Eagle Hill Exploration Corporation (TSX VENTURE:EAG)(OTCQX:EHECF) ("Eagle Hill"
or the "Company") has released the results of its fiscal year ended October 31,
2013. Details of the Company's financial results are described in the audited
condensed consolidated interim financial statements and Management's Discussion
and Analysis ("MD&A"), which are available on the Company's website at
www.eaglehillexploration.com and on SEDAR at www.sedar.com. All amounts are in
Canadian dollars unless otherwise stated.
Eagle Hill will host an investor session and webcast
Sunday, March 2 from 6-8pm EST
Royal York Hotel, Toronto - Territories Room
Webcast at www.eaglehillexploration.com
RSVP to info@eaglehillexploration.com to attend in person
FINANCIAL SNAPSHOT
Selected financial information for the years ended October 31, 2013 and 2012 is
as follows:
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October 31, 2013 October 31, 2012
$ $
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Revenue nil nil
General and administrative expenses (3,552,024) (3,221,554)
Net loss (3,556,294) (3,211,274)
Comprehensive loss for the year (3,556,294) (2,924,564)
Basic and diluted net loss per common
share (0.02) (0.02)
Total current assets 4,720,581 3,527,250
Total exploration and evaluation assets 27,314,497 15,161,617
Total assets 32,201,645 18,899,190
Total liabilities 4,654,235 3,424,934
Total shareholders' equity 27,547,410 15,474,256
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At the date of this MD&A, the Company had working capital of approximately $1.3
million.
RECENT EVENTS
In December 2013, the Company completed a non-brokered private placement for
issuance of 18,181,818 common shares of the Company on a "flow-through" basis at
a price of $0.11 per share, for total proceeds of $2,000,000. The shares are
subject to a four-month holding expiring on May 1, 2014.
In December 2013, the Company completed its fall 2013 drill program on time and
on budget. A total of 28,232 metres was drilled in 68 diamond drillholes
(including one extension and six wedges) with the objective of expanding the
known mineral resource. The drill program was focused in three areas: testing a
large, sparsely drilled anomaly to the southwest of the Main Zone, drilling
lateral extensions of known gold lenses within the Main Zone, and testing the
extension of mineralization at depth below the non-mineralized monzonite
intrusion ("Red Dog"). The Company also completed a hole-to-hole Induced
Polarization ("IP") survey to identify anomalies below Red Dog, and the first
surface IP survey in the southern part of the property where surface exploration
had identified NE-trending lineaments similar to the Main Zone.
WINDFALL PROPERTY REVIEW AND OUTLOOK
The Windfall Lake Property covers approximately 12,400 hectares in the prolific
Abitibi Greenstone Belt in Quebec. The property consists of 285 contiguous
claims. Eagle Hill obtained ownership of the property by optioning different
claim blocks from Noront, Murgor and Cliffs. The recent purchase of Noront's
remaining interest in certain claims has given the company 100% control of the
Main Gold Zone, which hosts the majority of the mineral resource. Of the
inferred resource, 54,000 ounces are located on the Murgor-Cliffs claims
immediately adjacent the Main Zone.
Prior to Eagle Hill acquiring the property, more than $25 million was spent by
previous owners on data collection, sampling and drilling, with the majority of
expenditures focused on expanding known gold zones at the Windfall Lake
Property. The acquisition came with over 71 kilometers of drill core, surface
samples, geophysics data, a 58-person camp, a core logging and splitting shack,
and a 1,450-metre-long, 5-metre by 5-metre underground ramp (vertical depth 100
metres). The property was logged in the 1990s and is accessible year-round by
gravel logging roads.
The Company has fostered a strong relationship with the local aboriginal
community, specifically the Waswanipi Cree community that holds the trapline
rights on the Windfall Lake Property. In November 2012, the Company signed an
exploration agreement for the Windfall Lake Property with the Grand Council of
the Cree (Eeyou Istchee) / Cree Regional Authority and the Cree First Nation of
Waswanipi. The agreement solidifies a relationship whereby the Cree support
Eagle Hill's exploration and development activities at the Windfall Lake
Property and Eagle Hill contributes to positive cultural, economic and social
outcomes for the Cree First Nation of Waswanipi.
Mineralization at Windfall Lake consists primarily of pyrite stockwork that form
large gold-bearing lenses up to 35 metres thick. The majority of the mineral
resource is hosted in the Main Zone, comprising the Zone 27, Caribou, Mink and
Mallard Gold Lenses. The bulk of mineralization averages approximately 10 g/t
over 5 metres, with very high-grade pockets up to 248 g/t over 12.4 metres in
some areas. Preliminary metallurgical tests, completed by G&T Metallurgical
Services Ltd. of Kamloops, BC, indicate that 75% of the gold is distributed as
free grains within the system, with the remainder found around grains of pyrite
or in the cracks of pyrite. Preliminary analysis indicates that the deposit
would be amenable to underground mining, with as much as 91.7% of the gold
recoverable using a standard gravity and flotation circuit, followed by
cyanidation of the flotation concentrate.
