Eastmain expands high-grade potential at Clearwater

VANCOUVER — Québec-focused gold explorer Eastmain Resources (ER-T) has finally released an updated resource estimate for its high-grade Eau Claire gold deposit in Québec’s James Bay district. Eau Claire is part of Eastmain’s 206-sq.km Clearwater property located 1,120 km north of Montreal. The company is in the midst of a US$7-million, 40,000-metre definition drill program at Clearwater aimed at expanding the limits of the Eau Claire deposit and boosting potential open-pit gold resources.

Eastmain’s resource update encompasses 28,500 metres of total drilling at Eau Claire, but does not include roughly 20,000 metres completed during the 2012 program. Focus has been on defining measured-and-indicated tonnage in the 850 West zone, which the company believes may form a continuous gold-bearing system with its 450 West zone. The interim resource includes nine drill holes from Eastmain’s 2010 program, and 68 drill holes completed in 2011.

“These two zones are characterized by similar vein plus alteration mineral assemblages and precious metal suites, however, the associated gold-bearing structures have different orientations,” stated president and CEO Donald Robinson, pointing out that 2012 drilling has expanded the deposit to the north, west and at depth. “In general, [Eau Claire] appears to form a large crescent-shaped, gold-rich system which is structurally controlled.”

Eastmain reports its resource starts at surface and continues to depths of roughly 900 metres. The 850 and 450 zones now hold 4.9 million measured-and-indicated tonnes grading 4.6 grams gold per tonne for 721,000 contained oz. at a 0.5 gram gold cut-off. Open pit resources represent 4.2 million measured-and-indicated tonnes averaging 4.32 grams gold for 579,000 contained oz.

Since the resource cut-off date, Eastmain has observed visible gold in an additional 20 drill holes within more than 40 mineralized intervals located north of the existing deposit limit.

On July 16 the company announced the discovery of its T10 vein located northwest of the 450 zone. T10 demonstrates a lateral strike-length of 150 metres, and ranges in thickness from 0.5 metre to 22 metres. Highlights from 11 drill holes include: 17 metres averaging 2.23 grams gold in hole ER12-357; 6 metres grading 5.9 grams gold in hole ER12-358; and 5 metres of 12.25 grams gold in hole ER12-369.

On Aug. 24 Robinson announced that results were pending on additional holes from the remaining visible-gold intersections. Eastmain had completed 58 drill holes over 22,000 metres by mid-September, successfully expanding the northern and western boundaries of the 850 and 450 zones.

“We believe the likelihood of adding additional resource ounces in the future is high,” he concluded.

Clearwater boasts strong infrastructure potential, with permanent road access within 2 km, and Hydro Québec’s EM-1 dam and power generating facility lying 5 km northeast. Eastmain has established strong metallurgical test work, with high-gravity and flotation processes returning between 92% and 97% gold recoveries and a conventional circuit process bumping recoveries to 98.5%.

Eastmain has enjoyed a market bounce back since late June. The company has jumped 21% or 17¢ since announcing the discovery of the T10 vein on July 16 en route to a 97¢ press-time close. Eastmain is 50% institutionally held, and has 98 million shares outstanding and a $96 million market capitalization.

Canadian major Goldcorp (G-T, GG-N) holds a 7.5% stake in the company, and operates a joint-venture with Eastmain at the 147-sq.km Éléonore South project adjacent to Goldcorp’s multi-million ounce Roberto gold deposit.