Gold Investment News - Eastmain Resources Expands High-Grade Resources in Quebec

Eastmain Resources Expands High-Grade Resources in Quebec

By Dr. Allen Alper
on 12/13/2011

Dr. Donald J. Robinson, President and CEO of Eastmain Resources commented that "the Corporation has two high grade gold deposits located in James Bay, Quebec. Our main flagship project is Clearwater which includes the Eau Claire gold deposit. The most recent resource estimate was updated in the spring. The Clearwater project, located in the mining friendly area of Quebec, contains both high grade open pit and underground gold resources, with mine-ready infrastructure nearby. ”

The most recent NI 43-101 resource estimate for the Eau Claire gold deposit, completed in April 2011, increased by 62% over the previous estimate. According to Dr. Robinson, “There are more than a million and a half ounces of gold resources defined at Clearwater. Of that about 600,000 ounces are classified in the measured and indicated category and amenable to extraction by open pit methods, along with a million ounces classified principally as inferred resources." Robinson commented that "the Clearwater project has a very high open pit resource grade, approximately three to five times higher than most other gold projects at the development stage in Canada.”

Currently, Eastmain is working toward expanding the resource through drilling, west and outside the limits of the previous resource estimate. Robinson said, “We have completed a $5 million dollar exploration program at Clearwater over the past 6 months. We have expanded the footprint of the Clearwater gold belt with 26,300 metres of drilling in 68 holes west and adjacent to the Eau Claire gold deposit. We've increased the pit dimensions, geographically, at least by double or more. Eastmain has released assay data from multiple drill holes with excellent grades and thicknesses over the past 3 months. Essentially, the new extension is about 600 meters long with drill intercepts up to 300 metres deep. Assay results are pending for in excess of 25 drill holes still at the assay laboratory.” The assay results have substantiated Eastmain's claim that the Eau Claire deposit is exceptional. Said Robinson, “The best 2011 drill intersection to date is: 17.9 grams of gold (0.52 ounces per ton) over a thickness of 12.2 metres (40 feet). In addition, visible gold has been observed in just under half of the holes drilled this year."

According to Dr. Robinson, “We have kept the Company well funded and are topping up the treasury with a financing at a significant premium to the market price.” Robinson's goal is always to have more than enough to fund exploration for up to two years. He said, “We like to keep the treasury in the $20 million dollar range with a budget in the $10 million dollar range.” With finances in order, Robinson and his team have been able to focus on their assets, “We've had a lot of success discovering new zones through trenching and drilling this year. Our objective is to demonstrate that Clearwater has the potential size and grade to be a low cost, highly profitable stand-alone gold mine."

Eastmain has neighbors in the region that may become important to Eastmain's story in the future. Said Robinson, “Goldcorp, is building a world-class mine in the district and recently received its permits to commence construction at its' Eleonore gold project. They expect to start producing in 2014, ramping up to 600,000 ounces gold per year by 2017. The capital expenditure of their project is estimated at $1.4 billion dollars. The production cost is estimated at a cash cost less than $400 per ounce of gold. Goldcorp is constructing a large milling facility (7,000 tonnes per day), that may end up servicing the entire region. ”

While Robinson is waiting to hear of more developments from Goldcorp, Eastmain is still waiting on their own results. Said Robinson, “There are more than 25 drill holes still in the lab. We expect to be releasing assays all the way up until next January.” Providing generous amounts of information to the market has given Eastmain the opportunity to get their story out in a positive way, which has attracted attention from brokerage houses. With one of the largest exploration programs in the region, Eastmain has received some positive coverage from brokerage houses. Said Robinson, “Right now, we have three brokerage firms providing independent research coverage on our company. Their target prices range from $2.25 to $2.82. Casimir Capital has recommended the company, as well as Rodman and Renshaw, and Macquarie out of Toronto." Another positive for Eastmain is that the Quebec government is supporting the development of the mining in the region by spending $260 million to build roads and other infrastructure in the area.

Adding to the interest in Eastmain is a second deposit that contains a historical resource of a quarter of a million ounces, from a deposit named after the company – Eastmain. According to Dr. Robinson, “Eastmain acquired the gold deposit for $16 per ounce and $40 million worth of infrastructure, along with one hundred square kilometres of the mine property were essentially acquired for free. We are drilling underneath the mine to see if we can expand the historical gold resource. It is a project that is a geologically comparable to the high grade, contact ore previously mined at the Detour gold deposit, located in Ontario. There is multi-million ounce deposit potential on the Eastmain Mine property.” Eastmain's budget will allow them to continue to focus on expanding the gold resources of both gold deposits in 2012.

With two high-grade deposits that are currently expanding in resource size with every drill hole, Eastmain's opportunities seem positive as they work in the mining friendly area of Quebec. Neighbors such as Goldcorp, currently building a billion dollar operation, offer Eastmain a great deal of options for the future. Over time, Metals News, has followed Eastmain. See the following articles for more information on our past coverage of this exciting company.

Creating Value Through Extensive Gold Exploration In Quebec

Eastmain Poised For Progress

Eastmain Resources Systematically Developing Large Gold Resources In Quebec

Eastmain Resources New Developments Mean Positive Results For Shareholders

Eastmain Gains By Staying The Course And Seizing Opportunities

Eastmain Resources: Is There Another Roberto Deposit?

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