Eagle Hill Third Quarter Financial Results

September 24, 2014

September 24, 2014 – Vancouver, BC – Eagle Hill Exploration Corporation (TSX-V: EAG, OTCQX: EHECF) (“Eagle Hill” or the “Company”) has released the results of its third quarter ended July 31, 2014. Details of the Company’s financial results are described in the unaudited condensed interim financial statements and Management’s Discussion and Analysis (“MD&A”), which are available on the Company’s website at and on SEDAR at All amounts are in Canadian dollars unless otherwise stated.


The following table sets out selected financial information for the most recent eight fiscal quarters.

At September 23, 2014, the Company had working capital of approximately $1,960,000. For the three months ended July 31, 2014, the Company had a net and comprehensive loss of $546,507 or $0.001 per share (2013: $545,230 or $0.003 per share). At July 31, 2014, the Company had a commitment to spend a total of $72,000 on Canadian eligible exploration expenses by December 31, 2014 and $1,000,000 by December 31, 2015.


The Windfall Lake Property covers approximately 12,400 hectares in the prolific Abitibi Greenstone Belt in Quebec. The property consists of 285 contiguous claims. Eagle Hill obtained ownership of the property by optioning different claim blocks from Noront, Murgor and Cliffs. On May 6, 2014, the Company announced that it had completed its purchase of three 2% NSRs related to Eagle Hill’s Windfall Lake Gold Project, which is located in the Abitibi Gold Belt approximately 200 km northeast of Val d’Or, Quebec. The Company paid a total of $60,000 and issued a total of 3,333,334 shares to purchase the NSRs, which cover 3,469.9 hectares of the 12,400 hectare Windfall Lake Property. The shares issued to the vendors of the royalties are subject to a four-month hold period.

On March 28, 2014, the Company completed the purchase of the 29 Claims and the 184 Claims immediately adjacent to the Windfall Lake Property. In consideration for purchasing the remaining interests in the 29 Claims and the 184 Claims, the Company paid $250,000 and issued 9.5 million common shares to each of the optionors. In addition, the Company granted a 0.5% NSR for the 29 Claims and a 1% NSR for the 184 Claims to each of the optionors. The Company retained the right to buy back any of the NSRs at any time prior to first commercial production by paying $500,000 to the holder of the NSR.

Exploration Activities

The Fall 2013 drill program achieved its primary objectives, confirming continuity of mineralization below Red Dog, confirming the extension of mineralization southwest of the Main Zone, and expanding both Zone 27 and the Mink Lens. In addition, a downhole IP survey showed additional potential below Red Dog. The Winter 2014 drill program was focused on testing for gold mineralization below shallow lakes in the Main Zone. A total of 3,333 metres was drilled in 16 drill holes. Several drill intercepts demonstrated the presence of pyritic stockwork similar to other lenses of the Main Zone. The results confirmed continuity of the Zone 27 gold mineralization and demonstrated lateral extension of the Zone. All drill results have been press released and are available on SEDAR at and on the Company’s website at

On August 5, 2014, the Company announced that it had commenced a 2,800-metre drill program targeting the extension of Zone 27 to the northeast below the Red Dog intrusion. Eagle Hill plans to deepen six existing drill holes in a target zone that is currently untested. Using existing holes to reach the target zone will reduce drilling costs and also allow the target zone to be reached more quickly. The Company also plans to complete a 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 to the NNE as much as 600 metres below the Red Dog dike, which coincides with an IP anomaly identified below Red Dog.

Preliminary Economic Assessment Study

On June 24, 2014, Eagle Hill announced plans to complete a PEA for the Windfall Lake Property. On September 17, 2014, the Company announced that work on the PEA is underway, with different components of the project awarded to three internationally recognized engineering firms: Tetra Tech, Inc.’s Canadian Mining Division, Soutex Inc. and SRK Consulting (Canada), Inc. The Board of Directors has appointed Paul-Henri Girard as the lead director to manage the PEA process, and 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. 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. Mr. Gauthier is a principal mining engineer with over 30 years of experience. 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

John Proust”

Interim Chief Executive Officer

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. The current mineral resource 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 (Technical Report for the Windfall Lake Gold Project, Quebec prepared by SRK Consulting (Canada) Inc., dated March 3, 2014). These grades 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, with additional drilling and technical work planned for 2014. A Preliminary Economic Assessment Study for the project is underway, with completion targeted for Q1-2015. More information is available at

Eagle Hill Contact

Rhylin Bailie
Vice President, Communications & Investor Relations
Telephone: 604-697-5791

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.

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”, “plans”, “objective”, “expand”, “potential” 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 and Southern Arc 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.

Qualified Person

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.

    Sep 24, 2014 24:44 PM

    Off Topic:

    One of the problem’s of having a “President” who does not attend briefings:

    The Korosan group has been known about for two years and all the Big Zero has done is nothing.

    Sep 24, 2014 24:57 PM

    The U.S inventory a few days ago was only some 250 cruise missiles.

    By my count we have used 45 in Syria, and yet money has not been appropriate for new supplies.

    More importantly, why the h*ll are we using expensive cruise missiles when we could attack ISIL even in daylight, because they have minimal air defense capability?

    If I wanted to give the appearance of attacking ISIL, without actually killing a muslim, I would do pretty much what the worst-ever U.S. President has done. Meanwhile I would stock up on armaments for use against U.S. citizens in case they might eventually understand and revolt.

    Sep 24, 2014 24:02 PM

    I wish they can put their lost money into my account instead of giving it to others. They have working capital for next few months. Do they have a revenue stream?

    REAL ESTATE…….NYC….condo sales slow at one57……..looks like not all NYC real estate is so hot, as some have said…………………..see Sinclair JSMINDSET today.

