RCKS talk

Tuesday, July 26, 2016 Derek Macpherson

ER Initiates 63 km Drill Program at Clearwater


Download Report

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 price.

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.

Disclaimer
Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and the Yukon. Part of Red Cloud Klondike Strike Inc.'s business is to connect mining companies with suitable investors that qualify under available regulatory exemptions (the "Red Cloud KS Business"). Red Cloud Klondike Strike Inc., its affiliates and associates, and their respective officers, directors, representatives, researchers and members of their families (collectively, "Red Cloud KS") may hold positions in the companies mentioned in this publication and may buy or sell, or buy and sell their securities or securities of the same class on the market or otherwise. Additionally, Red Cloud KS may have provided in the past, and may provide in the future, certain advisory or corporate finance services and receive financial and other incentives from issuers as consideration for the provision of such services. 
Red Cloud KS has prepared this publication for general information purposes only, NOT as part of the Red Cloud KS Business. This document should not be considered a solicitation to purchase or sell securities or a recommendation to buy or sell securities. The information provided by Red Cloud KS for the purposes of this publication has been derived from sources believed to be accurate, but cannot be guaranteed. Opinions or analysis contained in this publication may be subject to change and Red Cloud KS does not undertake to advise the reader of such changes. This publication does NOT take into account the particular investment objectives, financial situations, or needs of individual recipients and other issues (e.g. prohibitions to investments due to law, jurisdiction issues, etc.) which may exist for certain persons. Recipients should rely on their own investigations and take their own professional advice before investment. Red Cloud KS will not treat recipients of this publication as customers or clients by virtue of having viewed this report.
Company Specific Disclosure Details


1) A member of Red Cloud KS team has visited/viewed material operations of the issuer.
2) In the last 12 months, Red Cloud KS has been retained under a service or advisory agreement by the subject issuer.
3) In the last 12 months, Red Cloud KS has received compensation for investment banking services.
4) Red Cloud KS or a member of the Red Cloud KS team or household, has a long position in the shares and/or the options of the subject issuer.
5) Red Cloud KS or a member of the Red Cloud KS team or household, has a short position in the shares and/or the options of the subject issuer.
6) Red Cloud KS or a member of the Red Cloud KS team own more than 1% of any class of common equity of the subject issuer.
7) A member of Red Cloud KS team or a member’s household serves as a Director or Officer or Advisory Board Member of the subject issuer.


 

SUBSCRIBE TO HEAR FROM US

Gain access to exclusive mining industry research reports as well as additional mining industry information, promotional materials, press releases and news.

RCKS Talk Daily Analysis
RCKS News
LATEST POST
CATEGORIES
RELATED TAGS
ARCHIVES

 

RISK WARNING:

Red Cloud Klondike Strike Inc. is registered as an Exempt Market Dealer (EMD) in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador, and Yukon.

 

By accessing this website you agree to be bound by our Terms of Use and Privacy Policy.

 

Red Cloud Klondike Strike Inc. connects mining companies with suitable investors that qualify under available regulatory exemptions. For example, in Canada, according to National Instrument 45-106, Prospectus and Registration Exemptions. Similar laws and regulations apply in other jurisdictions. Companies presented on this website are considered to be highly speculative and, as such, are suitable only for purchasers who can tolerate the highest level of risk including the loss of their entire investment.

© Copyright 2017 Red Cloud Klondike Strike Inc. All rights reserved.