Eagle Hill Exploration Corporation: Summer 2011 Windfall Lake Property Update
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 07/05/11 -- Eagle Hill Exploration Corporation ('Eagle Hill' or the 'Company') (TSX VENTURE: EAG) is pleased to provide an update on the Company's work on the Windfall Lake Property (the 'Windfall Lake Property' or the 'Property'). This update will focus on the following:
-- Addition of 6,300 meters to the 2011 Drill Program;
-- Assays pending on 3,500 meters of drilling;
-- Identification of the Geological Structure hosting the Gold
Mineralization;
-- Status of the Property's initial gold resource estimate and related NI
43-101 Technical Report; and
-- Summary of results of the first 10,000 meters of the 2011 Drilling
Results.
Addition of 6,300 meters to the 2011 Drill Program
The Company completed 10,019 meters of drilling prior to the spring break-up or thaw period at the beginning of April. Based on the success of that drill program and the identification of additional targets that could increase the size of the mineralized gold zones, the Company added an additional 6,300 meters to the current drill program. Drilling began in mid-May and is progressing at a rate of 100 meters per day. Currently 6,100 meters has been drilled and logged and the Company anticipates that this program will be completed in the first week of July. The drill holes, for the most part are step-out holes designed to expand the north-east trend of the Caribou, the Zone 27, and the W3 gold zones. With the completion of the current drilling program, Eagle Hill will have satisfied the 'earn-in' portion of its acquisition of 75% of the Windfall Lake Property from Noront Resources Ltd.
Assays pending on 3,500 meters of drilling
The Company's policy is to immediately log the core received from the drilling team. Any core that shows signs of disseminated and stockwork of pyrite mineralization is sent for assaying at the ALS labs in Val d'Or. The time to process the assay results has doubled since the backlog in winter due to an increase in backlog at the laboratories. The Company anticipates receiving the results from the first holes drilled in mid-May within the next few weeks and will immediately report all material assays. Receipt and reporting of assays should continue every 3 to 4 weeks to the end of August and will include results from the 3,500 meters of assays pending and 2,800 meters of new drilling.
Identification of the Geological Structure hosting the Gold Mineralization
Eagle Hill's Chief Geologist, Dr. Jean-Philippe Desrochers, along with his team have made significant strides toward understanding structure that hosts the mineralized gold zones. This is critical for both obtaining a solid initial resource calculation and being able to identify future potential areas of gold mineralization. Through the use of multiple tools, the team has been able to correlate the presence of identified gold zones with various indicators. Specifically, with the use of GoCad Modeling System, it was determined that the mineralized gold zones lie within and parallel to a 7.5 kilometer, southwest to northeast- trending shear zone. Historic drilling has shown presence of visible gold along this structure, some 1500 meters to the east-northeast of the main zones, which indicates the gold potential of this structure. In addition, new Induced Polarization anomalies testing conducted by the Company during the past winter shows a 100% correlation of low resistivity with our known gold zones. Based on this correlation, we have identified previously un-drilled targets that could extend our existing zones to the northeast and the southwest. The Company is currently compiling and contracting to complete IP testing along the entire 7.5 kilometer shear zone to help identify future drill targets. In addition, the new Induced Polarization survey has very good depth penetration and has shown that there may be further mineralization below an intrusion that cross-cuts our existing gold zones at a depth of 400 meters. The results of these new tools and their correlation to the existing gold zones are demonstrated on the Company's current PowerPoint available on the website at www.eaglehillexploration.com/investors.
Status of the Property's initial gold resource estimate and related NI 43-101 Technical Report
Eagle Hill has engaged SRK Consulting to produce the Property's initial gold resource estimate and related technical report compliant to National Instrument 43-101 guidelines. SRK has reviewed the Company's historic information, has been consulted with respect to the current drill program and has visited the site. The Company anticipates that this resource estimate will be announced in early fall 2011.
