Eagle Hill Second Quarter Financial Results
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 30, 2014) -
Eagle Hill Exploration Corporation (TSX-VENTURE:EAG)(OTCQX:EHECF)
("Eagle Hill" or the "Company") has released the results of its
second quarter ended April 30, 2014. Details of the Company's
financial results are described in the unaudited condensed interim
financial statements and Management's Discussion and Analysis
("MD&A"), which are available on the Company's website at
www.eaglehillexploration.com and on SEDAR at www.sedar.com. All
amounts are in Canadian dollars unless otherwise stated.
COMPARATIVE QUARTERLY RESULTS
The following table sets out selected financial information for
the most recent eight fiscal quarters.
|
Fiscal 2014 |
Fiscal 2013 |
|
April 30, 2014 $ |
January 31, 2014 $ |
October 31, 2013 $ |
July 31, 2013 $ |
Total
assets |
35,386,049 |
33,788,667 |
32,201,645 |
21,196,288 |
Long-term liabilities |
(3,632,258) |
(3,459,984) |
(2,997,010) |
(3,039,821) |
Net
loss |
(446,705) |
(669,861) |
(2,006,551) |
(545,230) |
Net loss per share, basic and diluted |
(0.001) |
(0.002) |
(0.009) |
(0.003) |
|
Fiscal 2013 |
Fiscal 2012 |
|
April 30, 2013 $ |
January 31, 2013 $ |
October 31, 2012 $ |
July 31, 2012 $ |
Total
assets |
20,483,057 |
19,223,152 |
18,899,190 |
16,895,227 |
Long-term liabilities |
(2,974,557) |
(1,993,982) |
(2,530,716) |
(1,896,795) |
Net
loss |
(521,587) |
(482,926) |
(1,052,844) |
(834,984) |
Net loss per share, basic and diluted |
(0.003) |
(0.003) |
(0.006) |
(0.005) |
Note: The Company had no revenue and paid no dividends
during the above periods
At the date of this MD&A, the Company had working capital of
approximately $3.6 million. For the three months ended April 30,
2014, the Company had a net and comprehensive loss of $446,705 or
$0.001 per share (2013: $521,587 or $0.003 per share). At April 30,
2014, the Company had a commitment to spend a total of $444,406 on
Canadian Eligible Exploration by December 31, 2014 and $1,000,000
by December 31, 2015.
WINDFALL PROPERTY REVIEW AND OUTLOOK
The Windfall Lake Property covers approximately 12,400 hectares
in the prolific Abitibi Greenstone Belt in Quebec. The property
consists of 285 contiguous claims. Eagle Hill obtained ownership of
the property by optioning different claim blocks from Noront,
Murgor and Cliffs. On May 6, 2014, the Company announced that it
had completed its purchase of three 2% NSRs related to Eagle Hill's
Windfall Lake Gold Project, which is located in the Abitibi Gold
Belt approximately 200 km northeast of Val d'Or, Quebec. The
Company paid a total of $60,000 and issued a total of 3,333,334
shares to purchase the NSRs, which cover 3,469.9 hectares of the
12,400 hectare Windfall Lake Property. The shares issued to the
vendors of the royalties are subject to a four-month hold
period.
On March 28, 2014, the Company completed the purchase of the 29
Claims and the 184 Claims immediately adjacent to the Windfall Lake
Property. In consideration for purchasing the remaining interests
in the 29 Claims and the 184 Claims, the Company paid $250,000 and
issued 9.5 million common shares to each of the optionors. In
addition, the Company granted a 0.5% NSR for the 29 Claims and a 1%
NSR for the 184 Claims to each of the optionors. The Company
retained the right to buy back any of the NSRs at any time prior to
first commercial production by paying $500,000 to the holder of the
NSR.
Exploration Activities
The Fall 2013 drill program achieved its primary objectives,
confirming continuity of mineralization below Red Dog, confirming
the extension of mineralization southwest of the Main Zone, and
expanding both Zone 27 and the Mink Lens. In addition, a downhole
IP survey showed additional potential below Red Dog.
The Winter 2014 drill program was focused on testing for gold
mineralization below shallow lakes in the Main Zone. A total of
3,333 metres was drilled in 16 drill holes. Several drill
intercepts demonstrated the presence of pyritic stockwork similar
to other lenses of the Main Zone. The results confirmed continuity
of the Zone 27 gold mineralization and demonstrated lateral
extension of the Zone. Highlights of the drilling program include
18.5 g/t gold over 3.38 metres, 7.04 g/t gold over 6.2 metres, and
20.45 g/t gold over 2.6 metres in the eastern extension of Zone 27.
In addition, the drilling program expanded the upper portion of
Zone 27 by over 100 metres to the southwest with the discovery of
8.36 g/t gold over 1.2 metres and 10.6 g/t gold over 0.9 metres.
Eagle Hill press released a complete summary of results from the
Winter 2014 drill program on June 24, 2014.
During the summer of 2014, the Company has planned a 2,800-metre
drill program targeting the extension of Zone 27 to the northeast
below the Red Dog intrusion. Eagle Hill plans to deepen six
existing drill holes in a target zone that is currently untested.
