The Gold Report
One more story that we are following is called Eagle Hill Exploration Corp. (EAG:TSX.V). The company has a very interesting project in Québec called the Windfall Lake project, which it initially acquired from Noront Resources and where it's finding really high-grade material. In the last four or five years Eagle Hill has managed to get a resource of 1.5 Moz in the Indicated and Inferred category. The grades are really high, around 10 g/t gold, with 538 Koz in the Indicated category and 800 Koz at 8.7 g/t in the Inferred category, with continued expansion of the mineralized zone. The near-surface mineralization makes the project more interesting because it can be open-pitted before going underground.
Québec is probably one of the best mining jurisdictions in the world. I have been on the site. It has a great mining camp with an underground ramp that Noront spent $20M building. Eagle Hill is expecting to do a feasibility study in the first half of 2013. Noront does have a back-in right on that project and there are negotiations to resolve terms that makes sense to both parties.
Now the share price has not done that well lately, probably due to share dilution from capital raises. But as far as projects go, it's probably one of the best for the quality and grade. Projects with high grade have attracted a significant acquisition premium because they have a better margin of error if the costs go up. That's something that makes Eagle Hill very interesting.
TGR: Where's it selling now and where do you expect it might go?
VR: It's selling about $0.13/share right now. We think it should be north of $0.50/share, based on its scope and potential. But if it can get to the prefeasibility stage and really show the project potential in terms of net present value, then that may change.