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TORONTO, ONTARIO--(Marketwire - Nov. 19, 2012) - Aquila Resources Inc. (News - Market indicators)(OTCQX:AQARF)(FRANKFURT:JM4A) ("Aquila" or the "Company") is pleased to provide an update on the Back Forty Project in the Upper Peninsula of Michigan, other Aquila projects in the Great Lakes area, as well as recent activities completed on gold properties in the Southeastern USA.
Back Forty Project
The Back Forty Project, located in the Upper Peninsula of Michigan, is an advanced stage gold, silver, zinc and copper exploration project currently operating under a joint venture with Hudbay Minerals Inc. ("Hudbay") (TSX:HBM)(NYSE:HBM) and Aquila, owned 51%/49% respectively. Hudbay decided to suspend its development activities at the Back Forty (see press release dated July 3, 2012) earlier this year due to other capital commitments on its key development projects and global economic conditions. Currently, evaluation of strategic options for the Back Forty Project continue as both Aquila and Hudbay consider a range of potential structures to continue to advance the project to permitting and potential production. The project is being maintained in a ready to go status to capitalize on the engineering, environmental and other work completed by the joint venture.
An updated 43-101 compliant mineral resource estimate, which will include 21,150 meters of drilling in 78 drill holes, being prepared by Tetra Tech of Golden, Colorado, is nearing finalization. Updated wireframes and a block model incorporating drilling since the previous resource has been completed and final components of the model are being assembled.
Other Aquila Projects - Great Lakes Area
Base metal and precious metal projects in the Great Lakes area, all 100% owned by Aquila, are also being maintained in a ready to go status pending finalization of a funding structure. These projects span the range of grassroots exploration, to projects with developing resources, and have significant potential to add to and compliment Aquila's interest in the Back Forty project. The proximity of these projects to potential processing infrastructure (gold and base metal circuits) at Back Forty enhances their value as well as the strength and potential of Aquila as a major developer in the Great Lakes region.
In particular, the Reef gold project near Wausau, Wisconsin, the Peninsula gold project in the Upper Peninsula of Michigan, and the Bend copper gold project near Medford, Wisconsin, have all been the subject of extensive and successful drill programs and are entering stages of advanced exploration and preliminary resource assessment. Results from these projects are in earlier press releases and on the Company's website.
Aquila Gold Activities - Southeastern USA
Aquila geologists have completed compilation of historic exploration data and recently completed exploration activity from two gold properties in the southeastern USA. These properties - the Royal Vindicator in Georgia, and the Moose property in North Carolina, are located in the Carolina Slate Belt, host for major gold mineralization similar to Romarco's Haile Mine development, the Brewer mine and recent producer - Kennecott's Ridgeway mine.
The Royal Vindicator property, located in Haralson County, Georgia was a historic producer of gold in the late 1800's, with estimated production of 250,000 tons of 5.5 g/t gold from a small open pit and limited underground production. The property was subsequently explored by U.S. Borax in the late 1970's and 42 drill holes defined a gently dipping, very continuous, siliceous gold bearing zone approximately 1000 meters long, 500 meters wide, and 12 to 24 meters thick.
Drilling was very wide spaced but returned consistent gold values in the .5 g/t to 2 g/t range over the entire thickness of the zone with abundant multi gram higher grade intervals. The zone remains open with large areas of untested potential.
Aquila has acquired 100% interest in approximately 600 acres controlling the Vindicator mineralization and potential extensions. The agreement requires annual payments ($60,000 paid in 2012) and a reserved NSR production royalty of 2% underground and 4.5% surface of gross return to the mineral owner.
Preliminary mapping and sampling programs by Aquila geologists have identified anomalous gold values in saprolite and outcrops in rocks below the known mineralization (up to 5 g/t) and coarse gold was panned from streams draining rocks overlying the gently dipping Vindicator zone (up to 9 visible gold flakes assayed at 46.8 g/t) - suggesting potential widespread mineralization above and below the Vindicator zone. Follow up exploration programs including drilling are being planned.
The Moose Pasture property is in the northern portion of the Slate Belt, just north of the South Carolina border in Anson County, North Carolina. Aquila has acquired 917 acres of mineral and surface rights covering a geochemical soil anomaly and anomalous trenches in an area of abundant placer gold in creeks. The property was initially explored by Asarco in 1981, identifying a 1100 meter long by 45 to 90 meter wide area of anomalous soils with up to 2.2 g/t gold. Surface trenching and auger sampling by Asarco returned 15 meters of .685 g/t gold, with similar values from auger samples to depths of 12 meters. The anomaly disappears under thin coastal plain sedimentary cover to the east.
The current property position at Moose Pasture consists of 14 parcels with five land owners and requires annual payments ($30,000 paid in 2012) and reserved NSR production royalties of 2% underground and 3.5% surface for all landowners.
Preliminary mapping and sampling programs by Aquila geologists has confirmed the presence of anomalous gold in soils and outcrop. Soil and stream sampling has confirmed historic anomalous gold values, and stream sampling has indicated other areas of anomalous gold in streams removed from the known geochemical anomaly. Follow up exploration programs including drilling are being planned.
About Aquila Resources Inc.
Aquila Resources Inc. (TSX:AQA)(OTCQX:AQARF)(FRANKFURT:JM4A) is a mineral exploration Company focused on the discovery and development of high grade base and precious metal projects in highly prospective regions of North America. The Company is led by an experienced management team that has identified significant ore deposits over the last 30 years. For more information please visit www.AquilaResources.com.
Shares Outstanding: 90,945,168
Thomas O. Quigley is the Qualified Person for Aquila Resources as described in National Instrument 43-101 and is responsible for the contents of this release.
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, labor 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.