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 is openpit and 3.6-million tonnes is 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 received the draft mining and pollution permits for its Back Forty gold/zinc project. It has also received draft national pollutant discharge elimination system and air pollution control permits.

The permits will now be the subject of a public hearing, to be administered by the Michigan Department of Environmental Quality (MDEQ) before issuing the final permits. The MDEQ is holding a 64-day combined public comment period, from September 1 to November 3, and a combined public hearing, on October 6, Aquila has said.

Meanwhile, Aquila is working on its response to the MDEQ regarding comments received from the Environmental Protection Agency and the US Army Corps of Engineers during the review process of its wetlands permit application. The wetlands permit is the last of four permits required to build and operate the Back Forty mine. 

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.