Aquila Resources Inc.
TSX : AQA
OTCQX : AQARF
FRANKFURT : JM4A

Aquila Resources Inc.

September 22, 2011 06:00 ET

Aquila and HudBay Report 7.60 Meters of 7.33 Grams Per Tonne Gold and 190.20 Grams Per Tonne Silver at Back Forty Project

TORONTO, ONTARIO--(Marketwire - Sept. 22, 2011) - Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) ("Aquila" or the "Company) is pleased to provide investors with new drill results from the Back Forty Project. The Back Forty Project is a joint venture between Aquila and HudBay Minerals Inc. (TSX:HBM)(NYSE:HBM) ("HudBay"), with HudBay currently owning a 51% interest and Aquila a 49% interest. The project recently entered pre-feasibility stage and submission of a mine permit remains on track for the second quarter of 2012.

Highlights from new intercepts at the Back Forty Project include:

  • 9.12 meters of 1.21% copper and 6.24% zinc in LK-501
  • 24.00 meters of 1.02 g/t gold and 108.11 g/t silver in LK-502
  • 51.05 meters of 1.45 g/t gold and 54.89 g/t silver in LK-504

Including 7.60 meters of 7.33 g/t gold and 190.20 g/t silver

Full results are presented in the table below:

DDH From
(m)
To
(m)
Interval
(m)
Gold
g/t
Silver
g/t
Copper
%
Lead
%
Zinc
%
LK-498 311.00 378.50 67.50 0.28 10.95 0.01 0.14 0.46
DDH From
(m)
To
(m)
Interval
(m)
Gold
g/t
Silver
g/t
Copper
%
Lead
%
Zinc
%
LK-499 59.00 94.00 35.00 0.66 13.57 0.01 0.09 0.17
145.81 156.50 10.69 0.67 17.65 0.01 0.44 0.85
230.00 241.62 11.62 2.92 54.58 0.14 0.28 0.52
DDH From
(m)
To
(m)
Interval
(m)
Gold
g/t
Silver
g/t
Copper
%
Lead
%
Zinc
%
LK-500 373.72 426.50 52.78 0.26 7.07 0.01 0.08 0.58
DDH From
(m)
To
(m)
Interval
(m)
Gold
g/t
Silver
g/t
Copper
%
Lead
%
Zinc
%
LK-501 13.53 39.00 25.47 0.83 2.39 0.02 0.05 0.01
279.91 326.50 46.59 1.60 15.65 0.63 0.07 3.03
Including 279.91 289.03 9.12 2.35 28.29 1.21 0.04 6.24
DDH From
(m)
To
(m)
Interval
(m)
Gold
g/t
Silver
g/t
Copper
%
Lead
%
Zinc
%
LK-502 37.00 61.00 24.00 1.02 108.11 0.01 0.21 0.76
Including 669.27 681.27 12.00 1.90 96.99 0.01 1.17 1.42
DDH From
(m)
To
(m)
Interval
(m)
Gold
g/t
Silver
g/t
Copper
%
Lead
%
Zinc
%
LK-503 2.99 19.50 16.51 0.53 0.52 1.19 0.62 1.16
295.78 343.96 48.18 1.56 16.87 0.22 0.09 2.45
Including 319.78 338.63 18.85 2.66 26.36 0.32 0.20 1.40
640.25 677.56 37.31 1.18 9.45 0.45 0.01 0.05
DDH From
(m)
To
(m)
Interval
(m)
Gold
g/t
Silver
g/t
Copper
%
Lead
%
Zinc
%
LK-504 367.05 418.10 51.05 1.45 54.89 0.01 0.33 0.57
Including 410.50 418.10 7.60 7.33 190.20 0.06 1.70 1.53
DDH From
(m)
To
(m)
Interval
(m)
Gold
g/t
Silver
g/t
Copper
%
Lead
%
Zinc
%
LK-505 No Significant Values
* Reported intervals are drill thickness and do not necessarily represent true thickness

Drill holes LK-498, 500, 504 and 505 were intended to investigate the mineralized Tuff Zone found in LK-479. LK-499 was a step-out drill hole to the west designed to further define the South Limb Massive Sulfide Zone. LK-501 targeted the zinc-rich upper portion of the Deep Zone. LK-502 and 503 were designed to test downhole geophysical responses previously detected in LK-479 and 484.

With the additional results from drill hole LK-503, initial correlation and modeling of the deep massive sulfide horizon in LK-479, LK-493, and LK-503 indicates a sheet-like body dipping 67 degrees to the southeast (azimuth 110 degrees).

The gold zone intersected in LK-484 appears to correlate with the deep massive sulfide horizon identified in K-479, LK-493 and LK-503. Ongoing deposit modeling and correlation will further define this potentially new mineralized horizon as well as the mineralized Tuff Zone encountered in LK-479.

Infill drilling also continues on the inferred resource at the Back Forty Project and recent downhole geophysical surveys have identified new, deeper targets that are expected to be drilled throughout the fall and winter.

About The Back Forty Project

The Back Forty Project, located in Menominee County in the Upper Peninsula of Michigan, is an advanced stage exploration project delineating a zinc and gold-rich volcanogenic massive sulfide deposit under a joint venture agreement between Aquila and HudBay Minerals Inc. (TSX:HBM)(NYSE:HBM). Aquila owns a 49% interest in the project and HudBay owns a 51% interest, which HudBay can increase to 65% by funding and completing a feasibility study and permitting applications. HudBay is the operator of the Back Forty Joint Venture and Aquila continues to provide technical support.

The November 2010 NI 43-101 (see press release dated October 15, 2010) resource estimate includes 17.94 million tonnes of measured plus indicated (M+I) and 3.37 million tonnes inferred. The M+I resources contain 902,000 ounces of gold, 11.39 million ounces of silver, 961.2 million pounds of zinc and 78.6 million pounds of copper. An additional 140,000 ounces of gold, 2.64 million ounces of silver 145.6 million pounds of zinc and 33.2 million pounds of copper are included in inferred resources.

The Back Forty deposit is comprised of massive sulfide, stringer, gossan, and gold-only mineralization, each with high-grade components. Massive sulfide has been traced along strike for nearly 1 kilometer and to a vertical depth of 700 meters. The limit of strong hydrothermal alteration associated with the Back Forty massive sulfide has not been identified and is indicative of a very large system. For more information on the Back Forty Project, please refer to the Back Forty Project section on our website.

About Aquila Resources Inc.

Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) is a mineral exploration and development Company focused on the discovery and advancement of high-grade base and precious metal projects in North America. The Company is rapidly expanding its presence in North America and moving towards an interest in production on its flagship Back Forty Project through a joint venture with HudBay Minerals Inc. (TSX:HBM)(NYSE:HBM) ("HudBay"). The Company has positioned itself for growth by acquiring new properties under an Exploration Alliance with HudBay as well as through the acquisition of 100% owned gold exploration properties. For more information, please visit www.AquilaResources.com.

Quality Assurance and Quality Control

The core was logged and intersections were marked for sampling and assaying by geologists and geo-technicians employed by Aquila Resources. Each bagged core sample was transported to Minerals Processing Corporation's 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 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. 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 (>200 g/t) analyzed by fire assay/gravimetric finish and base metal over limits analyzed by AAS.

Assaying 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 vertical thickness only. True widths are not provided. 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.

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

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, labor 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.

The Toronto Stock Exchange neither approves nor disapproves the information contained in this News Release.

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