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TORONTO, Jan. 6, 2016 /PRNewswire/ - Aquila Resources
Inc. (TSX: AQA) ("Aquila") today announced drill
results from recent exploration activity at its flagship Back Forty
project in Michigan's Upper
Peninsula. Four drill holes, two testing extensions of the
Back Forty deposit, and two testing a separate geophysical anomaly,
were completed in late 2015. Drill holes LK-15-508 and
LK-15-509, targeting expansion of the Back Forty resource along
extensions of the Pinwheel massive sulfide horizon encountered high
grade gold and silver mineralization overlying sections of zinc and
copper rich massive sulfide.
"While our primary focus is to move forward with permitting and
development of our existing mine plan at Back Forty, unlocking the
project's long-term potential through new discoveries remains an
important part of our strategy," said Barry
Hildred, CEO of Aquila Resources. "We are very
encouraged by the results of this recently completed drill program
that will pave the way for further exploration work in 2016 and
beyond."
Drill hole LK-15-508 intersected 9.18 g/t Au, 61.6 g/t Ag, and
1.51% Zn over 14.1 m, including 38.5 g/t Au, 231.8 g/t Ag over 2.85
m in sheared tuffaceous sediments, overlying 8.23 m of massive
sulfide returning.071 g/t Au, 14.4 g/t Ag, and 2.48% Zn.
LK-15-509, drilled approximately 40 m west of LK- 15-508,
encountered two massive sulfide lenses. An upper lens 1.6 m
thick of .62 g/t Au, 25.9 g/t Ag, and 4.25% Zn, and a lower lens of
10 m of .71 g/t Au, 35.7 g/t Ag, and 2.24% Zn.
The table below summarizes significant intercepts from LK-15-508
and LK-15-509.
DDH
|
From
|
To
|
Interval*
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
LK-15-508
|
Meters
|
Meters
|
Meters
|
g/t
|
g/t
|
%
|
%
|
%
|
|
107.2
|
121.3
|
14.1
|
9.18
|
61.6
|
0.12
|
0.20
|
1.51
|
Including
|
107.2
|
110.1
|
2.8
|
38.55
|
231.8
|
0.06
|
0.52
|
0.23
|
|
110.1
|
118.3
|
8.2
|
0.71
|
14.5
|
0.16
|
0.13
|
2.48
|
Including
|
110.1
|
112.4
|
2.3
|
1.00
|
31.0
|
0.08
|
0.37
|
4.96
|
|
118.3
|
121.3
|
3.0
|
4.53
|
29.2
|
0.06
|
0.06
|
0.07
|
|
|
|
|
|
|
|
|
|
DDH
|
From
|
To
|
Interval*
|
Au
|
Ag
|
Cu
|
Pb
|
Zn
|
LK-15-509
|
Meters
|
Meters
|
Meters
|
g/t
|
g/t
|
%
|
%
|
%
|
|
136.5
|
138.1
|
1.6
|
0.62
|
25.9
|
0.08
|
0.11
|
4.25
|
|
144.0
|
154.0
|
10.0
|
0.71
|
35.7
|
0.28
|
0.31
|
2.24
|
including
|
146.8
|
151.0
|
4.2
|
0.93
|
11.6
|
0.56
|
0.03
|
4.30
|
*Both holes drilled vertically. Interval is drilled
thickness. True thickness is estimated to be approximately
80% of drilled thickness.
These holes are step outs along the northeast extension of the
Pinwheel massive sulfide proximal to the proposed Back Forty open
pit as set forth in an updated Preliminary Economic Assessment
filed in September 2014 , and
represent important extensions of potential underground
mineralization adjacent to the open pit. LK-15-508 represents
a step out of 50 meters from previously drilled hole LK-312 which
intersected 9.5 m of 6.5 g/t Au and 55 g/t Ag. LK-15-509 was
a 45 m meter step out from previously drilled LK-178PE which
intersected 29.72 m of .64 g/t Au, 24 g/t Ag, and 9.5% Zn.
The Pinwheel massive sulfide and associated gold zones remain open
to the northeast, southwest and at depth, and will be targeted by
additional exploration drilling in 2016.
