Eastmain Resources Inc. (TSX:ER) has announced a 63,300 m (C$7.7 million) drilling program at the Clearwater Property in Quebec’s James Bay gold district. The majority of the drill program is focused on infill drilling at the Eau Claire deposit (~82%) with the balance focused on step-out holes at Eau Claire and regional exploration. As well, with the addition of new technical personal, the company is undertaking a comprehensive development review of the Clearwater project. It is likely that ongoing drill results, along with a project development plan that we expect to be viewed with higher confidence by investors should provide continued momentum for Eastmain’s share price.
Majority of drilling at Eau Claire, rest focused on six exploration targets.
Eau Claire is a near-surface gold deposit with two main zones,
the 450 West Zone and the 850 West Zone, 49,500 m of drilling will be completed at the 450 West Zone and 6,200 m at the 850 West Zone. The 450 West
Zone drilling program's objective is to improve resource confidence using infill drilling at shallow and testing the strike and continuity of high-grade
veins. The 850 Zone drilling program’s objective is to expand the mineralization with step-out drilling and infilling of inferred domains. These drilling
results coupled with those from 2015 will be used to update the resource estimate for Eau Claire. In addition, the company plans to drill 7,600 m at
six regional targets, which are all within 16 km of the Eau Claire deposit (Figure 1).
Clearwater project review to be completed by end of 2016, upcoming catalysts may benefit stock. The company is starting a full review
of the Clearwater project with regards to the current resource model and related geological, drill and estimation data which they will need to complete
the mineral resource update (Q1 2017). The review will include initial environmental and engineering studies which will support future development.
Eastmain trades at 0.76x NAV or C$63/oz versus similar stage Canadian peers at 0.87x NAV or C$62/oz. It is likely that ongoing drill results, along
with a project development plan that we expect to be viewed with higher confidence by investors should provide continued momentum for Eastmain’s share
Company description: Eastmain Resources Inc. (TSX:ER) is a Canadian exploration company with 100% interest in the Eau Claire and Eastmain
Mine gold deposits, both of which are located within the James Bay District of Quebec. Eau Claire, the Company’s core asset, has access to superior
infrastructure within a favorable mining jurisdiction. Eastmain also holds a pipeline of exploration projects in this new Canadian mining district,
and is a partner in the Éléonore South Joint Venture.
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