High grades for Eagle Hill in first resource estimate

Eagle Hill Exploration’s (EAG-V) has its first resource estimate in for its Windfall Lake project in Quebec’s Abitibi region and the grades found were better than what it was expecting.

Indicated resources for the project came in at 1.14 million tonnes grading an eye catching 9.10 grams gold for 344,000 oz. while inferred resources came in at 1.69 million tonnes grading 6.70 grams for 364,000 oz. of gold.

High-grade zones at the deposit occurred in broad mineralized zones that extend horizontally by up to 25 meters.

And while the company has outlined a 7.5 km gold bearing structure, the tonnage in the estimate was found over a relatively small area with close to 90% of the resource coming from within an area measuring 600 metres by 900 metres and within the first 450 meters from surface.

That fact, combined with the fact that several of the zones remain open along strike, has the company optimistic about future expansion of the deposit.

For now Eagle Hill’s president and chief executive, Brad Kitchen, is calling the resource calculation a “good start”.

Windfall Lake covers 120 sq. km roughly half way between Val-d’Or and Chibougamau and the deposit is made up of three main mineralized areas: the Main Zone, the East Extension Zone and the F17 Zone, with the bulk of mineralization coming from the Main Zone.

Eagle Hill says gold mineralization occurs within a low-pressure zone along a high strain deformation corridor trending northeast and characterized by variable hydrothermal alteration with pyrite stockwork and disseminated pyrite mineralization.

Beyond a positive maiden resource, the property also benefits from solid infrastructure as it has year round road access, a 58 person camp, a 1,450 metre underground ramp, nearby labor and two power lines cutting through the property.

The company is currently in the midst of a 25,000-metre program that will test the extensions of the known zones of gold mineralization as well as other targets on strike along the larger gold bearing structure.

In Toronto on Nov. 3 the company’s shares were off 2 cents or 10% to 17 cents on 526,700 shares traded.