Resource World Magazine

MINI NG EAGLE HILL drills impressive grades in world class Abitibi belt by Andrew Duval Eagle Hill Exploration Corp. [EAG-TSXV; EHECF-OTCQX; EH0-Frankfurt] recently published some impressive drill results from its Windfall Lake Project in northern Qu��bec that suggest potential for an open pit mining operation. The results included 14.74 g/t gold over 17.9 metres obtained near surface within a series of parallel lenses. The completed 2012 drill program is expected to grow the current NI 43-101 mineral estimate of 1,665,000 tonnes grading 10.05 g/t gold in the indicated category and 2,906,000 tonnes grading 8.76 g/t gold in the inferred category. Field work completed along with the drill program saw the mapping of a broad area of near-surface gold mineralization known as Zone 27. This zone has been mapped as the most prolific gold zone identified to date and drilling during the program identified other near surface parallel lenses of relatively high-grade gold mineralization. So far, Eagle Hill Exploration has defined the shallow gold mineralization over a strike length of more than 600 metres. The new findings have heightened expectations that open pit mining could be a viable option for at least part of the known gold mineralization. Several shallow drill holes helped to define Zone 27 in the 2012 drill program, extending the zone and identifying its lateral continuity over 300 metres. The extension of this zone dips shallowly to the east and consists of a gold-rich lens more than 50 metres deep, with widths of up to 31 metres. One of the best grades discovered was 5.53 g/t gold over 15.8 metres which was parallel to lenses with high-grade intersections as described above. The deeper intersections also included 15.12 g/t gold over 4.2 metres at less than 100 metres in depth. The two large drill programs in 2012 included a 25,000 metre program completed at the end of April which yielded 42 www.resourceworld.com assays of 22.85 g/t gold over 25 metres and 5.7 g/t gold over 55 metres. The results highlighted most recently were part of another 25,000-metre drill program that spanned from June to December 2012. The Windfall Lake Project is comprised of 362 claims in the Abitibi mineralized belt of northern Qu��bec. This area is known for its historic gold and copper production and excellent infrastructure for exploration and mining. The Abitibi belt has produced over 170 million ounces of gold since 1901. Eagle Hill���s Windfall Lake Project has gone through extensive grassroots exploration work. The work includes over 330 diamond drill holes, ground geophysics, along with geological mapping and sampling. To date, 626 holes have been drilled on the property, 255 of which were drilled by Eagle Hill. Over $25 million was spent on exploration by previous operators. These expenditures included the creation of a 58-person camp and the driving of a 1,453-metre underground ramp which allowed for metallurgical testing of material that yielded 97% gold recoveries. In late 2012, the company commissioned Stantec Consulting Ltd. to perform a Preliminary Feasibility Study (PFS) on the Windfall Lake property. The completion of an independent PFS, along with mineral estimates, will allow Eagle Hill to satisfy its obligations under the Windfall Lake option agreement with Noront Resources Ltd. [NOT-TSX]. Once these obligations are satisfied, the buy-back provisions Eagle Hill Exploration's CEO, Bradley Kitchen, (second from the left) along with his crew. Photo courtesy of Eagle Hill Exploration. contained in the option agreement will be eliminated. In order to maintain its 75% interest in the property, Eagle Hill must complete the PFS by April 20, 2013. CEO, Bradley Kitchen, states that ���Our goal is to control majority ownership in the Windfall Lake property. It is critical to note that the PFS and mineral reserve estimate are being done at this time to satisfy our obligation under the option agreement and to give us a clear path toward commercial production as a way to generate non-dilutive cash flow.��� In an interview at the PDAC in 2012, Kitchen explained that it would be possible for Eagle Hill to go into production in a short period of time with the Windfall Lake Project, if cash flow were needed. The company���s most recent financing occurred in December of 2012 which raised a total of $1,699,991. The deal consisted of 4,117,600 common shares issued on a national flow-through basis at $0.17 per share for proceeds of $699,992 and 5,405,405 common shares on a Qu��bec flow-through basis at $0.185 per share for proceeds of $999,999. Eagle Hill has produced some impressive gold grades within an attractive environment for mining that includes favourable government cash incentives and good infrastructure. With a little cooperation from the gold price and equity markets, the Windfall Lake property could well become yet another successful exploration and development story in the mining friendly province of Qu��bec. n

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