The President and CEO of Eastmain Resources, expands on his company’s recent mining developments and why he’s excited for the future.
“Right now, we’re drilling at our main project, which is our Eau Claire gold deposit,” said Don Robinson, President and CEO of Eastmain Resources. “We will be drilling from now until the end of the year on that. We have also recently learned about some drill assays that confirmed high grade in the deposits. And we were fortunate enough to find a new prospect about a half of a kilometer away from the deposit.”
There are two main reasons why Robinson is excited about these recent developments. “The first is grade,” he said. “Everybody likes high grade and the second reason is that the new prospect, or the assays, are just stellar. It was 254 grams of gold, 650 grams of silver, and greater than 500 grams of tellurium. So, that’s about seven plus ounces of gold and 18 ounces of silver.”
What’s even more exciting is that the company has yet to find the limits of the deposit. “When we keep finding new prospects that are that kind of grade,” said Robinson, “it gives us ammunition to increase the size of the resource and the importance of the project.”
Because of the overall potential, Robinson stresses the importance of a systematic approach. “You’ve got to go in there, put a trench on it and map it out, and then drill it,” he said. “And, that is what leads to success. You skip a step, you are in danger of missing the discovery.”
As of right now, Eastmain is only focused on the top third of the deposit. “We had outlined 300,000 ounces for the top third,” explained Robinson. “We expect there to be more than 300,000 ounces with the new resource. The overall deposit is a million ounces and by inference, the overall size of the deposit will get bigger with time and with drilling.”
The company has also undergone the process of metallurgy. “We hope to get that done by the end of this year or at the latest, January of 2010,” said Robinson. “You put that along with all of the new drill results and it will allow us to update the resource.”
Some of the deposit highlights include, 400 drill intercepts that are at just under 0.4 ounces per ton, 300 intercepts that are at half an ounce, and 200 intercepts that are at 0.8 ounces. “In addition, we have just finished a drill program on our joint venture with Goldcorp,” added Robinson. “We’ve got 15 holes into this new prospect. It’s 1.2 kilometers long and open, and we’ve hit mine rocks, and that’s what we like about it.”
The key thing that Robinson has observed in the core so far is that there are wider zones containing the same trace minerals that are found at the mine property. “There’s thousands of assays that are being shipped to the assay lab, and so this quarter’s going to be pretty exciting for us because we have a lot of assay data from Eau Claire drilling, and a lot of assay data from the Goldcorp joint venture to tell our shareholders about.”
Investors should be excited as a whole, since the economy has begun to turn around. “We’ve since recovered back to where we were 12 months ago, and now it’s kind of clear sailing and blue skies,” said Robinson. “Our shareholders have been loyal, and now with gold price improving and strengthening, clearly the assets that we own are benefiting from the gold price. Just to put it in perspective — if we change the grade of our deposit by a gram, you change the asset value by 10 percent.”
“We just released the third quarter financial statements on September 14th,” Robinson continued. “It showed that there’s $17.1 million in working capital, not counting the money that’s going to be refunded to us by the Quebec government. So, our annual budget, year in and year out, is $4 million.”
The Quebec government has always been friendly and supportive of mining projects conducted within their region. “They want you to be there so much so that you get half of [your investment] refunded. So, we’re sitting in a position where the assets are really shining brightly and share price is starting to reflect the improvements.
Eastmain has drawn a lot of positive attention. Many experts have been quoted with very favorable comments.
Eastmain Resources Inc. (TSX:ER). All I really tell anybody who asks me about Eastmain is, 'Buy it and put it away.' I talk about very few companies that way, and rarely would that apply to a company that is not a major. Eastmain is nowhere near a major, but they're in great shape. They have a beautiful deposit, over a million ounces of high-grade material at Clearwater. They've had results as high as 75 ounces per ton gold, but the lower grade 1 ounce per ton material is consistent throughout the property. The beauty is it's not just some little core area with these nice newsworthy grades. It's everywhere.
This is very attractive to a major, and Goldcorp Inc. (NYSE:GG) just so happens to be very nearby. So as far as I know, Eastmain will continue to develop their project until it's time for Goldcorp to buy them out. Goldcorp already owns 9.9%. But Eastmain is in a perfectly good position. They've got all weather roads, they've got power lines going to the property, James Bay is right there. So they have all the ingredients and if they wanted to go after this on their own, they could. But they've also got the luxury of being right beside a very interested major. On top of all of this, Eastmain has $17 million in the bank, which is really like having $25 million because for every dollar you put in the ground, you get 50 cents back from the government in Quebec. Very few jurisdictions do that.