Summary of results of the first 10,000 meters of the 2011 Drilling Results
The following chart provides all material assays to date for the current 2011 Drill Program
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Hole
Number From To Length Au Comments
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(m) (m) (m) (g/t)
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EAG-10-241 76.10 86.00 9.90 18.82 Caribou zone
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incl. 80.00 81.00 1.00 163.00 Idem
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EAG-10-242 35.00 36.00 1.00 7.38 In fault above Caribou zone
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EAG-10-243 40.50 45.05 4.55 53.64 Caribou zone
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incl. 41.00 42.00 1.00 224.00 idem
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incl. 42.00 43.00 1.00 17.70 idem
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EAG-10-244 82.00 96.00 14.00 2.81 Caribou zone
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incl. 82.00 82.60 0.60 11.90 idem
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incl. 87.00 88.00 1.00 9.88 idem
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EAG-10-245 139.00 141.00 2.00 3.28 Caribou zone
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286.00 294.15 8.15 3.27 New zone
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385.45 408.00 22.55 1.12 Zone 27
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EAG-10-246 99.00 100.00 1.00 6.18 In fault above Caribou
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121.00 122.00 1.00 5.18 Just above Caribou Zone
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136.00 149.00 13.00 1.60 Caribou zone
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433.00 438.40 5.4 10.86 Zone 27
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EAG-10-247 224.00 229.00 5.00 2.70 Caribou Zone
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EAG-10-248 141.00 143.00 2.00 25.65 Mallard Zone
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EAG-10-249 206.00 207.00 1.00 5.20 Above zone 27
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213.00 224.00 11.00 2.07 Zone 27
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EAG-10-250 128.00 140.80 12.80 1.19 Zone north of Zone 27
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150.00 154.00 4.00 3.38 Zone north of Zone 27
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EAG-10-251 45.00 46.00 1.00 7.75 Fault
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63.00 67.00 4.00 2.60 Fault
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226.00 237.00 11.00 9.00 Between Caribou and Zone 27
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incl. 236.00 237.00 1.00 71.90 idem
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332.55 338.80 6.25 94.50 SE splay of Zone 27
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incl. 332.55 334.00 1.45 393.00 idem
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375.00 382.70 7.70 7.70 Zone 27
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407.00 410.00 3.00 4.10 NW of zone 27
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EAG-11-252 16.00 20.00 4.00 26.89 Fault zone at start of hole
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incl. 18.00 19.00 1.00 73.20 idem
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incl. 19.00 20.00 1.00 20.80 idem
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25.00 26.00 1.00 43.90 Fault zone as above
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153.00 158.00 5.00 2.14 Mink Zone
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EAG-11-253 227.00 234.00 7.00 9.49 Zone 27
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250.00 251.00 1.00 18.50 Interval parallel to zone 27
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270.00 271.00 1.00 19.75 Interval parallel to zone 27
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EAG-11-254 Above fault, repetition of
32.65 36.30 3.65 2.23 Caribou ?
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80.00 92.80 12.80 1.13 Caribou zone
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118.90 125.00 6.10 3.19 Zone parallel to Caribou
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315.00 327.00 12.00 2.30 Mink Zone
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335.00 338.00 3.00 2.85 Between Mink zone and Zone 27
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354.00 362.00 8.00 1.59 Zone 27
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EAG-11-255 65.00 66.20 1.20 1.07 In fault above Caribou
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88.00 89.00 1.00 1.45 In fault above Caribou
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122.00 126.00 4.00 2.79 Zone parallel to Caribou
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176.00 178.00 2.00 1.38 Zone between Caribou and Mink
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201.00 208.00 7.00 4.67 Between Caribou and Mink
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232.90 234.50 1.60 4.33 Between Caribou and Mink
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322.00 337.00 15.00 1.21 Zone 27
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386.00 388.00 2.00 1.27 Zone below Zone 27, no name
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506.50 508.00 1.50 3.03 Just above Red Dog, No name
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EAG-11-256 189.00 193.00 4.00 2.43 Caribou Zone
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EAG-11-257 47.00 48.00 1.00 1.59 No name
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Extension of Caribou to the
55.00 63.00 8.00 1.42 west by 100 m
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193.00 194.00 1.00 2.57 No name
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EAG-11-258 50.00 52.00 2.00 1.80 No name
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58.00 59.00 1.00 3.52 Zone parallel to EM-axis
