Aquiline Resources Inc.

Aquiline Resources Inc.

August 15, 2007 12:29 ET

Aquiline Initiates Metallurgical Test Program on Navidad

TORONTO, ONTARIO--(Marketwire - Aug. 15, 2007) - Aquiline Resources Inc. (TSX:AQI) is pleased to announce that it has commissioned Chlumsky, Armbrust and Meyer LLC (CAM) of Lakewood, Colorado to review and oversee metallurgical study work and flow sheet development on its Navidad Silver Project located in the Chubut Province of Argentina. This process and metallurgical work will establish the basis for project economics and a blue-print for project development. CAM was chosen because of their international experience working for clients including Barrick Gold, Freeport, Newmont Mining, Minefinders Corporation Ltd. Penoles in Mexico, and Apex Silver. In addition, CAM is well recognized by the financial community in Canada, US, Europe, South America and Africa.

The first phase will follow up the preliminary metallurgical test work performed by G&T Metallurgical Services Ltd. ("G&T") of Kamloops, B.C. in 2005 under the previous operator. This flotation work consisted of nine composite samples analyzed from Galena Hill, three samples from Navidad Hill and two samples from Calcite Hill. No test work was performed on the Connector Zone, Calcite NW, Loma de la Plata or the newly discovered Barite Hill zone. The current test program, also being conducted at G&T, will focus on the recovery of silver from the Calcite and Navidad Hill portions of the deposit. Eight composites from the area will be tested, four from each of Calcite and Navidad Hills. Testing on the Calcite Hill zone confirmed two types of mineralization, with recoveries of over 90% lead (in the one sample that contained lead) and silver recoveries ranging from 86-88% in a high grade silver concentrate. Testing on the Navidad Hill zone demonstrated silver recoveries ranging from 64-85%. The current plan is to confirm the past test work and begin flow sheet development for these zones. The Galena Hill zone was estimated to contain approximately 60% of the indicated resource estimate cited above, with average silver grades of 184.7 g/t and 2.0% lead. Although the lead recoveries were demonstrated to be in the range of 74-84% of the lead reporting to the lead concentrates, the silver recoverable from the separate pyrite concentrate recovered 37-57% of the total silver. While the first phase of metallurgical testing focuses on the Calcite Hill and Navidad Hill zones, a second phase program is being planned to encompass a wider scope of process options for Galena Hill including further examination of hydrometallurgical processes that may be used to produce silver metal from flotation concentrates at the project site. Pressure oxidation followed by atmospheric leaching with thiosulphate achieved silver recoveries of up to 89% in preliminary testing undertaken by SGS Lakefield and again, reported by the previous operator in April, 2006.

Future work will include the first metallurgical testing on the Connector Zone and Calcite NW Zone as well as the newly discovered Barite Hill zone.

"We are very pleased to have CAM in this role, as their recent experience with Apex Silver in Bolivia demonstrates their expertise and we expect their approach will allow us to quickly determine how Aquiline can move the Navidad project toward development. The eight composite samples have been shipped to G&T and are currently being prepared for flotation tests. Initial results should be available by late September. In the interim, we are collecting samples from Galena Hill, Barite Hill and other zones that we have discovered to contain significant mineralization, as we continue to expand our understanding of the ore body. Our expectation for the first phase of metallurgy is a positive study that shows significant cash flow generation potential," states Gary Gantner, Chief Operating Officer.


Aquiline Resources Inc. is a precious metals exploration and development company. The Company's core strategy is to acquire advanced stage high-grade precious metal deposits within Argentina and the Americas. Aquiline's two main assets are the Calcatreu Gold Project, in Rio Negro Province, Argentina and the Navidad Silver Project in neighbouring Chubut Province. Aquiline operates Navidad in trust under an Interim Project Development Agreement. The projects both occur along the Gastre Fault, an emerging mineralized district in southern Argentina that consists of several near-surface zones of high-grade mineralization, amenable to open pit mining.


This press release includes certain "forward-looking statements". All statements, expressed or implied, regarding mineralization contained on the Navidad Project and Aquiline's ultimate success in the litigation with IMA Exploration Inc. 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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