Eagle Hill Exploration Corp .: Updated Mineral Resource Statement Increases Inferred (126%) and Indicated (61%) Higher Salary Gold Ounces at Windfall Lake Deposit
VANCOUVER (BRITISH COLUMBIA), 25. July 2012. Eagle Hill Exploration Corporation ("Eagle Hill" or the "Company") is pleased to announce the creation of a second Independent Gold Mineral Resource Statement under the Canadian Securities Administrators National Instrument 43-101 for the Windfall Lake Property (the "Property Windfall Lake "or the" Property ") created by SRK Consulting (Canada) Inc. (" SRK "). The updated Mineral Resource Statement represents a significant increase in total gold ounces and salary due to additional drilling and improved area modeling.
Highlights
The results of the updated gold resource point to the following:
• Increased total gold ounces in the displayed category by 61%; Increase of the content by 10% to 10,05 grams per ton of gold
• Increased total gold ounces in the derived category by 126%; Increase of the content by 31% to 8,76 grams per ton of gold
• 40% of the gold resource is in the displayed category.
• The following mineral resource has been reported using a cut-off grade of 3,0 grams of gold per ton ("g / t gold"):
o Resource displayed by 1,665 million tonnes with 10,05 g / t gold (538.000 ounces of gold)
o Inferred resource of 2,906 million tonnes with 8,76 g / t gold (822.000 ounces of gold)
• Over 80% of the mineral resource is within an 450 by 850 meter area within the first 500 meters below the surface.
• Eagle Hill's exploration costs have so far been approximately $ 10 per ounce of gold discovered.
• The mineralization remains open along strike and at depth.
The revised Mineral Resource Statement * is shown below:
Mineral Resource Declaration * for the Windfall Lake (Quebec) gold project of SRK Consulting (Canada) Inc. of 25. July 2012
Message
"We are pleased to be able to announce such a strong update of our first Mineral Resource Statement in such a short time. Within just eight months, we were able to significantly increase the amount of gold ounces and salary in the indicated as well as in the derived category. This confirms the tremendous value created by our systematic exploration approach. Our efficient and cost effective drilling program continues to deliver strong results and improve the sustainability and trustworthiness of the mineral resource, "said Drs. Jean-Philippe Desrochers, Chief Geologist of Eagle Hill. "Our updated mineral resource statement once again confirms that the Windfall deposit has significant gold mineralization and significant potential for size enhancement through additional systematic exploration."
Exploration Program 2012
In addition to the updated resource calculation, recent shallow drilling at Windfall Lake has also revealed gold mineralization that could potentially be mined using open pit mining. Several powerful, near-surface sections with substantial salary prompted the company to expand the current program to explore the full potential through additional drilling. The most recent sections include:
• EAG-12-394: 41,8 Meter with 4,6 g / t Gold (11 July 2012)
• EAG-12-393: 47,2 Meter with 11,8 g / t Gold (21 June 2012)
• EAG-12-351: 55 Meter with 5,7 g / t Gold (26, April 2012)
• EAG-12-318: 25 meter with 22,85 g / t gold (27, February 2012)
In addition to near-surface gold mineralization in windfall, recent drilling has shown that the mineralized zones extend below the surface to a depth of 770 meters, and sections such as 8,9 g / t gold at 14,0 meters and 5,5 g / t gold at 15,0 meters below the surface Intrusion Red Dog (see news release from 1, March 2012). This deeper gold mineralization was not included in the mineral resource statement due to the lack of drilling in this section. However, further drilling beneath the Red Dog intrusion could continue to increase the size of the mineral resource.
The focus of the drilling program, which began at the end of May 2012, is focused on three main objectives:
1. Detailed definition drilling for near-surface gold mineralization to support an assessment of mineral resources that could be mined as part of an open pit operation
2. Expanding the known gold zones to the east through a systematic drilling scheme - the extension of this gold mineralization to a depth of 450 meters could enable mining across the existing ramp infrastructure at the Windfall Lake Property.
3. Detection of additional consistent gold mineralization beneath the Red Dog intrusion, where we have discovered significant gold mineralization in our recent drilling. Eagle Hill believes that further gold mineralization can be found at greater depths because the vertical extent of Archean gold deposits is generally greater than their strike length. The gold mineralization at Windfall Lake currently has a horizontal strike length in excess of 2.000 meters and remains open to the east and west.
