RE:UPDATED MINERAL RESOURCE STATEMENT Eagle Hill is reviewing SRK's technical report for the project, which will include SRK's recommendations for advancing the property. Eagle Hill has commenced a 2,200-metre drilling program to test for extensions of zone 27 under shallow lakes (two to six metres depth) that are currently frozen. Eagle Hill plans to drill 14 holes to a depth of 120 to 250 metres to test the lateral extensions of zone 27, where drilling has confirmed near-surface high-grade intervals such as 14.8 grams per tonne gold over 16.0 metres (EAG-12-418). Additional drilling for 2014 will be planned once the company has reviewed the technical report and considered SRK's recommendations. Eagle Hill will file the technical report on SEDAR by April 17, 2014.
Mineral resource estimate methodology
A database comprising 635 core boreholes (179,641 metres) representing drilling data acquired between 2004 and 2014 by Murgor Resources Inc., Noront Resources Inc. and Eagle Hill was used for geological modelling and mineral resource estimation. The borehole data include collar location, downhole survey data, lithology codes and 111,648 sample intervals assayed for gold.
The mineral resource model is based on a complete reinterpretation of the geology of the project, providing a more confident interpretation of the controls on the distribution of the gold mineralization and better confidence in its continuity between the sampling points. Fifteen resource domains were defined within a broad pyrite stockwork zone forming the Main zone. In addition, the gold mineralization contained in geological domains was also considered (pyrite stockwork and various generations of dikes). Data were extracted from within these domains for geostatistical analysis.
After review, a grade estimation strategy was defined to populate a GEMS block model with gold grade informed from capped composite data using a geostatistical block modelling approach. Appropriate validations were undertaken to ensure that the block model adequately represents the informing composite data. Block estimates were classified into indicated and inferred categories considering confidence in geological interpretation, confidence in geostatistical continuity, estimation and the density of the informing data.
Indicated mineral resources are defined only within the Main zone, which is informed by higher density of drilling data and better confidence in the geological continuity of the gold mineralization. The mineral resources in all other zones are informed by more widely spaced drilling information or exhibit a lower confidence in geological continuity and thus are appropriately classified in the inferred category.
The mineral resource has been estimated in conformity with the CIM Mineral Resources and Mineral Reserves Estimation Best Practices Guidelines and are classified according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (December, 2010) guidelines. The mineral resource statement is reported in accordance with Canadian Securities Administrators' National Instrument 43-101.
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