Eastmain boosts stake in Clearwater

An agreement with Westmin Resources (TSE) has allowed Eastmain Resources (CDN) to boost its stake in the Clearwater gold deposit in northern Quebec.

The project hosts a 270,000-tonne deposit grading 6.1 grams per tonne gold (0.18 oz.), which is still open in all directions and includes a large land package with known gold occurrences. The deposit is believed to be similar to producing mines in the Timmins and Red Lake districts of Ontario and the Val d’Or camp of Quebec.

The Quebec Crown company Soquem is earning a half interest in the project, which, at present, is owned 80% by Westmin and 20% by Eastmain. To do so, Soquem must spend $2 million on exploration over five years.

Westmin plans to sell its interest in Clearwater to Eastmain in return for 200,000 Eastmain shares and a 3% net smelter return royalty.

Westmin’s previous drilling focused on a sequence of parallel, gold-bearing, quartz-tourmaline veins. These include the G vein, which grades 14.6 grams across a mining width of 1.5 metres.

Soquem recently carried out 1,850 metres of drilling, which showed that the gold-bearing veins continue both west along strike and to depth beneath Westmin’s drilling. The Quebec firm has allocated $700,000 for drilling and exploration this year.