Eagle Hill's New Drill Results Show Continuity of Near Surface Gold Mineralization Including 9.6 g/t of Gold Over 7.0 Meters
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/18/12 -- Eagle Hill Exploration Corporation (TSX VENTURE: EAG) ("Eagle Hill" or the "Company") is releasing additional assay results from its now completed 25,000 meter drill program on the Windfall Lake Gold Deposit in northwestern Quebec. The new results confirm the lateral continuity of the near surface gold mineralization of Zone 27 and expand the size of the Mink Zone in an area that was not included in the mineral resource estimate published in November, 2011.
"The extension of the high grade gold zone, Zone 27, to near surface could have a very positive impact on the economic parameters of the development of the Windfall Lake Property," stated Brad Kitchen, President and Chief Executive Officer. "Not only is the near surface gold mineralization an important discovery but Dr. Jean-Philippe Desrochers and his Exploration Team continue to expand the gold deposit in areas that were not included in the Company's initial mineral resource estimate. As can be seen from the assays (table below), significant high grade gold results are being intersected in all Eagle Hill's identified gold zones from multiple drill holes."
Near Surface Discoveries
Two new drill holes, EAG-12-341 and EAG-12-346, extended the near surface gold mineralization to the west and at depth with several shallow intercepts of:
-- 9.6 g/t of Gold over 7.0 meters starting at a depth of only 90 meters;
-- 1.6 g/t of Gold over 24.8 meters starting at a depth of only 85 meters
(including 3.5 g/t of Gold over 5.2 meters); and
-- 6.2 g/t of Gold over 4.0 meters at a depth of only 120 meters.
The drilling in this area shows that the faulted upper extension of Zone 27 extends over a strike-length of at least 150 meters and to a vertical depth of 120 meters below the surface. Mechanical trenching during the month of May will aim to expose the zone at surface.
Further to the east, two other drill holes also intersected near surface mineralization with 3.1 g/t of Gold over 3.4 meters and 26.3 g/t of Gold over 0.7 meters in drill holes EAG-12-343 and EAG-12-344, respectively. These results are in an area where previous assays identified a near surface zone parallel to Zone 27 South. Further drilling in this area is planned for the Summer 2012 Program to better determine the extent of this deposit.
Expansion of Mink Gold Zone
Drill hole EAG-12-344 is an infill drill hole testing the Mink Zone in the eastern sector of the Windfall Lake Property, some 25 meters to the west, and 40 meters above an intercept of 5.6 g/t of Gold over 10.55 meters in drill hole EAG-11-295. The new intercept returned an interval of 5.1 g/t of Gold over 11.0 meters, including 56.2 g/t of Gold over 0.5 meter and 17.85 g/t of Gold over 1.0 meter. Any results over the Company's resource estimate cut-off grade that is currently 3.0 g/t of gold could potentially add additional ounces to the deposit.
Expansion of Caribou and Caribou South Gold Zones
Drill hole EAG-12-344 also tested the Caribou Zone and returned assay results with 11.9 g/t of Gold over 2.5 meters in association a typical zone of pyrite mineralization at 480 meters below the surface. This represents the easternmost drill hole testing this structure at this depth. In addition the Caribou South Zone was also intersected further down the hole with 11.8 g/t of Gold over 6.0 meters in rocks containing up to 5% pyrite stringer. Both gold zones remain open to the east and up-dip where the potential to increase the size of both zones is substantial.
The following table shows the best assay results presented in this press release.
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TABLE OF BEST ASSAY RESULTS - WINDFALL LAKE (WINTER 2012)
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Drill hole Gold
Number From (m) To (m) interval Comments
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EAG-12-337 353.0 354.5 5.2 g/t Au Quartz-carbonate vein in Red
over 1.5 m Dog
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EAG-12-341 41.1 53.1 1.1 g/t Au Shallow gold mineralization
over 12.0 m at 36 m below surface
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59.6 62.1 4.5 g/t Au Shallow gold mineralization
over 2.5 m at 55 m below surface
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95.0 119.8 1.6 g/t Au Upper extension of Zone 27
over 24.8 m
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incl. 111.8 117.0 3.5 g/t Au Upper extension of Zone 27
over 5.2 m
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130.9 134.9 6.2 g/t Au Shallow gold mineralization
over 4.0 m at 120 m below surface
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incl. 130.9 133.1 10.35 g/t Au
over 2.2 m
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EAG-12-342 286.0 289.0 4.1 g/t Au Zone parallel to Zone 27
over 3.0 m South gold zone
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EAG-12-343 157.0 160.3 3.1 g/t Au Shallow gold mineralization
over 3.4 m at 125 m below surface
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EAG-12-344 227.1 227.8 26.3 g/t Au
over 0.7 m
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382.0 393.0 5.1 g/t Au Mink Zone
over 11.0 m
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incl. 382 382.5 56.2 g/t Au Mink Zone
over 0.5 m
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incl. 392 393.0 17.85 g/t Au Mink Zone
over 1.0 m
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608.0 610.5 11.9 g/t Au Caribou Zone
over 2.5 m
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incl. 608.9 609.5 41.3 g/t Au Caribou Zone
over 0.6 m
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631.0 637.0 11.8 g/t Au Caribou South Zone
over 6.0 m
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incl. 635 636.0 63.7 g/t Au Caribou South Zone
over 1.0 m
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EAG-12-345 42.3 43.0 7.37 g/t Au Upper extension of Zone 27
over 0.7 m
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EAG-12-346 105.0 112.0 9.6 g/t Au Upper extension of Zone 27
over 7.0 m
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182.0 186.0 3.9 g/t Au Upper extension of Zone 27
over 4.0 m
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Note: Drillholes EHX-12-334, EHX-12-335, EHX-12-336, EHX-12-339 were
intended to explore various targets at the property scale but did not
intersect significant gold mineralization.
