Eastmain’s Eau Claire deposit tops 1M oz. gold

Quebec-focused gold explorer Eastmain Resources (ER-T) has released an updated resource estimate for its high-grade Eau Claire gold deposit in Quebec’s James Bay region.

Eau Claire is part of Eastmain’s 206 sq. km Clearwater property located 80 km north of the community of Nemiscau and its airstrip, and 200 km east of James Bay.

The company is in the midst of a US$7-million, 40,000-metre definition drill program at Clearwater aimed at expanding the Eau Claire deposit and boosting potential open-pit gold resources.

The resource update encompasses 28,500 metres of drilling at Eau Claire, but does not include 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,” president and CEO Donald Robinson states, pointing out that 2012 drilling has expanded the deposit north, west and at depth. “In general, [Eau Claire] appears to form a large, crescent-shaped, gold-rich system which is structurally controlled,” he says.

The resource starts at surface and reaches 900 metres deep. 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. gold at a 0.5 gram gold cut-off. Open-pit resources represent 4.2 million measured and indicated tonnes at 4.32 grams gold for 579,000 contained oz. gold.

Since the resource cut-off date, Eastmain geologists have seen visible gold in another 20 drill holes, within more than 40 mineralized intervals located north of the limits of the deposit.

In mid-July, the company announced discovering 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 at 2.23 grams gold in hole ER12-357; 6 metres at 5.9 grams gold in hole ER12-358; and 5 metres at 12.25 grams gold in hole ER12-369.

In late August, 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, 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,” Robinson says.

Clearwater boasts strong infrastructure potential, with permanent road access within 2 km. Hydro-Québec’s EM-1 dam and power-generating facility 5 km northeast. Eastmain has established 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 shares have bounced back since late June. The company has jumped 21%, or 17¢, since announcing the discovery of the T10 vein on July 16, and last traded at 97¢.

Eastmain is 50% institutionally held, with 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.