Aquila intersects sulphides in Michigan

Through most of the current field season Aquila Resources (AQA-V, AQARF-O) has been drilling massive sulphide intersections at the Back Forty project in Menominee Cty., Mich.

The most recent results are from stepout drilling on two known mineralized zones, the South Limb and the Tuff Zone. Hole LK-86 tested both zones, cutting downdip from previous intersections in the South Limb and down-plunge from previous intersections in the Tuff Zone. It intersected mineralization only in the South Limb, cutting 8.1 metres grading 13.97% zinc, 0.14% copper, 1 gram gold and 12 grams silver in the zone’s upper lens and 13.5 metres grading 12.04% zinc, 0.31% copper, 3 grams gold and 32 grams silver per tonne in the lower lens.

A second hole, LK-87, tested a downdip extension of the Tuff Zone and intersected a 7-metre interval that graded 5.84% zinc, 0.04% copper, 1 gram gold and 20 grams silver per tonne.

A third hole, LK-85, tested east of a previous gold intersection, but encountered no significant mineralization.

The deposit is a classical volcanic-hosted massive sulphide in altered rhyolites of Proterozoic age. A resource estimate of 3.1 million tonnes, grading 6.8% zinc, 0.25% copper, 2 grams gold and 32 grams silver per tonne, dates from October 2005.

The known resource is in three zones, the East Zone, the South Limb, and the Tuff Zone, which are on the south limb of a southwest-plunging fold. Two other zones on the adjoining MRT property, the Main Zone Hinge and the Pinwheel Zone, occupy the near-surface hinge and the north limb of the fold; these are not in the resource.

Because of the tight folding, wide sulphide intersections are common in the deposit.

Ten holes drilled earlier in the summer also returned significant intersections of massive sulphides. Five holes on the deposit’s East Zone returned a number of thick intersections, including 28.2 metres grading 9.25% zinc and 4.3 grams gold per tonne, 20.8 metres grading 12% zinc and 2 grams gold, and 20.7 metres grading 9.8% zinc and 2.5 grams gold.

Another 10 holes tested extensions of the Tuff Zone and South Limb, including LK-83, which cut a 36.1-metre intersection with grades of 13.42% zinc, 0.85 gram gold and 9 grams silver per tonne, with trace copper and lead credits. The same hole intersected four other zones including a 36.1-metre zone of stringer and semi-massive sulphide mineralization that graded 0.45% copper, 1.7 grams gold and 14 grams silver per tonne, with minor lead and zinc.

The company controls about 48 sq. km, and has an option on the MRT property, which consists of about 40 hectares with known extensions of the mineralization. Aquila’s option deal required an initial US$1.3-million payment, with another US$3.2 million payable over the first five years. The total option payment is US$11.7 million.

A 29-hole drill program, managed by Aquila for private interests in 2002 and 2003, cut a number of wide intersections of massive or semi-massive sulphides, including a 33-metre interval that ran 6.3% zinc and 0.3% copper, 51 metres grading 16.1% zinc and 0.1% copper, and a 68-metre interval running 6.1% zinc and 0.3% copper.

Aquila, formerly JML Resources, came into the Back Forty property via a reverse takeover that included a consolidation of three JML shares into one Aquila. It now has about 50 million shares outstanding, with 18.4 million escrowed.