Aquila Resources Announces Positive Feasibility Study Results for its Back Forty Project

Aquila Resources (TSX:AQA) announced today (August 1) the results of an independent open pit only feasibility study completed on its zinc-gold Back Forty project in Michigan.

President and CEO of Aquila, Barry Hildred said:

“The completion of the Back Forty project feasibility study is a significant milestone for Aquila and sets the stage for the next steps to develop this deposit. Back Forty is well-positioned as a permitted project in a favourable mining jurisdiction that is close to existing infrastructure. We can now focus the company’s resources on the pre-construction phase at Back Forty while considering funding alternatives to complete the development of the project.”

As highlighted in the press release:

• Pre-tax net present value (NPV) at a 6 percent discount rate of US$259M and IRR of 32.0 percent at base case metal prices of US$1,300 per oz gold, US$1.20 per pound of zinc, US$20/oz silver, US$3.00/lb copper and US$1.00/lb lead.
• After-tax NPV at a 6 percent discount rate of US$208M and IRR of 28.2 percent with a 2.2 year payback.
• Open pit proven and probable mineral reserves of 11.65M tonnes.
• A project life of seven years with total payable gold production of 468,000 oz (or an average of 67,000 oz per year) and 135,000 oz in year 1. Total payable gold equivalent production of 1.1 million oz.
• Total payable zinc production of 512M lbs (or an average of 73M lbs per year). Total payable zinc equivalent production of 1.2B lbs.
• Initial project capital costs estimated at $294M with a 24-month construction period.
• Sustaining capital costs of US$110.6M.
• Gross C1 cash costsof $499/oz gold equivalent or US$0.46/lb zinc equivalent and net C1 cash costs of -US$590/oz gold or -US$1.73/lb zinc.
• Gross all-in sustaining costs (AISC) of US$677/oz gold equivalent or US$0.62/lb zinc equivalent and net AISC of -US$171/oz gold or -US$1.34/lb zinc.
• The company has also identified a number of opportunities to further enhance the overall economics of the project including the future addition of an underground expansion.

Click here to read the full Aqulla Resources (TSX:AQA Press release.