Eagle Hill heralds golden era

Eagle Hill Exploration Corporation, a Vancouver-based gold-exploration company, is taking steps to turn its high-grade gold deposit at Windfall Lake into production

"Our Windfall Lake project is a large, high-grade, continuous gold deposit located in Quebec. Our exploration team has done a great job of de-risking the project. As a result it should be easy to mine because of existing infrastructure, our strong management team and our good relations with the Cree First Nation of the region," says Brad Kitchen, President of Eagle Hill Exploration Corporation.

The company announced its first resource calculation on the deposit in November 2011 doubled after only one drill program (July 2012). In the next few months its is preparing to announce a new resource calculation based on its most recent 25,000-metre drill program which was designed to expand the existing deposit and identify near-surface gold mineralization. The consistency and high grade of the gold mineralization warrants a feasibility study which will provide, in April 2013, a reserve calculation and an estimate of daily production.

The Windfall Lake Property is located in Urban Township, Que., between Val-d'Or and Chibougamau. The Property is comprised of 362 contiguous claims (over 12,000 hectares) in the Abitibi mineralized belt of northern Quebec. This area between Val-d'Or and Chibougamau is known for its gold and copper production and excellent infrastructure for exploration and mining.

"A positive feasibility study means that the management of Eagle hill will be able to confirm its intention to take the Windfall Lake Gold Deposit into commercial production," says Kitchen.

The latest resource calculation published in July 2012, is 1.36 million ounces of gold at a grade of 9.26 grams per ton, using a conservative 3.0-gram-per-ton cutoff.

"Our resource calculation includes only the deposit, which is located roughly between 200 and 500 meters from surface. Recent drilling has identified a significant near surface high grade deposit that could be easily extracted by an open pit mining operation," says Kitchen. A new resource calculation based on a recently completed 25,000-metre drill program will include this new near surface deposit and further expansion of the existing resource, he explains.

Eagle Hill has announced the assay results this month from its 2012 drill program. These results are part of a drill program designed to expand the size of the mineral resource estimation released in July 2012 that already includes 1,665,000 tonnes at 10.05 grams per ton of gold (538,000 ounces) in the indicated category and 2,906,000 tonnes at 8.76 grams per ton of gold (822,000 ounces) as an inferred resource.

"The feasibility for an open pit operation will need to be investigated in more detail but further validates management's decision to commitment to cause the commencement of commercial production."

"This is very encouraging as Windfall Lake is a mesothermal type deposit , which historically continues three to five times the length of the horizontal strike. The Windfall Lake horizontal strike is over 750 metres and our current deposit was identified to a depth of approximately 500 metres."

Eagle Hill is currently de-risking the deposit at Windfall Lake with the ultimate goal of entering into commercial production. This means continued exploration drilling to expand the deposit, convert some of the inferred resources into the measured and indicated category, and identify potential mining methodologies.

Eagle Hill has already signed an Exploration Agreement for its Wind-fall Lake Project with the Grand Council of the Cree, Cree Regional Authority and the Cree First Nation of Was-wanipi.

The agreement announced last fall provides the completion of a comprehensive Business and Employment Capacity Study to assess the full potential for Cree business and employment opportunities, and the creation of a joint Implementation Committee.

"Thanks to the collaboration of the Cree of Eeyou Istchee, in particular the Cree First Nation of Waswanipi, Windfall Lake promises to have a positive impact on the region," said Kitchen at the announcement.

Chief Paul Gull from the Cree First Nation of Waswanipi also stated, "Our community and the Council of the Cree First Nation of Waswanipi are eager to collaborate with the mineral exploration and mining industry."

"We recognize that this industry has a corporate social responsibility to follow in the footsteps of Eagle Hill," he added. "The signing of this agreement ensures that there will be meaningful participation by our local members without sacrificing sustainability. It is an important step for all parties."

Eagle Hill Exploration Corp. will showcase its projects at booth 1902 at VRIC 2013.