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 has made a new discovery of gold and zinc mineralisation near its Back Forty project.

The company has reported the assay results of two discovery holes of mineralisation that could add to the resource base and mine life at the project.

According to Aquila, the new zone of massive sulphides encountered in this drilling is 150 m from the last intercept of Pinwheel massive sulphides to the north-east, 500 m from resources included in the current Back Forty mine plan, and associated with a gravity and conductive trend that extends a further 600 m to the south-west.

Both Back Forty zones remain open along strike, and down and up dip, as well as down hole. Aquila has said it is planning surface pulse electromagnetic surveys to help interpret extensions and trends to target in the next drilling phase.

The company has also reported that it will submit a new updated wetlands permit to the Michigan Department of Environmental Quality that will address recent comments provided by the US Environmental Protection Agency and the US Army Corps of Engineers.

Aquila has said that is has met with all three agencies. The wetlands protection permit is the last permit required to build and operate the Back Forty project, subject to public comment periods closing on November 3 for its other permits.

The company expects that the resubmission of the wetlands permit will not affect its targeted development timelines for the project.

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.