Eagle Hill Announces Positive Drill Results and Initiation of a Preliminary Economic Assessment Study at the Windfall Lake Gold Project
24.06.2014 | Marketwire
VANCOUVER, BRITISH COLUMBIA -- (Marketwired - Jun 24, 2014) - Eagle Hill Exploration Corp. (TSX VENTURE:EAG) (OTCQX:EHECF) ("Eagle Hill" or the "Company") is pleased to announce that the Company is initiating a Preliminary Economic Assessment Study ("PEA") for the Windfall Lake Gold Project ("Windfall Lake"). The Company is also pleased to announce the results of its 2014 Winter Drill Program, and its drilling plans for the remainder of 2014.Preliminary Economic Assessment
Eagle Hill's Board of Directors is very encouraged with the drill results obtained to date at Windfall Lake, including a 38% increase to the indicated mineral resource as outlined in the March 2014 updated resource estimate prepared by SRK Consulting (Canada) Inc. (Table 1). Eagle Hill's Board of Directors has determined that completing the environmental, engineering and economic studies associated with a PEA will provide further clarity on the potential of advancing this promising, high-grade deposit to production.
The Board has appointed Eagle Hill's new director, Paul-Henri Girard, as the lead director to manage the PEA process. Mr. Girard is a Mining Engineer with extensive hands-on experience planning and operating Canadian mines. Mr. Girard started his career with Falconbridge Copper as a mining engineer in 1980, and moved to Agnico Eagle Mines in 1987 as Chief Engineer of LaRonde Mine in Quebec. Mr. Girard held increasingly senior positions with Agnico Eagle over a 25-year period, eventually retiring from the position of Vice President Canadian Operations in 2012. Mr. Girard's engineering and mining experience will be invaluable as Eagle Hill undertakes a PEA on the Windfall Lake Gold Project.
"Initiating a Preliminary Economic Assessment Study clearly indicates the Board's intention to advance the Windfall Lake Gold Project," said John Proust, Chairman and Chief Executive Officer of Eagle Hill. "We welcome Paul-Henri Girard to the Board of Directors and look forward to his input as we advance this high-grade gold deposit one step closer to production."
Results of 2014 Winter Drill Program
"The 2014 Winter Program drill results confirmed continuity of the gold mineralization of Zone 27. This zone hosts the majority of the indicated mineral resource, and the fact that it can be traced further laterally is encouraging," said Dr. Mike Andrews, Director and President of Eagle Hill.
The Winter 2014 diamond drill program had the objective of testing for gold mineralization below shallow lakes. The Company drilled extensions of Zone 27 at shallow depths, and also tested the western extension of the IP anomaly associated with the Main Zone, some 800 metres to the southwest of the current mineral resource.
A total of 3,333 metres in 16 drill holes was completed (Table 2, Figure 1). Several drill intercepts demonstrated the presence of pyritic stockwork similar to other lenses of the Main Zone. The results indicate that the upper portion of Zone 27 continues for up to 100 metres to the ENE and WSW from the modelled lenses. Highlight intersections include:
| East Lake (expanding shallower portion of Zone 27 up to 100 m to the ENE) | |||
| EAG-14-538 | 18.5 g/t gold over 3.38 m from 196.5 m | ||
| incl. | 7.04 g/t gold over 6.2 m from 208.8 m | ||
| EAG-14-542 | 20.45 g/t gold over 2.6 m from 226.4 m | ||
| EAG-14-543 | 41.8 g/t gold over 1.0 m from 193.7 m | ||
| EAG-14-544 | 20.1 g/t gold over 0.5 m from 231.0 m | ||
| Central Lake (expanding shallower portion of Zone 27 up to 100 m to the WSW) | |||
| EAG-14-533 | 8.36 g/t gold over 1.2 m from 106.8 m | ||
| EAG-14-534 | 10.6 g/t gold over 0.9 m from 81.8 m | ||
| West Lake (800 metres SW of Main Zone) | |||
| EAG-14-547 | 53.6 g/t gold over 0.3 m from 120.2 m | ||
| EAG-14-548 | 4.78 g/t gold over 4.1 m from 62.7 m | ||
| and | 12.55 g/t gold over 1.0 m from 219.0 m | ||
Drill Program for Remainder of 2014
Eagle Hill's Board of Directors has approved a 2,800-metre drill program targeting the extension of Zone 27 to the northeast below Red Dog. Eagle Hill plans to deepen six existing drill holes in a target zone that is currently untested. The Board has also approved an additional hole-to-hole IP survey to further define drill targets at depth.
Geological studies indicate that the gold mineralization hosted by Zone 27 and the Caribou Zone may have been displaced as much as 600 metres below the Red Dog dike, which coincides with the IP anomaly identified below Red Dog. The Fall 2013 drilling program confirmed continuity of gold mineralization below the Red Dog intrusion and delineated an inferred mineral resource of 455,000 tonnes at a grade of 8.21 g/t gold for 120,000 contained ounces of gold. This highlights the potential to significantly increase the mineral resource below the Red Dog intrusion.
