Aquila Resources Inc.
FRANKFURT : JM4A
TSX : AQA

Aquila Resources Inc.

June 15, 2010 09:32 ET

Aquila and HudBay Announce Additional Drilling Results-Expanding Massive Sulfides and Gold Zones Near Surface LK-430 Intercepts 122.4 Meters at 2.0 g/t Gold and 5.5% Zinc

TORONTO, ONTARIO--(Marketwire - June 15, 2010) - AQUILA RESOURCES INC. (TSX:AQA)(FRANKFURT:JM4A) is pleased to announce more positive drill results from its ongoing drilling program at the Back Forty Project in the Upper Peninsula of Michigan. The Back Forty Project is an advanced stage exploration project evaluating a zinc and gold rich volcanogenic massive sulfide deposit under a Subscription, Option and Joint Venture Agreement with HudBay Minerals Inc. (TSX:HBM). Engineering and permit work is ongoing and the technical advisory committee for the project has agreed on a project schedule and work plan with a targeted date of early 2011 for submission of a permit application.

Drilling at the Back Forty Project continues to focus on expanding and further defining resources from the previously announced National Instrument (NI) 43-101 compliant mineral resource estimate (Back Forty Project Mineral Resource Evaluation, SRK Consulting, Toronto, Canada, February 25, 2009) available at www.sedar.com. The current drill results include intercepts of massive sulfide gold-rich stringer mineralization from the East and Hinge zones with significant lengths outside the current resource model as well as holes which confirm the eastern expansion of the 90 Gold Zone and the continuity of the NS Gold Zone, not included in the previous resource estimate. 

"We continue to be impressed with assay results from the in-pit resource drilling," stated Tom Quigley, Aquila's President and CEO. "Definition of new mineralization and expansions of known zones within the resource pit shell continue to add value to the project, and we look forward to an updated mineral resource later this year."

Highlights include:

  • LK-424: 5.5 meters of East Zone massive sulfide outside of the resource model assaying 10.2 g/t gold, 79.1 g/t silver and 8.6% zinc.
  • LK-429: 13.3 meters of East Zone massive sulfide outside of the resource model of 8.2% zinc in an overall intercept of 19.8 meters of 9.6% zinc and 1.2 g/t gold. 
  • LK-430: 13.5 meters of massive sulfide outside of the resource model which ran 10.6% zinc and 6.5 g/t gold within an overall 122.4 meters of massive sulfide and stringer assaying 5.5% zinc, 2.0 g/t gold and 9.1 g/t silver, which also included 40 meters of 12.8% zinc and 2.5 g/t gold.
  • LK-431: Confirmed the continuity of the eastern extension of the 90 Gold Zone with an intercept of 5.4 meters of 6.1 g/t gold and 197.1 g/t silver, and also intersected a new eastern extension of Tuff Zone massive sulfide containing 4.5 meters of 6.4% zinc, 2.1 g/t gold, 45.1 g/t silver and 1.1% lead.
  • LK-433: Expanded the shallow 90 Zone in the southeast area of the resource open pit with 43.7 meters of 1.1 g/t gold including 10.2 meters of 2.9 g/t gold and 7.1 g/t silver. LK-433 also intersected the PM Gold Zone with 7.8 meters of 5.2 g/t gold and 53.2 g/t silver.
  • LK-436: 20.5 meters of Pinwheel gossan and massive sulfide outside of the current resource model that ran 2.8 g/t gold, 263.5 g/t silver and 2.2% copper, including 4.8 meters of 5.1 g/t gold, 59.6 g/t silver and 3.0 meters of 6.6% copper and 459.5 g/t silver.
  • LK-437: In-fill to define continuity of the NS Zone definition. It intersected 6.0 meters of 34.0 g/t gold and 487.7 g/t silver, and 14.7 meters of 3.3 g/t gold and 48.1 g/t silver.
  • LK-438: Intersected 5.8 meters above the modeled Hinge Zone that assayed 8.6% zinc, 1.7 g/t gold and 17.2 g/t silver, and 8.4 new meters east of the modeled Hinge Zone of 14.6% zinc, 1.1 g/t gold and 23.2 g/t silver.

Significant intercepts are summarized in the table below:

