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.