On Behalf of the Board of Directors
John Proust
Chairman and Interim CEO
About Eagle Hill Exploration Corporation
Eagle Hill Exploration Corp. 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, Canada. The current mineral resource comprises 2,375,000 tonnes at 9.75 g/t gold (744,000 ounces) in the indicated category and 3,084,000 tonnes at 7.37 g/t gold (731,000 ounces) in the inferred category (Technical Report for the Windfall Lake Gold Project, Quebec prepared by SRK Consulting (Canada) Inc., dated March 3, 2014). These grades make Windfall Lake one of the highest grade resource-stage gold projects in the world. 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. The deposit remains open at depth and along strike, with additional drilling and technical work planned for 2014. More information is available 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 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 30-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", "plans", "objective", "expand", "potential" 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.
| Table 1 - Mineral Resource Statement, Windfall Lake Gold Project, Quebec SRK Consulting (Canada) Inc., February 28, 2014 |
| Resource Classification | Tonnes | Grade (g/t) | Contained Gold (ounces) |
| Indicated | 2,375,000 | 9.75 | 744,000 |
| Inferred | 3,084,000 | 7.37 | 731,000 |
- Prepared by SRK Consulting (Canada), Inc. with an effective date of February 28, 2014.
- 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.
- All figures have been rounded to reflect the relative accuracy of the estimates.
- 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 National Instrument 43-101 technical report for this resource statement was filed by Eagle Hill on SEDAR at www.SEDAR.com on April 17, 2014.
Table 2 - Windfall Lake Gold Deposit Winter 2014 Drill Program -Summary Results
| DDH | East- ing | North- ing | Eleva- tion | From | To | Length | Au g/t | Comments | |||||
| EAG-14-531 | 451798 | 5434630 | 398 | No significant results | Central Lake | ||||||||
| EAG-14-532 | 451808 | 5434610 | 398 | No significant results | |||||||||
| EAG-14-533 | 451818 | 5434590 | 398 | 106.8 | 108.0 | 1.2 | 8.36 | Extends Zone 27 to West by 100 m | |||||
| EAG-14-534 | 451861 | 5434620 | 398 | 81.8 | 82.7 | 0.9 | 10.6 | Extends Zone 27 to West by 30 m | |||||
| EAG-14-535 | 451863 | 5434616 | 398 | Abandoned in overburden | |||||||||
| EAG-14-536 | 451863 | 5434616 | 398 | No significant results | |||||||||
| EAG-14-537 | 452372 | 5434780 | 398.7 | Abandoned in overburden | East Lake | ||||||||
| EAG-14-538 | 452372 | 5434780 | 398.7 | 196.5 | 215.0 | 18.5 | 3.38 | Expands Zone 27 slightly to the East | |||||
| incl. | 206.2 | 215.0 | 8.8 | 5.79 | Expands Zone 27 slightly to the East | ||||||||
| 208.8 | 215.0 | 6.2 | 7.04 | Expands Zone 27 slightly to the East | |||||||||
| EAG-14-539 | 452394 | 5434840 | 398.7 | 25.0 | 26.0 | 1 | 3.57 | ||||||
| EAG-14-540 | 452413 | 5434810 | 398.7 | 48.2 | 49.3 | 1.1 | 4.51 | ||||||
| 89.1 | 90.0 | 0.9 | 5.55 | ||||||||||
| 289.8 | 290.8 | 1 | 3.1 | ||||||||||
| EAG-14-541 | 452472 | 5434910 | 398.7 | 171.2 | 174.0 | 2.8 | 3.58 | ||||||
| EAG-14-542 | 452492 | 5434870 | 398.7 | 129.7 | 130.1 | 0.4 | 18.85 | ||||||
| 226.4 | 229.0 | 2.6 | 20.45 | Extends Zone 27 to the East by 100 m | |||||||||
| 245.1 | 246.7 | 1.6 | 8.59 | ||||||||||
| EAG-15-543 | 452457 | 5434830 | 398.7 | 68.0 | 68.6 | 0.6 | 3.24 | ||||||
| 123.8 | 124.6 | 0.8 | 3.52 | ||||||||||
| 193.7 | 194.7 | 1 | 41.8 | ||||||||||
| EAG-15-544 | 452479 | 5434790 | 398.7 | 231.0 | 231.5 | 0.5 | 20.1 | Extends Zone 27 to the East by 70 m | |||||
| 242.6 | 243.9 | 1.3 | 3.15 | ||||||||||
| 264.0 | 265.0 | 1 | 5.52 | ||||||||||
| EAG-15-545 | 452385 | 5434750 | 398.7 | Abandoned in overburden | |||||||||
| EAG-15-546 | 452385 | 5434750 | 398.7 | Abandoned in overburden | |||||||||
| EAG-15-547 | 451017 | 5434330 | 398.5 | 120.2 | 120.5 | 0.3 | 53.6 | Northern contact of IP anomaly | West Lake | ||||
| EAG-15-548 | 451046 | 5434277 | 398.5 | 48.5 | 49.3 | 0.8 | 4.43 | South contact of IP anomaly | |||||
| 62.7 | 66.8 | 4.1 | 4.78 | On western Ip anomaly | |||||||||
| incl. | 65.7 | 66.8 | 1.1 | 10.85 | |||||||||
| 219.0 | 220.0 | 1 | 12.55 | ||||||||||
| EAG-15-549 | 451095 | 5434401 | 398.5 | No significant results | |||||||||
| EAG-15-550 | 451125 | 5434347 | 398.5 | Abandoned in overburden | |||||||||
| EAG-15-551 | 451125 | 5434347 | 398.5 | 128.0 | 128.4 | 0.4 | 9.57 | Vertically below Intercept of hole 547 | |||||
To view Figure 1 - Windfall Lake Gold Deposit Winter 2014 Drill Program, please visit the following link:
http://media3.marketwire.com/docs/953773.pdf
Contact
Eagle Hill Exploration Corp.
Rhylin Bailie, Vice President, Communications & Investor Relations
Telephone: 604-697-5791
Email: info@eaglehillexploration.com