The Windfall Lake Property measures 12,400 hectares in the Abitibi mineralized belt of northern Quebec, Canada. This area between Val d'Or and Chibougamau is known for its gold and copper production and excellent infrastructure for exploration and mining. Eagle Hill obtained ownership of the property by optioning different claim blocks from Noront, Murgor and Cliffs. 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 and building an underground ramp. The acquisition came with over 71 kilometres 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 established a relationship with the Waswanipi Cree, the local aboriginal 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.
A total of 732 holes (including six wedges and nine extensions) have been drilled at the property for a total of 194,512 metres. Eagle Hill has executed an extensive exploration program since optioning the property, identifying new gold zones, confirming the extension of mineralization at depth and along strike to the west of the main deposit, and significantly expanding the known mineral resource. The deposit is well defined from surface to a depth of approximately 500 metres, but remains open laterally along strike and at depth.
Mineral Resource Estimate for Windfall Lake (SRK Consulting, November 2014)1
1. The resource estimate was calculated by SRK Consulting (Canada) Inc. using a 3 g/t cut-off grade, assuming an underground extraction scenario with an assumed gold price of US$1,200 per ounce and metallurgical recovery of 96%, with an effective date of November 23, 2014. Inferred resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or any part of the inferred resources will ever be upgraded to a higher category. Mineral resources are not mineral reserves and do not have demonstrated economic viability. See Cautionary Note.