Eagle Hill Exploration Corporation

Eagle Hill Exploration Corporation

April 21, 2014 07:30 ET

Eagle Hill Files Windfall Lake Technical Report

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 21, 2014) - Eagle Hill Exploration Corporation (TSX VENTURE:EAG)(OTCQX:EHECF) ("Eagle Hill" or the "Company") is pleased to report that on April 17 the Company filed a National Instrument 43-101 Technical Report regarding the resource estimate for its Windfall Lake Gold Project, located in the Abitibi Gold Belt approximately 200 km northeast of Val d'Or, Quebec. The resource estimate and technical report were completed by SRK Consulting (Canada) Inc. ("SRK"). The technical report is available on SEDAR at www.sedar.com and on the Company's website at www.eaglehillexploration.com.

As previously announced on March 3, 2014, SRK has estimated an indicated mineral resource for the Windfall Lake Gold Project of 2,375,000 tonnes grading 9.75 g/t gold for contained gold of 744,000 ounces, with an additional inferred mineral resource estimated at 3,084,000 tonnes grading 7.37 g/t gold for contained gold of 731,000 ounces. Compared to the previous mineral resource estimate completed in July 2012, the indicated mineral resource tonnage and contained gold have increased by 43% and 38%, respectively. The indicated grade of 9.75 g/t gold makes Windfall Lake one of the highest-grade resource-stage gold projects in the world, located in one of the world's best mining jurisdictions.

The following information in this section of the press release is taken directly from the Windfall Lake technical report.

Mineral Resource Statement, Windfall Lake Gold Project, Quebec
SRK Consulting (Canada) Inc., March 3, 2014
Resource Classification Tonnes Grade
Contained Gold
Indicated 2,375,000 9.75 744,000
Inferred 3,084,000 7.37 731,000
  1. Prepared by SRK Consulting (Canada), Inc. with an effective date of March 3, 2014.
  2. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is
    no certainty that all or any part of the mineral resources will be converted into mineral reserves.
  3. All figures have been rounded to reflect the relative accuracy of the estimates.
  4. Reported at a cut-off grade of 3.0 g/t gold, assuming an underground extraction scenario, a gold price of US$1,200 per ounce and metallurgical recovery of 91.7%.

The Windfall Lake property database contains 706 core boreholes, drilled between 1986 and 2013. Of these, 635 boreholes (179,641 metres) were completed between 1996 and 2013 and were considered for geological and mineral resource modelling. In reviewing the results of the mineral resource modelling work, SRK drew the following conclusions:

  • Infill and step-out drilling, as well as re-logging archived core and structural geology investigations, particularly in the Main Zone, have vastly improved the confidence in the geological and mineralization model and the confidence in the continuity of the gold mineralization;
  • There is good potential to expand the mineral resources along strike to the southwest. The new geological model suggests that the pyrite stockwork containing the bulk of the Main Zone continues in this direction, and core boreholes from the Fall 2013 drill program intersected gold mineralization in this area;
  • There is also good potential to expand the mineral resources at depth below the Red Dog dike. Drilling completed in 2013 confirms that the pyrite stockwork extends below the Red Dog dike, where the gold mineralization exhibits grade and thickness characteristics similar to that found near surface. In addition, the Fall 2013 deep hole-to-hole induced polarization survey identified two high priority targets below the Red Dog dike, near the known intercepts.

The mineral resources identified to date occupy only a small footprint within the Windfall Lake property and the gold mineralized zones are open at depth, to the northeast and southwest along the main deformation corridor identified by Eagle Hill. Exploration outside of the extents of the current modelled mineralization should be considered.

SRK recommended a work program that includes:

  • Drilling within the Main Zone targeting areas below the Red Dog dike;
  • Drilling to test the strike extension of the known gold mineralization to the southwest;
  • A hole-to-hole induced polarization survey using proposed deep boreholes as survey platforms to maximize the investigation for additional gold mineralization at depth; and
  • Environmental baseline, permitting, metallurgical, geotechnical, conceptual mining, and other engineering studies required to evaluate the conceptual economic viability of a mining project.

