Eagle Hill Exploration Announces Positive Preliminary Economic Assessment with 23.6% Pre-tax IRR for the Windfall Lake Gold Project in Quebec, Canada
April 28, 2015 – Vancouver, BC – Eagle Hill Exploration Corporation (TSX.V: EAG)(“Eagle Hill” or the “Company”) is pleased to announce the results of an independent Preliminary Economic Assessment (“PEA”) for its 100%-owned Windfall Lake Gold Project (“Windfall Lake” or the “Project”) in Quebec, Canada. All figures are quoted in Canadian dollars unless otherwise noted.
Conference call and webcast to discuss PEA results
Tuesday, April 28, 2015 • 1:30pm PST (4:30pm EST)
Conference call: 1-877-881-1303 • Webcast: www.eaglehillexploration.com
The PEA outlines the design of a 1,200 tonne per day (“tpd”) underground mine producing 106,200 ounces of payable gold annually for 7.8 years at an average total cash cost of $558/oz of gold (US$480/oz). At a base case gold price of US$1,200/oz the project has a pre-tax internal rate of return (“IRR”) of 23.6% and a pre-tax net present value discounted at 5% (“NPV5”) of $241.4 million. Initial project capital costs are estimated at $240.6 million. Eagle Hill intends to complete a pre-feasibility study for the Windfall Lake project by 2017. Next steps include extending the existing ramp and taking a bulk sample, drilling both from surface and underground with the objective of expanding and upgrading the quality of the resource and testing continuity of grade, and finalizing the various studies required for a pre-feasibility study.
“The results of the PEA are very encouraging, and we believe that optimization of the deposit and proposed mine construction plan could further improve project economics,” said David Christie, President & CEO of Eagle Hill. “Additional drilling at surface and at depth, along with underground drilling and a bulk sample, could both expand and upgrade the resource, bringing additional value to the project.”
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