Peninsula Project

Overview

• Located in the Upper Peninsula of Michigan, USA in the Marquette Greenstone Belt
• Previous gold-bearing shear zones identified by Callahan Mining Corporation
• Mineralization has been traced over 300 meters in strike length and 150 meters at depth and remains open in all directions

Highlighted results from Aquila's Phase I and II drill campaigns include:

• 3.08 meters of 4.48 g/t gold in PEN 10-9
• 16.67 meters of  9.47 g/t gold in PEN 10-11
• 8.0 meters of 18.57 g/t gold in PEN 10-14
• 4.45 meters of 35.3 g/t gold in PEN 10-20
• 3.5 meters of 8.84 g/t gold in PEN-11-23
• 3.0 meters of 7.48 g/t gold in PEN-11-26
• 4.59 meters of 5.31 g/t gold in PEN-11-30
• 4.48 meters 10.37 g/t gold in PEN-11-36, Including 23.4 g/t gold over 1.97 meters
• See press releases dated February 8, 2011 and January 25, 2012 for full assay results

History

Callahan Mining Corporation purchased the property in 1981. Callahan was concurrently operating the Ropes Gold Mine (located approximately 2.5 km northeast) and drilled the Peninsula in attempt to supply feed to the gold mill as the Ropes neared the end of its mine life. Callahan drilled 37 holes and estimated a resource for two gold bearing zones of 51,700 tons grading 0.141 oz/ton (4.83 g/t) and 41,200 tons grading 0.082 oz/ton (2.81 g/t).

The identification of the ore reserve gave rise to a preliminary underground ramp mining plan and the successful attempts to obtain mining permits from Marquette County in 1988. However, due to falling gold prices and Callahan’s general financial troubles, the project was abandoned.

Geology

The Peninsula Prospect is an Archean-aged, greenstone-hosted gold prospect located in the Marquette Greenstone Belt in the Upper Peninsula of Michigan. Gold was first discovered at the Peninsula in the 1880’s as evidenced by historical shafts and surface workings.

The Peninsula prospect is located in the Marquette Greenstone Belt, an Archean-aged belt of meta-volcanics thought to be an extension of the Wawa Greenstone belt that extends from Northern Minnesota into Ontario. At the Peninsula, the greenstone is inter-bedded with fine-grained, laminated felsic tuffs and is intruded by an interconnected cluster of metatonalite plugs, dikes, and sills. The Peninsula gold bearing shear zone consists of a 2 to 15 meter thick, steeply dipping zone of shearing, brecciation and quartz carbonate veining. Higher grade portions contain quartz veining and silicification, locally with visible gold.