Eagle Hill Exploration (EAG-V) has received a first resource estimate for the Windfall Lake project in Quebec’s Abitibi region, and found better grades than it expected.
Indicated resources for the project came in at 1.14 million tonnes grading an eye-catching 9.10 grams gold for 344,000 oz., while inferred resources came in at 1.69 million tonnes grading 6.70 grams for 364,000 oz. gold.
High-grade zones at the deposit occurred in broad mineralized zones that extend up to 25 metres horizontally.
And while the company has outlined a 7.5-km gold-bearing structure, the tonnage in the estimate was found over a relatively small area with close to 90% of the resource coming from an area measuring 600 by 900 metres, within the first 450 metres from surface.
Several of the zones remain open along strike, and the company is optimistic about the deposit’s future expansion.
For now Brad Kitchen, Eagle Hill’s president and chief executive, is calling the resource calculation a “good start.”
Windfall Lake covers 120 sq. km halfway between Val-d’Or and Chibougamau. The deposit contains three main mineralized areas: the Main zone, the East Extension zone and the F17 zone, with the bulk of mineralization coming from the Main zone.
Eagle Hill says gold mineralization occurs within a low-pressure zone along a high-strain, deformation corridor trending northeast and characterized by variable hydrothermal alteration with pyrite stockwork and disseminated pyrite mineralization.
Beyond a positive maiden resource, the property also benefits from solid infrastructure. It has year-round road access, a 58-person camp, a 1,450-metre underground ramp, nearby labour and two power lines cutting through the property.
The company is in the midst of a 25,000-metre program that will test the extensions of the known gold mineralization zones as well as other targets on strike along the larger gold-bearing structure.
The day results were released on Nov. 3, the company’s shares were off 2¢, or 10%, to 17¢ on 526,700 shares traded.
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