Aquila Intersects Additional Gold Mineralization at Bend Copper-Gold Deposit
TORONTO, ONTARIO -- (Marketwire) -- 06/11/12 -- Aquila Resources Inc. (TSX: AQA)(OTCQX: AQARF)(FRANKFURT: JM4A) ("Aquila" or the "Company") is pleased to announce the Company has completed the previously announced diamond drilling program (see press release dated February 16, 2012) on its Bend copper-gold deposit ("Bend") in Taylor County, Wisconsin located 35 miles southeast of the former producing Flambeau mine. All work for the program was funded by HudBay (TSX: HBM)(NYSE: HBM) ("Hudbay") as part of the Company's Strategic Exploration Alliance with HudBay.
A total of 5,800 meters were drilled in 12 core holes during the winter program. Results from the initial six holes have revealed multiple intercepts of high-grade copper and gold mineralization (see image below), including 2.66 meters of 2.85% copper in B12-01 and 6.29 meters of 4.26 g/t gold in B12-03. The program also identified broad zones of consistent lower grade mineralization potentially amenable to bulk, underground mining methods, including 13.26 meters of 0.70 g/t gold and 1.5% copper and 74.5 meters of 1.04 g/t gold in B12-04.
Results for drill holes B12-01 through B12-05 are reported below:
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DDH From (m) To (m) Interval (m)(i) Au g/t Ag g/t Cu %
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B12-01 107.74 121 13.26 0.71 0.44 1.50
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B12-01 Including 107.74 110.4 2.66 0.43 0.05 2.85
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B12-01 And 113.26 121.00 7.74 1.04 0.72 1.48
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B12-01 134.00 137.3 3.30 1.29 0.05 0.04
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DDH From (m) To (m) Interval (m)(i) Au g/t Ag g/t Cu %
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B12-02 117.38 146.68 29.30 1.05 0.06 0.09
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B12-02 Including 128.54 131.78 3.24 3.15 0.05 0.03
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DDH From (m) To (m) Interval (m)(i) Au g/t Ag g/t Cu %
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B12-03 152.21 173.00 20.79 2.12 0.58 0.05
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B12-03 Including 152.21 158.50 6.29 4.26 1.50 0.09
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DDH From (m) To (m) Interval (m)(i) Au g/t Ag g/t Cu %
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B12-04 713.00 787.50 74.50 1.04 0.79 0.04
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B12-04 Including 761.00 770.00 9.00 2.27 0.07 0.05
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DDH From (m) To (m) Interval (m)(i) Au g/t Ag g/t Cu %
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B12-05 Drill Hole Abandoned
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(i) Reported intervals represent apparent true width
To view the Bend Drill Cross Section, click here
Historical exploration at Bend defined multiple stacked massive sulfide lenses- specifically a copper-rich upper zone averaging 2.4% copper and a lower zone of high-grade gold averaging 4.7 g/t gold (non 43-101 compliant). Total strike length of copper and gold mineralization identified to date measures approximately 525 meters and remains open in both directions.
The Company's Phase I program at Bend focused primarily on identifying and expanding mineralization along strike and down dip of the lower gold zone and defining the thick crystal tuff package hosting massive sulfide lenses as well as upper and lower gold zones.
Drill hole B12-01 targeted the copper-rich upper zone where significant mineralization was previously encountered, while holes B12-02 through B12-10 concentrated on expanding gold mineralization in the lower gold zone. Two additional holes, BN12-01 and BE12-01 tested anomalies recently identified during Aquila's VTEM survey. The EM anomalies were explained but no significant mineralization was encountered.
The Company believes the Phase I program was highly successful in 1) confirming historic high-grade levels of the copper-rich upper zone and 2) expanding potential for the discovery of a much larger mineralized system than previously delineated. The lower gold zone remains open down dip and along strike. Once remaining assays are received additional targets will be identified and drilled during the Phase II program being planned for the upcoming summer, which will also include ground geophysical work.
The historic resource was classified using USGS "geologic resource" and is non-compliant to NI 43-101Mineral Resources and Mineral Reserves Standards, and should therefore not be relied upon. A Qualified Person has not done sufficient work to upgrade or classify these Historical Mineral Resources as current NI 43-101 compliant Mineral resources and Aquila is not treating these resources as current, although the resource is viewed as relevant.
About The Bend Copper-Gold Project
The Bend cooper-gold Project was acquired under the Strategic Exploration Alliance with HudBay Minerals (TSX: HBM)(NYSE: HBM) and is a volcanogenic massive sulfide (VMS) deposit located in Taylor County, Wisconsin. Historical resource evaluations at Bend (non NI 43-101 compliant) by the Jump River Joint Venture ("JRJV") between Asarco LLC and Lehman & Associates in 1992 estimated the deposit contains 3 million tonnes grading 2.4% copper, 1.4 g/t gold and 13.7 g/t silver. In addition, a separate gold zone containing 1.23 million tonnes of 4.7 g/t gold and .31% copper was delineated in historic technical reports (non NI 43-101 compliant) and also remains open in all directions. The historic resource was classified using USGS "geologic resource" and is non-compliant to NI 43-101Mineral Resources and Mineral Reserves Standards, and should therefore not be relied upon. A Qualified Person has not done sufficient work to upgrade or classify these Historical Mineral Resources as current NI 43-101 compliant Mineral resources and Aquila is not treating these resources as current, although the resource is viewed as relevant. The report is on file with the Bureau of Land Management.
The copper-gold mineralization at Bend occurs in felsic volcanic rocks that formed 1.8 billion years ago. Mineralized copper-gold zones occur in several stacked massive sulfide lenses ranging from 3 to 21 meters in true thickness and consist mostly of fine-grained pyrite and chalcopyrite. These massive sulfide lenses are enveloped by a disseminated gold-bearing pyritic halo. The resource remains open down dip and down plunge. For more information on the Bend Project, please refer to the Bend Deposit 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 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