Welcome!

.NET Authors: JP Morgenthal, Bob Gourley, Yung Chou, Adine Deford, Jim Kaskade

News Feed Item

Eagle Hill Second Quarter Financial Results

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 06/30/14 -- 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
----------------------------------------------------------------------------
                                     January 31,   October 31,
                    April 30, 2014          2014          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
----------------------------------------------------------------------------
                                     January 31,   October 31,
                    April 30, 2013          2013          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 [email protected].

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.