Name of the Project
Back Forty gold/zinc project.

Location
Michigan, US.

Client
Aquila Resources.

Project Description
A preliminary economic assessment (PEA) based on results from Aquila’s 2013 resource update has contemplated 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 Resources has announced an updated resource estimate of its Back Forty project, increasing the combined measured and indicated zinc resource by 12%, while the contained gold resource has increased by 4%.

Based on information gained from 22 further diamond drill holes, completed between 2015 and 2017, the latest resource estimate expands the total measured and indicated tonnage by 10% over the previous 2013 resource statement to 16.6-million tonnes.

Total measured and indicated zinc, comprising floatable and leachable ores, constrained in an openpit scenario and outside of the conceptual pit, comprise 1.15-billion pounds at an average grade of 3.13%, with total contained gold at one-million ounces at an average grade of 1.92 g/t.

This estimate will form the basis for a feasibility study on Back Forty that is in its final stages.
Aquila is also expected to announce details of an exploration drilling programme at Back Forty in the coming months to further define the underground potential of the deposit, where mineralisation remains open at depth.

The drill-hole database comprises 741 boreholes totalling 128 670 m of drilling, which includes the 22 new holes. This updated resource estimate does not incorporate a further 28 holes that were drilled and associated with geotechnical investigations for metallurgical purposes and exploration, including drilling on the mineralised zone discovered in 2016, which is located about 500 m south-west of the proposed openpit.

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.