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  • 2018 TECHNICAL REPORTDownload 

  • Mineral Resource1,2,3,4 (effective January 8, 2018)
     

    Mineral Resource Estimate (2.5 g/t Au cutoff)
    Category Tonnage (kt) Au (g/t) Contained Au (koz) Cu (%) Contained Cu (Mlb) Ag (g/t) Contained Ag (Moz)
    Indicated 899 8.19 236.5 0.13 2.6 8.0 0.2
    Inferred 579 7.48 139.3 0.16 2.0 8.2 0.2
     
  • Size and Location

    18,614 ha - EEYOU-ISTCHEE, JAMES BAY, QUEBEC

  • Ownership

    100% 

  • Stage

    ADVANCED EXPLORATION

  • Potential Mining Method

    OPEN PIT AND UNDERGROUND

  • Historical Production

    40,000 OZ @ 10.58 G/T AU (1995)

  1. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
  2. The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
  3. The Mineral Resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
  4. The 2.5 g/t Au cut-off grade utilized in the above table was derived from US$1,250/oz Au, $0.76 US$ exchange rate, C$85/tonne mining cost, C$25/tonne processing cost, C$15/tonne G&A cost and 95% process recovery.

Details

The Eastmain Mine Project is centred at roughly 52o 18’ N Latitude and 72o 05' W Longitude, within the Upper Eastmain River Greenstone Belt, approximately 320 km north-northeast of Chibougamau and about 800 km north of Montréal, Québec. The property consists of 152 mineral claims and one industrial lease permit. The property covers approximately 8,014 ha and is owned 100% by Eastmain Mines Inc., a wholly-owned subsidiary of the Company. The former Eastmain Mine, as defined by the perimeter of an historic mining lease, is subject to a production royalty (NSR) of 2.3% through production of the next 250,000 oz produced and 2% thereafter. A package of claims surrounding the mine precinct is subject to a production royalty (NSR) of 2%.

The property is accessible via Route 167 which was extended in 2013 from Temiscamie through the Eastmain Mine Project to the Renard diamond mine. The road provides permanent all-weather road access to the property. Completion of this route has facilitated access to the property and significantly reduced exploration costs. Road access also allows for evaluation of a wider range of evaluation and development options for the historic Eastmain Mine deposit.

The area around the Eastmain Mine Project is gently rolling to flat lying, with local relief varying in a range of 200 m. The average elevation in the vicinity of the Eastmain Mine camp is about 500 m ASL (Above Sea Level). A dominant feature of the landscape is the Otish Mountains located approximately 15 km south of the property with steep ridge crests and mountains which reach 1,000 m ASL in elevation.

History

In 1969, Placer Development Limited discovered the Eastmain Gold Mine, The gold-silver-copper bearing A Zone was intersected while drill-testing an airborne geophysical conductor. Drill testing of airborne conductors in the 1980’s defined two additional gold-rich zones known as the B and C zones. In the 1980's Placer Dome Ltd. ("Placer") completed definition drilling on the A, B and C zones of the Eastmain gold deposit.

In 2004, Campbell Resources Inc. ("Campbell") reported a measured and indicated mineral resource of 878,100 tonnes at 10 g/t Au for the Eastmain Mine Gold deposit containing 255,750 oz of gold and 4.1 million lbs of copper, including measured resources of 91,500 tons grading 0.268 oz/t gold and indicated resources of 786,600 tons at 0.294 oz/t gold (Campbell, 2004 Annual Report, available on SEDAR at www.sedar.ca). Several historical reports including a Feasibility Study prepared by MSV in 1990 and a report entitled Reserves/Resources Audit of Mining Property by MetChem in 2001, support Campbell’s disclosed estimate.

In February 2007, Eastmain earned a 100% interest in the Eastmain Mine property by issuing $2.5 million in cash, 1,000,000 Common Shares and 500,000 share-purchase warrants at an exercise price of $1.00 per share, valid for 12 months, to Campbell. On July 18, 2007 Eastmain issued an additional 1,000,000 Common Shares and 500,000 share-purchase warrants at an exercise price of $1.50 per share, valid for 12 months, to complete the transaction. Campbell retained a 2.3% NSR on production from the initial 250,000 oz of new production from the historic Eastmain Mine and 2.0% thereafter. Eastmain was granted the option to purchase one-half of the NSR for any production over and above 250,000 ounces of gold for $1 million.

In September 2012, Eastmain exercised its right of first refusal to purchase the NSR on the Eastmain Mine property over and above an initial production of 250,000 ounces of gold (the "Initial Production Royalty") from CBay Minerals Inc. ("CBay"). Franco Nevada Corporation and Virginia Mines Inc. (now Osisko Gold Royalties) jointly acquired the 2.3% Initial Production Royalty from CBay.

Geological Setting

The property is underlain by the Upper Eastmain River Greenstone Belt, which extends for 100 km in a north-northeast direction. Widespread rock geochemical anomalies in nickel-copper, nickel-chromium, copper-zinc and gold suggest that these rocks are highly prospective for both gold and nickel-copper-platinum deposits.