Windfall Lake 2014 Exploration Program

Eagle Hill recently completed a 3,333-metre drilling program in the Main Zone to test for extensions of Zone 27 under shallow lakes (2 to 6 metres depth) that were frozen. Eagle Hill drilled 21 holes to a depth of 120 to 321 metres to test the lateral extensions of Zone 27, where previous drilling had confirmed near‐surface high-grade intervals such as 14.8 g/t over 16.0 metres (EAG‐12‐418). All core has been delivered to the assay laboratory, with results pending.

On April 8, 2014, the Company closed the "flow-through" portion of a non-brokered private placement announced on March 28, 2014, raising $1.0 million to be used for exploration at the Windfall Lake Gold Project. The Board of Directors and Eagle Hill's Vice President Exploration are currently finalizing plans for additional drilling in 2014.

On Behalf of the Board of Directors

John Proust, Chairman and Interim CEO

About Eagle Hill Exploration Corporation

Eagle Hill Exploration Corporation is a Canadian mineral exploration company focused on the exploration and development of the high-grade Windfall Lake Gold Deposit, located between Val-d'Or and Chibougamau in Quebec. In August 2013, Southern Arc Minerals and Dundee Corporation invested an aggregate of $12 million to purchase a controlling interest in Eagle Hill and fund an aggressive exploration program, and are working together to advance the Windfall Lake Gold Project. The Windfall Lake gold deposit comprises a number of lenses of pyritic stockwork and shear zones situated in the Archean Urban-Barry Greenstone Belt. The bulk of the mineralization occurs in the Main Zone, a southwest/northeast trending zone of stacked mineralized lenses, measuring approximately 600 metres wide and at least 1,400 metres long. More information is available on Eagle Hill's website at www.eaglehillexploration.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Qualified Person

The construction of the mineral resource model was a collaborative effort between Eagle Hill and SRK personnel. The resource estimation work was completed by Dr. Jean-François Ravenelle PGeo (OGQ#1062), Dorota El-Rassi, PEng (APEO #100012348) and Dominic Chartier, PGeo (OGQ#874) under the supervision of Glen Cole, PGeo (APGO #1416). By virtue of their education, relevant project experience, and affiliation to a recognized professional association, Dr. Ravenelle, Ms. El-Rassi, Mr. Chartier and Mr. Cole, are "qualified persons" independent from Eagle Hill for the purposes of National Instrument 43-101. Mr. Cole has reviewed the information contained in this news release.

The technical information in this document has been reviewed by Eagle Hill's Vice President Exploration, Jean-Philippe Desrochers, PhD, PGeo, who has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined by National Instrument 43-101. The drill program and sampling protocol is managed by Eagle Hill under the supervision of Jean-Philippe Desrochers. The diamond drill holes are drilled at NQ sizes and core recovery to date has averaged better than 95.0%. Half core is cut by rock saw and is generally sampled using nominal 1-metre intervals; however, sample intervals vary according to geological contacts and have ranged between 0.3 to 1.5 metres in length. Two quality control samples (one blank and one certified reference material) are inserted into each batch of 20 samples. All assays were performed by ALS Chemex Laboratory Group, in Val d'Or, Quebec. The half core samples are securely transported from the project site to the ALS Chemex laboratory by Eagle Hill personnel. Gold analyses reported in this release were performed by standard fire assay using a 50-gram charge with atomic absorption finish and a gravimetric finish for assays greater than 10 grams per tonne and by metallic sieve method for samples containing significant amounts of pyrite or visible gold. In addition, an Aqua regia digestion with ICP-AES finish is used to analyse a full suite of elements including silver and base metals.

Cautionary Note Regarding Forward-looking Statements

This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of any of the words "will", "should be", "potential", "pending", "finalizing plans" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This document contains forward-looking statements and assumptions pertaining to the following: uncertainty involving resource estimates and the ability to extract those resources economically, or at all; uncertainty involving drilling programs and the Company's ability to expand and upgrade existing resource estimates; the regulatory process and actions; the need to work with local communities and authorities to advance the properties; the need to work with Dundee and Southern Arc to advance the property; technical issues; new legislation; competitive factors and conditions; uncertainties resulting from potential delays or changes in plans; the occurrence of unexpected events; and the Company's ability to execute and implement future plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors, including uncertainty related to drill results and the inclusion of drill results in future resource estimates for the property. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.

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