.997 2.309 0.256 0.922 0.131 0.001 0.069 0.007 0.017 0.001 0.011 0.001 0.047 4.771 1.204
102035 NW Wilson 2017 0.008 1.082 2.432 0.324 0.960 0.146 0.001 0.075 0.007 0.016 0.001 0.011 0.001 0.038 5.095 1.308
102036 Wilson 2017 0.013 2.568 5.921 0.714 2.379 0.361 0.003 0.175 0.015 0.038 0.002 0.025 0.001 0.090 12.293 3.149
102037 Danny 2017 0.010 1.935 4.471 0.476 1.842 0.275 0.002 0.145 0.015 0.049 0.001 0.026 0.005 0.156 9.400 2.385
102038 Danny 2017 0.011 2.639 6.007 0.672 2.437 0.348 0.003 0.176 0.018 0.048 0.001 0.030 0.003 0.150 12.532 3.178
102039 Danny 2017 0.005 2.850 6.511 0.761 2.635 0.385 0.003 0.196 0.020 0.054 0.001 0.034 0.003 0.171 13.626 3.474
102041 Danny 2017 0.012 2.111 4.778 0.509 1.901 0.266 0.001 0.125 0.012 0.026 0.001 0.019 0.001 0.065 9.815 2.449
102042 Danny 2017 0.014 2.533 5.823 0.674 2.297 0.327 0.002 0.150 0.013 0.032 0.002 0.023 0.001 0.074 11.951 3.019
102044 Wilson 2017 0.019 5.266 11.977 1.402 4.746 0.705 0.006 0.325 0.028 0.062 0.006 0.047 0.001 0.146 24.716 6.243
102045 Wilson 2017 0.011 5.653 12.775 1.571 5.084 0.778 0.007 0.364 0.032 0.070 0.007 0.051 0.002 0.169 26.564 6.763
102046 Wilson 2017 0.013 2.451 5.565 0.668 2.215 0.331 0.003 0.158 0.014 0.032 0.002 0.023 0.001 0.074 11.538 2.933
102050 Wilson 2017 0.017 3.905 8.820 1.063 3.475 0.517 0.005 0.242 0.021 0.045 0.005 0.034 0.001 0.107 18.240 4.608
102051 Wilson 2017 0.015 6.556 14.864 1.788 5.865 0.882 0.008 0.413 0.035 0.085 0.007 0.058 0.002 0.193 30.756 7.781
102063 Wilson 2017 0.008 1.278 2.899 0.348 1.160 0.171 0.001 0.085 0.007 0.016 0.001 0.013 0.001 0.038 6.019 1.532
102064 Wilson 2017 0.015 3.213 7.297 0.865 2.903 0.434 0.003 0.206 0.019 0.042 0.003 0.030 0.001 0.095 15.113 3.833
102065 Wilson 2017 0.012 4.246 9.655 1.122 3.848 0.558 0.005 0.266 0.024 0.052 0.005 0.039 0.001 0.126 19.945 5.050
102066 Wilson 2017 0.012 6.075 13.881 1.607 5.492 0.815 0.007 0.382 0.034 0.075 0.007 0.056 0.002 0.179 28.612 7.214
102067 Wilson 2017 0.015 4.633 10.478 1.232 4.139 0.621 0.006 0.294 0.026 0.056 0.005 0.041 0.001 0.137 21.669 5.460
102068 Ivan 2017 0.031 10.731 23.708 3.008 9.503 1.427 0.016 0.662 0.056 0.124 0.011 0.091 0.003 0.292 49.634 12.708
102069 Ivan 2017 0.035 11.235 25.182 3.129 9.899 1.496 0.017 0.685 0.059 0.130 0.013 0.097 0.003 0.314 52.260 13.234
102070 Ivan 2017 0.020 7.283 16.461 2.030 6.518 1.009 0.010 0.466 0.040 0.087 0.009 0.062 0.002 0.208 34.185 8.685
102075 Richard 2018 0.002 0.113 0.237 0.026 0.083 0.011 0.000 0.007 0.000 0.001 0.000 0.000 0.000 0.000 0.004 0.485 0.112
102077 Charles 2018 0.003 0.005 0.010 0.001 0.004 0.001 0.000 0.001 0.000 0.001 0.000 0.000 0.001 0.000 0.005 0.029 0.006
102179 Charles 2018 0.014 0.917 1.953 0.209 0.646 0.085 0.001 0.051 0.003 0.009 0.001 0.004 0.002 0.000 0.034 3.915 0.868
102196 Charles 2018 0.029 2.369 4.963 0.529 1.644 0.220 0.003 0.136 0.007 0.021 0.002 0.007 0.001 0.000 0.062 9.964 2.204
102465 Wilson 2018 0.013 0.941 2.015 0.210 0.663 0.097 0.001 0.056 0.003 0.012 0.001 0.004 0.001 0.000 0.032 4.037 0.890
102672 Wilson 2018 0.008 0.477 1.004 0.110 0.351 0.049 0.001 0.027 0.001 0.005 0.001 0.001 0.000 0.000 0.013 2.040 0.468
102712 Ivan 2018 0.115 12.784 26.779 2.972 9.491 1.206 0.016 0.680 0.034 0.116 0.014 0.036 0.002 0.001 0.319 54.450 12.629
102749 Ivan 2018 0.049 4.574 9.803 1.070 3.463 0.441 0.006 0.249 0.012 0.041 0.005 0.013 0.001 0.000 0.110 19.788 4.593
102830 Dylan 2018 0.085 9.218 20.391 2.271 7.101 0.916 0.012 0.521 0.025 0.085 0.010 0.028 0.001 0.001 0.207 40.789 9.495
102833 Dante 2018 0.022 2.299 5.061 0.505 1.632 0.234 0.003 0.137 0.008 0.026 0.003 0.008 0.001 0.000 0.071 9.989 2.174
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 Pr6O11+Nd2O3+Eu2O3+Tb4O7+Dy2O3
Highlighting Nd grades associated with high-grade TREO Indicates light rare earth elements
Highlighting Pr grades associated with high-grade TREO Indicates heavy rare earth elements
Highlighting "high-grade" TREO and CREO (i.e. >1.897* wt% TREO)
*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/)