Aquiline confirms Calcatreu grades (July 15, 2003)

Vancouver — A 14-hole drill program by Aquiline Resources (AQI-V) has enhanced the economic potential of the Calcatreu gold project in Patagonia, Argentina.

The 1,275-metre program, which included 10 reverse-circulation and four diamond drill holes, targeted the Vein 49 deposit over a 200-metre strike length. The best results came from hole 103, which returned 14 metres grading 13.5 grams gold and 64 grams silver per tonne.

Moving 50 metres south, hole 104 yielded 19 metres grading 7.8 grams gold and 40.2 grams silver, while hole 105, collared 22 metres to the east, returned 15 metres of 3.6 grams gold and 62 grams silver.

Some 50 and 100 metres north of the best hole, hole 102 returned 22 metres grading 7.8 grams gold and 31 grams silver and hole 101 yielded 28 metres grading 4.9 grams gold and 13.1 grams silver.

The northernmost hole, no. 110, returned 30 metres grading 2.2 grams gold and 13.5 grams silver.

The results confirm the grades of earlier drilling on the low-sulphidation epithermal target. In the late 1990s, Normandy Mining of Australia identified 11 quartz-vein systems on the property, including Vein 49, which yielded upwards of 27 metres grading 3.8 grams gold and 14 grams silver per tonne in trenching and upwards of 40.8 metres grading 2.85 grams gold and 32 grams silver in drilling.

Aquiline acquired the project in late January 2003 from Newmont Mining (NEM-N) in return for US$2 million payable over three years. The junior is also required to spend US$500,000 on exploration over the option period.

Newmont retains a 2.5% net smelter return royalty and a back-in right for a 60% interest, though the right excludes the three claims in which the 49 vein system is found. Should it exercise its right, the company must spend three times what Aquiline had spent on exploration.