Shares Outstanding: 331,183,671
TORONTO, Feb. 7, 2018 /CNW/ - Aquila Resources
Inc. (TSX: AQA) ("Aquila" or the "Company") announced today an
updated Mineral Resource Estimate for its wholly owned Back Forty
Gold-Zinc deposit in Michigan, USA
(the "2018 Mineral Resource Estimate"). The 2018 Mineral Resource
Estimate was completed by P&E Mining Consultants Inc. of
Brampton, Ontario ("P&E").
The 2018 Mineral Resource Estimate replaces the Mineral Resource
Estimate that was first disclosed in an Aquila news release dated
February 3, 2013 (the "2013 Mineral
Resource Estimate") and subsequently included in a Technical Report
completed by Tetra Tech Inc. with an effective date of July 23, 2014, which is available under Aquila's
SEDAR profile at www.sedar.com.
The 2018 Mineral Resource Estimate incorporates the results of
an additional 22 diamond drillholes completed in 2015 through 2017.
The additional drillholes, which were primarily designed to target
Inferred Mineral Resources, successfully increased the global
tonnage as well as the contained metal inventories within the
Measured and Indicated Mineral Resource categories. The 2018
Mineral Resource Estimate also incorporates updated Mineral
Resource modeling and Mineral Resource determinations based on
updated net smelter return ("NSR") calculations and revised cut-off
values. The updated NSR calculations incorporated updated metal
pricing, recovery information and product specifications which were
derived from recently completed metallurgical testwork as well as
revised terms related to smelting, refining and transportation.
In-pit and out-of-pit Mineral Resource quantities were determined
based on the generation of optimized pit shells to determine the
optimium profitable open pit configuration and incorporated updated
pit slope information derived from additional geotechnical
data.
Highlights of the 2018 Mineral Resource Estimate include a 10%
increase in tonnage in the Measured and Indicated Mineral
Resource categories versus the 2013 Mineral Resource Estimate, a
12% increase in contained zinc and a 4% increase in contained gold.
Contained silver, copper and lead also increased versus the 2013
Mineral Resource Estimate.
The 2018 Mineral Resource Estimate is based on a drillhole
database consisting of 741 boreholes totaling 128,670 meters of
drilling, which includes the additional 22 new holes. This updated
Mineral Resource Estimate does not incorporate an additional 28
holes that were drilled related to geotechnical investigations,
metallurgical purposes and exploration, including drilling on the
mineralized zone discovered in 2016 that is located approximately
500 meters south west of the proposed open pit.
"The 2018 Mineral Resource Estimate confirms our view that the
Back Forty Deposit continues to be one of the highest quality zinc
and gold development stories in the mining sector" said
Barry Hildred, Aquila's CEO. "This
estimate will form the basis for a Feasibility Study on Back Forty
that is in its final stages. In the coming months, we will also
announce details of an exploration drilling program at Back Forty
that will seek to further define the underground potential of the
deposit, where mineralization remains open at depth."
The 2018 Mineral Resource Estimate is summarized in the table
below. P&E considers the mineralization of Back Forty to be
potentially amenable to Open Pit and Out of Pit (underground)
extraction. The 2018 Mineral Resource Estimate will be fully
documented in a Technical Report prepared by P&E to be filed on
SEDAR within 45 days of this press release.
