Aquila Resources Provides Update on Its Back Forty Project
11 Mai 2021 - 1:59PM
Business Wire
Aquila Resources Inc. (TSX: AQA,
OTCQB: AQARF) (“Aquila” or the “Company”) is pleased
to provide an update on its Back Forty Project in Michigan.
Optimized Feasibility Study
In March 2021, Aquila engaged Osisko Technical Services
(“OTS”) to lead an optimized feasibility study (the
“Feasibility Study”) for the Back Forty Project. Aquila is
leveraging OTS’ combined engineering, permitting, construction and
operating expertise to unlock value and advance the Back Forty
Project through its next phase of development.
A key objective of the optimized Feasibility Study is to reflect
feedback from the Michigan Department of Environment, Great Lakes
& Energy (“EGLE”) and the local community since the
original Back Forty permits were issued. By incorporating the
underground mine plan in the Feasibility Study and modifying the
Project footprint, the Company expects to demonstrate substantially
reduced surface impact, including wetland impacts, and a longer
mine life for the benefit of all stakeholders.
Current Feasibility Study activities are focused on:
- Evaluating open pit configurations and surface infrastructure
layouts that avoid direct impact to regulated wetlands;
- Progressing underground mine planning including ore delivery
scheduling, ventilation, and confirming the location of the box
cut;
- Updating the mineral resource estimate using current metal
prices and Net Smelter Return calculations; and
- Preparing samples for additional metallurgical tests to support
a simplified process flowsheet and enhanced gold recoveries.
Subject to securing additional funding, the Company’s objective
is to complete the Feasibility Study in Q4 2021.
Guy Le Bel, President & CEO,
commented, “We are committed to advancing the Back Forty Project
with a collaborative approach that integrates feedback from the
community. Our goal is to design, build and operate a 21st century
mine in sync with American values of safety, quality work,
leading-edge technology, and environmentally responsible mineral
extraction. The resulting mine will offer over a decade of net
benefits to local and regional communities while being protective
of the environment.”
Permitting The Feasibility
Study design will build on the substantial technical and
environmental work that Aquila has completed since the submission
of the original permit applications and the completion of the 2018
open pit feasibility study. Given the enhancements to the Project
and the ability to demonstrate substantially reduced environmental
impact by incorporating the underground mine plan, Aquila believes
the most efficient path to shovel-ready status is to focus efforts
on successfully permitting the optimized Feasibility Study
design.
As such, the Company has determined not to proceed with its
appeal of the January 2021 decision by an Administrative Law Judge
to deny the prior issuance of the Wetlands Permit. The Feasibility
Study team is focused on a design seeking to avoid direct impacts
to wetlands. Even if a Wetlands Permit is required, Aquila expects
that it will be able to secure a re-issued permit from EGLE based
on the fieldwork already completed under the existing Wetlands
Permit and progress on the groundwater modeling that would be used
to support any estimates of indirect wetland impacts.
The Company has also determined not to proceed with the
contested case of the amended Mining Permit. As the amended Mining
Permit only contemplates the open pit portion of the Project, there
is no benefit to continuing to dedicate resources to a permit under
which the Company does not plan to proceed. Following the
completion of the Feasibility Study, the Company will submit an
application for a Mining Permit that reflects the optimized design,
including the underground mine plan. Should a Wetlands Permit and
Dam Safety Permit be required, the Company will submit applications
for these permits concurrent with the Mining Permit application. A
key benefit of this approach is that it should facilitate a
consolidated review process and, compared to a sequential process,
compress the timeline to permit issuances.
The Company is maintaining its Air Permit and National Pollutant
Discharge Elimination System (NPDES) Permit in good standing and
will proceed with timely renewals of these permits, as
required.
ABOUT AQUILA Aquila Resources Inc. (TSX: AQA, OTCQB:
AQARF) is a development‐stage company focused on high grade
polymetallic projects in the Upper Midwest, USA. Aquila’s
experienced management team is currently advancing pre-construction
activities for its flagship 100%‐owned gold and zinc‐rich Back
Forty Project in Michigan.
The Back Forty Project is a
volcanogenic massive sulfide deposit with open pit and underground
potential located along the mineral‐rich Penokean Volcanic Belt in
Michigan’s Upper Peninsula. Back Forty contains approximately 1.1
million ounces of gold and 1.2 billion pounds of zinc in the
Measured & Indicated Mineral Resource classifications, with
additional exploration upside. An optimized Feasibility Study for
the Project is underway.
Aquila has two other exploration
projects: Reef Gold Project located in Marathon County, Wisconsin
and the Bend Project located in Taylor County, Wisconsin. Reef is a
gold-copper property and Bend is a volcanogenic massive sulfide
occurrence containing copper and gold. Additional disclosure of
Aquila’s financial statements, technical reports, material change
reports, news releases and other information can be obtained at
www.aquilaresources.com or on SEDAR at www.sedar.com.
Cautionary statement regarding
forward-looking information
This press release may contain
certain forward-looking statements. 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”. In particular, this news
release contains forward-looking information pertaining to the
following: the ability of the Company secure additional funding and
complete the Feasibility Study on the timeline provided or at all,
the outcome of the Feasibility Study, the ability of the Company to
successfully permit the Back Forty Project, and other development
plans and objectives. 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, including
but not limited to: the ability of the Company to close the
Offering; risks and uncertainties related to the availability of
further advances of the remaining deposit under the Gold Stream;
the availability of senior construction financing for the Back
Forty Project; risks with respect to the COVID-19 pandemic; and
other related risks and uncertainties, including, but not limited
to, risks and uncertainties disclosed in Aquila’s filings on its
website at www.aquilaresources.com and on SEDAR at www.sedar.com.
Aquila undertakes no 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210511005481/en/
Guy Le Bel, President & CEO Tel: 450.582.6789
glebel@aquilaresources.com
Barry Hildred, Executive Chair Tel: 647.943.5672
bhildred@aquilaresources.com
David Carew, VP Investor Relations Tel: 647.943.5677
dcarew@aquilaresources.com