QUEBEC – Eagle Hill Exploration Corp. of Vancouver has received the preliminary economic assessment for its Windfall Lake gold project 100 km east of Level-Sur-Quevillon, in the Abitibi Greenstone Belt.
The PEA sets forth plans for a 1,200-t/d underground mine with a life of 7.8 years and averaging 106,200 oz of gold per year. At the base case gold price of US$1,200/oz the project has a pre-tax internal rate of return of 23.6% and a net present value discounted at 5% of C$241.4 million (post-tax 17.2% and C$135.2 million). Total life of mine cash cost plus sustaining capital would be US$536 per oz.
Eagle Hill said the Windfall Lake project has considerable upside should the price of gold reach US$1,320 or US$1,440 per oz. The project economics could also be improved by bringing hydro power to the site, incorporating silver credits, or expanding and upgrading the resource.
The bulk of the Windfall Lake mineralization occurs in the Main zone, a southwest-northeast trending zone of stacked mineralized lenses, measuring approximately 600 metres wide and at least 1,400 metres long. The deposit remains open at depth and along strike.
Eagle Hill is one of the companies targeted by Oban Mining Corp. for takeover. Three others – Temex Resources, Ryan Gold and Ryan Gold – will also come under the wing of "New Oban" if the proposal succeeds. (See CMJ Daily Headline News for June, 9, 2015.)
More information is available at EagleHillExploration.com.