|By Marketwired .||
|February 12, 2014 07:30 AM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/12/14 -- Eagle Hill Exploration Corporation (TSX VENTURE: EAG) (OTCQX: EHECF) ("Eagle Hill" or the "Company") is pleased to release the final assay results from its Fall 2013 drill program at the Windfall Lake Gold Project ("Windfall Lake"). Eagle Hill completed a total of 28,107 metres of diamond drilling in 78 drillholes between September 12 and December 20, 2013, with the objective of expanding the known mineral resource.
Highlights of the latest assay results are shown in Figure 1 and summarized in Table 1. Additional assay results from the Fall 2013 drill program were previously released on November 5 and December 19, 2013.
The drill program was focused in three areas: testing a large, sparsely drilled anomaly to the southwest of the Main Zone, drilling lateral extensions of known gold lenses within the Main Zone, and testing the extension of mineralization at depth below the non-mineralized Red Dog intrusion ("Red Dog"). Eagle Hill also completed a hole-to-hole Induced Polarization ("IP") survey to identify anomalies below Red Dog, and the first surface IP survey in the south part of the property where surface exploration had identified NE-trending lineaments similar to the Main Zone.
Highlights of Fall 2013 Drill Program
-- Expanded Zone 27 by 40 metres up-plunge, for a total known strike of 800 metres -- Expanded Mink Lens 50 metres down-dip and 60 metres to ENE, for a total known strike of 500 metres -- Confirmed continuity of mineralization below Red Dog -- Confirmed extension of mineralization to the southwest of the Main Zone -- Down-hole IP survey showed additional potential below Red Dog
Southwest of Main Zone
The first 11 holes (4,821 metres) in the Fall 2013 drill program tested geophysical anomalies southwest of the tested limit of the Main Zone gold mineralization. The Company drilled three sections, stepping out 150, 300 and 500 metres along strike. Each section intersected significant gold mineralization, confirming the potential to extend the known gold resource in this direction.
Eagle Hill then drilled an additional 3,552 metres in seven drillholes and one wedge to follow up on drillholes EAG-13-472 (6.58 grams per tonne ("g/t") gold over 3.5 m) and EAG-13-478 (3.01 g/t gold over 10.2 m) (see Eagle Hill press release dated November 5, 2013). This further drilling returned the following encouraging intersections:
Section 1875 EAG-13-506 16.7 g/t gold over 1.0 m from 49.0 m Section 1800 EAG-13-523 28.7 g/t gold over 0.4 m from 28.7 m Section 1825 EAG-13-524 9.1 g/t gold over 0.9 m from 435.9 m
These results further underscore the potential to expand the deposit to the southwest. Eagle Hill plans to drill additional infill holes in 2014 to the southwest of the Main Zone to identify a mineral resource in this area.
Main Zone Extensions
A total of 47 holes for 18,391 metres were drilled in the Main Zone to test for extensions of the major resource lenses (the Zone 27, Caribou, Mink and Mallard zones). Drilling confirmed the continuity of gold mineralization in higher-grade shoots and more specifically in Zone 27, which hosts the bulk of the mineral resource at Windfall Lake.
In Zone 27 (Figure 2), a number of drillholes were successful at expanding its known dimensions both to the southwest and up-plunge. Highlight intervals include:
Section 2075 EAG-13-528 3.3 g/t gold over 22 m from 25.0 m inc. 28.0 g/t gold over 1.7 m from 26.0 m
This intersection expands Zone 27 by another 40 metres to the southwest and upward.
Section 2175 EAG-13-527 415.7 g/t gold over 7.8 m from 226.2 m inc. 1,196 g/t gold over 2.7 m from 229.6 m inc. 6,070 g/t gold over 0.5 m from 231.0 m
This intercept increases the high-grade lower portion of Zone 27 by another 40 metres up-plunge.
