Name of the Project
Back Forty gold/zinc project.

Location
Michigan, in the US.

Client
Aquila Resources.

Project Description
Back Forty has openpit proven and probable mineral reserves of 11.65-million tonnes grading 1.85 g/t gold, 21.7 g/t silver, 2.64% zinc, 0.21% lead and 0.28% copper.

Mining operations will encompass a large openpit that will be mined with conventional mining equipment in three pushback phases.

The mining fleet will comprise major equipment used directly in the rock-moving operation, including blast-hole drills, hydraulic excavators, and 91 t haul trucks. Various support equipment will be required, such as dozers, graders, water trucks, and light vehicles for maintenance, personnel transport and mine supervision.

The process plant design is based on a flexible metallurgical flowsheet designed for treating of a variety of ore types. The key project design criteria for the process plant are:

a nominal throughput of 4 000 t/d sulphide ore and 800 t/d oxide ore.

crushing circuit availability of 75%, which will be supported by surge bins and dedicated feeders for choke feeding cone crushers for optimum crushing performance and wear minimisation.  The oxide and sulphide process plant will have availability of 91.3% using standby equipment in critical areas and reliable grid power supply.

sufficient automated plant control to minimise the need for continuous operator interface and allow for manual override and control if and when required.

The project has an estimated mine life of seven years, with total payable gold production of 468 000 oz (or an average of 67 000 oz/y) and 135 000 oz in Year 1. Total payable gold equivalent production of 1.1- million ounces.

Total payable zinc production is estimated at 512-million pounds (or an average of 73-million pounds a year). Total payable zinc equivalent production of 1.2-billion pounds is estimated.

Aquila has also identified several opportunities to further enhance the overall economics of the project, including the possible addition of an underground expansion.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 6% discount rate, of $208-million, and an internal rate of return 28.2%, with payback of 2.2-years.

Value
Initial project capital costs are estimated at $294-million.

Duration
The project has an estimated 24-month construction period.

Latest Developments
Certain preconstruction activities are under way.

Aquila is finalising its project execution plan,  which will further define the project development strategy, including contracting philosophy, plans for basic and detailed engineering and any required permit amendments, as well as plans for building the owner's team in preparation for the construction and operational readiness phases of the project.  

The company will continue discussions with prospective financial partners to secure the required capital to build the Back Forty project. Aquila, with the assistance from its advisers, will consider all strategic and financial options available to the company and the project.

With its current cash resources and an additional $47.5-million in staged payments that remain available to the company under its gold stream purchase agreement with Osisko Gold Royalties, Aquila is well-financed to complete its planned preconstruction and exploration activities.

Key Contracts and Suppliers
Lycopodium Minerals Canada (feasibility study).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Aquila Resources director of corporate development and investor relations David Carew,  tel +1 647 943 5677 or email dcarew@aquilaresources.com.