Aquiline Resources Inc.
TSX : AQI

Aquiline Resources Inc.

June 18, 2008 17:04 ET

Aquiline Announces Metallurgical Test Results and an Initial Process Flow Sheet for Navidad's Loma de La Plata Zone

TORONTO, ONTARIO--(Marketwire - June 18, 2008) - Aquiline Resources Inc. (TSX:AQI) ("Aquiline" or "the Company") is pleased to announced the results of the first preliminary metallurgical program performed on Navidad's Loma de La Plata zone in Chubut Province, Argentina. These results demonstrate that a low mass, high grade silver concentrate containing approximately 50 kg silver per tonne at silver recoveries of 80-85% are achievable using simple crushing, grinding and flotation circuits. The final report, detailing this test program, will be filed in its entirety on SEDAR and posted to the Company website at www.aquiline.com.

Methodology

The program was conducted in the first and second quarters of 2008 with delivery of 166 individual samples weighing approximately 432 kg to G & T Metallurgical Services Ltd. ("G & T") of Kamloops, B.C. under the direct supervision of John Folinsbee P.Eng., VP Operations of G & T. From the 166 Loma de La Plata ("Loma") samples, G & T developed nine variability composites and one master composite with the objective of developing an initial process flow sheet to support a Pre-Feasibility Study.

This program is the first phase of a broader metallurgical program directed by John Wells, Aquiline's Consulting Metallurgist, involving Loma samples. Additional samples from the Loma de La Plata zone are currently being tested by Xstrata Processing Systems ("XPS").

Results

The head grades of the nine variability composites and one master composite are contained in the figure below with summary results as follows:



----------------------------------------------------------------------------
Assays - percent or g/tonne
----------------------------------------------- Specific
Sample Cu Pb Ag S Sb As Gravity
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502 0.05 0.1 415 0.19 104 0.008 2.6
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504 0.03 0.04 219 0.15 90 0.005 2.59
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508 0.05 0.01 143 0.14 108 0.003 2.53
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515 0.05 0.03 250 0.64 125 0.003 2.53
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555 0.09 0.03 253 0.51 116 0.005 2.51
----------------------------------------------------------------------------
564 0.03 0.04 153 0.21 148 0.002 2.54
----------------------------------------------------------------------------
575 0.08 0.04 243 0.24 158 0.003 2.49
----------------------------------------------------------------------------
602 0.18 0.14 287 0.62 235 0.015 2.42
----------------------------------------------------------------------------
611 0.06 0.37 289 0.40 156 0.002 2.51
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Master Composite 0.07 0.08 259 0.33 146 0.002 2.61
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Note: Sb and Ag are reported in g/tonne, all others are in percent.


Using a simple crushing, grinding and flotation flow sheet and conditions, the following results have been achieved:

- A standard Bond ball mill work index of 16.2 kWh/tonne was recorded for the master composite. The nine variability composites generated an average Comparitive Work Index (Cwi) of about 18 kWh/tonne. The work index determinations reveal the Loma de La Plata material to be of moderate hardness

- Both open circuit and locked cycle tests recovered 80 to 85 percent of the silver into a low mass, high grade silver concentrate

- Silver content in the final concentrate is expected to be about 50 kg/tonne, with results varying from 20 kg to 120 kg/tone across the variability composites at approximately 80 percent silver recovery to the final concentrate

- Average combined copper and lead content in the silver concentrate was about 20 percent in the two locked cycle tests run on the Master Composite

- The arsenic and antimony levels in the feed and final concentrates were measured for the master and nine variability composites. With the exception of one composite, the arsenic and antimony levels recorded in the final concentrate were below typical levels that would attract penalties at most smelters. The levels of antimony and arsenic in the final concentrate produced from the master composite were both well below typical penalty limits at approximately 1,000 g/tonne

- A ICP scan of the final concentrate indicated that there was about 130 g/tonne cadmium present in the final concentrate from the locked cycle test 23. Cadmium can potentially attract some penalties at copper smelters at this level

- Based on mineral occurrence data about 50% of the silver in the final concentrate occurs as the mineral acanthite while 34% occurs as prousite and 15 % as native silver

To view a graph of the Silver Grade-Recovery Curves - Variability Composites please click the following link: http://media3.marketwire.com/docs/618aqi_fig1.jpg

To view a image of the cleaner test flowsheet used in the program please click the following link: http://media3.marketwire.com/docs/618aqi_fig2.jpg

Martin Walter, Executive Vice-President, commented "This new data clearly demonstrates Loma de La Plata to have economic potential as the zone responds well to conventional flotation processing, producing a high grade silver concentrate that is reduced to a very low mass. This will be significant in the current environment of high cost inflation for fuel and freight, as we can minimize our shipping volumes while selling a very high margin concentrate."

The Loma de La Plata zone is estimated to contain 9.1 million tonnes (indicated) at average grades of 226 g/t Ag, or 66 million contained ounces Ag plus 17.3 million tonnes (inferred) at average grades of 159 g./t Ag, or 89 million contained ounces Ag (Snowden Mining Industry Consultants, December, 2007). The majority of the mineralization occurs from surface to depths of 200 metres over a surface area approaching 39 hectares, which is still being expanded with further drilling. Since the cut-off date for the resource calculation, drilling has continued on 200 metre step-outs to the East.

Next phase metallurgy testing

Concurrent with the test work performed by G & T, a larger volume of samples from Loma was sent to XPS in Sudbury, Ontario. The first phase of test work underway at XPS is intended to be completed in July with results expected to be reported in the third quarter this year.

Under the guidelines of the 43-101 National Instrument, the Qualified Person for the above testing at G & T is John Folinsbee, VP Operations. The Qualified Person for the metallurgical program underway at the Navidad Project is Mr. John Wells, Consulting metallurgist, JAWMETC. Mr Wells has reviewed the technical content of this release.

FORWARD-LOOKING STATEMENTS

This press release includes certain "forward-looking statements". All statements, expressed or implied, regarding future development of the Navidad property, are forward-looking statements that involve various risks and uncertainties, as disclosed under the heading "Risk Factors" and elsewhere in Aquiline documents filed from time to time with applicable regulatory authorities. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

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