Issue link: http://resourceworld.uberflip.com/i/134727
MINI NG EAGLE HILL TO UPGRADE GOLD RESOURCES CARDERO COMPLETING BANKABLE FEASIBILITY STUDY ON "BEST IN CLASS" METALLURGICAL COAL DEPOSIT Eagle Hill Exploration Corp. [EAG-TSXV] has negotiated a three-year extension of the 2009 option agreement on the Windfall Lake property, Urban Township, Quebec, with Noront Resources [NOT-TSXV] to earn a 75% interest. Eagle Hill can also acquire the remaining 25% interest within 90 days. The new arrangement will enable Eagle Hill to upgrade its inferred gold resource to the indicated category through definition drilling and additional exploratory drilling both below and to the southwest of the current gold resource. The objective is to increase gold ounces in the indicated category so they can be converted into reserves. Meanwhile the company will work towards completing a bankable feasibility study. Currently, indicated resources are 538,000 ounces gold and inferred resources are 822,000 ounces gold. Recent surface drill results included 288.5 g/t gold over 12.4 metres and 22.1 g/t gold over 5.5 metres, both in the Main Zone. n Cardero Resource Corp. [CDU-TSX; CDY-NYSE MKT; CR5-FSE] reports that work is continuing on a bankable feasibility study of its 100%-owned Carbon Creek coal project (subject to 25% NPI) in the Peace River Coal District, northeast British Columbia, one of only two metallurgical coal projects held by junior miners. With 121 million tonnes of coal reserves and 468 million tonnes of measured and indicated resources, Carbon Creek is the largest metallurgical coal resource and reserve in northeast BC. Cardero has already completed a positive pre-feasibility study which envisaged a production rate of 4-5 million tonnes per year of clean coking coal, which would make it the largest single coal producer in the region. The pre-feasibility study estimated an undiscounted cash flow of $2.2 billion, an NPV of $633 million, and an IRR of 24% (on a post-tax, 75% basis). Existing infrastructure allows for a low cost method of shipping coal to the Pacific Ocean: first, 175 km by barge from the mine to the town of Mackenzie. The Williston Transporter 4,000-tonne capacity barge has been operating yearround on Williston Lake since 1995. Coal would then be transferred to rail cars for the 950-km trip to Ridley Terminals on tidewater at Prince Rupert. Cardero is currently negotiating to acquire additional Ridley Terminals port capacity with estimated requirements to be 4 million tpa by 2016. In Ghana, Africa, metallurgical test work on Cardero's Sheini Hills iron deposit has produced positive results. The testing demonstrated that Sheini ironstone reacts extremely well to a magnetizing reduction roast process, which reduces iron to hematite, then magnetite, and ultimately to metallic iron. n 32 www.resourceworld.com JUNE 2013