Aquila Resources Announces Second Round of Results from 2017 Drill Program

 

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TORONTO, Aug. 28, 2017 /CNW/ - Aquila Resources Inc. (TSX: AQA)("Aquila " or the "Company") today announced the second round ofdrill results from its ongoing drilling program at the Back Forty project in Michigan's Upper Peninsula. The first round of results were announced on June 7, 2017. Assay results are still pending from exploration holes targeting a newly discovered mineralized zone 500 meters from the proposed open pit. Results from this final phase are expected by the end of the third quarter of 2017.

Highlights from the second round of assay results include:

• 0.85 g/t gold, 17.41 g/t silver, 0.18% copper, 14.17% zinc over 3.89 meters* in hole LK-17-526
• 1.14 g/t gold, 13.18 g/t silver, 0.72% copper, over 120.21 meters* in hole LK-17-527
• 1.09 g/t gold, 30.52 g/t silver, over 15.4 meters* and 1.43 g/t gold, 257.36 g/t silver, 0.14% copper, 9.06% lead, 23.50% zinc over 2.5 meters* in hole GT-13
• 1.23 g/t gold, 112.96 g/t silver, 1.12% lead, 13.61% zinc over 2.39 meters* and 0.82 g/t gold, 75.37 g/t silver, 0.10% copper, 2.69% lead, 9.6% zinc over 5.9 meters* and 0.98 g/t gold, 65.75 g/t silver, 2.53% lead, 8.95% zinc over 6.00 meters* in hole LK-17-528
• 1.18 g/t gold, 16.55 g/t silver, over 13.24 meters* in hole LK-17-533

*Drilled thickness

"We are extremely pleased with the drill results to date. It is especially encouraging to continue to intersect mineralization around the perimeter and underneath the proposed open pit at Back Forty," commented Jeffrey S. Lynott, Director of Exploration for Aquila. "The results contribute to a growing resource of the Back Forty deposit and will be incorporated into future resource calculations related to the evaluation of potential underground developments at the project".

The results of this drilling program demonstrate the strength of the mineralizing system at Back Forty. Drilling targeted the Pinwheel, Deep Zone, and Main Zone massive sulfides outside of the proposed open pit, and were a combination of infill, step out, and geotechnical drilling. Significant intercepts from this round of drilling are tabulated and described below. The interval represents the drilled thickness.

LK-17-526 and LK-17-527 tested the down-dip extension of the Pinwheel Massive Sulfide Zone outside of the proposed pit. LK-17-527 was drilled at a low angle to the mineralization and the true thickness is estimated to be 30% of drilled thickness. Both holes demonstrate the persistence of this zone down dip.

Geotechnical and resource drilling targeted inferred mineralization of the Deep Zone (beneath the proposed pit) in DDH GT-13, LK-17-528 and LK-17-533.All three of these holes were collared within the footprint of the proposed pit and intersected Tuff Zone and 90 Gold Zone mineralization in the upper part of the holes. Within the pit, these holes intersected mineralization that is outside of the known resource along and near the proposed pit wall. LK-17-533 also intersected the Deep Zone outside of the modeled resource.

QUALITY ASSURANCE AND QUALITY CONTROL
Exploration core drilling was NQ3 size.The core was logged and mineralized intersections were marked for sampling and assaying by geologists either employed or contracted by Aquila Resources Inc.The marked intersections were sampled by Aquila employed geo-technicians.Samples were sawn in half using a diamond core saw and one-half of the core was placed in a sample bags and tagged with unique sample numbers, while the remaining half was returned to the core box for storage.Each bagged core sample was transported to Minerals Processing Corporation's ISO/IEC 17025 Certified sample prep lab and assay laboratory in Carney, Michigan where it was dried, crushed and pulverized and a 250-gram sample was prepared and split, with one split for assaying at Bureau Veritas Mineral Laboratories USA - Inspectorate America Corporation, an ISO certified assaying/geochemistry facility in Sparks, Nevada.Some samples were assayed at the Minerals Processing Corporation lab, including pulp duplicates and over limits for gold and sulfur.Strict sampling and quality assurance/quality control protocol are followed, including the insertion of standards and blanks in the sample stream on a regular basis.Sample intervals are typically 1.5 meters in length.Analytical methods for gold are fire assay with atomic absorption finish and gravimetric finish for samples greater than 3.0 g/t gold.All other elements are analyzed by ICP with silver over limits (> 300 g/t) analyzed by fire assay/gravimetric finish and base metal over limits analyzed by AAS.Sulfur over limits were analyzed by LECO furnace.

Assay integrity is monitored internally with a quality control program, which includes the use of assay sample standards, blanks, duplicates and repeats, and externally through national and international programs.This news release provides core lengths and estimates of drilled thickness.True widths are estimates. Where metal assays are provided for intersections they are either a single assay of a sample of the entire intersection length or a composite of assays calculated from interval weighted assays over the intersection length.

QUALIFIED PERSON
The scientific and technical information in this news release was reviewed and approved by Director of Exploration and Senior Technical Advisor for the Back Forty Project. By virtue of his education, experience, and professional association, Mr. Lynott is considered a Qualified Person as defined under National Instrument 43-101.

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 activities for its 100%-owned gold- and zinc-rich Back Forty Project in Michigan.

Aquila's flagship Back Forty Project is a volcanogenic massive sulfide deposit located along the mineral-rich Penokean Volcanic Belt in Michigan's Upper Peninsula. In its updated Preliminary Economic Assessment filed in September 2014, Back Forty demonstrated strong economics with a pre-tax NPV of $282 million ($210.8 million after-tax) and a pre-tax IRR of 38.8% (32% after-tax) based on mining 16.1M tonnes of measured, indicated, and inferred resources over the 16-year life of mine, of which 12.5M tonne will be open-pit and 3.6M tonnes will be underground.

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, statement with respect to: (i) the economic analysis contained in the PEA; (ii) the development plan of the PEA and results thereof; (iii) capital expenditure programs; (iv) the quality or quantity of the mineral resources subject to estimates by Aquila; and (v) work plans to be conducted by Aquila.

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.

SOURCEAquila Resources Inc.

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