Eagle Hill Exploration Corporation: Corporate Update and Development Strategy
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/10/13 -- Eagle Hill Exploration Corporation ("Eagle Hill" or the "Company") (TSX VENTURE: EAG) is pleased to provide the following update and outline plans for the Windfall Lake Property (the "Property").
Based in part on the success of Eagle Hill's exploration on the Windfall Lake Property, the Company negotiated a three-year extension of the 2009 option agreement for the Property with Noront Resources Ltd. The Company's focus over the next year will be to increase the quality of the gold resource from inferred to indicated through systematic definition drilling and to continue with exploratory drilling efforts both below and to the southwest of our current gold resource in an effort to further expand the size of this gold deposit. The objective of this drilling is to increase gold ounces in the indicated category so they can be converted into reserves. While expanding the mineral resource, Eagle Hill will work towards completing a bankable Feasibility Study (the "FS"), with an estimated completion time of 30 months from today.
Summary of Eagle Hill's Activities in 2012 and first quarter of 2013
-- Eagle Hill completed a total of 46,543 meters of drilling in 159 drill
holes during this period and obtained significant positive results,
while expanding the size of the mineral resource and improving its
quality. The amount of drilling completed after the July 2012 mineral
resource estimate includes 101 drill holes for 29,208 meters that were
significant in extending the size of the known gold zones.
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START END Number Number Number of
PHASE YEAR DATE DATE DDH meters drill rigs
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PHASE 4 2012 04/01/2012 30/03/2012 58 17,334.55 2
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PHASE 5 2012 28/05/2012 18/07/2012 44 10,362.90 2
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PHASE 6 2012 18/07/2012 25/11/2012 47 14,879.80 1
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PHASE 7 2013 04/02/2013 08/03/2013 10 3,965.90 1
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TOTAL FOR ALL PHASES 159 46,543.15
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DRILLING NOT INCLUDED IN THE LAST MINERAL 101 29,208.60
RESOURCE ESTIMATE (SRK, July 2012)
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Note: Assay results of the 2013 drilling program are currently undergoing
quality control tests and results will be announced once received.
-- In July of 2012, the Company received its second mineral resource
estimate for the Windfall Lake gold project, the results of which are
displayed in the table below:
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Quantity Gold Grade Contained Gold
('000 tonnes) (g/t) (ounces)
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Indicated 1,665 10.05 538,000
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Inferred 2,906 8.76 822,000
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-- The Company's geological team completed an important re-logging program
of the Property's older drill core to better constrain the geological
controls on gold mineralization and to address the continuity of the
gold zones. The most recent cross sections and plan view has been posted
on Eagle Hill's website, www.eaglehillexploration.com/sections
-- A total of 91 till samples were collected as a follow-up on gold-in-till
anomalies detected in the northeast and the central west part of the
Property during a regional till survey. Assay values of up to 3.26 g/t
of gold were obtained from till concentrate and numerous pristine gold
grains were observed, suggesting a close proximity to the source.
-- The Company completed an 84 line-kilometer IP survey in two grids to
follow up on till anomalies detected in the northeast and the central
west part of the Property. Over 182 anomalies were detected of which 19
are considered as suitable targets for follow-up drilling.
-- Eagle Hill completed new metallurgical testing on higher grade material,
averaging 10.1 g/t gold, from different zones of the deposit. Results
indicate that the Windfall Lake mineralization is relatively soft with a
Ball mill Bond Work index of 9.8 kWh/t and 11.5 kWh/t for two tested
samples. The results of the metallurgical tests indicate that best
recoveries would be achieved through a standard gravity circuit followed
by a flotation / cyanidation circuit. Results of the new metallurgical
test indicate that recoveries would be 91.7% for gold and 74% to 78% for
silver.
-- In October 2012, Eagle Hill executed an Exploration Agreement with the
Grand Council of the Cree (Eeyou Istchee) and the Cree First Nation of
Waswanipi. This agreement confirms the support of involved parties in
the pursuit of activities and studies necessary to enhance the value of
the Windfall Lake Property and the Cree Grand Counsel.
Next Phase of Development
With the three year extension to the Property's option agreement, the Company now has enough time to define a reserve, continue exploration drilling to expand the resource below and to the southwest of the currently known gold zones, and further advance towards the development of the Project. The Company will achieve these objectives through the following steps:
-- Conduct an extensive definition drill program during the next 18 months
to convert the current inferred resource to an indicated resource
category, which can then be used to define mineral reserves. This new
drill program will also satisfy all flow-through requirements for 2013;
-- Continue with an exploration drill program to expand the current
resource both below the Red Dog intrusion and to the southwest of the
deposit;
-- Contract and begin preliminary work on the FS, such as environmental,
geotechnical, and hydrogeological studies, as well as geotechnical
engineering for major site infrastructure. Eagle Hill will also initiate
discussions with the authorities to prepare the permitting process, with
the goal of targeting its completion within the next 30 months;
-- Eagle Hill intends to complete the negotiations for the next stage
development agreement with the Waswanipi and Grand Council of the Cree
(Eeyou Istchee) to better reflect the more advanced stage of the
Property;
As announced on April 22, 2013, the Company has a 90-day exclusivity commitment to acquire the remaining 25% of the Property. Eagle Hill will review options to consolidate the entire property but its main focus will be on satisfying its deliverables under the Option Agreement Extension.
About the Windfall Lake Property
The Windfall Lake Property is comprised of 362 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 grassroots exploration work. Along with its independently acquired claims at the Windfall Lake Property, Eagle Hill has signed options with Noront (as described above) and also jointly with Murgor Resources Inc. and Cliffs Natural Resources Inc. (formerly, Freewest Resources Canada Inc.) to acquire the Windfall Lake Property. During July 2012, the Company received its second mineral resource estimate, the results of which include 538,000 ounces of gold in the indicated category and 822,000 ounces of gold in the inferred category.
Jean-Philippe Desrochers, PhD, PGeo, 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 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 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 contain 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
Statements in this news release, which are not purely historical, are forward-looking statements within the meaning of applicable United States and Canadian securities laws, including any statements regarding beliefs, plans, expectations or intentions regarding the future. These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein. Such risks and uncertainties may include, but are not limited to, the ability to obtain additional financing, title to mineral properties, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel, the risks inherent in exploration and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's most recent Annual Information Form filed on SEDAR which is available at www.sedar.com. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities.
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.
Contacts:
Network IR (Vancouver)
Andrew Mugridge / Benjamin Curry
604.559.5573
andrew@networkir.com
www.networkir.com
MI3 Communications Financieres Inc. (Montreal)
Nathalie Dion
514.904.1333
nathalie@mi3.ca
www.mi3.ca