Eagle Hill Exploration Corporation
TSX VENTURE : EAG

Eagle Hill Exploration Corporation

October 03, 2012 08:30 ET

Eagle Hill Reports Positive Results From Initial Grinding Test at Windfall Lake

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 3, 2012) - Eagle Hill Exploration Corporation (TSX VENTURE:EAG) ("Eagle Hill" or the "Company") is very pleased to report positive results from preliminary grinding circuit testing from the Windfall Lake gold project in Quebec. These results are part of the broader metallurgical test program designed to evaluate the hardness of the mineralization and precious metal recoveries at the Windfall Lake gold deposit.

The initial grindability test work, using the SAGDesign procedure, indicates that the gold mineralization at Windfall Lake has moderate to low grinding work indices and does not exhibit excessive grinding power requirements. The SAG mill power consumption is 8.34 kilowatt hours per tonne of material and is comparable to average gold deposits. The Bond Ball Mill Work Index on SAG ground ore is 10.55 kilowatt hours per tonne of material, a relatively low amount of energy required to grind the material in a ball mill, and is in the lower 11th percentile when compared to other deposits(1).

Test Indices Results Comparison with
other deposits
(1)
Specific
Gravity
SAG Mill Data 8.34 kWh / tonne 45th percentile 2.86
Ball Mill Data 10.55 kWh / tonne 11th percentile --
(1) Percentile values are calculated from a total of 700 samples from over 100 deposits in the SAGDesign database.

Dr. Jean-Philippe Desrochers, Chief Geologist of Eagle Hill commented: "These positive grinding results are very important as they demonstrate that the gold mineralization can be ground with low energy consumption. This would eventually reduce the capital cost for crushing and grinding equipment and would contribute to lower total operating costs."

The preliminary grindability test was conducted on a 15.8 kg composite sample collected from uncrushed samples of half cut diamond drill core (NQ-size) of five drill holes that sampled several lenses of the Windfall Main Zone. The mineralization included in the sample is typical of the Windfall Lake gold deposit and consists of 5-15% disseminated pyrite and stringers hosted in sericitized and silicified felsic to intermediate volcanic and intrusive rock units. The composite sample also included lower grade mineralized material located in the hanging wall and footwall of the mineralized lenses. This composite sample is considered to be representative of potential ore that would be processed from the Windfall Lake gold deposit.

The SAGDesign test reproduces commercial SAG mill grinding conditions and determines the SAG mill pinion energy needed to grind ore from 80 percent of the material passing 152 millimeters to 80 percent of the material passing 1.7 mm, herein referred to as macro ore hardness. The SAG mill product is then crushed to 100 percent of the material passing 3.35 millimeters and is subjected to a standard Bond ball mill work index grinding test to provide the total pinion energy at the specified grind size for mill design purposes.

The test work was conducted by Inspectorate Mining and Exploration Services Ltd. of Richmond, British Columbia, Canada. Inspectorate is a highly reputable independent laboratory with more than 85 years experience in the field. The Windfall Lake gold project SAGDesign test work was monitored by John Starkey of Starkey & Associate, a Qualified Person under national Instrument 43-101.

Previous metallurgical testing, completed in the summer of 2011 by G&T Metallurgical Services Ltd, indicated up to 97 percent recovery from a combination of a gravity circuit and a flotation cell. Additional metallurgical testing is currently underway and results will be released when they become available.

Jean-Philippe Desrochers, Ph.D., P.Geo., is a Qualified Person registered in Quebec as defined by NI-43-101 and has reviewed the technical information that this press release contains.

About the Windfall Lake Property

The Windfall Lake Property is comprised of 370 contiguous claims (over 12,000 hectares) in the Abitibi mineralized belt of northern Quebec. This area between Val-d'Or and Chibougamau is known for its gold and copper production and excellent infrastructure for exploration and mining. Historically, the Windfall Lake Property has had extensive historic grassroots exploration work. Along with its independently acquired claims at the Windfall Lake Property. Eagle Hill has signed options with Murgor Resources Inc., Cliffs Natural Resources Inc. (formerly, Freewest Resources Canada Inc.), and Noront Resources Inc. to acquire the Windfall Lake Property. During July 2012, the Company received its second mineral resource estimate, the results of which are displayed in the table below:

Quantity
('000 tonnes)
Grade Gold
(g/t)
Contained Gold
(ounces)
Indicated 1,665 10.05 538,000
Inferred 2,906 8.76 822,000

About Eagle Hill Exploration Corporation

Eagle Hill Exploration Corporation is a Canadian mineral exploration company focused on the exploration and development of gold and precious metal prospects. The Company is set to become an advanced stage gold and precious metal exploration company with its acquisition of the Windfall Lake high grade gold project, located in Urban Township, Quebec, between Val-d'Or and Chibougamau. Eagle Hill seeks projects that contain or have potential to have large resource potential. The Company's website at www.eaglehillexploration.com and public filings at www.sedar.com provide additional information on its properties and other information with respect to its management and operations.

ON BEHALF OF THE BOARD,

P. Bradley Kitchen, President

FORWARD-LOOKING STATEMENTS

This release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation, including predictions, projections and forecasts. Forward-looking statements include, but are not limited to, statements that address activities, events or developments that the Company expects or anticipates will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion, growth of the Company's businesses, operations, plans and with respect to exploration results, the timing and success of exploration activities generally, permitting time lines, government regulation of exploration and mining operations, environmental risks, title disputes or claims, limitations on insurance coverage, timing and possible outcome of any pending litigation and timing and results of future resource estimates or future economic studies.

Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "planning", "planned", "expects", "looking forward", "does not expect", "continues", "scheduled", "estimates", "forecasts", "intends", "potential", "anticipates", "does not anticipate", "belief", or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved.

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

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