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Eastmain Resources promises catalyst-filled period ahead

Eastmain is steaming ahead with exploration at the James Bay area
Eastmain Resources promises catalyst-filled period ahead
Eastmain has kept investors well informed of its exploration successes

No-one could accuse Eastmain Resources Inc (TSE:ER) of not having much newsflow recently, much of it featuring eye-catching drill results.

The rest of  the year promises to be news and catalyst-filled. The group's main asset is the Clearwater gold project in the James Bay area of Northern Quebec.

Here, it has a particular but not exclusive focus on the Eau Claire deposit and the 951,000 ounces of measured and indicated resource that it’s already known to contain.

Close to Goldcorp's Eleonore mine..

It also has the Eleonore South project, held in joint venture with precious metals major Goldcorp (NYSE:GG) and Azimut (BIT:AZM). The site is close to Goldcorp’s rich Eleonore mine.

Third, is the old Eastmain mine project, which was a healthy producer of gold in 1995.

May has been a particularly busy month, in which it unveiled plans to raise about $9mln via a bought deal placing to advance its concessions, along with assays from Eau Claire showing some of the highest grades from the current program.

Results from the deposit have been very encouraging, including intercepts like in shallow drilling (between depths of 100m and 300m)  42.3 g/t  of gold over 3.7 m, including 206 g/t of gold over 0.5 metres.

That followed in April a hit of 43.7 grams per tonne gold over 2 metres, including an intercept of 73.4 g/t of the yellow metal over one metre.- also in shallow drilling.

This all augurs well for an updated resource estimate, which chief Claude Lemasson, says should be published in July or August this year, when all assays from the 56,000m campaign are in.

Then there will the start of a preliminary economic assessment (PEA) for Eau Claire, with results of that earmarked for early 2018.

Also Eleonore South in the frame

Eleonore South is being explored as a three-way joint venture between Eastmain, which has 36.7%, Azimut Exploration Inc (CVE:AZM), which owns 26.6% and is the operator, and Les Mines Opinaca Ltee, which holds 36.7%.

Recently, Eastmain said the 2016-2017 drilling represented a successful program into a new prospective corridor and work so far has confirmed that there is a "mineralised system" there, says Lemasson.

Broker Mackie is a fan

The broker has described the stock as a 'favourite' in the exploration space

"The company is led by a strong management team and has a well- funded exploration program underway at its Eau Claire resource, Eastmain mine and Eleonore South JV project," it said in February, repeating a 'buy' and targeting $1.25 a share, which is a healthy distance from the current price of  40 cents.

"We like ER’s exploration aggressiveness, and maintain our BUY recommendation," it had said.

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Eastmain Resources Timeline

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