VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 10, 2012) - Eagle Hill Exploration Corporation (TSX VENTURE:EAG) ("Eagle Hill" or the "Company") is releasing the final assay results from its now completed 25,000 meter drill program on the Windfall Lake Gold Deposit located in the Abitibi gold belt of northern Quebec. Once again, the new results confirm the continued high grade, near surface gold mineralization and expand the size of Zone 27 Upper Extension to the east in areas that were not included in the mineral resource estimate published in November 2011.
News Release highlights
- Open Pit potential for the Upper Extension of Zone 27 warrants future investigation. This scenario has merit because of the numerous results showing consistent near surface, high grade gold mineralization over a near surface strike length of 300 meters and horizontal widths of up to 36 meters.
- The assay results of the Upper Extension of Zone 27 include 14.55 g/t Gold over 9.74 meters and 6.6 g/t Gold over 2.2 meters. The two drill-holes are located approximately 200 meters to the east of drill-hole EAG-12-318 (22.85 g/t Gold over 25.0 meters);
- Additional near surface intercepts, parallel to the Upper Extension of Zone 27, include 5.2 g/t Gold over 8.8 meters;
- Caribou Zone continues to deliver good gold values at depth with 6.7 g/t Gold over 7.8 meters in an area east of the mineral resource as defined in November 2011. With the new drill results, the Company may have increased the area of the Caribou Zone by 30%.
Zone 27 - Near Surface Gold Mineralization
Eagle Hill has expanded the size of the near surface gold mineralization further to the east. Drill hole EAG-12-368 returned 14.55 g/t Gold over 9.74 meters, more than 200 meters to the east of drill-holes EAG-12-318 (22.85 g/t Gold over 25.0 meters) and EAG-12-351 (5.7 g/t Gold over 55.0 meters) at a depth of 100 meters. Other near surface\gold mineralized zones parallel to Zone 27 were intersected in drill hole EAG-12-368 with 1.5 g/t Gold over 20.8 meters and 4.4 g/t Gold over 2.0 meters. In addition, drill hole EAG-12-367, drilled in the Upper Extension of Zone 27, but some 50 meters to the east of EAG-12-368, returned an interval of 5.2 g/t Gold over 8.8 meters.
The updated Zone 27 long-section can be found on the Company's website at www.eaglehillexploration.com/sections.
The gold mineralization of Zone 27 has a strike length of more than 700 meters. It strikes to the east-northeast with a steep dip to the North and cross-cuts all rock units reaching up to 36 meters in horizontal thickness. Gold mineralization is most commonly associated with pyrite stockwork and pyrite dissemination, and occurs in zones associated with sericite and silica alteration. A shallow systematic drilling program is planned for the Summer 2012 to better determine the extent and continuity of this near surface gold zone.
Caribou Gold Zone - Depth Extension
The additional drilling completed to test the eastern and depth extension of the Caribou Gold Zone was very successful and confirms the gold potential of this zone at depth. Drill-hole EAG-12-348 intersected 6.7 g/t of Gold over 7.8 meters at a depth of 470 meters below the surface in association with a typical zone of pyrite mineralization. The drilling completed during the winter 2012 program demonstrates that the gold mineralization of the Caribou Zone extends further to the east in an area not previously included in the mineral resource estimate released in November 2011 may have increased the area of this zone by 30%. The updated Caribou Zone long-section can be found on the Company's website at www.eaglehillexploration.com/sections.
The following table shows the best assay results presented in this press release.
||6.7 g/t Au over 7.8 m
||50.4 g/t Au over 0.7 m
||3.61 g/t Au over 10.0 m
||8.5 g/t Au over 3.0 m
||2.1 g/t Au over 1.1 m
||F-17 zone at -255 m depth
||6.6 g/t Au over 2.2 m
||Zone 27 - Upper Extension
||5.2 g/t Au over 8.8 m
||Parallel to Zone 27 - Upper Extension
||22.5 g/t Au over 1.0 m
||1.5 g/t Au over 20.8 m
||Parallel to Zone 27 - Upper Extension
||8.17 g/t Au over 0.7 m
||6.5 g/t Au over 1.8 m
||4.4 g/t Au over 2.0 m
||14.55 g/t Au over 9.74 m
||Zone 27 - Upper Extension
||57.5 g/t Au over 2.0 m
||5.2 g/t Au over 2.7 m
Eagle Hill has now completed its 25,000 meter drill program. Another phase of drilling is 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 certified reference standards.
Eagle Hill's Chief Geologist is Jean-Philippe Desrochers, Ph.D., P.Geo., a Qualified Person registered as defined by National Instrument 43-101, has reviewed the technical information that this press release contains.
The Company is also pleased to announce that they have entered into a public relations agreement (the "Agreement") with a Vancouver based company, Progressive I.R. Consultants Corp. ("Progressive").
Eagle Hill will pay Progressive $7,500 per month and issue a maximum of 450,000 incentive stock options (the "Options") to be granted as follows: i) 150,000 to be granted upon regulatory approval of the Agreement at an exercise price of $0.165 per share, ii) 150,000 options to be granted after three (3) months at the market price of the Company's common shares at that time and iii) 150,000 options to be granted after twelve (12) months at the market price of the Company's common shares at that time. The Options will be exercisable for a period of two (2) years and in accordance to TSX Venture Exchange policies, 25% of the Options will vest each quarter after a preliminary three (3) month hold period.
The Agreement has an initial term of twelve (12) months but can be cancelled, with thirty (30) day notice, by either party after three (3) months. This Agreement is subject to 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:
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
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.