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Non Ferrous Mineral Potential of the Penokean Volcanic Belt Tom

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Non Ferrous Mineral Potential of the Penokean Volcanic Belt Tom Aquila Non Ferrous Mineral Potential of the Penokean Volcanic Belt Resources Inc. Tom Quigley Aquila Resources Inc. Zinc rich massive sulfide – Back Forty Penokean volcanic Belt with mineral deposits and occurrences Gold rich quartz float – Reef Project Aquila Basement Terrains Resources Inc. Paleoproterozoic Island Arc volcanic – sedimentary sequences shown in blue. These sequences formed in 1900 my old oceans marginal to older Archean cratons. These Paleoproterozoic sequences contain both a volcanic, Island Arc assemblage as well as a marginal basin sedimentary sequence (yellow) and were accreted to the Archean margins during the Penokean Orogeny Aquila Resources Inc. Bedrock Geology Flin Flon Belt Paleoproterozoic Archean Superior Province Paleozoic Sediments Island Arc assemblages contain volcanogenic massive sulfide (VMS) and related mineral deposits and are important sources of base metals Cu, Zn, Pb, Back Forty precious metals Au and Ag. Penokean Volcanic Belt Paleoproterozoic Aquila Bedrock Geology – Superior Province Resources Inc. Penokean Marginal Basin Sedimentary Assemblages Upper Peninsula Of Michigan Back Forty Penokean Volcanic Belt Island Arc Assemblage – Pembine Wausau Terrain Lower Michigan •VMS – Volcanogenic Massive Sulfide •Sulfide rich deposits containing copper, zinc, lead, gold and silver deposited by black smoker activity •Formed in submarine environments by hydrothermal solutions related to volcanic activity related to both convergent and divergent (spreading) plate boundaries. •In the Penokean Volcanic Belt VMS deposits are related to a 1875 Ma Island Arc environment that developed from converging oceanic plates marginal to the Superior Craton Aquila Plate Boundaries and Known Sea Floor Massive Sulfide Sites Resources Inc. What is an Island Arc? VMS Deposit Modified from Stern, 2002 Aquila Plate Boundaries and Known Sea Floor Massive Sulfide Sites Resources Inc. Aquila Nautilus Minerals exploring the sea floor for massive sulfide deposits in Resources Inc. the Manus back arc basin. Aquila Mineral resource estimate (43-101) for the Solwara 1 deposit Resources Inc. The resource was defined by EM surveys, 111 drill holes and numerous surface samples Conductivity Images Solwara 1 Aquila Resources Inc. Plan view electromagnetic response. Circles are samples of black smoker chimneys Electromagnetic Response over topography From: Schulz K.J., Cannon W. F. 2007, The Penokean orogeny in the Lake superior region Aquila Resources Inc. Modified from: Schulz K.J., Cannon W. F. 2007, The Penokean orogeny in the Lake superior region Aquila Bedrock Geology – Penokean Volcanic Belt Resources Inc. Lynne Crandon Back Forty Flambeau Bend Major VMS Deposits in Penokean Volcanic Belt Crandon 67 million tons 5.6% Zn, 1.04% Cu, 1.1 g/t Au, 39 g/t Ag* Lynne 5.6 million tons 9.27% Zn, .47% Cu, .7 g/t Au, 74 g/t Ag* Flambeau 5.8 million tons 4.0% Cu, 1.7 g/t Au, 31 g/t Ag* 1.9 million tons 10.5% Cu, 3.4 g/t Au, 69 g/t Ag (mined) Bend 3.5 million tonnes 1.9% Cu, 2.8 g/t Au, 12 g/t Ag* *Historic Resources – Not 