A total of 697 holes (plus six wedges and nine extensions) have been drilled to
date at the property to date for a total of 189,194 metres. Holes in the gold
zones demonstrate good grade distribution along the entire mineralized interval.
High-grade mineralization has been identified in multiple zones, yet only a
small portion of the 12,400 hectare property has been tested to date. The
deposit is well defined from surface to a depth of 500 metres, and remains open
along strike and at depth. Mineralization has been identified only 30 metres
from surface in some areas and as deep as 870 metres in others, with significant
potential to extend mineralization up and down-plunge and at depth.
The Fall 2013 drill program achieved its primary objectives, confirming
continuity of mineralization below Red Dog, confirming the extension of
mineralization southwest of the Main Zone, and expanding both Zone 27 and the
Mink Lens. In addition, the downhole IP survey showed additional potential below
Red Dog. All drill results have been released and are available on SEDAR at
www.sedar.com and on the Company's website at www.eaglehillexploration.com.
The Fall 2013 drill program and the ongoing geological modelling has confirmed
that the bulk of the gold mineralization is hosted in Zone 27, a sub-vertical
lens extending from surface to a depth of 500 metres. This main gold-bearing
lens is intimately associated with a sub-vertical porphyry dyke. Gold
mineralization intersected below Red Dog is also associated with a porphyry dyke
that extends further at depth. Eagle Hill believes that the gold mineralization
extends further at depth, as highlighted by the results of the recently
completed hole-to-hole IP survey.
Eagle Hill has commenced a 2,200-metre drill program to test for extensions of
Zone 27 under shallow lakes (2 to 6 metres depth) that are currently frozen.
Eagle Hill plans to drill 14 holes to a depth of 120 to 250 metres to test the
lateral extensions of Zone 27, where drilling has confirmed near-surface
high-grade intervals such as 14.8 g/t over 16.0 metres (EAG-12-418). Later in
2014 Eagle Hill plans to drill additional holes at depth below Red Dog, and also
plans to drill infill holes to the southwest of the Main Zone to identify a
mineral resource in this area.
Eagle Hill will release an updated mineral resource estimate in Q1-2014. The
Company has more than 57,000 metres of new drilling to incorporate into the
updated resource estimate, with 28,232 metres from the current drill program,
and 106 holes totalling 29,208 metres that were drilled after the 2012 resource
estimate and prior to the current program. Additional drilling for 2014 will be
planned once the Company has reviewed the results of the mineral resource
update, which will include SRK's recommendations for advancing the property.
NET LOSS AND COMPREHENSIVE LOSS FOR THE THREE AND TWELVE-MONTH PERIODS
For the three months ended October 31, 2013, the Company had a net loss of
$2,006,551 or $0.009 per share (2012: net loss of $1,052,844 or $0.006 per
share).
For the year ended October 31, 2013 the Company had a net loss of $3,556,294 or
$0.02 per share (2012: $3,211,274 or $0.02 per share) and a comprehensive loss
of $3,556,294 or $0.02 per share (2012: comprehensive loss of $2,924,564 or
$0.02 per share).
COMPARATIVE QUARTERLY RESULTS
The following table sets out selected financial information for the most recent
eight fiscal quarters ending October 31, 2013.
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Fiscal 2013
----------------------------------------------------------------------------
October 31, July 31, April 30, January 31,
2013 2013 2013 2013
$ $ $ $
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Total assets 32,201,645 21,196,288 20,483,057 19,223,152
Long-term liabilities (2,997,010) (3,039,821) (2,974,557) (1,993,982)
Net loss (2,006,551) (545,230) (521,587) (482,926)
Net loss per share,
basic and diluted (0.009) (0.003) (0.003) (0.003)
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Fiscal 2012
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October 31, July 31, April 30, January 31,
2012 2012 2012 2012
$ $ $ $
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Total assets 18,899,190 16,895,227 16,462,785 11,280,851
Long-term liabilities (2,530,716) (1,896,795) (1,434,250) (806,662)
Net loss (1,052,844) (834,984) (711,018) (612,377)
Net loss per share,
basic and diluted (0.006) (0.005) (0.005) (0.005)
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Note: The Company had no revenue and paid no dividends during the above
periods
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. In August 2013,
Southern Arc Minerals and Dundee Corporation invested an aggregate of $12
million to purchase a controlling interest in Eagle Hill, consolidate ownership
of the Windfall Lake property and fund a significant exploration program. More
information is available at www.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 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.
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", "plans",
"objective", "expand", "potential" 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 and Southern
Arc 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Eagle Hill Exploration Corporation
Rhylin Bailie
Vice President, Communications & Investor Relations
604-697-5791
info@eaglehillexploration.com
www.eaglehillexploration.com
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