Eagle Hill reports positive results from Windfall Lake

Vancouver – While lacking the impact of its early spring results, Eagle Hill Exploration‘s (EAG-V) first drill results of the summer from its Windfall Lake property show gold continuity and a new zone closer to surface.

In March the company released a single hole from the 12,000 hectare property in the Abitibi region of Quebec that helped launch its stock skyward. A hole of 33 metres grading 19.61 grams gold per tonne uncut, which came after the release of newly-assayed high-grade historic core, helped bump the stock from about 15¢ to a high of 62¢ in a matter of days.

The stock price, however, did not take very long to settle and was back to the low 20¢ range by May.

The first four summer drill hits resulted in a more modest 4¢, or 18.6% gain, for Eagle Hill to close at 25.5¢ on 3.8 million shares traded.

The company was exploring zone 27 as part of a 5,000-metre, 14-hole summer drill program. Drilling was designed to better understand the geological structure of the mineralization in the zone.

Hole 229 hit 11.4 metres grading 7.72 grams gold, or 4.96 grams cut, from 327 metres depth, as well as a short intercept of 1.7 metres grading 4.73 grams gold from 60 metres. Hole 231 returned 9.8 metres averaging 4.78 grams gold from 339 metres, and again a shallower intersect of 6.2 metres carrying 5.35 grams gold from 61 metres.

Hole 227 cut 1.8 metres averaging 2.43 grams gold from 35 metres, then 7.1 metres grading 2.07 grams gold from 283 metres. Hole 228 intersected 5.5 metres grading 1.8 grams gold from 61 metres and 10 metres carrying 1.37 grams gold from 337 metres.

“These results show continuity of gold mineralization throughout what we have referred to as zone 27,” said Brad Kitchen, president and chief executive officer of Eagle Hill in a statement. “We feel there is no question that there is a gold deposit at Windfall Lake, the only question which remains is how many zones are on the entire property and how large is the related gold deposit.”

The company recently closed a $430,000 financing with two Quebec institutional funds by issuing 2.15 million units at a price of 20¢ each. Along with a share, each unit contained a full warrant exercisable at 30¢ for a year. The company has 86.5 million shares outstanding and 120.9 million fully diluted.