Windfall property just that for Eagle Hill (March 12, 2010)

Vancouver – Eagle Hill Exploration‘s (EAG-V) stock price nearly triple after it released the first drill result from a step-out program at its Windfall Lake gold project in Quebec. The news is the latest in a string of achievements for the company, which was struggling to remain a listed company only months ago.

Eagle Hill acquired the Windfall project in mid-2009 and has since been busy sorting through and updating historic data while also moving ahead with new exploration. The company has shifted the focus at the property from exploring narrow, high-grade vein mineralization to larger, lower-grade zones amenable to bulk tonnage mining.

Hole 196, the first conducted under Eagle Hill, returned 33 metres grading 19.61 grams gold (3.51 grams gold when cut to 1 oz. per tonne). The complete mineralized zone from this hole was visually identified over 52 metres, with 19 metres still awaiting results. The hit extends gold mineralization by 46 metres to the southwest and leaves it open in that direction.

Eagle Hill has also been busy analyzing 8,700 metres of drill core that previous owner Noront Resources (NOT-V) did not assay. In January the company released some of the findings from that analysis. Hole 115 returned 1 metre grading 64.2 grams gold uncut, starting 237 metres downhole. Hole 157 intersected 21.35 metres grading 5.95 grams gold uncut, or 3.6 grams gold cut to 15 grams gold, also starting at 237 metres. And hole 159 returned 11.6 metres grading 1.76 grams gold.

In early March the company released further results from the old drillings. Hole 101 hit 47.4 metres grading 2.58 grams gold uncut, starting at 265 metres downhole. Hole 81 returned 31.9 metres grading 5.63 grams gold uncut, or 1.88 grams gold cut to 15 grams gold; hole 81 included 0.85 metres grading 148.97 grams gold.

These recent results are on top of historic values that include hole 27 returning 34.6 metres grading 3.9 grams gold, hole 73 that returned 17.3 metres grading 39.94 grams gold uncut or 2.08 grams gold cut, and hole 82 that cut 20.9 metres grading 9.51 grams gold uncut or 2.03 grams gold cut.

In all, over 330 holes spanning 70,000 metres were drilled before Eagle Hill took over the property. Noront also drove a 1.4-km tunnel, 5 metres in diameter, as part of a bulk sampling effort in 2007 and built a 48-person camp on site. Noront spent close to $20 million in total on the property between 2004 and 2007 before deciding to concentrate on its McFauld’s Lake project in Ontario.

Eagle Hill managed to snap up Windfall from Noront just as it was losing its previous principle property, the MAC project in the Yukon. There was a period of tension when Eagle Hill did not yet have the capital to secure Windfall, but had lost MAC after majority-owner, War Eagle Mining (WAR-V, WARGF-O), sold the property. This threatened to leave Eagle Hill without a principle property, as required by the Venture Exchange.

But a private placement brought in $3.2 million, which bought the company much needed breathing room. Eagle Hill then put $2.7 million of the money in trust, to only be used for exploration and development at the Windfall Lake project.

The company is now spending that money, with phase two of its exploration program underway. Expected to be completed by June, the $2.5-million program includes 5,000 metres of exploration drilling and 7,000 metres of definition drilling as well as geophysical surveys.

Exploration at the property has actually been sub-contracted to Murgor Resources (MRG-V), from whom Eagle Hill acquired a number of claims in 2009. First, Eagle Hill received 50% ownership of 29 claims co-held by Noront, Murgor and Freewest Resources Canada (FWR-V) in the initial deal with Noront. Eagle Hill later secured 184 more claims held by Murgor and Freewest, as well as the remaining 50% of the initial 29 claims. Eagle Hill now controls 340 contiguous claims covering just under 11,000 ha.

The Windfall Lake property lies in the Abitibi mineralized belt of northern Quebec, in Urban Township between Chibougamau and Val d’Or. The property is accessible by paved road from Val d’Or, some 200 km away.

Mineralization in this area is defined by abundant pyrite stockwork hosted by a highly silifcied and sericitized rhyolite breccia.

In February the company announced that the former president and CEO of Noront, Richard Nemis, and its former COO, John Harvey, would be joining Eagle Hill as directors. Brad Kitchen, president of Eagle Hill, noted in a press release that the two were the original believers in the Windfall Lake property when they were with Noront. The appointment of the two is still subject to shareholder approval.

The company also recently listed itself on the Frankfurt stock exchange to capitalize on strong interest in gold resources among European companies and investors.

Eagle Hill’s share price was up 29¢ in the two days following the news to close at 43.5¢. The company’s 52-week share price range is between 6¢ and 47¢. Eagle Hill has 55.39 million shares issued, with a further 30 million warrants and options outstanding.