Back Forty Mineral Resource Estimate as of February 6, 2018(1-6)
Area
|
Metallurgy
Type
|
Class
|
NSR
Cut-off
|
Tonnes
|
Gold
|
Gold
|
Silver
|
Silver
|
Zinc
|
Zinc
|
Copper
|
Copper
|
Lead
|
Lead
|
$/tonne
|
(1,000)
|
g/t
|
K
oz
|
g/t
|
K
oz
|
%
|
M
lb
|
%
|
M
lb
|
%
|
M
lb
|
In-Pit
|
Floatable
|
Meas
|
21
|
6,797
|
1.75
|
381
|
18.4
|
4,027
|
3.45
|
516.5
|
0.38
|
56.4
|
0.16
|
23.4
|
Ind
|
21
|
3,768
|
1.58
|
191
|
25.2
|
3,056
|
3.15
|
261.7
|
0.24
|
19.9
|
0.39
|
32.8
|
M &
I
|
21
|
10,565
|
1.68
|
572
|
20.9
|
7,083
|
3.34
|
778.2
|
0.33
|
76.3
|
0.24
|
56.2
|
Inf
|
21
|
71
|
1.01
|
2
|
30.7
|
70
|
2.98
|
4.7
|
0.14
|
0.2
|
0.37
|
0.6
|
Leachable
|
Meas
|
22
|
553
|
5.61
|
100
|
34.8
|
618
|
0.19
|
2.4
|
0.05
|
0.6
|
0.13
|
1.5
|
Ind
|
22
|
1,777
|
2.15
|
123
|
39.6
|
2,263
|
0.41
|
16.1
|
0.03
|
1.3
|
0.29
|
11.5
|
M &
I
|
22
|
2,330
|
2.97
|
223
|
38.5
|
2,881
|
0.36
|
18.5
|
0.04
|
1.9
|
0.25
|
13.0
|
Inf
|
22
|
378
|
3.62
|
44
|
40.1
|
487
|
0.38
|
3.2
|
0.06
|
0.5
|
0.52
|
4.3
|
Total
|
Meas
|
21+22
|
7,350
|
2.04
|
481
|
19.7
|
4,645
|
3.20
|
518.8
|
0.35
|
57.0
|
0.15
|
24.9
|
Ind
|
21+22
|
5,545
|
1.76
|
314
|
29.8
|
5,319
|
2.27
|
277.8
|
0.17
|
21.2
|
0.36
|
44.3
|
M &
I
|
21+22
|
12,895
|
1.92
|
795
|
24.0
|
9,964
|
2.80
|
796.6
|
0.28
|
78.2
|
0.24
|
69.2
|
Inf
|
21+22
|
448
|
3.21
|
46
|
38.6
|
557
|
0.79
|
7.9
|
0.07
|
0.7
|
0.49
|
4.9
|
Out of
Pit
|
Floatable
|
Meas
|
70
|
556
|
1.79
|
32
|
26.8
|
480
|
5.32
|
65.2
|
0.33
|
4.0
|
0.41
|
5.0
|
Ind
|
70
|
3,059
|
1.84
|
180
|
26.2
|
2,577
|
4.23
|
285.4
|
0.51
|
34.3
|
0.30
|
20.3
|
M &
I
|
70
|
3,615
|
1.83
|
213
|
26.3
|
3,057
|
4.40
|
350.7
|
0.48
|
38.4
|
0.32
|
25.3
|
Inf
|
70
|
544
|
2.96
|
52
|
37.5
|
656
|
1.38
|
16.6
|
0.62
|
7.5
|
0.39
|
4.6
|
Leachable
|
Meas
|
70
|
37
|
7.38
|
9
|
74.3
|
89
|
0.31
|
0.3
|
0.12
|
0.1
|
0.11
|
0.1
|
Ind
|
70
|
77
|
3.85
|
9
|
47.3
|
117
|
0.32
|
0.5
|
0.15
|
0.2
|
0.13
|
0.2
|
M &
I
|
70
|
114
|
5.01
|
18
|
56.1
|
206
|
0.32
|
0.8
|
0.14
|
0.3
|
0.13
|
0.3
|
Inf
|
70
|
137
|
5.93
|
26
|
81.0
|
356
|
0.42
|
1.3
|
0.16
|
0.5
|
0.49
|
1.5
|
Total
|
Meas
|
70
|
593
|
2.14
|
41
|
29.8
|
569
|
5.01
|
65.5
|
0.32
|
4.1
|
0.39
|
5.1
|
Ind
|
70
|
3,135
|
1.88
|
190
|
26.7
|
2,694
|
4.14
|
286.0
|
0.50
|
34.6
|
0.30
|
20.5
|
M &
I
|
70
|
3,729
|
1.93
|
231
|
27.2
|
3,262
|
4.28
|
351.5
|
0.47
|
38.7
|
0.31
|
25.7
|
Inf
|
70
|
680
|
3.56
|
78
|
46.2
|
1,011
|
1.19
|
17.8
|
0.53
|
8.0
|
0.41
|
6.1
|
Total
|
Floatable
|
Meas
|
21+70
|
7,353
|
1.75
|
414
|
19.1
|
4,507
|
3.59
|
581.7
|
0.37
|
60.5
|
0.18
|
28.4
|
Ind
|
21+70
|
6,827
|
1.69
|
371
|
25.7
|
5,633
|
3.64
|
547.1
|
0.36
|
54.2
|
0.35
|
53.1
|
M &
I
|
21+70
|
14,180
|
1.72
|
785
|
22.2
|
10,140
|
3.61
|
1,128.8
|
0.37
|
114.7
|
0.26
|
81.5
|
Inf
|
21+70
|
615
|
2.74
|
54
|
36.7
|
726
|
1.57
|
21.2
|
0.57
|
7.7
|
0.38
|
5.2
|
Leachable
|
Meas
|
22+70
|
590
|
5.72
|
109
