Aquila Resources Inc.

Aquila Resources Inc.

March 02, 2010 08:30 ET

Aquila Drilling Outlines Additional Near Surface Gold And Silver Second Drill Rig Added

TORONTO, ONTARIO--(Marketwire - March 2, 2010) - AQUILA RESOURCES INC. (TSX:AQA)(FRANKFURT:JM4A) ("Aquila" or the "Company") is pleased to announce additional drill results from the ongoing drilling program at the Back Forty Project in the Upper Peninsula of Michigan. Drilling continued to expand the near surface NS Gold Zone and outlined other significant mineralization. The Back Forty Project is an advanced exploration stage project progressing toward development under a Subscription, Option and Joint Venture Agreement with HudBay Minerals Inc. (TSX:HBM) ("HudBay"). 

The new drill results are from a program of infill drilling and resource expansion, focusing on the potential open pit portion of the Back Forty resource. Drill holes LK-381 through LK-388 were close-spaced step outs of the newly defined NS Gold Zone. All the NS holes except for LK-384 were drilled to the north of previous significant intercepts. LK-384 was drilled to the south at the western edge of the NS Zone. Based on these results, continued drilling is planned to further define the NS Zone along strike. Three of the holes also intercepted quartz feldspar porphyry which is believed to constitute a separate gold mineralizing event. 


  Meters Gold Silver Copper Lead Zinc Rock Type or
Hole ID From To Interval* g/t g/t % % % Zone
LK-381 21.49 27.00 5.51 8.60 36.03 0.010 0.010 0.010 NS Gold Zone
  41.00 44.00 3.00 6.48 182.40 0.010 0.010 0.670 QFP
  59.00 62.00 3.00 2.25 85.45 0.000 0.000 0.160 QFP
LK-382 33.00 35.00 2.00 6.39 56.05 0.010 0.010 0.010 NS Gold Zone
LK-383 10.00 13.26 3.26 15.99 17.13 0.010 0.030 0.004 NS Gold Zone
  36.50 40.00 3.50 39.37 990.70 0.030 0.020 1.600 QFP
LK-384 10.18 14.00 3.82 11.78 3.60 0.004 0.010 0.002 NS Gold Zone
LK-385 14.50 15.78 1.28 9.43 0.05 0.004 0.002 0.005 QFP/NS Zone
LK-386 58.99 60.00 1.01 2.41 117.90 0.050 3.700 5.350 Stringer Sulfides
LK-387 38.87 57.32 18.45 4.73 271.80 0.060 0.170 0.020 NS Gold Zone
LK-388 NSA  
*Drilled thickness, not true thickness


Holes LK-372, LK-375, LK-376, LK-377, LK-378 and LK-379 were drilled in the upper, central portion of the potential open pit above the Main Zone massive sulfide in an area where insufficient drilling had been conducted to define a resource. These holes encountered significant mineralization near surface which will be evaluated for its potential to contribute to the overall open-pittable resource.

LK-380 was targeting an un-drilled area south of the East Zone massive sulfide. Holes LK-373 and LK-374 were infill holes to further delineate a gold zone in stringer and massive sulfides on the north margin of the Main Zone massive sulfide.

  Meters Gold Silver Copper Lead Zinc Rock Type or
Hole ID From To Interval* g/t g/t % % % Zone
LK-372 47.00 64.00 17.00 0.65 7.14 0.03 0.12 2.32 Stringer Sulfides
LK-373 150.00 198.44 48.44 3.04 4.19 0.44 0.01 0.03 Stringer Sulfides
LK-374 136.26 188.72 52.46 3.51 15.57 0.66 0.02 1.06 Main Zone Massive Sulfides
Includes 178.00 187.00 9.00 6.06 22.28 1.70 0.02 1.76 Main Zone Massive Sulfides
  188.72 213.50 24.78 1.81 8.59 0.88 0.02 0.05 Stringer Sulfides
LK-375 56.50 63.00 6.50 0.59 22.85 0.01 0.67 1.65 Stringer Sulfides
LK-376 20.46 34.50 14.04 0.95 16.35 0.03 0.36 0.76 Stringer Sulfides
LK-377 6.00 12.00 6.00 3.56 3.95 0.06 0.04 0.24 NS Gold Zone
LK-378 25.00 26.50 1.50 6.10 2.80 0.08 0.01 0.47 QFP
  31.43 46.00 14.57 1.62 49.35 0.07 0.81 2.17 Stringer Sulfides
includes 31.43 38.18 6.75 2.39 85.64 0.12 1.17 2.86 Stringer Sulfides
LK-379 49.00 51.52 2.52 1.96 25.30 0.01 0.78 0.79 Stringer Sulfides
LK-380 48.50 50.00 1.50 2.34 3.10 0.02 0.08 0.14 Stringer Sulfides

"Drilling continues to encounter new mineralization within the potential open pit," stated Thomas O. Quigley, Aquila's President. "The NS Gold Zone continues to expand and new intercepts, in what had previously been considered waste rock, are potentially adding to the in-pit resource."

Ongoing drilling on the property currently continues. In addition, a second diamond drill rig is being mobilized to accelerate the objective of expanding mineralized zones and eventually calculating an updated resource as a part of pre-feasibility studies planned for later this year.

The Back Forty Project is subject to a Subscription, Option and Joint Venture Agreement with HudBay Minerals Inc., whereby HudBay has an option to earn up to a 65% interest in the project (see Aquila press release dated August 6, 2009). The technical committee for the project has agreed on a project schedule and work plan with a targeted completion date of early 2011 for a feasibility study and permit application.

Sample preparation and analyses for this release were conducted by Inspectorate Labs of Sparks, NV on split drill core supplied by Aquila. Strict sampling and QA/QC protocol were followed, including the insertion of standards and blanks 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 were analyzed by ICP with silver overlimits (>200 g/t) analyzed by fire assay/gravimetric finish and base metal overlimits analyzed by AAS.

Thomas O. Quigley is the Qualified Person for Aquila as described in National Instrument 43-101 and is responsible for the contents of this release.

More information about Aquila and the Back Forty Project, including updated drilling information, can be found on the Company's website at

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.

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