    Sep 25, 2014 25:44 AM

    Looks to me that Herve Gourdel, French reporter will be beheaded by ISIL today or tomorrow, in an effort to break up the Big Zero’s weak coalition.

    Also looks like we are setting up for an October general stock market correction, because of international trade collapse.

    Sep 25, 2014 25:58 AM

    Second group splits out from ISIL:
    (Is this a divide and conquer technique, making it hard to eliminate the Islamic State?)
    We are now seeing deepening rivalry between Al Qaeda’s core command and the Islamic State over leadership of the transnational Islamist militancy.

    The newly created “Caliphate Soldiers” or “Jound al Khilafa fi Ard al Jazayer” is the second group to break away; the first one being Mokhtar Belmokhtar’s group “Those who sign in Blood” who observers say are likely based now in southern Libya.

    It certainly shows up the Big Zero’s efforts which are at least a year late and a billion dollars short.
    The worst US President in history, and we’ve had some pretty useless Presidents!

    Sep 25, 2014 25:25 AM

    There are increasing divergences between the behavior in gold and silver.
    Open interest in silver has been significantly increasing while the price of silver has been dropping. This is abnormal behavior.
    I recall a statement made a while ago by a Chinese leader, but forget if he was the banking minister or foreign affairs. He stated that to default in derivatives would not be a dishonorable act.
    Suppose, then, the following hypothetical situation:
    China sets up a trading company in the US, which it uses to drive down the price of silver by massive naked shorting. If it is successful it will actually profit from a lower price and may even be able to cover its shorts by panic or forced sales.
    Meanwhile another Chinese entity places futures orders to buy silver and buys physical silver on a slow accumulating basis. Sufficiently slow so as not to materially affect the price: just slow and steadily over a year or two, until it has most of the available silver.
    The concept, being that if its naked shorting company gets into trouble, it defaults. However, its physical buying company acquires most of the available physical supply.
    I have no proof, but my gut feeling is that this is now going on in silver and did take place in gold over the last few years.
    Just a thought. (Of course, the Chinese could also use proxies to do their bidding, but this pattern does seem to fit the known facts.)

      Sep 25, 2014 25:39 AM

      I remember hearing that too but did not pay attention. But Shanghai gold exchange had only 81 tons left on September 14th. Please check They used to have a lot, something like 1,200 tons. Is it possible they have trouble to get silver? Is it possible that the early opening of foreign bourse is related? regardless what, the inventory running this low is dangerous for an physical exchange. It does deliver a lot of gold, I heard it is around 10 times of COMEX.

        Sep 25, 2014 25:40 AM

        81 tons silver not gold.

        Sep 25, 2014 25:53 AM

        Lawrence, I don’t know. I am hearing that GLD was repeatedly raided for physical so, that notwithstanding its list of bars, it now only has paper gold. If that were true, then it would make sense to go after silver until SLV was depleted of physical.
        I personally have more physical gold than silver, because silver is so bulky to store, even buying kilobars. Although I do believe silver will out-perform gold in future.

        The problem still remains of how to explain the high open interest in silver, with dropping price.
        Whereas Gold OI is not very high with dropping gold price; even though physical purchases outside the US are now going up with dropping price for gold.

        I like to understand everything …… !

          Sep 25, 2014 25:09 AM

          There are some explanation from a guy named Bill Holter a few days ago. I don’t think we can know this. Usually this sort of market operation can stay secret forever since very few people involve in it, unlike other schemes. It is definitely not normal and not retail investor dumping. The low volume in close end ETF like SBT.UN and Sprott trust hints it. The guys who own physical are not selling. Plus even US eagle sale is breaking record. Buying is strong in the west and East. There is definitely something very serious wrong. I cannot recall it happened like this for the last 10 year since I follow silver. The OI always shrink since commercials cover at the lows and longs dump.

            Sep 25, 2014 25:19 AM

            If gold does the samething I would conclude it is John Embry called end game (in which central bank will dump as much paper as possible and default) but gold OI does not support it. It is puzzling.

    Sep 25, 2014 25:11 AM

    Another 6.2 earthquake in Argentina near Chile border. No mining problems reported.

    Sep 25, 2014 25:19 AM

    As the gold:silver ratio breaks 70 in the next day or so, there will probably be some discussion. This ratio, while high, is not close to record breaking, as there have been several extended periods when it has been above 80, and the record is over 100 back in 1990.

      Sep 25, 2014 25:20 AM

      GSR reached 86 in October 2008

    Sep 25, 2014 25:28 AM

    Interestingly, I just did a price inquiry on 100 oz silver bars. Kitco premium relative to their quoted spot price is just over 5%, whereas my London dealer is quoting a premium of 13%.
    Historically (over last decade, my London dealer has not been more than a percent or two away from the Kitco price.

      Sep 25, 2014 25:37 AM

      If you add shipping and insurance, it costs a lot. Banks do not make it easy. In Canada, if I don’t want to pay shipping fee, I have to go to Toronto which is 2000 miles away. Otherwise you go to dealers and pay high price. That is why I haven’t bought physical since 2009 since my heart hurts when I see the real premium I pay.

    Sep 25, 2014 25:41 AM


    Iraq’s prime minister says his country’s intelligence operation has uncovered a plot for an imminent attack on subway systems in United States and Paris.
    Prime Minister Haider al-Abadi said he was told of the plot by Baghdad on Thursday, and that it was the work of foreign fighters of the Islamic State group in Iraq. Asked if the attack was imminent, he said, “Yes.”
    Asked if the attacked had been thwarted, he said, “No.” Al-Abadi said the United States had been alerted.