A map of the Windfall Lake Property showing the location of the gold zones, drill holes and potential extension areas, as well as cross sections, a longitudinal section, and images of the core showing the nature of the mineralization, was posted on the Eagle Hill website at www.eaglehillexploration.com / sections published.
The Windfall Lake Property is located in the Province of Quebec, considered by the Fraser Institute to be one of the most favorable jurisdictions in the world for new mine development. Also beneficial to mine development are the existing infrastructure, such as an access road that can be accessed year-round, a warehouse for 58 people, a recently built, 1.450 meter long 5 meter downhole, two power lines across the property, as well as the availability of qualified contractors.
technical description
The documents of the new Mineral Resource Statement are different from the previous Mineral Resource Statement published in November 2011. The increase in tonnages and grades is mainly due to the expanded drilling and improved area modeling. SRK applied the same reporting parameters to those that were used in the first mineral resource statement (3,0 g / t gold, 1.200 US $ per ounce gold and a gold recovery rate of 97%) in this updated Mineral Resource Statement. The reported cut-off grade of 3,0 grams per tonne was based on the assumption that the Windfall Lake gold deposit is suitable for underground mining.
The gold mineralization is located within a low pressure zone along a highly loaded deformation corridor that runs to the northeast and is characterized by a variable hydrothermal alteration with pyrite stockworks and disseminated pyrite mineralization. Based on the current state of knowledge of exploration, the resource modeling resource has been subdivided into three sub-areas. Most of the gold mineralization occurs in the Main Zone, which has been sampled by drilling at intervals from 25 to 50 meters. Given the additional core drilling information acquired during 2011 and 2012, two of the previously defined gold zones (Main and East Extension) were merged to expand the Main Zone. Two smaller, less well-defined zones lie north (Zone F17) and northeast (Zone F51) of the Main Zone and are characterized by well-developed shearing, but are located in a separate, sub-parallel deformation zone north of the Main Zone and fall approximately 65 degrees off to the northwest.
The Windfall Lake property database includes 567 diamond drill holes, of which 318 are within the resource estimate area. The assay data for the property is primarily from drilling between 2004 and 2012 by Murgor Resources Inc., Noront Resources Inc. and Eagle Hill. Drilling data includes the location of the drill collar, depth study data, lithological codes and 55.073 sample sections that have been tested for gold. The mineral resource statement has been prepared on the basis of diamond drill holes for a total of 142.427 meters.
The mineral resources reported here were estimated by geostatistical block modeling from the drilling data. All zones were estimated using conventional wireframe interpretation based on a sectioned interpretation of the drilling data. In areas with limited wells, the sectioned interpretation was conducted using salary models using the Leapfrog software. The block model included an 5 by 5 by 5 meter grid rotated 30 degrees counterclockwise so that the block model is aligned subparallel to the general strike of the mineralization. Gold grades were estimated by Ordinary Kriging and compared with an Inverse Distance algorithm as a secondary estimation method using the same estimation parameters.
The block model was created to cover the entire gold mineralization area of the Windfall Lake Property. Two estimation runs were used to feed the block model with gold grades for zones bounded by hard mineralization wire mesh models. The first and second estimation runs included full and double variogram ranges.
SRK was pleased that geological modeling is taking into account current geological information. The location of the sampling and assay data are sufficiently trustworthy to support resource assessment and have no resource classification risk. The mineral resource model is largely based on geological knowledge through the holes drilled in the Main Zone at 25 meters intervals and at the rest of the deposit at 50 meters intervals. The geological information is sufficiently dense to allow modeling of gold mineralization boundaries in the Main Zone (100 area) with reasonable confidence, while the geological continuity in the F17 and F51 zones (200 and 300 areas) is only based on current drilling distances CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2011).
In general, in the case of good geological continuity mineralization, which has been determined at intervals with trustworthy sampling, SRK assumes that blocks estimated as part of the first round of estimation, taking into account the full range of variograms, comply with CIM Definition Standards for Mineral Resources and Mineral Reserves (November 2011) can be classified in the indicated category. For these blocks, SRK believes that the trustworthiness is sufficient to allow appropriate application of technical and economic parameters, to assist mine planning, and to enable the evaluation of the economic viability of the deposit. These blocks, which are located in the Main zone, can be classified as "displayed" accordingly. Conversely, blocks estimated in the second pass under consideration of the double variogram area environment, as well as those blocks located in areas where geological persistence can only be inferred, should be classified in the derived category because of trustworthiness estimates are insufficient to allow a meaningful application of technical and economic parameters or an assessment of economic feasibility.
