Hi,

That year, her work was not only selected for the annual Cape Dorset Graphics Collection, it appeared on the catalogue’s cover.

Can this be rephrased as "That year, her work was not only selected for the annual Cape Dorset Graphics Collection but it also appeared on the catalogue's cover. " 

To my mind, the original is not a well-written sentence. If I wanted to use those words as much aspossible, I'd prefer to write it thus.

That year, her work was not only selected for the annual Cape Dorset Graphics Collection. It appeared on the catalogue’s cover.

However, your version is better, but you should omit the 'it'. The original subject 'work' applies to both verbs.

"That year, her work was not only selected for the annual Cape Dorset Graphics Collection but also appeared on the catalogue's cover. " 

Best wishes, Clive 

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