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Extension of Caribou to the
96.00 98.00 2.00 20.82 west by 200 m
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156.00 157.00 1.00 1.24 No name
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EAG-11-259 315.00 317.00 2.00 7.94 Mink Zone
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393.00 412.00 19.00 13.32 Zone 27
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incl. 395.00 396.00 1.00 58.50 idem
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incl. 399.00 408.00 9.00 17.81 idem
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incl. 402.00 403.00 1.00 66.40 idem
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467.90 473.00 5.10 5.20 Zone below Zone 27
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EAG-11-260 121.00 125.15 4.20 0.90 Zone parallel to Caribou
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Single qtz-ab-chl vein 3cm
138.00 139.00 1.00 5.79 thick. Tr Cpy
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266.00 272.00 6.00 2.10 Mink Zone, up to 15% pyrite
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396.00 399.00 3.00 0.80 Zone below Zone 27
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Shear zone, 10% Py, 120 m to
482.70 483.50 0.80 8.60 the NW of Zone 27
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Py stringer zone, 135 m to the
504.00 505.00 1.00 71.80 NW of Zone 27
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EAG-11-261 288.10 291.00 2.90 2.45 Mink Zone
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Zone between Mink Zone and
341.75 346.00 4.25 1.92 Zone 27
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EAG-11-262 134.00 142.00 8.00 8.97 Caribou Zone
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EAG-11-263 Caribou Zone, 5 metres below
51.00 56.25 5.30 1.90 bedrock surface
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103.00 113.00 10.00 1.40 Pyrite zone north of Caribou
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EAG-11-264 101.45 109 7.55 1.26 Mink Zone
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EAG-11-265 127.00 129.00 2.00 6.86 Mink Zone
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176.60 191.70 15.10 1.40 Zone 27 at 150 m elevation
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EAG-11-266 31.00 35.00 4.00 2.60 Near surface zone
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75.10 79.00 3.90 2.30 Mink Zone
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EAG-11-267 177.00 186.20 9.20 1.20 Zone 30 m north of Zone 27
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EAG-11-268 57.00 58.00 1.00 4.28 Isolated vein
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EAG-11-269 194.20 203.00 8.80 3.30 Caribou Zone
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422.10 433.00 10.90 2.20 Mink Zone
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525.00 529.00 4.00 4.30 Zone 30 m north of Zone 27
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The true widths are approximately 70% of reported width.
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 ton. Assays returning results over 1 ounce per ton of gold by atomic absorption are re-assayed using the metallic sieve method. All assays were performed by ALS Chemex Laboratory Group, in Val d'Or, Quebec. Sampling and analytical procedures are subject to a comprehensive quality assurance and quality control program. The QA-QC program includes duplicate samples, blanks and analytical standards.
Other Business
The Company has renewed its investor relations contract with the Montreal based firm MI3. MI3 provides information and translation services to the Company's Quebec based investors and other interested parties. In addition, MI3 arranges institutional and broker meetings and provides translation services on the Company's information packages. MI3 has been contracted for an additional year and will receive $4,000 per month and 300,000 one year options priced at $0.30 per common share to be vested quarterly as per TSX-Venture Exchange (the 'Exchange') regulations. This transaction is subject to approval by the Exchange.
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 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 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.
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' or 'looking forward', 'does not expect', 'continues', 'scheduled', 'estimates', 'forecasts', 'intends', 'potential', 'anticipates', 'does not anticipate', or '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.
Forward-looking statements are based on a number of material factors and assumptions, including, the result of drilling and exploration activities, that contracted parties provide goods and/or services on the agreed timeframes, that equipment necessary for exploration is available as scheduled and does not incur unforeseen break downs, that no labour shortages or delays are incurred, that plant and equipment function as specified, that no unusual geological or technical problems occur, and that laboratory and other related services are available and perform as contracted. Forward-looking statements involve known and unknown risks, future events, conditions, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, prediction, projection, forecast, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the interpretation and actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of gold; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; the failure of contracted parties to perform; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration, as well as those factors disclosed in the company's publicly filed documents. Although both companies have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither 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:
Eagle Hill Exploration Corporation
David Matousek
Corporate Communications
604.697.5791
info@eaglehillexploration.com
www.eaglehillexploration.com
MI3 Communications Financieres Inc. (Montreal)
Nathalie Dion
514.904.1333
nathalie@mi3.ca
www.mi3.ca