|
37.3
|
707
|
0.20
|
2.6
|
0.05
|
0.7
|
0.12
|
1.6
|
Ind
|
22+70
|
1,854
|
2.22
|
132
|
39.9
|
2,380
|
0.41
|
16.7
|
0.04
|
1.6
|
0.29
|
11.7
|
M &
I
|
22+70
|
2,444
|
3.07
|
241
|
39.3
|
3,087
|
0.36
|
19.3
|
0.04
|
2.2
|
0.25
|
13.4
|
Inf
|
22+70
|
514
|
4.24
|
70
|
51.0
|
842
|
0.39
|
4.5
|
0.09
|
1.0
|
0.51
|
5.8
|
Total
|
Meas
|
21+22+70
|
7,943
|
2.04
|
522
|
20.4
|
5,214
|
3.34
|
584.3
|
0.35
|
61.2
|
0.17
|
30.0
|
Ind
|
21+22+70
|
8,680
|
1.80
|
504
|
28.7
|
8,013
|
2.95
|
563.8
|
0.29
|
55.8
|
0.34
|
64.9
|
M &
I
|
21+22+70
|
16,623
|
1.92
|
1,026
|
24.7
|
13,227
|
3.13
|
1,148.1
|
0.32
|
116.9
|
0.26
|
94.9
|
Inf
|
21+22+70
|
1,129
|
3.42
|
124
|
43.2
|
1,568
|
1.03
|
25.7
|
0.35
|
8.7
|
0.44
|
11.0
|
(1)
|
Mineral Resources
are estimated as of February 6, 2018.
|
(2)
|
Mineral Resources
which are not Mineral Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially
affected by environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant
issues.
|
(3)
|
The Inferred
Mineral Resource in this estimate has a lower level of confidence
that that applied to an Indicated Mineral Resource and must not be
converted to a Mineral Reserve. It is reasonably expected that the
majority of the Inferred Mineral Resource could be upgraded to an
Indicated Mineral Resource with continued
exploration.
|
(4)
|
The Mineral
Resources in this report were estimated using the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards
on Mineral Resources and Reserves, Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve Definitions and
adopted by the CIM Council.
|
(5)
|
Metallurgical type
Oxide (all gold domains and leachable Gossans) is leachable, while
all other metallurgical types are floatable.
|
(6)
|
The Mineral
Resource Estimate was based on metal prices of US$1,375/oz gold,
US$22.27/oz silver, US$1.10/lb zinc, US$3.19/lb copper and
US$1.15/lb lead.
|
Assays and Quality Assurance / Quality Control
Verification of gold, silver, copper, zinc and lead
assay database was performed by P&E against original laboratory
electronically issued certificates from ALS Chemex, Vancouver, BC, Accurassay Laboratories,
Thunder Bay, Ontario, Inspectorate
America Corporation, Sparks,
Nevada, and Minerals Processing Corporation, Carney, Michigan. A total of approximately 60%
of the wireframe constrained assays were checked. Unchecked assays
were due to laboratory certificates not being made available to
P&E.
P&E also validated the Mineral Resource Estimate database by
checking for inconsistencies in analytical units, duplicate
entries, interval, length or distance values less than or equal to
zero, blank or zero-value assay results, out-of-sequence intervals,
intervals or distances greater than the reported drillhole length,
inappropriate collar locations, survey and missing interval and
coordinate fields. Some very minor errors were noted and corrected.