Using existing holes to reach the target zone will reduce drilling
costs and also allow the target zone to be reached more quickly.
The Board of Directors has also approved an additional hole-to-hole
IP survey to further define drill targets at depth. Geological
studies indicate that the gold mineralization hosted by Zone 27 and
the Caribou Zone may have been displaced as much as 600 metres
below the Red Dog dike, which coincides with the IP anomaly
identified below Red Dog. The Fall 2013 drilling program confirmed
continuity of gold mineralization below the Red Dog intrusion and
delineated an inferred mineral resource of 455,000 tonnes at a
grade of 8.21 g/t gold for 120,000 contained ounces of gold,
highlighting the potential to increase the mineral resource below
the Red Dog intrusion.
Preliminary Economic Assessment Study
On June 24, 2014, Eagle Hill announced that the Company plans to
initiate a Preliminary Economic Assessment Study ("PEA") for the
Windfall Lake Property. The environmental, engineering and economic
studies associated with a PEA will provide further clarity on the
potential of advancing the Windfall Lake Property to production.
The Board of Directors has appointed Paul-Henri Girard as the lead
director to manage the PEA process. Mr. Girard is a Mining Engineer
with extensive hands-on experience planning and operating Canadian
mines. Mr. Girard started his career with Falconbridge Copper as a
mining engineer in 1980, and moved to Agnico Eagle Mines Ltd. in
1987 as Chief Engineer of LaRonde Mine in Quebec. Mr. Girard held
increasingly senior positions with Agnico Eagle over a 25-year
period, eventually retiring from the position of Vice President
Canadian Operations in 2012.
On Behalf of the Board of Directors
"John Proust"
Interim Chief Executive Officer
About Eagle Hill Exploration Corporation
NZEC is an oil and natural gas company engaged in the
production, development and exploration of petroleum and natural
gas assets in New Zealand. NZEC's property portfolio collectively
covers approximately 1.15 million acres of conventional and
unconventional prospects in the Taranaki Basin and East Coast Basin
of New Zealand's North Island. The Company's management team has
extensive experience exploring and developing oil and natural gas
fields in New Zealand and Canada, and takes a multi-disciplinary
approach to value creation with a track record of successful
discoveries. NZEC plans to add shareholder value by executing a
technically disciplined exploration and development program focused
on the onshore and offshore oil and natural gas resources in the
politically and fiscally stable country of New Zealand. NZEC is
listed on the TSX Venture Exchange under the symbol NZ and on the
OTCQX International under the symbol NZERF. More information is
available at www.newzealandenergy.com or by emailing
info@newzealandenergy.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as such term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding Forward-looking
Statements
This document contains certain forward-looking information
and forward-looking statements within the meaning of applicable
securities legislation (collectively "forward-looking statements").
The use of any of the words "will", "is subject", and similar
expressions are intended to identify forward-looking statements.
These statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
statements. Such forward-looking statements should not be unduly
relied upon. This document contains forward-looking statements and
assumptions pertaining to the ability of the Company to close the
Offering; the granting of regulatory approval; the timing of
receipt of regulatory approvals; and the use of proceeds raised
from the offering. Actual results achieved may vary from the
information provided herein as a result of numerous known and
unknown risks and uncertainties and other factors, including
uncertainty related to market conditions that prevent the Company
from closing the Offering on acceptable terms or at all; and global
financial market events that cause significant volatility. Readers
are cautioned that the foregoing list of factors is not exhaustive.
The forward-looking statements contained in the document are
expressly qualified by this cautionary statement. These statements
speak only as of the date of this document and the Company does not
undertake to update any forward-looking statements that are
contained in this document, except in accordance with applicable
securities laws.
Qualified Person
The technical information in this document has been reviewed
by Eagle Hill's Vice President Exploration, Jean-Philippe
Desrochers, PhD, PGeo, who has sufficient experience relevant to
the style of mineralization under consideration and qualifies as a
Qualified Person as defined by National Instrument 43-101. The
drill program and sampling protocol is managed by Eagle Hill under
the supervision of Jean-Philippe Desrochers. The diamond drill
holes are drilled at NQ sizes and core recovery to date has
averaged better than 95.0%. Half core is cut by rock saw and is
generally sampled using nominal 1-metre intervals; however, sample
intervals vary according to geological contacts and have ranged
between 0.3 to 1.5 metres in length. Two quality control samples
(one blank and one certified reference material) are inserted into
each batch of 20 samples. All assays were performed by ALS Chemex
Laboratory Group, in Val d'Or, Quebec. The half core samples are
securely transported from the project site to the ALS Chemex
laboratory by Eagle Hill personnel. Gold analyses reported in this
release were performed by standard fire assay using a 30-gram
charge with atomic absorption finish and a gravimetric finish for
assays greater than 10 grams per tonne and by metallic sieve method
for samples containing significant amounts of pyrite or visible
gold. In addition, an Aqua regia digestion with ICP-AES finish is
used to analyse a full suite of elements including silver and base
metals.
Eagle HillRhylin BailieVice President, Communications &
Investor Relations604-697-5791info@eaglehillexploration.com
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