Eagle Hill’s Summer 2014 Deep Drill Program Further Highlights Depth Potential of the Windfall Lake Gold Project
November 10, 2014 – Vancouver, BC – Eagle Hill Exploration Corporation (TSX-V: EAG, OTCQX: EHECF) (“Eagle Hill” or the “Company”) is pleased to announce the results of its Summer 2014 drilling program targeting the depth extension of gold mineralization at the Windfall Lake Gold Project. Windfall Lake is a high-grade gold deposit located between Val-d’Or and Chibougamau in Quebec, Canada.
The Windfall Lake gold deposit had been well defined from surface to a depth of approximately 500 metres by previous drilling campaigns. During its Fall 2013 drilling program, Eagle Hill drilled 11 deep holes below the Red Dog intrusion (“Red Dog”). This 4,759 metre drill program confirmed the continuity of gold mineralization below Red Dog in three sparsely drilled lenses to a depth of approximately 870 metres, delineating an inferred mineral resource of 455,000 tonnes at a grade of 8.21 g/t gold (for 120,000 contained ounces of gold at depth).
A structural re-interpretation of the deposit indicated that the gold mineralization hosted by Zone 27 and the Caribou Zone (the major resource zones in the Windfall Lake deposit) may have been displaced to the north below Red Dog. A hole-to-hole Induced polarization (“IP”) anomaly identified below Red Dog further supported this interpretation (Figure 1). Eagle Hill’s Summer 2014 drill program consisted of deepening five existing drill holes (Figure 2, Table 1) to test for gold mineralization in the displaced zones below Red Dog at a vertical depth of approximately 650 metres. A total of 2,039 metres of new drilling was completed.
Mineralization at the Windfall Lake deposit is closely associated with pyrite and minor chalcopyrite. The new drill holes intersected pyrite intervals up to 26 metres thick similar to gold-bearing mineralization in Zone 27 above Red Dog, and could be interpreted as the displaced down-dip extension of Zone 27 (Figure 1).
Highlight drill intercepts in the displaced lens include 9.96 g/t gold over 5.8 m, 7.96 g/t gold over 2.1 m, 8.61 g/t gold over 0.9 m, and 8.35 g/t gold over 0.3 m. While these intercepts are narrower than what has typically been encountered in Zone 27 above Red Dog, the grades are similar and Eagle Hill’s technical team believes there is potential to discover wider gold-bearing intercepts with additional drilling.
Drilling to date shows that the displaced lens interpreted to be Zone 27 has a strike length of approximately 1,000 metres with a higher-grade interval measuring 400 metres vertically. This lens is currently known to a depth of 870 metres below surface, but remains open at depth and down-plunge to the ENE (Figure 2).
Another lens was intersected at a shallower depth (500 metres below surface). Drill hole EAG-12-421 intersected this lens with an interval assaying 9.71 g/t gold over 7.5 m and is interpreted as the depth extension of the Caribou Lens.
This new drilling underscores the potential to increase the size of the Windfall Lake deposit directly below the known mineral resource. The 4,759 metres from the Fall 2013 program added 120,000 inferred ounces below the Red Dog intrusion to the Windfall Lake mineral resource. Additional drilling in these newly identified lenses could likewise add additional ounces to the mineral resource. In October 2014 Eagle Hill completed additional downhole IP surveys in the five extended drill holes to further define drill targets. Results are expected within the next three weeks and will be used in conjunction with the drill results to plan additional drilling at depth, with the objective of expanding the size of the deposit.
Eagle Hill Exploration commenced a Preliminary Economic Assessment Study (“PEA”) in September, with completion targeted for Q1-2015. To date the study is on schedule and budget. The scope of the PEA will focus on the mining potential and economics of the previously reported Windfall Lake Gold Project resources defined above the Red Dog intrusion (Eagle Hill news release dated April 21, 2014). The results of the Summer 2014 drilling below Red Dog will not be included in the scope of the PEA. However, these drill holes have confirmed the upside potential to expand the Windfall Lake mineral resource with additional drilling at depth.
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. 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. More information is available at www.eaglehillexploration.
Eagle Hill Contact
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 “may”, “could”, “will be”, “potential”, “objective”, “increase” 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.
Table 1 – Windfall Lake Summer 2014 Drill Program Highlight Results
Figure 1 – Vertical Cross Section Looking ENE – Geology and Gold Mineralization below Red Dog is Displaced to the North.
Figure 2 – Vertical Longsection of Interpreted Displaced Zone 27 Lens below Red Dog. Looking to the NNW.