Eagle Hill Year-end Financial Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 26, 2014) -
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:
|
October 31, 2013 $ |
October 31, 2012 $ |
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 |
|
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.
|
Fiscal 2013 |
|
October 31, 2013 $ |
July 31, 2013 $ |
April 30, 2013 $ |
January 31, 2013 $ |
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 |
) |
|
Fiscal 2012 |
|
October 31, 2012 $ |
July 31, 2012 $ |
April 30, 2012 $ |
January 31, 2012 $ |
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 |
) |
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.
Eagle Hill Exploration CorporationRhylin BailieVice President,
Communications & Investor
Relations604-697-5791info@eaglehillexploration.comwww.eaglehillexploration.com
(TSXV:EAG)
Historical Stock Chart
From Jun 2024 to Jul 2024
(TSXV:EAG)
Historical Stock Chart
From Jul 2023 to Jul 2024