- The Gold Report Interview with Victor Goncalves (11/06/09)
Eric Lemieux, Mining Analyst with Laurentian Bank Securities in his "Action Note", regarding Eastmain Resources stated, “We believe that Eastmain is advancing on several fronts and holds a portfolio of gold projects of increasing value. Pending catalysts for Eastmain include: 1) Future drilling and exploration results; 2) Development on Eau Claire; 3) Discovery on Eleonore South 4) Revisiting the past producing Eastmain mine and area; and 5) Continued gold price appreciation. We recommend Eastmain with a Speculative Buy rating and are increasing our 12-month target price to $2.20 per share from $1.60”.
Other favorable evaluations can be found at:
· Eastmain Resources featured on the GOLD REPORT. Learn more here
· Struthers Resource Stock Report gives Eastmain a "buy" recommendation. Learn more here
· Trader Tracks gives Eastmain a "buy" and "hold" recommendation. Learn more here
· BNN chats with Victor Goncalves president, Equities & Economics Report about Eastmain Resources. Learn more here
· Eastmain interviewed on the Korelin Economic Report at the Phoenix Resource Investment Conference. Learn more here
· Natural Resource TV interviews Eastmain's President at the Vancouver Investment Conference. Learn more here
Other projects on Eastmain’s docket include a deposit from a bankruptcy called the Eastmain Mine. “We paid 10 cents on the dollar for this project,” said Robinson. “We’ve had a crew on the site for the last two months. There is a deposit that is high grade. I went through all of the old historical data and calculated the average grade in the deposit. The highest-grade hole that we found in the deposit was 53 grams of gold, 59 grams of silver and payable copper; that’s 1.56 ounces gold across 13 meters or 43 feet. Anytime you see a significant, world class gold deposit, sooner or later you will find those kinds of numbers.”
The game plan for the Eastmain Mine is to get it drill ready. “The first drill program of many, will be starting in first quarter of 2010,” said Robinson. “That means there will still be news coming all the way into the next part of next year.”
Robinson is thrilled about Eastmain’s prospects overall, so much in fact that he invested some of his own money. “If you believe in your own company, then you show it with your pocketbook,” he said. “And we have —management has increased their ownership.”
Analyst Comments from The Gold Report About Eastmain Resources
Gold Report: investment coverage of gold and other precious metals ...Sep 25, 2009 ... Eastmain Resources Inc. (TSX:ER). All I really tell anybody who asks me about Eastmain is, 'Buy it and put it away. ...
www.theaureport.com/pub/co/225
Gold Report: investment coverage of gold and other precious metals ...Augusta Resource Corporation ... Canplats Resources Corp. ... Eastmain Resources Inc. ... EurOmax Resources Limited ... Rare Element Resources Ltd. ...
www.theaureport.com
Gold Report: investment coverage of gold and other precious metals ...Eastmain Resources Inc. TSX:ER - Eastmain Resources has well over $20MM in cash from their recent offering and warrant exercises. ...
www.theaureport.com/cs/user/query/q/4
The Gold Report - investment coverage of gold, silver, uranium and ...Eastmain Resources Inc. ... Casey's Daily Resource Plus (07/24/09) ... Rare Element Resources Ltd. (RES: TSX.V) "My readers tripled their money in the stock ...
www.theaureport.com/pub/htdocs/home.html
Gold Report: investment coverage of gold and other precious metals ...Eastmain Resources Inc. (TSX:ER). All I really tell anybody who asks me about Eastmain is, "Buy it and put it away." I talk about very few companies that ...
www.theaureport.com/pub/na/3240
The Gold Report - NewslettersEastmain Resources Inc. (TSX:ER) ". . .in an advantageous spot because they do not need the sky-high gold prices to be attractive." ...
www.theaureport.com/pub/htdocs/newsletters.html
Joe Foster: Chemistry Looks Good for Gold - Gold Report ...Mar 13, 2009 ... TGR: Is Eastmain Resources Inc. (TSX:ER) in your fund? Or does it still interest you? JF: Yes to both. We do have a position in Eastmain. ...
www.theaureport.com/pub/na/2347
AUreport - Gold Report: investment coverage of gold and other ...Aug 28, 2009 ... V:TMM), Eastmain Resources Inc. (TSX:ER), Endeavour Silver Corp. .... Roger is a regular speaker at major precious metals and resource ...
www.theaureport.com/pub/na/2972
[PDF] VMBL Mining NewFile Format: PDF/Adobe Acrobat - View as HTML
Eastmain Resources is a strong explorer focused on the Eastmain River area of ...... Our 12-month target for Eastmain Resources Inc. is $1.50 per share. ...
www.theaureport.com/cs/user/.../co.../LBS_Recommendations_on_MD.pdf
Gold Report: investment coverage of gold and other precious metals ...Miranda has ongoing partnerships with Newcrest Resources Inc., Barrick Gold ... TGR: You compared Miranda with Eastmain. What makes them "good ones"? ...
www.theaureport.com/pub/co/460
