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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.
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. (TSX: AQA) (Frankfurt: JM4A) 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.
For further information:
Barry Hildred, CEO
Aquila Resources Inc.
Tel: 416 477 6985
Email: [email protected]
Tel: 416 815 0700 ext. 288
Email: [email protected]