Aquiline up on Navidad results (March 31, 2008)

VANCOUVER — Aquiline Resources (AQI-T, AQLNF-O) continues to expand its Navidad silver deposit in Chubut province, Argentina.

Loma de la Plata, which, unlike the project’s other six zones, does not lie along the Navidad trend but sits alone some 2 km west, added significant ounces to Navidad in the latest resource estimate. Recent drill results indicate the zone is not yet closed off.

Drill hole 611 returned 15.3 metres grading 723 grams silver per tonne and 0.52% lead from 212 metres down-hole, including 4.4 metres of 2,388 grams silver and 1.17% lead. The intercept pushed Loma de la Plata’s boundary some 100 metres east. Other drill results, such as hole 609, which returned 31.1 metres grading 613 grams silver, have expanded the zone northwards. Drilling is currently under way southeast of Loma de la Plata.

The other Navidad zone that sits removed from the main Navidad trend is Valle Esperanza, a 1-kmlong trend parallel to the main trend but offset roughly 500 metres to the southwest. Aquiline has to date drilled eight holes in Valle Esperanza, following up on a broad induced-polarization (IP) anomaly.

The first significant intercept came from hole 456, which cut 7.5 metres grading 160 grams silver. Hole 624, collared 100 metres northeast of hole 456, did not encounter significant mineralization. Hole 628, drilled 100 metres southwest of the discovery hole, cut two zones of mineralization: from 207 metres depth, the drill returned 8.3 metres grading 495 grams silver and 0.19% lead, then 8.3 metres of 97 grams silver and 0.24% lead from 228 metres.

Following up on those intercepts, Aquiline drilled three holes on 100- metre centres to the south, west, and north of hole 628. All three intersected mineralization. Hole 646 cut 18.1 metres grading 254 grams silver and 0.18% lead, hole 649 returned 20 metres grading 429 grams silver and 0.26% lead, and hole 655 returned 18 metres grading 561 grams silver and 0.02% lead.

Aquiline has a drill working south of Valle Esperanza to follow up on these results. Navidad currently hosts 127.7 million tonnes grading 110 grams silver per tonne and 1.06% lead in the measured and indicated categories, as well as 49 million inferred tonnes grading 97 grams silver and 0.5% lead.

In other Navidad news, in February Silverstone Resources (SST-V, SVRCF-O) purchased a $17.5-million convertible debenture, described by Aquiline as “the first step in a potentially larger silver transaction.” Silverstone has the option to convert the debenture into either common shares of Aquiline at $12 per share or into a contract for the right to purchase 12.5% of the life-of-mine payable silver from the Loma de la Plata zone at Navidad. Silverstone has 23 months or until the completion of a Navidad feasibility study to make its decision.

And Aquiline is also moving along with its Calcatreu gold project in Rio Negro province, Argentina. The company’s work at Calcatreu continues despite the introduction in 2005 of a law that bans the use of cyanide in mineral extraction; Aquiline hopes that a robust Calcatreu could provide impetus to reverse the ban.

An initial feasibility study recommended cyanide tank leaching of 3.5 million tonnes averaging 3.86 grams gold per tonne and 33.22 grams silver, as well as a smaller, passive leaching process for the lower-grade inventory. Aquiline followed up the study with 106 drill holes in 2007, some into satellite zones within trucking distance of the proposed plant and others within the previously defined pit resource.

At the satellite Castro Sur deposit, mineralization within a lowsulphidation epithermal system has been traced over a strike length of 3 km. Recent results include 14.1 metres grading 3.8 grams gold and 34.7 grams silver from 153 metres depth in hole 527 and 6.7 metres grading 5.43 grams gold and 22.3 grams silver from 106 metres down-hole in hole 577.

Other satellite prospects returned noteworthy results. At Cancela, hole 540 returned 10 metres grading 1.16 grams gold and 3 grams silver from just 2 metres depth. The Fiero prospect, a north-south fault zone cutting a strongly silicified rhyolite tuff with accompanying quartz veinlets, produced 8 metres grading 1.63 grams gold and 3.3 grams silver from 21 metres depth in hole 614. The Norte Extension of the project’s main mineralized zone, Vein 49, returned 1 metre grading 5.88 grams gold and 7.3 gram silver, demonstrating the potential for mineralization to continue along the structural trend for the 1.5-km length.

And the Vein 49 zone, which hosts the pit resource, saw two holes to test the main structure and four to test the hangingwall splay. In the main structure, hole 599 cut 5.4 metres grading 2.54 grams gold and 86.9 grams silver; hole 615 returned 7.2 metres grading 1.59 grams gold and 15.4 grams silver. Mineralization remains open at depth. In the hangingwall splay, hole 600 returned 7.7 metres grading 4.35 grams gold.

Aquiline moved up $1.14 or 13% on news of the latest drill results from Valle Esperanza to close at $9.72. The company has a 52-week trading range of $6.51-12.25 and has 56.5 million shares issued.