Two additional drill holes, PHC-1 and PHC-2, targeting an
airborne electromagnetic anomaly approximately one kilometer
southeast of the Back Forty deposit encountered a 25 to 50 meter
thick section of finely bedded, exhalative sediments with
disseminated pyrrhotite, pyrite, and minor chalcopyrite and
sphalerite, with anomalous zinc and copper. This prospective
sedimentary package was hosted by altered fragmental felsic
pyroclastic rocks cut by quartz feldspar porphyries, very similar
to the Back Forty host sequence, and may represent an extension of,
or a similar horizon to, the Back Forty host rocks and mineralized
horizons.
Downhole electromagnetic probing of PHC-01 and 02, and response
modelling from these surveys have indicated the holes were just off
the edge of, and on the edge of, a plunging conductive plate
possibly indicating a thickening of sulfides below and along strike
of the drill holes. Further geophysical exploration and
drilling along this horizon is planned for 2016.
Quality Assurance and Quality Control
Exploration core drilling was NQ size. The core was logged
and mineralized intersections were marked for sampling and assaying
by geologists either employed or contracted by Aquila Resources
Inc. The marked intersections were sampled by Aquila employed
geo-technicians. Samples were sawn in half using a diamond
core saw and one-half of the core was placed in a 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 (of which
Aquila's V.P. Exploration is a part owner) 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 Bureau Veritas Mineral
Laboratories USA – Inspectorate
America Corporation, an ISO certified assaying/geochemistry
facility in 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 in
length. Analytical methods for gold are fire assay with
atomic absorption finish and gravimetric finish for samples greater
than 3.0 g/t gold. All other elements are analyzed by ICP
with silver overlimits (< 300 g/t) analyzed by fire
assay/gravimetric finish and base metal over limits analyzed by
AAS.
Assay 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 drilled thickness. True widths are
estimates. 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.
Qualified Person
The scientific and technical
information in this news release was reviewed and approved by
Thomas O. Quigley, Vice President of
Exploration and Senior Technical Advisor for the Back Forty
Project. By virtue of his education, experience, and professional
association, Mr. Quigley is considered a Qualified Person as
defined under National Instrument 43-101.
About Aquila Resources
Aquila Resources Inc. (TSX:
AQA) is a development-stage company with strategic assets in the
Great Lakes Region. The company's experienced management team is
currently focused on advancing permitting activities for its
100%-owned gold- and zinc-rich Back Forty Project in
Michigan.
Aquila's flagship Back Forty Project is a volcanogenic massive
sulfide (VMS) deposit located along the mineral-rich Penokean
Volcanic Belt in Michigan's Upper
Peninsula. In its updated Preliminary Economic Assessment filed in
September 2014, Back Forty
demonstrated strong economics with a pre-tax NPV of $282 million ($210.8
million after-tax) and a pre-tax IRR of 38.8% (32%
after-tax) based on mining 16.1M tonnes of measured, indicated, and
inferred resources over the 16-year life of mine, of which 12.5M
tonne will be open-pit and 3.6M tonnes will be underground.
This press release contains certain forward-looking
statements within the meaning of applicable Canadian securities
legislation. 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" and similar expressions suggesting future outcomes or
statements regarding an outlook.
Forward-looking statements relate to any matters that are not
historical facts and statements of our beliefs, intentions
and expectations about developments, results and events which will
or may occur in the future, without limitation, statement
with respect to: (i) the economic analysis contained in the
PEA; (ii) the development plan of the PEA and results
thereof; (iii) capital expenditure programs; (iv) the
quality or quantity of the mineral resources subject to
estimates by Aquila; and (v) work plans to be conducted by
Aquila.
These and other forward-looking statements and information
are subject to various known and unknown risks and uncertainties,
many of which are beyond the ability of Aquila to control or
predict, that may cause their actual results, performance or
achievements to be materially different from those expressed or
implied thereby, and are developed based on assumptions about such
risks, uncertainties and other factors set out herein. Aquila
expressly disclaims any obligation to update forward-looking
information except as required by applicable law. Such
forward-looking information represents Aquila's best judgment based
on information currently available. No forward-looking statement
can be guaranteed and actual future results may vary materially.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements or information. Furthermore, mineral
resources that are not mineral reserves do not have demonstrated
economic viability.
SOURCE Aquila Resources Inc.