Aquila Resources Inc.
FRANKFURT : JM4A
TSX : AQA

Aquila Resources Inc.

October 13, 2009 08:53 ET

Aquila Resources and HudBay Minerals Resume Drilling at the Back Forty Project to Expand NI 43-101 Resource

TORONTO, ONTARIO--(Marketwire - Oct. 13, 2009) - AQUILA RESOURCES INC. (TSX:AQA)(Frankfurt:JM4A) ("Aquila" or the "Company"), is pleased to announce the resumption of drilling at its Back Forty Project in the Upper Peninsula of Michigan under a Subscription, Option and Joint Venture Agreement (the "Back Forty Agreement") with HudBay Minerals Inc. ("HudBay") signed in August 2009 (see Aquila press release dated August 6, 2009).

The Back Forty Project is an advanced stage VMS deposit which contains multiple lenses of massive sulfide mineralization with closely associated gold and silver zones. In January 2009, an updated NI 43-101 compliant resource was released, with a measured and indicated resource of 8.5 million tonnes of 2.13 grams/tonne (g/t) gold, 30.6 g/t silver, 5.61% zinc and 0.51% copper (see Aquila press release dated January 15, 2009). Approximately 6 million tonnes of the identified resource are potentially open pit ores, and many of the individual zones comprising the resource are open for expansion.

Under the Back Forty Agreement, HudBay has an option to acquire a 51% ownership interest in the Project through the expenditure of US$10 million within three years, amongst other conditions. The resumption of drilling will be funded by a US$1 million investment by HudBay, who are currently managing the development of the project. HudBay will provide exploration oversight and will work closely with Aquila's team of experienced geologists to implement this next round of drilling.

Thomas O. Quigley, President and CEO of Aquila, commented that "Exploration and development activities under our agreement with HudBay at the Back Forty Project are proceeding smoothly, and we are pleased to implement new drilling focusing on the excellent potential to expand the near surface resource of gold, silver and base metal mineralization at the project."

INITIAL DRILLING HAS GOLD/SILVER FOCUS

Drilling is scheduled to resume this week at the project, initially targeting near surface precious metal mineralization of the NS Gold Zone, extensions of the 90 Gold Zone and other zones of precious and base metal mineralization encountered in and around the potential open pit development at the project.

Near surface gold mineralization related to the NS Gold Zone was encountered late in 2008 drilling and as a result was not modeled or included in the updated 43-101 compliant resource for the Back Forty Project released in January 2009. Gold mineralization associated with the NS Gold Zone occurs in near surface oxidized rhyolite tuffs adjacent to, and extending into, the open pit modeled for the 2009 resource calculations. The table below shows past intercepts for the NS Gold Zone. 

NS Gold Zone Intercepts
HoleFrom (m)To (m)Interval*Au g/t
LK-145P18.026.48.46.9
LK-22015.326.511.25.5
LK-24838.041.03.03.5
LK-26712.319.26.97.1
LK-27121.027.66.612.2
LK-27417.726.68.94.8
LK-29412.019.57.54.5
 *Drilled thickness, true thickness unknown

In addition to expansion and definition of the NS Gold Zone, drilling will target extensions of another near surface gold zone - the 90 Gold Zone (340,000 tonnes, measured and indicated, of 3.05 g/t gold and 53.8 g/t silver) contained within the resource pit shell and open along strike. Initial drilling at the 90 Gold Zone will step out from a previous intercept of 13.5 meters of 7.1 g/t gold and 9.3 g/t silver.

Other targets scheduled for drilling include a number of zinc intercepts within the resource pit shell not associated with known mineralized zones, down plunge expansion of the main zone massive sulfide, and geophysical targets developed from airborne and ground geophysical surveys. In addition to exploration and resource expansion drilling, geotechnical drilling for mine and facility planning will be done concurrently.

Thomas O. Quigley is the Qualified Person for Aquila as described in National Instrument 43-101 responsible for 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 www.aquilaresources.com.

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.

Shares Outstanding: 81,770,529

Contact Information