Section 2300 EAG-13-512 3.9 g/t gold over 15.0 m from 292.0 m inc. 19.4 g/t gold over 2.5 m from 304.0 m Section 2675 EAG-13-511 6.3 g/t gold over 8.1 m from 671.0 m inc. 48.2 g/t gold over 0.8 m from 675.0 m
In addition, Eagle Hill continued to intersect high-grade gold mineralization in the Mink Lens, located between the Caribou Lens and Zone 27. The Mink Lens is smaller than Zone 27 but accounts for approximately 10% of the current mineral resource at Windfall Lake. The following intervals extended the known dimensions of the Mink Lens:
Section 2650 EAG-13-513 11.0 g/t gold over 4.7 m from 661.3 m Section 2825 EAG-13-516 6.4 g/t gold over 3.2 m from 340.3 m
Drilling at Depth
Eagle Hill drilled three holes for 1,459 metres below Red Dog to test the extension of Zone 27 gold mineralization identified with EAG-12-320 (5.5 g/t gold over 15.0 m, see Eagle Hill press release dated March 1, 2012). Two wedges were set in EAG-12-320 and EAG-11-294 was extended. Drilling confirmed continuity of the mineralization over a distance of more than 40 metres. Results include:
Section 2500 EAG-13-320-W1 37.3 g/t gold over 11.2 m from 752.5 m inc. 166.5 g/t gold over 0.6 m from 755.5 m and 289.0 g/t gold over 0.8 m from 785.2 m Section 2500 EAG-13-294-EXT 12.3 g/t gold over 3.2 m from 710.1 m
This drilling program and the on-going geological modelling has confirmed that the bulk of the gold mineralization is hosted in Zone 27, a sub-vertical lens extending from surface to a depth of 500 metres. This main gold-bearing lens is intimately associated with a sub-vertical porphyry dyke. Gold mineralization intersected below Red Dog is also associated with a porphyry dyke that extends further at depth.
Eagle Hill believes that the gold mineralization extends further at depth, as highlighted by the results of a recently completed hole-to-hole IP survey, and plans to follow up with additional drilling in 2014.
Hole-to-hole IP Survey at Depth Below Red Dog
Eagle Hill's contractors completed an innovative hole-to-hole IP survey in 24 pairs of holes (Figure 3) with the objective of refining drill targets below Red Dog with similar signatures to the known resource mineralization above Red Dog. Three-dimensional inversion of these data has identified three major anomalies below Red Dog that are located on strike and down-dip from known gold-bearing lenses above Red Dog.
Based on these results, Eagle Hill will plan diamond drilling to test those newly identified targets with the objective of expanding the mineral resource below the Red Dog intrusive.
Surface IP Survey in Southern Part of Windfall Lake Property
Eagle Hill also completed a 70 line-km surface IP survey in the southern part of the property. This sector was selected because it contains NE-trending magnetic lineaments and magnetic low anomalies similar to that hosting the Main Zone. Results of the survey are being processed and will be available shortly.
Mineral Resource Update
Eagle Hill will release an updated mineral resource estimate in Q1-2014. The Company has more than 57,000 metres of new drilling to incorporate into the updated resource estimate, with 28,107 metres from the current drill program, and 106 holes totalling 29,208 metres that were drilled after the 2012 resource estimate and prior to the current program. All drill results have been released and are available on SEDAR at www.sedar.com and on the Company's website.
"The Fall 2013 drill program successfully achieved our objective of proving that mineralized zones continue beyond the current limits of the known Windfall Lake resource to the southwest and below the Red Dog sill. That we encountered some very high-grade intervals underscores the potential of this high-grade gold deposit," said Dr. Mike Andrews, Director and Interim President of Eagle Hill. "We are particularly encouraged by the confirmation of high-grade intervals below the Red Dog intrusion, leaving the deposit open for expansion at depth."
2014 Drill Program
Eagle Hill has commenced a 2,200-metre drill program to test for extensions of Zone 27 under shallow lakes (2 to 6 metres depth) that are currently frozen. Eagle Hill plans to drill 14 holes to a depth of 120 to 250 metres to test the lateral extensions of Zone 27, where drilling has confirmed near-surface high-grade intervals such as 14.8 g/t over 16.0 metres (EAG-12-418).
Additional drilling for 2014 will be planned once the Company has reviewed the results of the mineral resource update, which will include SRK's recommendations for advancing the property.
Figures 1 to 3 and Table 1 are available at the following address: http://media3.marketwire.com/docs/140212_EAG_Fig1-2-3_table-1.pdf
On Behalf of the Board of Directors
John Proust, Chairman and Interim CEO
About the Windfall Lake Gold Project
The Windfall Lake gold deposit comprises a number of lenses of pyritic stockworks and shears hosted in Archean felsic and intermediate volcanics situated in the Urban-Barry Greenstone Belt, approximately 200 km northeast of Val d'Or, Quebec. SRK Consulting (Canada) Inc. completed a National Instrument 43-101 compliant resource estimate for Eagle Hill in July 2012 based on historical drilling by Eagle Hill and previous operators. The estimated resource comprises 1,665,000 tonnes at 10.05 g/t gold (538,000 ounces) in the indicated category and 2,906,000 tonnes at 8.76 g/t gold (822,000 ounces) in the inferred category. 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.
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. In August 2013, Southern Arc Minerals and Dundee Corporation invested an aggregate of $12 million to purchase a controlling interest in Eagle Hill, consolidate ownership of the Windfall Lake property and fund an aggressive exploration program. More information is available at www.eaglehillexploration.com.
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 50-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 "will", "plans", "objective", "expand", "potential" 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 and Southern Arc 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.