Aquila commences Feasibility Study on Back Forty project
Shares Outstanding: 220,914,874
TORONTO, Jan. 13, 2016 /CNW/ - Aquila Resources Inc. (TSX: AQA) ("Aquila") today announced that it has commenced the Feasibility Study and construction implementation plan for its Back Forty project in Michigan's Upper Peninsula. The study will run in parallel with the permitting approval process, which was deemed administratively complete on November 26th, 2015. The study was awarded to Lycopodium Minerals Canada Ltd. ("Lycopodium"), a leading international project management and engineering firm, based in Toronto, Ontario, Canada. Lycopodium will be supported by globally-recognized experts and specialist consulting engineering companies in the permit sensitive areas such as waste water treatment, tailings and waste rock management and mine design to ensure that the Back Forty Project is a world-class and innovatively advanced operation.
"With the permit approval process now in the hands of the Michigan Department of Environmental Quality (MDEQ), our focus for 2016 now turns to final design, planning and construction of the Back Forty Mine," said Andrew Boushy, Vice President of Project Development at Aquila Resources. "Lycopodium offers a unique combination of experience, enthusiasm and senior management support and we look forward to working with them as we advance the project through the detailed design and construction phases."
The Feasibility Study and overall plan entail the development of an engineered construction and operating plan with careful considerations for social, environmental and water management, geotechnical engineering, hydro-geology, metallurgical testing, process design and mine planning. The Feasibility Study is expected to be completed in Q4 2016.
About Aquila Resources
Aquila Resources Inc. (TSX: AQA) is a development-stage company with strategic assets in the Great Lakes Region. The company's experienced management team is currently focused on advancing permitting activities for its 100%-owned gold- and zinc-rich Back Forty Project in Michigan.
Aquila's flagship Back Forty Project is a volcanogenic massive sulfide (VMS) deposit located along the mineral-rich Penokean Volcanic Belt in Michigan's Upper Peninsula. In its updated Preliminary Economic Assessment filed in July 2014, Back Forty demonstrated strong economics with a pre-tax NPV of $282 million ($210.8 million after-tax) and a pre-tax IRR of 38.8% (32% after-tax) based on mining 16.1M tonnes of mineralized material over the 16-year life of mine, of which 12.5M tonnes will be open-pit and 3.6M tonnes will be underground.
This press release contains certain forward-looking statements within the meaning of applicable Canadian securities legislation. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" and similar expressions suggesting future outcomes or statements regarding an outlook.
Forward-looking statements relate to any matters that are not historical facts and statements of our beliefs, intentions and expectations about developments, results and events which will or may occur in the future, without limitation, statement with respect to: (i) the economic analysis contained in the PEA; (ii) the development plan of the PEA and results thereof; (iii) capital expenditure programs; (iv) the quality or quantity of the mineral resources subject to estimates by Aquila; and (v) work plans to be conducted by Aquila.
These and other forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of Aquila to control or predict, that may cause their actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein. Aquila expressly disclaims any obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents Aquila's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information. Furthermore, mineral resources that are not mineral reserves do not have demonstrated economic viability.
SOURCE Aquila Resources Inc.