Letter From The President
Thank you for viewing our newly updated website and for your interest in Aquila Resources. We are excited about the new direction which Aquila is heading.
We have currently developed a three pronged approach to increase shareholder value.
In addition to our 49% interest in the Back Forty Joint Venture, Aquila has formed a strategic Exploration Alliance to explore for base metals funded by HudBay, and has implemented gold and silver exploration activity on its own behalf.
Aquila’s main asset is the Back Forty Project in the Upper Peninsula of Michigan, which is an advanced stage exploration project delineating a zinc and gold-rich volcanogenic massive sulfide deposit under a joint venture agreement between Aquila and HudBay.
Aquila owns a 49% interest in the project. A new mineral resource estimate was announced in October of 2010 containing 18.1 million tonnes in the measured and indicated category with nearly one million ounces of contained gold and over one billion pounds of zinc. Three drills are currently active at the project, along with advanced engineering, environmental and other pre-permitting activities. HudBay has budgeted $16 million for the Back Forty Project in 2011, which includes approximately $5 million for exploration drilling.
Aquila and HudBay have also formed a strategic Exploration Alliance to explore for base metals in Michigan as well as other areas mutually agreed upon. Qualifying targets will be fully funded by HudBay until US$2 million has been expended, at which time a 50/50 joint venture will be established. This structure has great potential to benefit Aquila shareholders by enabling Aquila to acquire and explore new properties on a non-dilutive basis, particularly during the early phase of exploration.
Another diversification strategy is to expand Aquila’s portfolio of assets by acquiring wholly owned gold properties. Our exploration focus going forward is to acquire, explore and develop gold properties by taking advantage of our exploration experience and expertise in the Great Lakes region and elsewhere.
We continue to thank our growing number of local community supporters as well as our loyal shareholders for their commitment to Aquila.
I am very excited about Aquila’s new strategy and look forward to many positive results and projects in the coming year!
Sincerely,
Thomas O. Quigley
President and Chief Executive Officer