P&E believes that the corrected database is suitable for a
Mineral Resource Estimate.
All samples submitted for analysis were analyzed for gold,
silver, copper, lead and zinc. A variety of laboratory test
procedures were used over a period from 2002 to 2017. In general, a
minimum of 250 g of the crushed reject was split using a
Jones riffle and then pulverized
to more than 90% -150 mesh. At ALS in Vancouver, all samples were analyzed for gold
by fire assay with AA finish (code Au- AA25) on 30 g charges. The
lower and upper detection limits for this package were 10 ppb to
100 ppm, respectively. Higher-grade samples were re-run with a
gravimetric finish upon request. All samples were also analyzed
using a multi-element package (code ME-ICP61). ME-ICP61 consisted
of a four-acid digestion, "mineralized grade" inductively coupled
plasma ("ICP") package with over-limit samples re-assayed for
copper, lead, zinc and silver by four-acid digestion followed by AA
(code AA62). A limited number of samples were analyzed for mercury
by aqua regia digestion and flameless AA spectrometry (Hg-CV41 with
detection limits of 0.01 to 100 ppm), and for total sulphur by Leco
furnace and infrared spectroscopy (code S-IR08 with detection
limits of 0.01 to 50%). All remaining pulps and coarse rejects were
returned to the Project warehouse facilities in Michigan.
Qualified Persons
The 2018 Resource Estimate was based
on information and data supplied by Aquila, and was undertaken by
Yungang Wu, P.Geo. and Eugene
Puritch, P.Eng., FEC, CET of P&E Mining Consultants Inc.
of Brampton, Ontario, both
independent Qualified Persons as defined by National Instrument
43-101. They have reviewed and are responsible for the technical
information presented in this news release.
ABOUT AQUILA RESOURCES
Aquila Resources Inc. (TSX:
AQA) is a development‐stage company with strategic assets in the
Great Lakes Region. The company's experienced management team is
currently focused on advancing permitting and engineering
activities for its 100%‐owned gold‐ and zinc‐rich Back Forty
Project in Michigan.
Aquila's flagship Back Forty Project is an open pit volcanogenic
massive sulfide deposit with underground potential located along
the mineral‐rich Penokean Volcanic Belt in Michigan's Upper Peninsula. The Project
contains approximately 1.1 billion pounds of zinc and 1 million
ounces of gold in the M&I categories, with additional upside
potential. Currently Aquila is working to secure the final State
permit required to build and operate Back Forty while completing a
Feasibility Study.
The Company has three other exploration projects: Reef Gold
Project located in Marathon County,
Wisconsin, the Bend Project located in Taylor County, Wisconsin and Aquila Nickel
located in the Upper Peninsula,
Michigan. Reef is a gold-copper property and Bend is a
volcanogenic massive sulfide occurrence containing copper and
gold.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This press release contains certain
forward‐looking statements within the meaning of applicable
Canadian securities legislation. 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" and similar expressions suggesting future
outcomes or statements regarding an outlook.
Forward‐looking statements relate to any matters that are not
historical facts and statements of our beliefs, intentions and
expectations about developments, results and events which will or
may occur in the future, without limitation, statements with
respect to the 2018 Resource Estimate, the status of a feasibility
study in respect of Back Forty and Aquila's future exploration and
development plans..
These and other forward‐looking statements and information
are subject to various known and unknown risks and uncertainties,
many of which are beyond the ability of Aquila to control or
predict, that may cause their actual results, performance or
achievements to be materially different from those expressed or
implied thereby, and are developed based on assumptions about such
risks, uncertainties and other factors set out herein. These risks
include those described under the heading "Risk Factors" in
Aquila's annual information form dated March
15, 2017 and its other public filings, copies of which can
be under Aquila's profile at www.sedar.com. Aquila expressly
disclaims any obligation to update forward‐looking information
except as required by applicable law. Such forward‐looking
information represents Aquila's best judgment based on information
currently available. No forward‐looking statement can be guaranteed
and actual future results may vary materially. Accordingly, readers
are advised not to place undue reliance on forward‐looking
statements or information. Furthermore, Mineral Resources that are
not Mineral Reserves do not have demonstrated economic
viability.
SOURCE Aquila Resources Inc.