43-101 Compliant TorontoBack Forty Exchange: AQA 18.8 million tonnes 2.8% OTCQX: Zn, 1.9g/tAQRF Au, 24 g/t Ag, 0.3 % Cu Frankfurt Exchange: Aquila Resources Inc. Modified from: Schulz K.J., Cannon W. F. 2007, The Penokean orogeny in the Lake superior region Sulfide Ores – Plan View Sulfide Ores – Section View 200 m 200 m All Massive Sulfides TONNES AU ppm AG ppm CU % PB % ZN % NSR $/T 9,888,827 1.80 24.11 0.48 0.23 4.68 $119.32 All Stringers TONNES AU ppm AG ppm CU % PB % ZN % NSR $/T 6,436,152 1.39 15.60 0.15 0.22 0.86 $51.16 Back Forty consists of massive sulfides and associated stringer and disseminated sulfides as well as separate zones of low sulfide, gold and silver ores Gold Ores – Plan View Gold Ores – Section View 200 m All Gold Zones and Gossans TONNES AU ppm AG ppm CU % PB % ZN % NSR $/T 2,213,684 3.98 43.76 0.11 0.27 0.25 $171.92 Gold ores are associated with altered rhyolites, siliceous sediments, younger QFP’s, and gossans developed from weathered massive sulfides Pit Shell #32 (brown) and Underground Aquila Back Forty Block Model Development (blue) from 2014 PEA Resources Inc. 2014 PEA Open Pit Resource (diluted) 12,256,000 tonnes M+I 244,000 tonnes inferred 2014 PEA Underground Resource (diluted and Approx. 200 meters extracted) 2,734,002 tonnes (M +I) 911,334 tonnes (Inferred) 22 Stratigraphy and Rock Types – Back Forty Project Aquila Resources Inc. Thick section (> 4000 ft.) of highly altered (quartz, sericite, Rhyolite 3 pyrite) rhyolites and associated Quartz Feldspar Porphyry pyroclastic rocks and sliceous, exhalative sediments cut by Tuff Zone Massive numerous dikes and sills of Sulfide quartz feldspar porphyry of dacitic to andesitic composition. QFP Siliceous Within the drilled section there Sediments are two and possibly three Rhyolite 2 horizons of massive sulfide surrounded by fracture controlled stringer sulfide mineralization. Main Zone and Pinwheel Zone Massive Sulfides Altered Rhyolite Rhyolite 1 Deep Zone Massive Sulfide Rhyolite 0 Rhyolite Fragmental Aquila Host Rocks – Back Forty Project Resources Inc. Rhyolite 3 Rhyolite 2 Rhyolite 1 Aquila Conceptual Model for the Genesis of the Back Forty Deposit Resources Inc. 1875 million years ago Tuffaceous Sediments Black Smokers VMS MASU (Deep Zone) Tuffaceous Sediments R0 Structurally controlled hydrothermal corridor Deposition of Rhyolite 1 and prolonged hydrothermal activity with syn- Aquila volcanic faults. Replacement-style VMS mineralization continues at Deep Zone Resources Inc. massive sulfide, and Main Zone and Pinwheel Zone massive sulfides form on R1 sea floor. VMS MASU (Pinwheel) deposition of Black exhalative Smokers massive sulfides VMS MASU (Main Zone) deposition of Propagation of exhalative hydrothermal massive sulfides system along faults and fractures R1 VMS MASU (Deep Zone) growth due to replacement style mineralization Aquila Deposition of Rhyolite 2 capped by tuffaceous sediments. Tuff Zone massive Resources Inc. sulfide forms at or near contact in more permeable units/beds within sediment package. Tuff Zone Tuffaceous Massive sediments Sulfide Sp+Gn ? R2 Development of lateral disseminated and stringer sulfides Pinwheel Zone in R2 py+sp+gn Massive Sulfide py+cpy+/-sp Main Zone R2 Massive Sulfide py+sp+cpy R1 Stringer Sulfides (Main/Deep) py+cpy+/-sp