Soquem sells quarter of Clearwater interest

The Quebec Crown corporation Soquem has inked an option deal that will allow Eastmain Resources (ER-T) to take over operation of the Clearwater gold project in northwestern Quebec.

The memorandum of understanding allows Eastmain to earn half of Soquem’s 50% interest in the property, situated near the Eastmain River in the James Bay region. Ownership is currently split 50-50.

Clearwater has a resource of about 1.5 million tonnes, with a cut grade of 6.7 grams gold per tonne.

Eastmain has scheduled some surface stripping and drilling in areas south and west of the known mineralization, where prospecting and soil sampling have uncovered new drill targets.

The option deal requires that Eastmain spend $2.5 million on exploration over four years. Soquem will then have 60 days to exercise a back-in right. The right allows Soquem to spend a further $3 million on exploration and development to get back its 25% interest ($500,000 of that work commitment must be spent in the first year after Soquem exercises its back-in right).

Meanwhile, at the James Bay hydroelectric power project, an access road will be built to within a few kilometres of the Clearwater property. Power transmission lines are also planned.