Name and Location
Back Forty gold/zinc project, Michigan, US.

Client
Aquila Resources.

Project Description
The new preliminary economic assessment (PEA) completed on the Back Forty project, in Michigan’s Upper peninsula, incorporates a revised mine plan based on results from Aquila’s 2013 resource update. The project contains measured and indicated resources of 15.13-million tonnes grading 2.03 g/t gold, 24.48 g/t silver, 0.33% copper, 0.22% lead and 3.06% zinc. Inferred resources total 2.34-million tonnes grading 2.07 g/t silver, 26.53 g/t silver, 0.36% copper, 0.33% lead and 2.2% zinc.

The PEA contemplates mining 16.1-million tonnes of mineralised material over the 16-year life-of-mine, of which 12.5-million tonnes is openpit and 3.6-million tonnes is underground. The PEA demonstrates the potential for a diverse earning stream, with a payable metal value mix of 41.2% gold, 40.5% zinc, 12% copper, 5.7% silver and 0.6% lead. Operating at an initial throughput rate of 5 350 t/d, the total payable production of the mine is expected to about 532 000 oz of gold, 704-million pounds of zinc, 63-million pounds of copper, 4.66-million ounces of silver and 11-million pounds of lead.

Net Present Value/Internal Rate of Return
The project has a pretax net present value at 6% of $247.2-million and an internal rate of return of 34.9%, with a payback period of 1.6 years.

Value
$261-million.

Duration
Not stated.

Latest Developments
The PEA provides a path forward for the next set of milestones, including the ramp-up of permitting activities and the start of a feasibility study, as well as an exploration programme initially focused on near-mine satellite targets.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Aquila Resources, tel +1 906 352 4024, fax +1 906 352 4027 or email info@aquilaresources.com.