Aquila Resources Inc.
FRANKFURT : JM4A
TSX : AQA

Aquila Resources Inc.

September 15, 2010 06:00 ET

New Drilling Program Commences at Back Forty Project: Aquila Announces Final Results of 2009/2010 Drilling Program Including 65.0 Meters 1.6 g/t Gold and 35.4 g/t Silver Near Surface

TORONTO, ONTARIO--(Marketwire - Sept. 15, 2010) - AQUILA RESOURCES INC. (TSX:AQA)(FRANKFURT:JM4A) today announced a new drilling program has commenced at the Back Forty Project under the supervision of joint venture partner HudBay Minerals Inc. (TSX:HBM) ("HudBay"). Aquila also announced the final drill results from the most recent drilling program at the project, covering the 90 Gold Zone, shallow stringer mineralization, and a new extension of the South Limb massive sulfide.

The Back Forty Project in the Upper Peninsula of Michigan is an advanced stage exploration project evaluating a zinc and gold-rich volcanogenic massive sulfide deposit under a joint venture between HudBay and Aquila. 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 is continuing to provide technical support.

New Exploration at Back Forty

Aquila announced that a new exploration program has commenced at the project with the following objectives:

  1)   To outline potential expansion of the known resource at depth,
  2)   Test the on-strike potential of the resource, and
  3)   To test new targets generated from airborne and ground geophysical surveys.

In addition to the current open pit measured plus indicated resource of 5.92 million tonnes of 2.46 grams per tonne (g/t) gold, 33.1 g/t silver, 4.06% zinc and 0.61% copper at the Back Forty Project, a measured and indicated underground resource of 2.58 million tonnes grading 9.16% zinc, 1.39 g/t gold, 25.0 g/t silver, 0.28% copper and 0.63% lead, was identified by SRK Consulting, Toronto, Canada, in a National Instrument 43-101 compliant technical report entitled "Back Forty Project Mineral Resource Evaluation" dated February 25, 2009 (available at www.sedar.com). This portion of the resource remains open at depth and will be one of the initial targets in the current drill program.

Drill Results from 90 Gold Zone and Stringer Zone

The final results from the in-pit drilling program targeting the 90 Gold Zone and the shallow stringer mineralization are presented below. These results, along with results from an additional 11,000 meters of drilling conducted in 2009 and 2010, are currently being incorporated into a new resource estimate, which is expected to be released in the fourth quarter of 2010. The results continue to confirm the significant precious metal content of the Back Forty Deposit, including wide intercepts of near-surface gold and silver with significant zinc credits.

Highlights from near-surface stringer mineralization include:

  • LK-466: 65.9 meters at 1.6 g/t gold and 35.4 g/t silver from 5.0 to 70.9 meters including 10.6 meters of 3.9 g/t gold and 31.7 g/t silver.
  • LK-467: 59.2 meters at 1.3 g/t gold and 29.5 g/t silver from 6.7 to 65.9 meters including 8.9 meters of 2.9 g/t gold and 108.1 g/t silver.
  • LK-468: 35.9 meters at 1.5 g/t gold and 3.24% zinc from 9.7 to 45.6 meters including 8.3 meters of 2.4 g/t gold and 7.2% zinc.
  • LK-469: 31.9 meters at 1.8 g/t gold and 13.5 g/t silver from 5.4 to 37.3 meters including 4.6 meters of 7.4 g/t gold. 

 Highlights from the 90 Gold Zone include:

  • LK-473: 19.0 meters at 11.3 g/t gold and 382 g/t silver from 39 to 58 meters.
  • LK-444: 6.0 meters at 2.6 g/t gold from 52.0 to 58.0 meters.
  • LK-451: 45.2 meters at 2.2 g/t gold, 87.5 g/t silver and 1.2% lead including 7.3 meters at 9.9 g/t gold 486.9 g/t silver and 5.9% lead.
  • LK-463: 28.2 meters at 0.64 g/t gold and 1.0 meter at 10.3% zinc and 4.7 g/t gold.
  • LK-464: 11.1 meters at 2.0 g/t gold, 70.2 g/t silver and 1.7% zinc.

South Limb Massive Sulfide

The South Limb Massive Sulfide Zone was extended 50 meters beyond the last easternmost drill intercept of this zinc-rich zone. This is considered strong encouragement to continue exploring for deep extensions of massive sulfide, which will be the initial focus of the next phase of drilling.

  • LK-473: 15.0 meters at 13.0% zinc from 170.0 to 185.0 meters.
  • LK-403X: 10.6 meters at 11.2% zinc from 180.3 to 190.9 meters.

Exploration drilling completed to date has intersected a significant amount of near-surface gold and silver mineralization contained within massive sulfides, stringer sulfides, quartz feldspar porphyries, and shear hosted mineralization within the confines of a conceptual open pit. 

All significant drill results from the 2009 and 2010 drilling program to be incorporated into the new resource estimate have now been compiled and released.

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 over limits (>200 g/t) analyzed by fire assay/gravimetric finish and base metal over limits 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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