Aquila Resources Inc.

Aquila Resources Inc.

December 09, 2009 08:30 ET

Aquila and HudBay Drilling Intersects Exceptional Gold and Silver Grades

Including 3 meters of 125.61 grams/tonne gold and 5,038 grams/tonne silver

TORONTO, ONTARIO--(Marketwire - Dec. 9, 2009) - AQUILA RESOURCES INC. (TSX:AQA)(FRANKFURT:JM4A) ("Aquila" or the "Company"), is pleased to provide additional high grade gold and silver assay results from the ongoing drilling program at the Back Forty Project in Michigan's Upper Peninsula. The current drill program is targeting near surface gold mineralization as well as untested areas within the potential open pit area of the Back Forty polymetallic resource (see NI 43-101 Mineral Resource Evaluation, Back Forty Polymetallic Deposit, Michigan, USA, dated February 25, 2009), and is part of a larger program of engineering, environmental, and permitting activity undertaken by HudBay Minerals Inc. (TSX:HBM) ("HudBay") and Aquila as a part of an Option and Joint Venture Agreement for the Back Forty Project.

Assay results for an additional nine drill holes targeting extension of the NS Gold Zone and other near surface gold mineralization have been received, and significant results presented in the table below, with complete results available on the Company's website.

Drill from to (i) Gold Silver Copper Lead Zinc
Hole (m) (m) (m) g/t g/t % % %
LK364 16.57 17.50 0.93 0.72 126 0.123 0.045 0.021
LK366 23.93 29.00 5.07 4.37 1 0.015 0.018 0.002
31.00 47.00 16.00 1.20 86 0.375 0.009 0.028
LK367 includes
31.70 36.00 4.30 2.01 262 0.663 0.017 0.010
7.32 18.00 10.68 1.36 23 0.014 0.013 0.004
7.32 12.00 4.68 2.76 13 0.006 0.019 0.004
29.00 30.50 1.50 6.27 212 0.065 0.005 1.560
LK-368 34.50 42.00 7.50 53.16 2,099 0.031 0.265 0.066
34.50 39.00 4.50 87.17 3,451 0.043 0.366 0.060
34.50 37.50 3.00 125.61 5,038 0.048 0.498 0.076
8.23 15.50 7.27 2.90 11 0.006 0.028 0.005
LK369 36.50 38.00 1.50 1.41 60 0.031 0.004 0.219
41.00 44.00 3.00 1.27 32 0.009 0.002 0.774
LK370 36.00 43.10 7.10 2.85 11 0.019 0.012 0.009
LK371 25.20 28.05 2.85 6.03 24 0.055 0.066 0.012
(i)True thickness unknown

The holes in the table above are located in the western portion of potential open pit development. High grade intercepts in LK-368, as well as LK-356 and LK-357 (released previously) appear to support a shallowly dipping, east-west striking, semi-continuous zone of previously unrecognized high grade precious metal mineralization (the NS Gold Zone). Close spaced drilling (10 to 15 meter step-outs) around these intercepts is currently being completed to determine the continuity and extent of the zone.

"The intercept in LK-368 represents the highest grade precious metal intercept over a significant thickness yet encountered at the Back Forty Project, and has potential to add significant gold and silver ounces to the in-pit metal inventory, and we will aggressively follow up on this important development," stated Thomas O. Quigley, Aquila's President. "We are hopeful that continued in-fill drilling will demonstrate that this new near surface, high grade zone will tie in with other uncorrelated high grade intercepts and will form a continuous high grade gold and silver zone within the current pit shell."

Exploration, engineering and permitting activities at the Back Forty Project are progressing under the Option and Joint Venture Agreement with HudBay (see Aquila press release dated August 6, 2009), who has the right to earn a 51% interest in the project through expenditures of US$10 million over the next three years, with the option to increase to 65% by completing a feasibility study and submitting a permit to mine.

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 are 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 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. 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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