Name of the Project
Back Forty gold/zinc project.

Location
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 are openpit and 3.6-million tonnes are 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 be 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.

Jobs to be Created
Not stated.

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
Aquila Resources has been awarded two further final permits for its flagship Back Forty project.

The Michigan Department of Environmental Quality has issued the final ‘nonferrous metallic mineral mining’ permit and ‘Michigan air use permit to install’ following a public comment period that ended November 3.

The mine permit application (MPA) includes Aquila's plan for mining, tailings and waste rock management, reclamation, monitoring, contingency plan and plan for financial assurance. The MPA also contains a detailed ‘environmental-impact assessment’ supported by more than two years of baseline studies on environmental and cultural resources.

Aquila has advised that two further permits remain under consideration – the ‘national pollution elimination system’ permit and a permit for wetland impacts.

This year, Aquila plans to focus on completing its feasibility study, finalising the two outstanding permits, expanding its owner's team and closing on financing that will fund the project to commercial production. Aquila also has plans to do more exploration, targeting a new mineralised zone, while also better defining the underground resource.

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.