Aquila Resources: Update On Back Forty Project Including Impressive Gold Intercept From Metallurgical Hole(16.1 g/t Gold Over 38.1 Meters)
Including Impressive Gold Intercept From Metallurgical Hole
(16.1 g/t Gold Over 38.1 Meters)
TORONTO, ONTARIO -- (Marketwire) -- 04/19/11 -- AQUILA RESOURCES INC. (TSX: AQA)(FRANKFURT: JM4A) ('Aquila' or the 'Company'), is pleased to provide an update on the Back Forty Project in the Upper Peninsula of Michigan. The Back Forty Project is a joint venture with HudBay Minerals Inc. (TSX: HBM)(NYSE: HBM) ('HudBay') currently in a pre-feasibility stage of evaluation of a large zinc, gold, silver and copper deposit.
Exploration work at the project continues with three drills evaluating extensions of known mineralization and potential new mineralized zones. The current exploration budget of $5 million contemplates the drilling of 25,000 meters. Additional expenditures of $11 million are budgeted for continuing engineering studies and other work in support of pre-feasibility and permitting activities.
In HudBay's March 31, 2011 news release, David Garofalo, HudBay's president and chief executive officer stated: 'Our initial plans were to complete a pre-feasibility study for the Back Forty Project by the end of the third quarter of 2011. However, recent drilling success, which has led to the discovery of high grade mineralization outside of the known deposit, and the prospect of similar positive results in our current drill program have justified a delay in our consideration of project economics until we are better able to understand the magnitude of the deposit.'
A significant increase in measured and indicated resource tonnage of greater than 100% was realized in 2010, and recent intercepts at depth offer significant potential for additional expansion.
Current Drilling Program
Exploration Drilling
Two drills are targeting off -hole conductors from bore hole pulse EM surveys as well as down dip extensions of known mineralization, and several holes have encountered thick intervals of massive sulfide (assays pending). A single drill is stepping out to the east of the Back Forty resource with the eventual goal of testing recently identified surface pulse EM and airborne VTEM anomalies located approximately one kilometer east of the known deposit.
Metallurgical Drilling
A program of metallurgical drilling to provide additional drill core for metallurgical test work has also been completed. Holes were targeting gold mineralized gossans, the 90 Gold Zone, and the NS Gold Zone and in general confirmed the robust and predictable nature of these near surface zones.
Notably, drill hole METNQ-13 testing the NS Gold Zone, intercepted 38.1 meters of continuous gold mineralization, averaging 16.11 g/t gold, including nine meters of 26.28 g/t gold. Although this does not represent a true thickness, it illustrates the strong gold content of the Back Forty deposit.
The table below shows the individual assay results for drill hole METNQ-13.
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From To Int. Gold
DDH meters meters meters g/t
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METNQ-13 12.8 14.3 1.5 19.6
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14.3 15.8 1.5 16.7
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15.8 17.3 1.5 9.1
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17.3 18.8 1.5 4.5
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18.8 20.3 1.5 27.3
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20.3 21.8 1.5 31.6
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21.8 23.3 1.5 29.6
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23.3 24.8 1.5 20.3
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24.8 26.3 1.5 23.0
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26.3 27.8 1.5 25.8
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27.8 29.3 1.5 5.4
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29.3 30.8 1.5 10.6
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30.8 32.3 1.5 23.6
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32.3 34.0 1.7 15.0
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34.0 35.5 1.5 19.8
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35.5 37.0 1.5 16.2
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37.0 38.5 1.5 12.2
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38.5 40.0 1.5 16.1
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40.0 41.5 1.5 15.4
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41.5 43.0 1.5 4.3
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43.0 44.5 1.5 15.8
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44.5 46.0 1.5 9.6
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46.0 47.5 1.5 8.8
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47.5 49.0 1.5 11.6
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49.0 50.0 1.0 11.4
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50.0 50.9 0.9 13.9
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Quality Assurance and Quality Control
Exploration core drilling by Aquila Resources was NQ size. The core was logged and mineralized intersections were marked for sampling and assaying by geologists and geo-technicians employed by Aquila Resources Inc. and the HudBay Aquila Joint Venture. The marked intersections or intervals were sawn in half by a diamond saw and one-half of the core was placed in sample bags and tagged with unique sample numbers, while the remaining half was returned to the core box for storage. Each bagged core sample was transported to Minerals Processing Corporation's sample prep lab in Carney, Michigan where it was dried, crushed and pulverized and a 250-gram sample was prepared and split, with one split for assaying at Inspectorate Labs in Sparks, Nevada. Strict sampling and QA/QC protocol are followed, including the insertion of standards and blanks in the sample stream on a regular basis. Sample intervals are typically 1.5 meters. Analytical method for gold is fire assay with atomic adsorption finish and gravimetric finish for samples greater than 3.0 g/t gold. All other elements are analyzed by ICP with silver over limits (greater than 200 g/t) analyzed by fire assay/gravimetric finish and base metal over limits analyzed by AAS.
Assaying integrity is monitored internally with a quality control program, which includes the use of assay sample standards, blanks, duplicates and repeats, and externally through national and international programs. This news release provides core lengths and estimates of vertical thickness only. True widths are not provided. Where metal assays are provided for intersections they are either a single assay of a sample of the entire intersection length or a composite of assays calculated from interval weighted assays over the intersection length.
Thomas O. Quigley is the Qualified Person for Aquila as described in National Instrument 43-101 responsible for contents of this release.
More information about the Back Forty Project can be found in Aquila's NI 43-101 compliant technical report entitled 'Technical Report, Back Forty Deposit, Menominee County Michigan, USA' dated November 29, 2010, available at www.sedar.com. For updated drilling information and additional information about the Company, please see the Company's website at www.aquilaresources.com.
This press release contains certain forward-looking statements. In certain cases, forward-looking statements can be identified by the use of words such as 'plans', 'expects' or 'does not anticipate', or 'believes', or variations of such words and phrases or statements that certain actions, events or results 'may', 'could', 'would', 'might' or 'will be taken', 'occur' or 'be achieved'. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; changes in project parameters as plans continue to be refined, future prices of resources; possible variations in reserves, grade or recovery rates, accidents, labour disputes and other risks of the mining industry; and delays in obtaining governmental approvals or financing or in the completion of development or construction activities. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Shares Outstanding: 85,194,850
Contacts:
Aquila Resources Inc. (Toronto)
Robin Dunbar
CFO
416-203-1404
rdunbar@aquilaresources.com
Aquila Resources Inc. (U.S.)
Thomas O. Quigley
President
906-753-9602
tquigley@aquilaresources.com
www.aquilaresources.com