Eagle Hill Announces Positive Drill Results and Initiation of a Preliminary Economic Assessment Study at the Windfall Lake Gold Project
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 24, 2014) - Eagle Hill Exploration Corporation (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 |
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| 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 |
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| 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.