Eastmain Resources Inc.

Eastmain Resources Inc.

October 14, 2015 08:30 ET

Eastmain Resources Inc. Corporate Update

TORONTO, ONTARIO--(Marketwired - Oct. 14, 2015) - Eastmain Resources Inc. ("Eastmain" or the "Company") (TSX:ER) is entering a new and exciting period in the evolution of the Company as it transitions its focus from exploration to project development. Over the past year, Eastmain has achieved several important milestones that highlight the economic potential of the Clearwater project. Exploration drilling continues to add potential gold resources.

Optimization studies, focused on maximizing potential extraction of near-surface open pit and underground gold resources at Eau Claire, have been undertaken by G Mining Services Inc. ("G Mining") as part of a Preliminary Economic Assessment ("PEA"). On-going definition drilling is directed at a high-priority kilometre-long corridor within the 450 West Zone, containing wide, high-grade intersections comprised of gold-rich quartz-tourmaline veins and replacement zones. Looking forward, Eastmain is committed to accelerating the advancement of its award-winning Clearwater project along the path towards potential production, while it continues to expand Mineral Resources at the high-grade Eau Claire gold deposit.

Located within the James Bay region of Quebec, a politically and geologically preferred mining jurisdiction, the Eau Claire gold deposit contains the second highest-grade, potential open-pit undeveloped Measured and Indicated gold resource in North America1. The project is proximal to mine-essential infrastructure and is supported by a strong relationship with local First Nations.

"We have demonstrated that the Eau Claire deposit is one of a few very attractive high-grade gold projects with mine-ready infrastructure, located in a mine-friendly jurisdiction. Our recent Discovery of the Year Award, presented by the members of the AEMQ, is a testament to both a fantastic project and a successful exploration team. We are excited to enter this new transition phase towards the development of Eau Claire," stated Don Robinson, Eastmain's President and CEO.

"I look forward to supporting Eastmain's management team, who has done an excellent job creating a strong foundation for the advancement of Eau Claire, as the Company transitions to developer status. We will continue to supplement and fortify the group as necessary to move our project forward and create shareholder value," says Dr. Laurie Curtis, Chairman.

Achievements year-to-date:

  • Announced the results of an updated Mineral Resource estimate completed by SRK Consulting (Canada) Inc. ("SRK") for the Eau Claire gold deposit;
  • Defined 6.8 million tonnes of high-grade open-pit Measured and Indicated Mineral Resources containing 885,000 ounces of gold at an average grade of 4.05 grams per tonne plus 1.1 million tonnes containing 110,000 ounces of gold at an average grade of 3.12 grams per tonne in the Inferred Mineral Resource category (News release April 26, 2015);
  • New discovery of future underground, potentially ramp-accessible, wide, high-grade zones of replacement-type gold mineralization through definition drilling within the 450 West Zone;
  • Discovery of new potentially open-pit resource target, located two kilometres east of Eau Claire;
  • Contracted G Mining Services Inc. as lead consultant, Golder Associates Ltd., EnviroCree Ltd. and Kaweshekami Environment Inc. to complete a PEA for the Clearwater Project. G Mining is a multidisciplinary mining engineering firm specializing in both underground and open pit gold and base metal projects worldwide;
  • The PEA is on schedule and on budget;
  • Appointed Dr. Laurence (Laurie) Curtis, a highly experienced mining professional, as Director and Chairman, to spearhead the Company's transition from explorer to developer; and
  • Continuing to build and strengthen the Company's relationship with local Cree Nations who are important and integral partners in the ultimate development of Eau Claire.

Eastmain's exploration success was recently recognized by its peers, as the recipient of the Association L'Exploration Minière du Quebec ("AEMQ") 2015 Discovery of the Year Award, for its work on the Eau Claire deposit at Clearwater.

Eastmain continues to align itself with experienced, quality business and technical partners and is proud to be associated with the 2015 AEMQ Hector Authier Award winner, Mr. Louis Gignac, President and CEO of G Mining Services, for his contributions to Quebec's mining industry. Mr. Gignac is also one of the 2016 inductees to the Canadian Mining Hall of Fame. Eastmain also congratulates its drilling partners, Forages Rouillier, the 2015 winners of the AEMQ Company of the Year Award.

Outlook and Strategy:

Driven by its recent successes at the Eau Claire gold deposit (Clearwater project), the Company has entered a transition phase. In the coming months, Eastmain intends to build out its board and management by adding new members to the team with the skills and experience required to advance Eau Claire though the upcoming stages of development.

Eastmain expects G Mining to complete the PEA by Q2 2016, which will provide the basis for a decision to proceed to a Preliminary Feasibility Study ("PFS") or Definitive Feasibility (DFS).

With a cash balance of $4.8 million as of July 31, 2015, Eastmain is well funded to complete its next milestone.

About Eastmain Resources Inc. (TSX:ER)

Eastmain is a Canadian exploration company with 100% interest in the Eau Claire and Eastmain gold deposits, both of which are located within the James Bay District of Quebec. Eau Claire, the Company's core asset, has superior infrastructure within a favourable jurisdiction and is royalty free. Eastmain also holds a pipeline of exploration projects in this new Canadian mining district.

All scientific and technical information contained in this news release has been prepared under the supervision of, and verified by Dr. Donald J. Robinson, a "qualified person" within the meaning of National Instrument 43-101. For further information on the Eau Claire deposit, please refer to the technical report entitled "Technical Report for the Eau Claire Gold Deposit, Clearwater Project, Quebec" dated June 11, 2015 and prepared by SRK, available on SEDAR at www.sedar.com.

1 Source: SNL Mining & Metals. Based on undeveloped Measured and Indicated potential Open Pit Mineral Resources exceeding 0.5 million ounces of gold at greater than 1.5g/t Au.

For text alerts of Eastmain news and events text EastmainER to 76000.

CONFERENCE CALL TODAY Wednesday, October 14th, 2015 11:00 AM ET
Dial in Numbers: Toll-free 1-888-231-8191
Local & International 1-647-427-7450
Speakers: Dr. Don Robinson, President and CEO
Dr. Laurence Curtis, Chairman
Conference Call Replay: Toll free: 1-855-859-2056 • Local: 1-416-849-0833
Password: 61355085
Please note the conference call replay will be available until October 29, 2015

Forward-Looking Statements - Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties, including statements with respect to the development plans and growth targets of the Company. Forward-looking statements consist of statements that are not purely historical, including statements regarding beliefs, plans, expectations or timing of future plans, and include, but not limited to, statements with respect to the timing of completion of the PEA, commencement of the PFS and/or DFS, actual results of current and future exploration activities at the Company's properties, future developments in the Company's relationship with indigenous groups, and the potential success of the Company's future exploration and development strategies. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Eastmain, including, but not limited to the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, the availability of financing, timely completion of the PEA and any PFS and/or DFS as applicable, and risks associated with the exploration, development and mining industry generally such as economic factors as they affect exploration, future commodity prices, changes in interest rates, safety and security, political, social or economic developments, environmental risks, insurance risks, capital expenditures, operating or technical difficulties in connection with development activities, personnel relations, the speculative nature of gold exploration and development, including the risks of diminishing quantities of grades of Mineral Resources, contests over property title, and changes in project parameters as plans continue to be refined. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company assumes no obligation to update such information, except as may be required by law.

Contact Information

  • Eastmain Resources Inc.
    Dr. Donald J. Robinson
    (519) 940-4870

    Eastmain Resources Inc.
    Catherine Butella
    Exploration Manager
    (519) 940-4870
    (519) 940-4871 (FAX)