Aquila Identifies Significant New Gold Mineralization at Reef Gold Project
TORONTO, ONTARIO -- (Marketwire) -- 05/08/12 -- Aquila Resources Inc. (TSX: AQA)(OTCQX: AQARF)(FRANKFURT: JM4A) ("Aquila" or the "Company") announces initial results from the winter drill program at its 100 percent owned Reef Gold project ("Reef") in Marathon County, Wisconsin. The Reef project resides in the world-class Penokean Volcanic belt, which includes Aquila's Back Forty VMS project and Bend Copper-Gold deposit.
Highlighted drill intercepts from the 2012 drill program at Reef include:
-- 7.75 meters of 3.21 g/t gold in R12-26
-- 4.34 meters of 2.02 g/t gold in R12-29
-- 42.15 meters of 0.99 g/t gold in R12-30
-- 18.15 meters of 1.62 g/t gold in R12-30
"We are quite pleased with the progress being made at Reef," said President and CEO Thomas Quigley. "We continue to build on the historic drilling with broad, near surface zones of gold and copper mineralization. The latest round of drilling succeeded in expanding 2010 results and outlined the shallow up dip extension of historic high grade zones, building the framework for a potential open pit resource."
Full results from the first eight holes are presented in the table below:
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DDH From (m) To (m) Interval Au g/t Ag g/t Cu %
(m)(i)
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R12-25 21.30 36.47 15.17 1.20 1.82 0.14
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DDH From (m) To (m) Interval Au g/t Ag g/t Cu %
(m)(i)
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R12-26 43.00 58.50 15.50 1.76 1.72 0.08
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Including 50.75 58.50 7.75 3.21 2.44 0.11
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DDH From (m) To (m) Interval Au g/t Ag g/t Cu %
(m)(i)
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R12-27 61.20 68.05 6.85 0.66 4.81 0.26
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DDH From (m) To (m) Interval Au g/t Ag g/t Cu %
(m)(i)
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R12-28 38.10 45.30 7.20 0.60 3.20 0.14
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DDH From (m) To (m) Interval Au g/t Ag g/t Cu %
(m)(i)
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R12-29 57.50 61.84 4.34 2.02 3.19 0.18
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DDH From (m) To (m) Interval Au g/t Ag g/t Cu %
(m)(i)
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R12-30 20.85 63.00 42.15 0.99 1.32 0.18
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Including 20.85 39.00 18.15 1.62 1.90 0.23
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DDH From (m) To (m) Interval Au g/t Ag g/t Cu %
(m)(i)
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R12-31 89.42 93.38 3.96 0.63 1.98 0.26
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DDH From (m) To (m) Interval Gold g/t Ag g/t Cu %
(m)(i)
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R12-32 No Significant Values
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(i) Reported intervals are drill thickness and do not necessarily
represent true thickness.
The focus was to expand the newly discovered gold zones and test the boundaries of mineralization. To do so the Company drilled along strike to the northeast and adjacent to the undefined eastern margins of known areas of mineralization. Placement of the drill holes allowed Aquila to both extend the boundaries of new gold zones as well as establish continuity between new and historic zones. Drilling intercepted numerous gold-bearing quartz veins and breccia zones.
Last summer the Company drilled 22 diamond drill holes along two 25-meter spaced profiles south of the historical deposit, which resulted in the discovery of multiple near-surface gold zones (see press release dated January 26, 2012). To follow this up the Company completed an additional 2,400 meters spanning 18 holes over the 2012 winter season.
The Company has planned additional work for 2012 including a third round of drilling, a large regional geochemical sampling program and high definition geophysical surveying.
To view the map associated with this press release, please visit the following link: http://media3.marketwire.com/docs/AQA805_2012_Drill_Program.pdf.
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About The Reef Gold Project
Located in Marathon County, Wisconsin, the Reef Gold Project consists of approximately 600 acres of mineral and surface interests covering an area of gold mineralization discovered in the 1970's by Noranda Exploration. Noranda identified eight zones of high grade gold mineralization in a widely spaced, 50-hole drilling campaign, and quoted a non 43-101 compliant resource of 454,600 tonnes of 10.6 grams per ton (g/t) gold, open at depth and along strike. The focus of the Company will be on the bulk tonnage gold potential of the project.
Drilling by Noranda encountered mineralized quartz stockwork/breccia zones ranging from approximately 1 to 12 meters thick. Aquila believes the mineral resource estimate is relevant and is based on a reliable historical report. The Company has acquired and verified Reef drill core for geological characteristics and gold content. For more information on the Reef Project, please refer to the Reef Project section on our website.
About Aquila Resources Inc.
Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) is a mineral exploration Company focused on the discovery and development of high grade base and precious metal projects in highly prospective regions of North America. The Company is rapidly expanding its presence and moving towards an interest in production on its flagship Back Forty Project through a joint venture with HudBay Minerals Inc. (TSX: HBM)(NYSE: HBM). The Company has also positioned itself for future growth by acquiring new base metal deposits under an Exploration Alliance with HudBay as well as through the acquisition of 100% owned precious metal exploration properties. Leading the way is an experienced management and technical team that have identified significant high grade base and precious metal properties. For more information, please visit www.AquilaResources.com.
Quality Assurance and Quality Control
The core was logged and intersections were marked for sampling and assaying by geologists and geo-technicians employed by Aquila Resources. Each bagged core sample was transported to Minerals Processing Corporation's (a related party to the Company) 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 Resources as described in National Instrument 43-101 and is responsible for the contents of this release.
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, labor 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: 90,945,168
The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.
Contacts:
Aquila Resources Inc. (Toronto)
Robin Dunbar
CFO
416-203-1404
rdunbar@aquilaresources.com
Aquila Resources Inc. (U.S.)
Thomas O. Quigley
President
906-352-4024
tquigley@aquilaresources.com
www.aquilaresources.com