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Eagle Hill is still awaiting the final assay results for drill holes EAG-12-347 to EAG-12-366. All results will be released as soon as they become available. Eagle Hill has now completed its 25,000 meters drill program. Another phase of drilling is also planned for the summer 2012 and will start at the end of May.
Gold analyses reported in this release were performed by standard fire assay using a 30 gram charge with atomic absorption finish and a gravimetric finish for assays greater than 10 grams per tonne. Assays returning results over 1 ounce per ton of gold by atomic absorption will be re-assayed using the metallic sieve method. All assays were performed by ALS Chemex Laboratory Group, in Val d'Or, Quebec. Sampling and analytical procedures are subject to a comprehensive quality assurance and quality control program. The QA-QC program, includes duplicate samples, blanks and analytical standards.
Eagle Hill's Chief Geologist is Jean-Philippe Desrochers, Ph.D., P.Geo., a Qualified Person registered as defined by National Instrument 43-101who has reviewed the technical information that this press release contains.
Other Business
The Company is also announcing that it is conducting a small private placement for gross proceeds of $300,000. The placement will involve the issuance of units, consisting of one common share at a purchase price of $0.14 and one warrant, exercisable at a price of $0.20 for a period of 12 months following the closing date except that, if prior to the expiry of such 12-month period, the volume weighted average trading price of the common shares on the TSX Venture Exchange is greater than $0.30 per common share during a period of 20 consecutive trading days, the Company can accelerate the time of expiry of the common share purchase warrants upon 20 days' notice to the Subscriber. This placement will be completed with three subscribers: Sidex, Societe de developpement de la Baie-James and The Cree Mineral Exploration Board.
The private placement will be subject to final regulatory approval.
About the Windfall Lake Property
The Windfall Lake 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. Historically, the Windfall Lake Property has had extensive grassroots exploration work. Along with its independently acquired claims at the Windfall Lake Property, Eagle Hill has also signed options with Murgor Resources Inc., Cliffs Natural Resources Inc. (formerly, Freewest Resources Canada Inc.), and Noront Resources Inc. to acquire the Windfall Lake Property. During November 2011, the Company received its initial mineral resource estimate, the results of which are displayed in the table below;
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Indicated Inferred
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Cut-Off Quantity Grade Contained Quantity Grade Contained
Grade Gold (000' Gold Gold (000' (000' Gold Gold (000'
(gpt) tonnes) (gpt) ounces) tonnes) (gpt) ounces)
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3.0 1,144 9.10 334,719 1,690 6.70 364,093
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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 metal prospects. The Company is set to become an advanced stage gold exploration company with its acquisition of the Windfall Lake high grade gold project, located in Urban Township, Quebec, between Val-d'Or and Chibougamau. Eagle Hill seeks projects that contain or have potential to have large resource potential. The Company's website at www.eaglehillexploration.com and public filings at www.sedar.com provide additional information on its properties and other information with respect to its management and operations.
ON BEHALF OF THE BOARD,
P. Bradley Kitchen, President
FORWARD LOOKING STATEMENTS
Statements in this news release, which are not purely historical, are forward-looking statements within the meaning of applicable United States and Canadian securities laws, including any statements regarding beliefs, plans, expectations or intentions regarding the future. These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein. Such risks and uncertainties may include, but are not limited to, the ability to obtain additional financing, title to mineral properties, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel, the risks inherent in exploration and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's most recent Annual Information Form filed on SEDAR which is available at www.sedar.com. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Eagle Hill Exploration Corporation
David Matousek
Corporate Communications
604.697.5791
info@eaglehillexploration.com
www.eaglehillexploration.com
MI3 Communications Financi?res Inc. (Montreal)
Nathalie Dion
514.904.1333
nathalie@mi3.ca
www.mi3.ca