On July 26, 2011, Eagle Hill Exploration Corporation (TSX VENTURE: EAG) (CVE: EAG) announced that results from initial metallurgical test work from the Windfall Lake Property in Quebec demonstrate gold recoveries up to 97%. The initial metallurgical testing indicates that gold recovery can be achieved by conventional processing. A total of 17% of the gold was recovered through gravity and an additional 80% was recovered in gold bearing sulphide flotation concentrate.
A typical good recovery rate is around 75% -85%. The Windfall Lake recovery rate from initial test work of 97% is quite an impressive rate and indicates the quality of the resource in Windfall Lake project. If further test work validates this recovery rate or achieves anything close to these recovery rates it would be very favorable during any future economic feasibility study to determine the project economics.
The initial metallurgical test was conducted on a 10 kg sample collected from quarter split core of Zone 27 (drillhole EAG-10-196, 254 to 278 meters). This mineralization is typical of the Windfall gold deposit.
Eagle Hill has made considerable progress on this highly prospective property since it consolidated ownership. Since acquiring the property, Eagle Hill has been successfully pursuing a deliberate strategy to improve the understanding of the geology by developing the first 3D Gemcom model based on additional essaying of the core from earlier drill programs and the new 2010 drill results. The company recently completed a successful 10,000 metres plus drill program at the Windfall Lake project. This has led the company to identify seven mineralized gold zones with four gold zones open in several directions. The gold mineralized zones have been identified to a depth of 350 metres with at least two of them reaching surface.
Encouraged by the success of the drilling program and its enhanced knowledge of the project, the company has commissioned an additional drilling program totalling 6,300 metres during 2011. This drilling program is currently underway and expected to be completed during the summer.
The consistent evidence of near surface mineralization seen and the identification of multiple mineralized zones at the property lead us to believe that the company’s geological interpretation and modelling work is being successful. This bodes well for rapid development of the project. We believe that the company is now ever closer to fulfilling its key objective of establishing a significant NI 43 101 compliant resource estimate on the property. Looking at the grades reported so far Ubika Research believes the company could deliver a significant resource base with good grades.
The company has already hired SRK Consulting, a reputable firm, to produce an initial gold resource estimate. SRK has done the preliminary work and reviewed the company’s historical information and recent drill programs. We believe that the company is on track to deliver a resource estimate most likely by end of September 2011. Once that is done, we expect the company to continue to expand the resource estimate and to move the project eventually towards feasibility.
Eagle Hill’s Windfall Lake project in Quebec is located in the prolific Abitibi Greenstone Belt in Quebec. The Windfall Lake Property is comprised of over 36 contiguous claims (over 12,000 hectares) and is situated along a 300-kilometre regional fault zone that has produced over 100 million ounces of gold in the past 100 years. The property has access to good infrastructure such as roads and power lines making any high grade bulk tonnage operation possible (provided any future feasibility study comes out favourable). Province of Quebec is one of the most favourable jurisdictions for mining and Eagle Hill’s Windfall Lake project is well positioned for further development.
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Disclosure
Ubika Research has received fees to provide research coverage to Eagle Hill Exploration Corp.
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