The mineral resource estimate was Lars Weiershäuser, P.Geo. (APGO No. 1504), and Dorota El-Rassi, P. Eng. (APEO No. 100012348), under the supervision of Dominic Chartier, P.Geo. (OGQ No. 874), and Glen Cole, P.Geo. (APGO # 1416), created by SRK Consulting (Canada) Inc. Dr. Weierhäuser, Ms. El-Rassi, Mr. Chartier and Mr. Cole are all independent "Qualified Persons" under National Instrument 43-101. Mr. Chartier is registered in the province of Québec and owns the Windfall Lake gold project on the 27. and 28. June 2011 reviewed. SRK's "technical report" will be filed on SEDAR within the prescribed 45 days following the date of this news release. Glen Cole has reviewed the contents of this news release.
Jean-Philippe Desrochers, Ph.D., P.Geo., Chief Geologist of Eagle Hill, a Qualified Person under National Instrument 43-101, has reviewed the technical information in this release.
About the Windfall Lake Property
The Windfall Lake Property consists of 362 contiguous claims (over 12.000 hectares) in the Abitibi mineralized belt in northern Quebec. This area between Val d'Or and Chibougamau is known for its gold and copper production as well as its excellent exploration and mining infrastructure. In the past, extensive base exploration work has been carried out on the Windfall Lake property. In addition to the independently acquired mining rights on the Windfall Lake property, Eagle Hill has also signed option agreements with Murgor Resources Inc., Cliffs Natural Resources Inc. (formerly Freewest Resources Canada Inc.) and Noront Resources Inc. to acquire the Windfall Lake property.
About Eagle Hill Exploration Corporation
Eagle Hill Exploration Corporation is a Canadian mineral exploration company focused on the exploration and development of gold and precious metals concessions. The Company aims to become an advanced stage exploration company with the acquisition of the Windfall Lake high grade gold project in Urban Township, Quebec, between Val-D'Or and Chibougamau. Eagle Hill is primarily interested in projects that have, or could have, high resource potential. The Company’s website at www.eaglehillexploration.com and publications at www.sedar.com provide additional information on the property, as well as information on the Company’s management and operations.
The TSX Venture Exchange and its regulators (referred to in the Articles of Association of the TSX Venture Exchange as Regulation Services Providers) accept no responsibility for the adequacy or accuracy of this announcement.
FOR THE BOARD:
"P. Bradley Kitchen "
Bradley Kitchen, President
More information about:
David Matousek, Corporate Communications
Eagle Hill Exploration Corporation
Phone: + 1 604.697.5791
E-mail: [email protected]
Website: www.eaglehillexploration.com
Nathalie Dion
MI3 Communications Financieres Inc. (Montreal)
Phone: + 1 514.904.1333
E-mail: [email protected]
Website: www.mi3.ca
FORWARD-LOOKING STATEMENTS
Statements in this press release that are not purely historical in nature are forward-looking statements within the meaning of applicable US and Canadian securities laws. This includes statements about views, plans, expectations and intentions about the future. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements contained herein. Such risks and uncertainties include, but are not limited to, the acquisition of additional finance and title rights to concession areas, the ability to grow, the acquisition of technology, facilities and equipment, and the recruitment of workers, the impact of the business and economic situation, the ability to hire professionals permanently employ the risks and factors that are typical for exploration and that are outside the control of the company. These forward-looking statements are accurate as of the date this press release is prepared. The Company is under no obligation to update these forward-looking statements or to explain the reasons why actual results could differ materially from those anticipated in the forward-looking statements. While the Company believes that the assumptions, plans, expectations and intentions expressed in this news release are reasonable, there can be no assurance that such assumptions, plans, expectations or intentions will prove to be correct. Investors should consider all information described here and also consider the risk factors in the company's most recent annual report available on SEDAR at www.sedar.com. This news release does not constitute an offer to sell or a solicitation to buy the securities.
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