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TORONTO , Aug. 12, 2014 /CNW/ - Aquila Resources Inc. (TSX: AQA) (FKT: JM4A) ("Aquila") ("Company"), a development-stage exploration company with assets in the Great Lakes
Region including its 100%-owned gold- and zinc-rich Back Forty Project
in Michigan's Upper Peninsula ("Back Forty"), reported its second
quarter results for the period ended June 30, 2014. Aquila's
Management's Discussion and Analysis (MD&A) and Financial Statements
for the quarter are available on the Company's website and on SEDAR at www.sedar.com.
Aquila's focus in Q2 2014 was on completing a series of trade-off
studies to determine the optimal mine plan for Back Forty and
finalizing a new preliminary economic assessment ("PEA") for the
Project.
Post-Q2 2014 Highlights
In July 2014 , Aquila announced strong results from its new PEA on Back
Forty (refer to the press release dated July 23, 2014 for full details
and disclosures). Key highlights include:
-
A pre-tax NPV of $247.2M at 6%, 34.9% IRR, and 1.6-year payback period;
-
Potential for a diverse earnings stream with total payable production of
the mine expected to be 532 thousand ounces of gold, 704 million pounds
of zinc, 63 million pounds of copper, 4,645 thousand ounces of silver,
and 11 million pounds of lead; and,
-
Opportunity for a low-CAPEX, high-grade initial phase operation which
has the potential to maximize capital return in the early years of
production.
Outlook
Subject to market conditions and available capital, Aquila's focus in
2014 remains on:
-
Evaluating a small exploration program on previously identified
near-mine targets in Q3 2014; and,
-
Ramping-up activities related to its permit application for Back Forty
with the Michigan Department of Environmental Quality in H2 2014.
About the Back Forty Project
The Back Forty Project is a high-grade, poly-metallic deposit located in
the Penokean Volcanic Belt in the Great Lakes Region. A 2013 updated
resource estimate (refer to the press release dated February 4, 2013
for full details and disclosures) delineated a Measured and Indicated
(M+I) resource of 15.1 million tonnes and an Inferred Resource of
2.3Mt. The updated M+I resource estimate contains 987,236 ounces gold,
11.91 million ounces silver, 1.02 billion pounds zinc, 74.3 million
pounds lead and 110.4 million pounds copper. An additional 155,885
ounces gold, 1.99 million ounces silver, 113.3 million pounds zinc,
17.2 million pounds lead and 18.6 million pounds copper are included in
the Inferred category. The 2014 preliminary economic assessment (refer
to the press release dated July 23, 2014 for full details and
disclosures), based on the 2013 resource estimate, provided encouraging
project economics, including a $247.2 million pre-tax net present value
at a discount rate of 6% and a pre-tax internal rate of return of
34.9%. Results from the 2012 drilling program demonstrate potential for
continued resource expansion at Back Forty.
About Aquila Resources
Aquila Resources Inc. (AQA.TO) (JM4A.F) is a mineral
exploration Company focused on the development of high-grade deposits
along the Penokean Volcanic Belt in the Great Lakes Region. The Company
is led by an experienced management team that has identified
significant ore deposits over the last 30 years.
The Toronto Stock Exchange neither approves nor disapproves the
information contained in this News Release. Neither the TSX Venture
Exchange nor its Regulation Services Provider (as that term is defined
in the policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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.
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. 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.