The Eastmain Mine gold deposit is interpreted as the mineralized cap to the third of four cycles on the property and is part of the auriferous mineralization identified as the mine trend, a very distinctive marker horizon which can be traced for over 10 km across the Property along a NW-SE strike. The entire lithological sequence in the mine area is interpreted to be overturned.

The Eastmain Mine Gold Deposit consists of three gold-rich zones known as the, “A”, “B” and “C” Zones which strike southeast and dip and plunge to the northeast at 45o to 50o. The deposit occurs as massive sulfide lenses, stringers and disseminated sulphides, containing up to 15-20% Pyrrhotite+Pyrite+Chalcopyrite with traces of magnetite, sphalerite and molybdenite. The zones range from 2-7 m in thickness and are associated with deformed (boudinaged) exhalite in a sequence of rhyolitic tuffs, mafic tuffs, basalt and ultramafic rock. Eastmain interprets the deposit as a gold-rich VMS deposit.

Mineral Resources

On January 9, 2018, Eastmain issued its NI 43-101 Mineral Resource Estimate for the Eastmain Mine Project. The new Mineral Resource Estimate demonstrated the high average gold grade of the Eastmain Mine mineralization and consistency with historic interpretation and Mineral Resource Estimates.

The new estimate reports increased tonnes and contained gold ounces over the historic estimate, resulting from increased drilling data, a higher gold price (US$1,250), lower cut-off grade, and the inclusion of Mineral Resources from the C Zone.

The new Mineral Resource Estimate prepared by P&E is based on data from 242 drill holes (42,251 m) within the limits of the Mineral Resource domains, with an effective date of January 9, 2018. Total Indicated Resources of 899,000 t at an average grade of 8.19 g/t Au for 236,500 Au oz and Total Inferred Resources of 579,000 t at an average grade 7.48 g/t Au for 139,300 Au oz are reported.

Mineral Resource Estimate at 2.5 g/t Au Cut-Off (effective January 9, 2018) (1)(2)(3)(4)

Category Tonnes (k) Grade
(g/t Au)
Contained
Au (oz.)
Grade
(g/t Ag)
Contained
Ag (k oz.)
Grade
(% Cu)
Contained
Cu (k lb.)
Zone A              
Indicated 59 10.1 19,300 13.9 27 0.25 325
Inferred 225 9.17 66,400 10.6 77 0.20 992
Zone B              
Indicated 839 8.05 217,200 7.6 205 0.12 2,220
Inferred 183 8.20 48,400 6.3 37 0.11 444
Zone C              
Indicated - - - - - - -
Inferred 170 4.49 24,600 6.8 37 0.17 637
All Zones              
Total Indicated 899 8.19 236,500 8.0 232 0.13 2,577
Total Inferred 579 7.48 139,300 8.2 152 0.16 2,042

Foot note drop down!

  1. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
  2. The Inferred Mineral Resource in this estimate has a lower level of confidence that that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
  3. The Mineral Resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
  4. The 2.5 g/t Au cut-off grade utilized in the above table was derived from US$1250/oz Au, $0.76 US$ exchange rate, C$85/tonne mining cost, C$25/tonne processing cost, C$15/tonne G&A cost and 95% process recovery.

Selected Resource Estimation Parameters - Eastmain Mine Mineral Resource Estimate January 2018

Exchange rate US$0.76 = C$1.00
Gold price (per ounce) US$1,250 / C$1,645
Estimation method ID3 interpolation
Block model (xyz) 2.5 m x 5 m x 2.5 m
Composites required:  
Measured 5 composites, 3 drill holes, within 5 m x 30 m x 20 m
Indicated 3 composites, 2 drill holes, within 10 m x 60 m x 40 m
Inferred 1 composites, 1 drill hole, within 20 m x 120 m x 80 m
Cut-off grade 2.5 g/t Au
Process recovery 95%
SG 2.90 t/m3
Grade Capping Domain  Au Cap g/t | Ag cap g/t | Cu Cap %

 

     A             100               60            None

     B               60               40            None

     C            None           None          None

Estimated operating costs  
Mining cost (per tonne mined) C$85
General and administrative (per tonne processed) C$15
Processing cost (per tonne processed) C$25

Mineral Resource Sensitivity to Cut-Off Grade - Eastmain Mine Mineral Resource Estimate, January 2018

Cut-Off
(g/t Au)
Tonnes (k) Grade
(g/t Au)
Contained
Au (oz)
Grade
(g/t Ag)
Contained
Ag (k oz)
Grade
(% Cu)
Contained
Cu (k lb)
Indicated              
5.0 565 10.9 197,700 9.6 175 0.15 1,868
4.0 672 9.86 213,200 9.0 195 0.14 2,074
3.0 814 8.76 229,000 8.4 218 0.14 2,512
2.5 899 8.19 236,500 8.0 232 0.13 2,577
2.0 1,000 7.59 243,700 7.8 249 0.13 2,866
Inferred              
5.0 305 11.2 109,700 9.6 96 0.17 1,143
4.0 363 10.1 118,100 9.2 107 0.17 1,360
3.0 461 8.69 128,900 8.6 128 0.16 1,626
2.5 579 7.48 139,400 8.2 152 0.16 2,042
2.0 689 6.65 147,200 7.8 172 0.16 2,430

