Aquila Announces Plans for New Resource Estimate at Back Forty Incorporating Data From Additional 78 Drill Holes
TORONTO, ONTARIO -- (Marketwire) -- 05/24/12 -- Aquila Resources Inc. (TSX: AQA)(OTCQX: AQARF)(FRANKFURT: JM4A) ("Aquila" or the "Company") is pleased to announce that a new National Instrument (NI) 43-101 compliant mineral resource estimate will be calculated for the Back Forty project. This announcement follows the release of positive results of a Preliminary Economic Assessment ("PEA") for the project last month (see press release dated April 26, 2012). The Company expects to file the PEA on www.sedar.com the week of May 21, 2012.
The PEA utilized a mineral resource calculated by Golder and Associates in October of 2010 (see press release dated October 15, 2010). Since the October 2010 resource, 78 drill holes totaling 21,150 meters have been completed at the project, and these results will be incorporated into the new resource estimate.
The new resource estimate will update the resource inside and outside the limits of the open pit contemplated in the PEA, including mineralization below the pit, which was targeted with multiple deep drill holes and down hole geophysical surveys.
The intent of the most recent round of drilling was to infill areas of previously -defined near- surface mineralization such as the Pinwheel gossan, Pinwheel massive sulfide, and South Limb massive sulfide.
Highlights from the final round of drilling (not previously released) include:
- 25.26 meters of 4.31 g/t gold and .21% copper in PFD-7; Pinwheel gossan
(2.77 to 28.03 m)
- 36.80 meters of 4.59 g/t gold, 71.39 g/t silver and 2.41% copper in PFD-
11; Pinwheel massive sulfide (4.60 to 41.40 m)
- 7.53 meters of 7.63 g/t gold and 42.75 g/t silver in PFD-19; South Limb
massive sulfide (8.69 to 16.22 m)
(i)Above intervals represent drilled thickness only.
Other drill holes to be incorporated into the new resource estimate include drilling to expand established mineralization, as well as infill drilling to better define and quantify known mineralization. Highlights of these previously released results, which will be included in the pending resource estimate, are described in press releases dated September 22, 2011, June 27, 2011, April 19, 2011 and March 3, 2011.
About The Back Forty Project
The Back Forty Project, located in Menominee County in the Upper Peninsula of Michigan, is an advanced stage exploration project delineating a zinc and gold-rich volcanogenic massive sulfide deposit under a joint venture agreement between Aquila and HudBay Minerals Inc. (TSX:HBM)(NYSE:HBM). Aquila owns a 49% interest in the project and HudBay owns a 51% interest, which HudBay can increase to 65% by funding and completing a feasibility study and permitting applications. HudBay is the operator of the Back Forty Joint Venture and Aquila continues to provide technical support. Results of a National Instrument (NI) 43-101 Preliminary Economic Assessment were announced on April 26, 2012.
The Back Forty deposit is comprised of massive sulfide, stringer, gossan, and gold-only mineralization, each with high-grade components. Massive sulfide has been traced along strike for nearly 1 kilometer and to a vertical depth of 700 meters. The limit of strong hydrothermal alteration associated with the Back Forty massive sulfide has not been identified and is indicative of a very large system. For more information on the Back Forty Project, please refer to our NI 43-101 Technical Report entitled "Technical Report, Back Forty Deposit, Menominee County, Michigan, USA" dated November 29, 2010, available under our profile at www.sedar.com.
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 holds a 49% interest in the 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.
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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