Eagle Hill Commences Preliminary Economic Assessment Study for the Windfall Lake Gold Project
September 18, 2014 (Source: Newsfile) — Eagle Hill Exploration Corporation (TSXV: EAG) (OTCQX: EHECF) (“Eagle Hill” or the “Company”) is pleased to announce that contracts have been awarded to three internationally recognized engineering firms to complete a Preliminary Economic Assessment Study (“PEA”) for the Windfall Lake Gold Project, a high-grade gold deposit located between Val-d’Or and Chibougamau in Quebec, Canada. Work on the PEA is underway, with completion targeted for Q1-2015.
Eagle Hill’s Board of Directors is very encouraged with the drill results obtained to date at Windfall Lake, and 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.
Tetra Tech, Inc.’s Canadian Mining Division will lead the mine design, mine schedule, infrastructure, cost estimating and financial analysis components of the PEA, and will be the lead author for the National Instrument 43-101 report associated with the PEA. Tetra Tech is a leading provider of consulting, engineering, and technical services, employing some 14,000 professionals worldwide. Tetra Tech’s mining practice has consulted for a large number of mid-tier and senior mining companies, including Primero Mining, Goldcorp, Agnico Eagle, Barrick, Newmont and Teck.
The mine design will be supported by a number of hydrogeological and geotechnical studies that were previously completed for the 1,453-metre underground ramp built by Noront Resources Inc. in 2008, providing valuable data for the mine design component of the PEA. In addition, Eagle Hill commissioned an environmental baseline study in 2011 that will be updated as part of the PEA.
Soutex Inc. will lead the metallurgy and mill trade-off study components of the PEA. Soutex is a consulting firm specializing in metallurgy and mineral processing with more than 40 metallurgists, process engineers and technicians on staff. Soutex has worked with many leading mining companies, including Rio Tinto, Agnico Eagle, Iamgold, Barrick and Xstrata.
SRK Consulting (Canada), Inc. is using a new geological model to calculate an updated resource estimate for inclusion in the PEA. Following the Fall 2013 and Winter 2014 drill programs, Eagle Hill and SRK have reinterpreted the geometry of a number of the gold lenses that comprise the Windfall Lake gold deposit. The current resource estimate, completed by SRK in February 2014 (see Technical Report for the Windfall Lake Gold Project, Quebec dated March 3, 2014) comprises 2,375,000 tonnes at 9.75 g/t gold (744,000 ounces) in the indicated category and 3,084,000 tonnes at 7.37 g/t gold (731,000 ounces) in the inferred category. The PEA will consider both the indicated and inferred resources.
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Paul-Henri Girard, who joined Eagle Hill’s Board of Directors in June 2014, will be the lead director managing the PEA process. Mr. Girard is a Mining Engineer with extensive experience planning and operating Canadian mines. 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. In addition, Eagle Hill has engaged Jacques Gauthier as an engineering consultant to oversee the day-to-day logistics of the PEA and act as a technical liaison with the engineering firms. Mr. Gauthier is a principal mining engineer with over 30 years of experience, including hands-on experience with a number of Quebec-based mines. As chief engineer and project manager, Mr. Gauthier has participated in many mine expansions and development projects and has managed feasibility and prefeasibility studies for projects in Ontario, Quebec and Burkina Faso.
On Behalf of the Board of Directors
Chairman and Interim CEO
About Eagle Hill Exploration Corporation
Eagle Hill Exploration Corporation is a Canadian mineral exploration company focused on the exploration and development of the high-grade Windfall Lake gold deposit, located between Val-d’Or and Chibougamau in Quebec, Canada. Gold grades 9.75 g/t gold (744,000 ounces) in the indicated category and 7.37 g/t gold (731,000 ounces) in the inferred category make Windfall Lake one of the highest grade resource-stage gold projects in the world. The bulk of the mineralization occurs in the Main Zone, a southwest/northeast trending zone of stacked mineralized lenses, measuring approximately 600 metres wide and at least 1,400 metres long. The deposit remains open at depth and along strike. More information is available at www.eaglehillexploration.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The technical information in this document has been reviewed by Eagle Hill’s Vice President Exploration, Jean-Philippe Desrochers, PhD, PGeo, who has sufficient experience relevant to the style of mineralization under consideration and qualifies as a Qualified Person as defined by National Instrument 43-101. The drill program and sampling protocol is managed by Eagle Hill under the supervision of Jean-Philippe Desrochers. The diamond drill holes are drilled at NQ sizes and core recovery to date has averaged better than 95.0% . Half core is cut by rock saw and is generally sampled using nominal 1-metre intervals; however, sample intervals vary according to geological contacts and have ranged between 0.3 to 1.5 metres in length. Two quality control samples (one blank and one certified reference material) are inserted into each batch of 20 samples. All assays were performed by ALS Chemex Laboratory Group, in Val d’Or, Quebec. The half core samples are securely transported from the project site to the ALS Chemex laboratory by Eagle Hill personnel. 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 tonne and by metallic sieve method for samples containing significant amounts of pyrite or visible gold. In addition, an Aqua regia digestion with ICP-AES finish is used to analyse a full suite of elements including silver and base metals.
Cautionary Note Regarding Forward-looking Statements
This document contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of any of the words “will”, “potential”, “advancing”, and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This document contains forward-looking statements and assumptions pertaining to the following: uncertainty involving resource estimates and the ability to extract those resources economically, or at all; uncertainty involving drilling programs and the Company’s ability to expand and upgrade existing resource estimates; the regulatory process and actions; the need to work with local communities and authorities to advance the properties; the need to work with Dundee Corporation and Southern Arc Minerals to advance the property; technical issues; new legislation; competitive factors and conditions; uncertainties resulting from potential delays or changes in plans; the occurrence of unexpected events; and the Company’s ability to execute and implement future plans. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors, including uncertainty related to drill results and the inclusion of drill results in future resource estimates for the property. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.
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