Eagle Hill Exploration Corporation has provided the following update and outline of near future plans for the Windfall Lake Property.
Based on the success of Eagle Hill's three drill programs on the Windfall Lake Property, the Company is preparing to announce its initial independent NI 43-101 compliant gold mineral resource estimate of the Property in the next few weeks. This independent resource estimate will serve as a baseline valuation for the Windfall Lake property. Future exploration programs, including the one currently underway, will build on the Company's large gold system, which is potentially amenable to bulk underground mining.
Leading up to the independent resource calculation being prepared by SRK Consulting (Canada) Inc., Eagle Hill has accomplished the following:
- Completed the third phase of drilling since Eagle Hill acquired the property in September 2009. From that date, Eagle hill has drilled a total of 31,700 meters in 98 drill holes;
- Finalized the 3D modeling of the geology and the mineralized zones and identified areas where drilling could increase the gold mineral resource. The most recent models can be viewed in the Investor PowerPoint Presentation on the Company's website;
- Identified several mineralized gold zones over a strike length of more than 1,800 meters with most gold zones still open in several directions;
- Discovered a gold bearing shear zone extending over 7.5 kilometers of strike-length; and
- Conducted preliminary metallurgical testing that indicates up to 97% gold recovery by a combination of gravity and flotation circuits.
Next Phase of Exploration
As a result of Eagle Hill's exploration strategy of assessing all historic data, drilling and then modeling new drill results, the Company has in the past, gone for several months at a time without drill results. Now that the Company has a very clear understanding of the geology and the distribution of the gold zones, it is Eagle Hill's objective to have continuous drilling so that results will be issued to the public on a more regular basis. The resource calculation will also be expanded and updated periodically.
This aggressive exploration strategy is intended to complete a series of activities with the objective of expanding and better defining the gold resource at the Windfall Lake Property, including:
- A 25,000 meter diamond drill program started on October 5th continuing through to May 2012 with two drill holes already completed. Initial assay results anticipated within 6 weeks;
- Initially, the current drill program will focus on expanding the discovery of the potential 7.5 kilometer strike length identified in the Company's most recently announced drill hole, EAG-11-288 with 14.2 meters of 7. 5 g/t of Gold;
- Generate a model based on the inversion of the IP data covering a 7.5 kilometer-long gold-bearing shear zone that extends to the East-North East of the main gold zones which is intended to identify additional gold targets along this gold-bearing shear zone; and
- Eagle Hill will continue updating its GoCad property-scale modeling to better define the Windfall Lake Property's potential targets.
Eagle Hill is well funded to begin this next phase of exploration without the need for further financing. The funds received from the May 2011 private placement and an Accounts Receivable of over $1.3 million dollars in tax incentives payable by the Quebec Government for exploration work carried out by Eagle Hill during 2010 and 2011 have the Company in a strong financial position.
Other Corporate Matters
- The Company has filed its Annual Information Form (the "AIF") which is available on SEDAR. The AIF was prepared to facilitate a Short Form Prospectus Offering when and if needed;
- Eagle Hill has filed for a listing on the OTCQX Exchange in the United States. The Company expects the listing to be finalized in the month of October, and that this listing will provide easier access for U.S. investors to purchase the Company's freely traded shares; and
- The Company has granted 150,000 consulting options at $0.30, expiring in one year.
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.