  All Intervals in              
  Meters Interval g/t g/t % % %  
Hole # From To Width** Gold Silver Copper Lead Zinc Description
LK-424 12.0 31.0 19.0 4.4 36.6 0.2 0.2 11.9 East Zone gossan and sulfide
including 24.0 29.5 5.5* 10.2 79.1 0.2 0.1 8.6  
LK-425 7.0 27.0 20.0 3.1 23.3 0.4 0.0 4.8 East Zone gossan and sulfide
including 13.5 21.0 7.5 1.8 13.7 0.5 0.0 10.9 East Zone massive sulfide
and 21.0 25.5 4.5 6.1 62.7 0.4 0.1 2.5 East Zone massive sulfide
LK-426 10.4 23.2 12.8 4.2 17.6 0.7 0.0 1.5 East Zone gossan and sulfide
LK-427 58.3 90.0 31.8 2.6 8.4 0.2 0.0 0.5 East Zone stringer sulfide
including 58.3 78.0 19.8 3.1 10.9 0.2 0.1 0.7  
LK-428 79.0 94.6 15.6* 1.5 13.5 0.4 0.0 3.2 Hinge Zone massive sulfide
LK-429 86.0 105.8 19.8 1.2 12.4 0.1 0.1 9.6 East Zone massive sulfide
including 92.5 105.8 13.3* 1.5 12.4 0.1 0.1 8.2  
LK-430 10.1 132.5 122.4 2.0 9.1 0.1 0.0 5.5 Hinge Zone massive sulfide
including 37.0 50.5 13.5* 6.5 9.8 0.2 0.1 10.6  
including 50.5 90.5 40.0 2.5 19.1 0.3 0.1 12.8  
LK-431 52.0 57.4 5.4* 6.1 197.1 0.0 0.4 0.6 90 Gold Zone
Including 52.0 55.0 3.0 9.5 334.0 0.0 0.6 0.9  
LK-431 74.0 78.5 4.5* 2.1 45.1 0.0 1.1 6.4 Tuff Zone
LK-433 16.8 60.5 43.7* 1.1 4.5 0.0 0.0 0.5 90 Gold Zone
including 16.8 27.0 10.2 2.9 7.1 0.0 0.0 0.0  
LK-433 104.5 117.8 13.3* 3.4 38.4 0.1 0.5 0.2 PM Gold Zone
including 110.0 117.8 7.8 5.2 53.2 0.1 0.8 0.1  
LK-434 79.3 101.4 22.1 1.1 9.9 0.2 0.0 11.1 East Zone massive sulfide
LK-434 101.4 107.5 6.1 3.3 9.4 0.1 0.0 4.0 East Zone stringer sulfide
LK-435 31.0 43.0 12.0* 1.1 5.8 0.0 0.0 0.0 90 Gold Zone
LK-436 11.0 31.5 20.5* 2.8 263.5 2.2 0.0 0.0 Pinwheel Zone gossan and sulfide
including 12.7 17.5 4.8 5.1 59.6 0.4 0.0 0.0 Pinwheel Zone gossan
including 18.4 21.4 3.0 1.1 459.5 6.6 0.0 0.0 Pinwheel Zone massive sulfide
LK-437 37.8 52.5 14.7 3.3 48.1 0.1 0.0 0.0 NS Gold Zone
LK-437 67.0 73.0 6.0 34.0 487.7 0.1 0.0 0.1 NS Gold Zone
LK-438 70.2 108.4 38.2 1.1 12.8 0.2 0.1 13.9 Hinge Zone massive sulfide
including 70.2 76.0 5.8* 1.7 17.2 0.4 0.0 8.6  
including 100.0 108.4 8.4* 1.1 23.2 0.1 0.3 14.6  
LK-439 23.6 30.2 6.6 3.1 2.1 0.0 0.0 0.0 NS Gold Zone
LK-440 18.2 23.8 5.6 4.3 42.6 0.3 0.0 0.1 NS Gold Zone
LK-441 16.7 20.1 3.4 2.9 5.1 0.0 0.0 0.0 NS Gold Zone
LK-442 60.6 92.0 31.4 1.0 13.1 0.1 0.1 10.4 Hinge Zone massive sulfide
including 60.6 69.5 8.9* 1.1 11.4 0.1 0.0 11.5  
* Intercepts outside current resource model
** Drilled thickness, not true thickness

Other Results

  • LK-425: Intersected 7.5 meters of massive sulfide that assayed 10.9% zinc and 4.5 meters of underlying stringer assaying 6.1 g/t gold and 62.7 g/t silver in the East Zone.
  • LK-426:  Confirmed current East Zone resource thickness by intersecting 12.8 meters of 4.2 g/t gold in near surface gossan and massive sulfide.
  • LK-427: Defined inferred gold-rich East Zone stringer with 31.8 meters of 2.6 g/t gold including 19.8 meters of 3.1g/t gold.
  • LK-428: Expanded Hinge massive sulfide and stringer with 15.6 meters outside of resource model assaying 3.2% zinc and 1.5 g/t gold.
  • LK-434: Defined additional East Zone and inferred stringer by intersecting 22.1 meters of massive sulfide assaying 11.1% zinc and 1.1 g/t gold, and 6.1 meters of 3.3 g/t gold in stringer sulfide.
  • LK-435: Expanded the eastern 90 Zone by intersecting 12.0 meters of 1.1 g/t gold outside the current resource.

NS Gold Zone In-Fill

  • LK-439: Intersected 6.6 meters of 3.1 g/t gold.
  • LK-440: Intersected 5.6 meters of 4.3 g/t gold and 42.6 g/t silver.
  • LK-441: Intersected 3.4 meters of 2.9 g/t gold. 

Pending Holes

Resource drilling is now complete with an additional 37 holes with assays pending. 

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 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 NI 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 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.

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