Hot Stocks: Eagle Hill Exploration Corp knows how to mine its data

What does one do with $25-million worth of exploration data on a recently-acquired property? Mine it for information, of course. And that is exactly what Eagle Hill Exploration (TSX.V: EAG) did when it purchased its premier Windfall Lake Property in September 2009. The Windfall Lake Property is located in the Abitibi mineralized belt of northern Quebec, an area known for its prolific gold and copper production, as well as excellent infrastructure for exploration and mining.

Intitially using more “brain power than drill power,” the company analysed over 71 kilometres of core, 331 drill holes, 1,400-metres of ramp and a plethora of other technical geographical information collected by the property’s previous developers. This allowed Eagle Hill to put together a very strong model on which Eagle Hill’s drill program rested.

“As a result, just within the last year, we discovered that there is now over seven gold zones, and these zones, which were originally targeted to be high-grade, thin veins are not only high-grade, but they also [present] a bulk-tonnage opportunity scenario. That’s a critical paradigm shift that Eagle Hill has brought to Windfall Lake,” president and CEO Brad Kitchen told smallcappower.com.

But high grades are only as good as the recovery rates, a key component in the economic evaluation of mining projects. To that end, late July Eagle Hill announced that initial metallurgical test work demonstrated gold recoveries of up to 97 per cent with simple gravity and flotation processes.

The Company decided to address the metallurgical risks early in the planning process to develop an economically viable gold deposit. A total of 17% of the gold was recovered through gravity and an additional 80% was recovered in gold bearing sulphide flotation concentrate.

Analysis of the bulk-tonnage opportunity scenario has also confirmed several of Eagle Hill’s hypotheses. One of these is that “the Windfall Lake Property not only carries high-grade gold veins,” said Kitchen, “but that these high-grade gold veins are located within wide mineralized zones with underground and near-surface bulk mining potential.”

Throughout the conduct of the 2011 10,000-metre drill program, the company has reported positive intersections, with one noteworthy result being 8.97 g/t gold over eight metres. Eagle Hill completed its 2011 drill program as of May, but based on its success added an additional 6,300 meters to the program. These new drill holes successfully extended one zone toward surface and expanded another to the east.

“The exploration team was again 100 per cent successful in hitting gold mineralization on every hole,” said Kitchen. “The critical point that investors should understand with this success is that none of this drilling is infill or twinning of existing holes but rather extends known gold zones.”

Having met the self-prescribed threshold of one-million-ounce internal resource calculation as a condition for proceeding with a 43-101, Eagle Hill should be able to deliver a compliant resource calculation within the year. Not only will this likely stimulate investor appetite further, for Kitchen it will serve as a foundation on which the company will expand the resource.

Follow the progress of Eagle Hill’s Windfall Lake Project, read the news and evaluate project values using our RI Analytics here.

This presentation may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The Issuer relies upon litigation protection for forward-looking statements. This piece is for information purposes only and is not a recommendation to buy or sell any securities.

http://www.resourceintelligence.net/hot-stocks-eagle-hill-exploration-corp/18740