TORONTO, ONTARIO -- (MARKET WIRE) -- 10/04/07 -- AQUILA RESOURCES INC. (TSX: AQA)(FRANKFURT: JM4A) ("Aquila" or the "Company") today announced that an airborne electromagnetic and magnetic survey at the Back Forty project in the Upper Peninsula of Michigan has been completed. The survey encompassed a block approximately 35 kilometers by 14 kilometers with line spacings of 100 and 200 meters, and was designed to evaluate the mineral potential of favorable rocks extending to the east of known mineralization at the project.
The survey was conducted by Geotech Airborne Limited, and utilized a helicopter borne VTEM system for maximum depth penetration and resolution, to evaluate the mineral potential of basement rocks of the Penokean Volcanic belt extending under younger Paleozoic cover in the eastern portion of the project area. The Penokean Volcanic Belt hosts several significant base and precious metal volcanogenic massive sulfide (VMS) deposits including Crandon (67 million tons 1.1% copper, 5.6% zinc), Lynne (6.7 million tons 8.7% zinc, 0.64% copper) and Flambeau (6.4 million tons 4.0% copper including 1.9 million tons of 10.5% copper and 3.4 grams per tonne gold).
VMS mineralization at the Back Forty Project lies on trend with these deposits and likely represents a distinct volcanic center with potential to host multiple deposits. The VTEM survey will evaluate this potential in the vicinity of the Back Forty massive sulfide lenses, as well as testing broader potential for additional centers of volcanic-hydrothermal activity and VMS mineralization.
Back Forty Project Update
Three drills continue to operate at the project, expanding the known VMS lenses, as well as defining associated gold mineralization. Significant expansions of the Pinwheel and other massive sulfide zones are anticipated, as is preliminary definition of widespread gold mineralization related to porphyry intrusives (PM Gold Zone), as well as gold mineralization associated with the 90 Gold Zone. Drill results from 15 holes from the Pinwheel, Hinge and PM Gold Zone are currently pending.
Sixty one drill holes comprising 16,300 meters of drilling has been completed since the last resource update in May of 2007, and drilling will continue with the goal of providing updated models for a new National Instrument (NI) 43-101 compliant resource.
As part of activities to be completed in preparation for a NI 43-101 compliant Preliminary Assessment ("Scoping Study"), updated resource modelling and metallurgical test work on major ore types from the deposit have commenced.
Baseline Environmental Studies and Outreach Activities Ongoing
Nonferrous mine permitting in Michigan is regulated under Part 632, Nonferrous Metallic Mineral Mining, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (NREPA). This legislation enacted by the State of Michigan regulates the development of nonferrous mineral deposits in the State of Michigan.
Part 632 requires that a permit application for a mine must include an environmental impact assessment which requires a description of baseline conditions in the proposed mining area. Aquila and its lead independent consultant Environmental Resources Management (ERM) have commenced baseline environmental work in order to provide the research and data to support a future application for a mining permit.
Thomas O. Quigley, President of Aquila noted that "Environmentally protective, yet well defined, permitting regulations in the State of Michigan provide a concise framework for development of the state's mineral resources, and we are encouraged by the recent progress that Kennecott has made towards permitting the Eagle Deposit - also located in the Upper Peninsula of Michigan. Aquila will continue to pursue the advancement of the Back Forty Project with a focus on the environment and noting the economic benefits that will accrue to the local community and the State of Michigan."
The Company is also continuing its community information and outreach programs, and is holding regular monthly open houses to update the community on its current activities as well as to answer questions and concerns. An open house at the project site with tours and explanations of geology, drilling and environmental studies is scheduled for October 14.
Certain information regarding the Company contained herein may constitute forward-looking statements under applicable securities laws. Such statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. The securities being offered have not and will not be registered in the United States under the United States Securities Act of 1933, as amended (the "1933 Act") or any state securities laws, and may not be offered or sold within the United States or to or for the account of benefit of U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This news release does not constitute an offer to sell or a solicitation of an offer to purchase securities in the United States.
Shares Outstanding: 70,109,478
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the contents of this release.
Contacts:
Aquila Resources Inc. (Toronto)
Robin Dunbar
CFO
(416) 203-1404
Email: info@aquilaresourcesinc.com
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