Analyst Note - PearTree Financial Services

Analyst Note
By Éric Lemieux, MSc, P.Geo
Mining & Exploration Analytics
[email protected]
December 18, 2014
Eastmain Resources Inc. (ER-T)
Lac Clovis, Potentially an Eau Claire II
Event: Eastmain reports diamond drill advancement on Lac Clovis and work in progress on Eau Claire to
achieve a new mineral resource estimate in 2015.
Impact: Slightly Positive. New area being defined with similar characteristics as the 450 West and 850 West
Zones of Eau Claire; awaiting assays. Clearwater Project advancing and management aware that it should be in
position to deliver in 2015.
• On December 16, 2014 Eastmain reported an update on the drill program underway at its 100%-owned
Clearwater Project, located in James Bay, Québec. 17 drill holes have been completed totaling 4,690m in the
Lac Clovis area which is located 3 to 4km east of the Eau Claire gold deposit (see November 17, 2014 Analyst
Note). A 5,000m drill program is currently testing a number of targets north and south of Lac Clovis that have
been defined by surface summer/fall trenching and prospecting and the locus of geophysical anomalies.
• The objectives of this drill program to find a second gold deposit in close proximity to Eau Claire may
bear fruit as quartz-tourmaline veins (with locally visible gold) and altered rock have been intersected in
the 17 drill holes at Lac Clovis. We note for example that hole ER14-543 intersected an 11.3m interval of
quartz-tourmaline vein and alteration at a depth of 67.4m. We highlight that assays are pending.
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analysis herein reflect the views of the Analyst as at the date appearing above, and are subject to change without notice. The information contained in this document is
derived from sources we deem to be reliable, but cannot be guaranteed. PearTree Securities Inc. (“PT Securities”) and/or its affiliates and/or any of their respective
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• Moving towards a new mineral resources estimate and determining mine ability. SRK Consulting has
started the process of wire framing the 850 West Zone of the Eau Claire deposit and has completed wire framing
of the high-grade (HG) and low-grade (LG) gold domains for the 450 West Zone; these shall serve to support a
new block model resource estimate for 2015. We note that geological modeling of the Eau Claire deposit has
delineated 3 orientations of high-grade gold domains. i) A series of NW-SE trending schist zones (S1 to S3),
aligned parallel to the host rock foliation and following the contour of the felsic porphyry dyke swarm, are cross
cut by ii) a well-defined E-W quartz-tourmaline vein set system, with laminated and piano key breccia veins,
while a iii) WNW-trending gold-bearing domain (S-NW1) has been traced laterally across the 450 West Zone for
approximately 800m (see Exhibit 1). Once wire frames have been validated for the 450 West and 850 West
zones, SRK Consulting shall conduct a statistical analysis of each of the resource domains. Spatial continuity
and other variable attributes of gold shall be evaluated in light of resource classification parameters and lead to
the elaboration of a domain block model. We expect a pit optimizer shall be utilized to evaluate the portions of
Eau Claire gold mineralization that can be mined by open pit in light of metal price & recovery, exchange rate,
mining & processing rates / costs and reporting cut-off grades.
• We believe that Lac Clovis could emerge as a new proximal gold discovery and that management and
the technical team have a much better understanding of the Eau Claire greenstone belt. Indeed improved
geological appreciation in regards to structure, lithology, and alteration has led to the recognition of elements that
control spatial distribution and continuity of potentially economic gold mineralization. We continue to take some
comfort that the next steps in 2015 are to provide a solid resource estimate and a scoping study (PEA) that shall
provide clarity as to the mine plan and the economic viability of the Clearwater Project.
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