Eagle Hill Exploration Announces Windfall Lake PEA; NPV C$135.2 Million, IRR 17.2 Percent

Eagle Hill Exploration (TSXV:EAG) announces results of a preliminary economic assesssment for its Windfall Lake gold project. Highlights of the PEA included a C$135 million after tax NPV and a 17.2 percent after-tax IRR with a payback period of 3.9 years.

As quoted in the press release:

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.

Eagle Hill president and CEO, David Christie, said:

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. 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.

Click here to read the Eagle Hill Exploration (TSXV:EAG) press release