Deep Zone Massive Sulfide py+cpy/sp Emplacement of Quartz-Feldspar Porphyritic (QFP) dikes/sills. Main Aquila QFP emplaced along structures controlling VMS hydrothermal corridor. Resources Inc. Remobilization of precious metals associated with dike emplacement due to hydrothermal activity associated with dikes creating precious metal zones. Main QFP Unknown Rock type Precious Probably more rhyolite Metal Zones Tuffaceous sediments R2 R2 R1 Aquila Intrusion of Rhyolite 3, folding, uplift and erosion, exposure of massive sulfides at Resources Inc. surface and gossan development Tuff Zone Pinwheel Zone Massive Sulfide Tuff Zone massive Gossan Sp+Gn sulfideMain QFP Pinwheel Zone Pinwheel massiveMassive Sulfide py+cpy+/-sp Precious sulfide and gossan Metal Zones R3 R2 R3 MainMain Zone Zone MassiveMassive Sulfide Sulfide py+sp+cpypy+sp+cpy Rhyolite 2Stringers py+sp+/-gn Deep Zone Massive Sulfide R2 Main/DeepR2.1 Stringers py+cpy/sp py+cpy+/-sp R0 R1 Aquila Bedrock Geology – Penokean Volcanic Belt Resources Inc. Lynne Crandon Back Flambeau Forty Bend Reef Aquila Resources Inc. Plan View – Crandon Deposit The Crandon VMS deposit is a zinc rich massive sulfide with a total resource of about 60 million tons of about 1% Cu and 5% Zn*. Strataform Zn ore (30 million tons of 9.4% Zn) is underlain by copper rich stringer ore. The deposit is nearly 1 mile in strike length and has been drilled to a depth of about 2500 ft. From: LaBerge, G. L., Ed., 1996, Volcanogenic massive sulfide deposits of northern *Historic Resource – not 43-101 compliant Wisconsin: A commemorative volume: Institute on Lake Superior Geology Proceedings, 42nd Annual Meeting, Cable, WI, v. 42, part 2, 179 p. Aquila Resources Inc. From: LaBerge, G. L., Ed., 1996, Volcanogenic massive sulfide deposits of northern Wisconsin: A commemorative volume: Institute on Lake Superior Geology Proceedings, 42nd Annual Meeting, Cable, WI, v. 42, part 2, 179 p. Aquila Lynne Deposit 5.6 million tons 9.27% Zn, .47% Cu, .7 g/t Au, 74 g/t Ag* Resources Inc. From: LaBerge, G. L., Ed., 1996, Volcanogenic massive sulfide deposits of northern Wisconsin: A commemorative volume: Institute on Lake Superior Geology *Historic Resource – not 43-101 compliant Proceedings, 42nd Annual Meeting, Cable, WI, v. 42, part 2, 179 p. Bend Deposit Aquila Resources Inc. 3.5 million tonnes 1.9% Cu, 2.8 g/t Au, 12 g/t Ag* 67 m 2.8 g/t Au, 1.19% Cu 23 m 6.4 g/t Au, 2.1% Cu 75m 1.04 g/t Au 63m 1.3 g/t Au, 0.75% Cu 5.5m 0.84 g/t Au, 3.88% Cu Modified From: LaBerge, G. L., Ed., 1996, Volcanogenic massive sulfide deposits of northern Wisconsin: A commemorative volume: Institute on Lake Superior Geology Proceedings, 42nd Annual Meeting, Cable, WI, v. 42, part 2, 179 p. *Historic Resource – not 43-101 compliant Aquila 5.8 million tons 4.0% Cu, 1.7 g/t Au, 31 g/t Ag* Flambeau 1.9 million tons 10.5% Cu, 3.4 g/t Au, 69 g/t Ag (mined) Resources Inc. *Historic Resource – not 43-101 compliant Aquila Resources Inc. Cross section of the Flambeau Gold Rich deposit. The gold rich gossan Gossan and underlying supergene enriched copper ores were mined from an open pit Supergene 1.9 million tons 10.5% Cu, 3.4 g/t Enriched Au, 69 g/t Ag Copper Ore Primary Massive Sulfide From: LaBerge, G.
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