Vancouver, British Columbia–(Newsfile Corp. – November 27, 2014) – Eagle Hill Exploration Corporation (TSXV: EAG) (OTCQX: EHECF) (“Eagle Hill” or the “Company”) is pleased to announce that additional metallurgical testing indicates that up to 95.7% of gold at the Windfall Lake Gold Project could be recovered using a standard flotation and cyanide leaching process. Eagle Hill is currently completing a Preliminary Economic Assessment study for the Windfall Lake Gold Project, which hosts a high-grade gold deposit located between Val-d’Or and Chibougamau in Quebec, Canada.
The new metallurgical testing was supervised by Soutex Inc., a consulting firm specializing in metallurgy and milling with more than 40 metallurgists, process engineers and technicians on staff. Soutex has worked with many of the mid-tier and senior mining companies, including Rio Tinto, Agnico Eagle, Iamgold, Barrick and Xstrata. Soutex is one of the five internationally recognized engineering firms working on the Preliminary Economic Assessment study, scheduled for completion in Q1-2015.
In 2013, Eagle Hill used two 75-kg samples from two sectors of the deposit to complete metallurgical testing. In October 2014 Eagle Hill performed cyanide leaching on the flotation test reject from the 2013 testwork to determine the amount of recoverable gold still present in the material. This new testing, completed by ALS Minerals, Metallurgy Division in Kamloops, Canada, shows that gold recovery can be increased by 4% when flotation rejects are ground to less than 70 ?m and processed with cyanide leaching. As a result, Eagle Hill will use a 95.7% gold recovery factor in the Preliminary Economic Assessment, an increase from the 91.7% recovery factor used in the National Instrument 43-101 technical report for the project prepared by SRK Consulting (Canada), Inc. dated April 17, 2014.
Gold mineralization at the Windfall Lake deposit is closely associated with pyrite and minor chalcopyrite. Pyrite can comprise as much as 80% of the mineralization and is suitable for flotation. Microscopic analysis shows an important quantity of gold located in the margins and cracks of pyrite grains and also as inclusions in the pyrite grains (Figure 1). The metallurgical testing and microscopic analysis indicate that Windfall Lake mineralization is relatively simple with no deleterious elements. In addition, the distribution and size of the gold grains indicates that maximum gold extraction can be achieved through a simple metallurgical process, with a gravity circuit followed by flotation of the pyrite to produce a concentrate that will be leached.
“The new metallurgical results, indicating gold recovery of 95.7%, bode well for the economics of the Windfall Lake Gold Project,” said John Proust, Chairman and Interim CEO of Eagle Hill. “Completion of the Preliminary Economic Assessment study in Q1-2015 will be an important milestone as we focus on advancing this promising, high-grade gold deposit toward production.”
On Behalf of the Board of Directors
“John Proust“
Chairman and Interim CEO
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, Canada. The current mineral resource comprises 2,375,000 tonnes at 9.75 g/t gold (744,000 ounces) in the indicated category and 3,084,000 tonnes at 7.37 g/t gold (731,000 ounces) in the inferred category (Technical Report for the Windfall Lake Gold Project, Quebec prepared by SRK Consulting (Canada) Inc., dated April 17, 2014). These grades make Windfall Lake one of the highest grade resource-stage gold projects in the world. 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. The deposit remains open at depth and along strike, with additional drilling and technical work planned for 2014. More information is available atwww.eaglehillexploration.com.
Eagle Hill Contact
Rhylin Bailie
Vice President, Communications & Investor Relations
Telephone: 604-697-5791
Email: info@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.
Qualified Person
The technical information related to the metallurgical testing has been reviewed by Senior Metallurgist and Mineral processing Specialist Pierre Roy from Soutex. Other 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 30-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”, “could”, “will be”, “advancing”, 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 Corporation and Southern Arc Minerals 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.
Figure 1 – Photomicrographs of gold mineralization at the Windfall Lake Gold Project, showing the relationship between gold and pyrite. Gold is frequently in fractures of pyrite and also occurs as free grains, confirming easy extraction using standard metallurgical processes.
To view an enhanced version of Microphotographs of gold mineralization at Windfall Lake, please visit:
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