All historic and current exploration data in the form of drill holes and assay information were verified and compiled by Eastmain in a GeoticTM database. Topographic data is sourced from a LIDAR survey completed by Eastmain. Underground mine infrastructure (ramp and workings) are derived from digitization of historic level plans and sections obtained upon acquisition of the Eastmain Mine Property in 2011. All information was subsequently entered into GEMSTM, reverified and mineralized domains were wireframed by the Company. Eastmain delivered the Mineral Resource wireframes and all underlying date to P&E for review and editing.

Resource Calculation and Categorization

Grades for Au (g/t) were interpolated into blocks by the inverse distance cubed (“ID3”) method. In the view of both P&E and Eastmain, the conservative methodology provides the best framework for the planning and execution of exploration and potential future development and production of this asset.

Three passes were used to interpolate grade into all of the blocks in the wire frames. For Pass 1, the search ellipse size (m) for all vein domains was set at 5 x 30 x 20 in the X, Y, Z direction; for Pass 2, the search ellipse size for each domain was set at 10 x 60 x 40; and for Pass 3, the search ellipse size was set at 20 x 120 x 80. Blocks were classified as Measured if they were populated with grade during Pass 1 and Indicated if they were populated with grade during Pass 2 of the interpolation procedure. Pass 3 search ellipse size was set to assure all remaining blocks within the wire frames were assigned a grade. These blocks were classified as Inferred. In this estimate no blocks were categorized as Measured.

Grades were interpolated into blocks using a minimum of five and maximum of 16 composites in three holes to generate block grades during Pass 1; a minimum of three and maximum of 16 composites in two holes were required for Pass 2. A minimum of one and maximum of 16 composites in one hole were used to generate block grades during Pass 3. A block model was constructed in UTM coordinates using a block size of 2.5 m (X) 5.0 (Y) and 2.5 (Z).

As part of the Mineral Resource Estimation, seven drill hole locations were selected to verify results of historic drilling. Two holes were selected as twin holes while five were selected as triangulation points between several near neighbour holes representing a range of several years of historic drilling from 1987 to 1989. The verification holes tested between three neighbour holes at distance ranging from 10 m to 25 m to each. The verification work was successful in corroborating the position of the mineralized horizon developed from the historic database and the continuity of mineralization with neighbouring holes. All verification holes report comparable grades to those in neighbouring historic holes.

 

Results from Verification Drill Program Eastmain Mine Deposit Program (all intervals in core length)

Zone Hole ID Mineralization Historic Drill Hole Validated
A EM17-116 (Triangulation) 4.4 m @ 23.1 g/t Au 332001: 2.97 m @ 6.15 g/t Au
332003: 4.65 m @ 16.0 g/t Au
332005: 4.45 m @ 4.53 g/t Au
A EM17-117 (Triangulation) 3.2 m @ 8.18 g/t Au 87CH28: 3.62 M @ 8.48 g/t Au
87CH24: 3.20 m @ 7.13 g/t Au
87CH25: 4.46 m @ 8.35 g/t Au
B EM17-118 (Twin) 7.0 m @ 12.9 g/t Au 87CH08: 5.36 m @ 8.16 g/t Au
B EM17-119 (Twin) 3.0 m @ 17.0 g/t Au 332032: 4.88 m @ 40.7 g/t Au
B EM17-120 (Triangulation) 2.0 m @ 14.7 g/t Au 89CH03: 4.12 m @ 32.6 g/t Au
89CH12: 2.5 m @ 14.1 g/t Au
89CH49: 1.95 m @ 8.85 g/t Au
B EM17-121 (Triangulation) 10.0 m @ 7.27 g/t Au 332033: 5.3 m @ 1.85 g/t Au
332044: 4.98 m @ 2.56 g/t Au
332045: 8.78 m @ 79.2 g/t Au
B EM17-122 (Triangulation) 7.0 m @ 10.1 g/t Au 89CH26: 14.45 m @ 2.60 g/t Au
EM10-28: 9.5 m @ 12.2 g/t Au
332064: 6.94 m @ 15.0 g/t Au

Future Exploration

In light of market weakness, the Company has elected to defer spending on the Eastmain Mine Project. This decision was made taking into account general capital and commodity price weakness in addition to increased priorities at the Company’s Clearwater and ESJV properties. The Company will continue to review market conditions and in the event they markedly improve, will consider resuming exploration and development activities. Eastmain will also consider potential interest in the Eastmain Mine Property from other parties.

Management Site Trip
June 2016