The PEA envisages a 1,200 tonne per day underground mine producing 106,200 ounces of payable gold annually for 7.8 years at an average total cash cost of C$558/oz. of gold (US$480/oz.) with a pre-tax initial rate of return (NYSE:IRR) of 23.6 percent and a net present value discounted at 5% ("NPV5") of C$241.4 million.
The encouraging economics could improve through the deposit's optimization and the proposed mine construction plan, according to the company.
The environmental, engineering and economic studies associated with the PEA, based on a gold price of US$1,200/oz. and very favorable drill results, have helped to clarify the potential for advancing the high grade deposit to production.
Metallurgical tests have indicated that up to 95.7 percent of gold at its Windfall Lake gold project in Quebec can be recovered using an economical standard flotation and cyanide leaching process.
The Windfall Lake project boasts a mineral resource of 2,375,000 tonnes at a gold grade averaging 9.8 g/t gold (744,000 ounces) in the indicated category and 3,084,000 tonnes at 7.37 g/t gold (731,000 ounces) in the inferred category, which make Windfall Lake represents one of the top ten, by grade, resource-stage gold projects in the world.
As part of the next stage of development, which includes the Preliminary Feasibility Study, Eagle Hill is working closely with the local communities of Lebel-sur-Quevillon, Waswanipi and Val-d'Or, engaging both Aboriginal and non-Aboriginal stakeholders to address any concerns they may have about the Project.
The Vancouver based miner intends to complete the PFS by 2017 and it plans to extend the existing ramp to take a bulk sample also drilling both from surface and underground in order to expand and upgrade resource quality as well as test grade continuity.
Eagle Hill will also have to complete an environmental baseline study and characterize the chemistry of dewatering mine water, mineralized material and waste rock ahead of the PFS.