Aquila Resources Inc.

Aquila Resources Inc.

January 26, 2012 06:00 ET

Aquila Reports Additional Reef Gold Project Drill Results; 2012 Winter Drill Program Underway

TORONTO, ONTARIO--(Marketwire - Jan. 26, 2012) - Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) ("Aquila" or the "Company) is pleased to report results from the last 12 holes of the recently completed 2011 drill program at its 100% owned Reef Gold project in Marathon County, Wisconsin. In total the Company completed 24 diamond core drill holes totaling 2,000+ meters along two profiles. Reef is part of the Company's overall strategy to develop significant new gold resources in the Great Lakes region.

The drill campaign at Reef focused on testing extensions of near surface gold mineralization south of the previously identified zones drilled by Noranda Exploration in the 1970's (see press release dated March 7, 2011). The project hosts a historic resource estimate (non 43-101 compliant) of 454,000 tonnes grading 10.6 g/t gold.

Highlighted results include:
  • 2.10 meters of 8.43 g/t gold and 0.23% copper in R11-15
  • 9.90 meters of 2.53 g/t gold and 0.20% copper in R11-17
    • Including 3.90 meters of 5.07 g/t Gold and 0.27% copper
  • 14.54 meters of 3.23 g/t gold in R11-23
    • Including 3.50 meters of 13.05 g/t gold

"The focus at Reef for 2012 is to work towards establishing a significant open pit gold resource," said President and CEO, Thomas Quigley. "Building on the positive results reported in September as well as from historical drilling by Noranda, we continue to be encouraged by the potential at Reef, which is becoming a significant component of our strategy to generate gold resources in the Great Lakes region."

The Company has commenced additional drilling at Reef with a focus on expanding recently defined mineralization and extending the continuity of new and historical data. The Company anticipates reporting the first independent NI 43-101-compliant resource estimate on the project by the end of 2012.

Results from the last 12 holes are presented in the table below:

DDH From (m) To (m) Interval (m) Au g/t Ag g/t Cu %
R11-13 4.27 6.00 1.73 0.58 0.30 0.01
39.32 43.05 3.73 0.56 6.70 0.47
DDH From (m) To (m) Interval (m) Au g/t Ag g/t Cu %
R11-14 0.00 1.50 1.50 1.08 0.18 0.01
33.90 37.35 3.45 1.20 0.30 0.07
including 34.90 36.00 1.10 3.70 0.90 0.06
DDH From (m) To (m) Interval (m) Au g/t Ag g/t Cu %
R11-15 26.70 31.55 4.85 3.90 2.60 0.15
including 27.20 29.30 2.10 8.43 4.35 0.23
54.00 61.00 7.00 0.55 1.45 0.13
DDH From (m) To (m) Interval (m) Au g/t Ag g/t Cu %
R11-16 No significant values
DDH From (m) To (m) Interval (m) Au g/t Ag g/t Cu %
R11-17 35.10 45.00 9.90 2.53 3.28 0.20
including 35.10 39.00 3.90 5.07 5.26 0.27
DDH From (m) To (m) Interval (m) Au g/t Ag g/t Cu %
R11-18 85.00 87.35 2.35 1.08 1.96 0.21
DDH From (m) To (m) Interval (m) Au g/t Ag g/t Cu %
R11-19 No significant values
R11-20 No significant values
R11-21 No significant values
DDH From (m) To (m) Interval (m) Au g/t Ag g/t Cu %
R11-22 0.00 2.35 2.35 1.31 0.05 0.00
22.05 50.00 27.95 0.48 1.09 0.12
including 22.05 23.80 1.75 4.96 1.90 0.18
78.75 85.00 6.25 1.40 0.61 0.09
DDH From (m) To (m) Interval (m) Au g/t Ag g/t Cu %
R11-23 83.00 97.54 14.54 3.23 0.31 0.05
including 85.50 89.00 3.50 13.05 0.37 0.09
DDH From (m) To (m) Interval (m) Au g/t Ag g/t Cu %
R11-24 59.00 76.77 17.77 1.33 7.17 0.27
including 69.50 76.77 7.27 2.95 16.85 0.60
* Reported intervals are drill thickness and do not necessarily represent true thickness

New maps and cross sections have been posted on the Reef Project section of our website.

About The Reef Gold Project

Located in Marathon County, Wisconsin, the Reef Gold Project is 100% owned by Aquila Resources. The Project consists of approximately 600+ acres of mineral and surface interests covering an area of gold mineralization discovered in the 1970's by Noranda Exploration. Noranda identified eight zones of high grade gold mineralization in a widely spaced, 50-hole drilling campaign, and quoted a non 43-101 compliant resource of 454,600 tonnes of 10.6 grams per ton (g/t) gold, open at depth and along strike. The focus of the Company will be on defining a larger, potentially open-pit and bulk tonnage gold resource at the project.

Drilling by Noranda encountered mineralized quartz stockwork/breccia zones ranging from approximately 1 to 12 meters thick. Aquila believes the mineral resource estimate is relevant and is based on a reliable historical report. The Company has acquired and verified Reef drill core for geological characteristics and gold content. For more information on the Reef Project, please refer to the Reef Project section on our website.

About Aquila Resources Inc.

Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) is a mineral exploration Company focused on the discovery and development of high-grade base and precious metal projects in highly prospective regions of North America. The Company is rapidly expanding its presence 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). The Company has also positioned itself for future growth by acquiring new base metal deposits under an Exploration Alliance with HudBay as well as through the acquisition of 100% owned precious metal exploration properties. Leading the way is an experienced management and technical team that have identified significant high-grade base and precious metal properties. For more information, please visit

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 (a related party to the Company) 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.

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