Soil geochemical sampling and airborne geophysical surveys led Westmin Resources Ltd. to the periphery of the Eau Claire gold deposit in 1987. A six-kilometre-long gold-in-soil anomaly, ranging from 6 to 200 ppb gold and locally up to 10,000 ppb gold was smeared by glaciers southwest of the deposit, leading to the discovery of visible gold in the B Vein. However, Westmin did not find the Main Group of Veins (MGV), which includes the high-grade P, JQ and R veins, located several hundred metres northeast of the B Vein. In 1999, trenching and stripping of the deposit area by Eastmain and SOQUEM Inc. discovered the MGV when they exposed the high-grade J Vein at surface for a length of 160 metres. Grades in excess of 400 g/t Au (11.7 oz/ton) occur within the stripped zone.

Eau Claire consists of multiple, parallel quartz-carbonate-tourmaline veins, aligned in an east-west trending en-echelon or staggered pattern. This pattern persists both laterally and vertically. The gold deposit extends over an area 1,500 metres long (approx. one mile) by 300 metres wide. Gold-bearing veins are generally one to nine metres thick and extend to at least 900 metres vertical depth. Ore-grade gold also occurs within altered rock bands composed of actinolite-tourmaline-biotite-carbonate along the vein margins. This altered rock is from ten's of centimetres to 10 metres thick and envelopes each of the veins, marking the pathway of the ore forming structure. The Eau Claire deposit is open both laterally and at depth.

P Vein - gold-bearing quartz-carbonate (white) - tourmaline (black) vein

450 WEST ZONE Clearwater Drilling Maps

In 1999, Eastmain and SOQUEM initiated a program of surface stripping across the Eau Claire deposit at 200-metre intervals. This program led to the discovery of the 450 West Zone. Several high-grade, gold-bearing veins were exposed through stripping an area 200 metres long by 50 metres wide near the centre of the Eau Claire deposit at 450 West/100 North. Channel sampling at 5-metre intervals confirmed excellent continuity and grade of the "P, JQ and R Veins". Subsequent stripping and in-fill channel sampling in July 2000 uncovered extensions of these veins at elevated grades as outlined below:

Table 1. Eau Claire Deposit - 450/850 West Zone - Surface Channel Sample data

Significant gold was also found in the altered rock enveloping and extending beyond the limits of the veins. Altered rock composed of actinolite and tourmaline detected from surface sampling assayed up to 0.46 ounces gold per ton (oz/ton) across 55 feet (16 gpt over 17 metres) including, 1.96 oz/ton across 12 feet or 67 g/t over 3.7 metres. This interval includes a section at the eastern end of the JQ Vein, near grid co-ordinates 450W/100N with bonanza gold grades of up to 405 g/t (11.8 oz/ton). Back to Top

850 WEST ZONE
A second area was stripped several hundred metres west of the 450W Zone, between 850 and 950 West. Six new gold-bearing veins, V11 through V16, were uncovered in this area within a large zone of extensive rock alteration. The 850 West Zone is at the western end of a broad fold closure, coincident with both a regional structural break and a major volcanic/sedimentary rock contact.

V12 vein contains an average of 3.45 ounces of gold per ton or 118 grams gold per tonne over a 72-foot length across an average two-foot width. The highest-grade channel sample from V12 assayed 10.4 oz/ton, or 355 g/t gold, across a width of three feet. V11, located immediately south of V12 assayed 1.84 oz/ton gold across 4.3 feet or 63.1 g/t gold over 1.31 metres. None of these veins are included in the gold resource at Eau Claire. Vein 16, situated immediately north of V11 and V12, was traced on surface for 220 feet or 67 metres with an average grade of 0.62 oz/ton gold (21.3 g/t). No gold resources have been calculated from the 850 West Zone.

DISCOVERY HOLE
The discovery hole, C87-L06, clipped the northeastern edge of the Eau Claire gold deposit. This hole intersected a two-metre vein interval, which averaged 497 g/t gold or 14.5 oz/ton across a 6.5-ft thickness. Included in this interval was a 0.10-metre-wide section which assayed 623 g/t gold followed by a second 10-cm sample grading 9.286 kilograms per tonne gold or 271 ounces gold per ton. This hole is located one kilometre east of the veins outcropping at the 850 West Zone. High grade gold is a hallmark of the project. Multi-ounce gold veins have been found at surface and throughout the deposit to a depth of 900 metres. Back to Top



Eau Claire Gold Resource

Based on drilling campaigns completed by Eastmain, SOQUEM and Westmin (Table 2), an indicated and inferred resource has been calculated at Eau Claire. These resource classifications comply with National Instrument 43-101 criteria. SOQUEM outlined an indicated resource at Eau Claire by drilling at 25- to 50-metre intervals from surface to a vertical depth of 300 metres. Eastmain completed four phases of drilling at 100-metre intervals with the objective of determining the lateral and vertical extent of the Eau Claire vein system below 300 metres to a vertical depth of 900 metres. The deposit is open both laterally and at depth. The deepest tier of drilling intersects the extension of the gold-bearing MGV with grades comparable to those found in 450 West zone surface channel samples at a vertical of well over 600 metres. Several significant assays including one ounce gold per ton at roughly 2,000 ft or 600 metres below surface (ER-44) and 7.10 g/t over 4.2 metres 716 metres below surface (0.20 oz/ton over 13.8 ft. in hole 45) were returned from deeper intersections during the 2004 program. ER06-56 assayed 8.64 g/t Au over a 3.0-metre length at a vertical depth of 880 metres. This intercept includes an interval averaging 15.85 g/t Au across 1.5 metres and 0.5 metres containing visible gold, assaying 42.0 g/t Au.

Indicated resources:
1,029,332 tonnes @ 9.46 g/t gold (0.28 oz/ton)
310,000 ounces gold

Inferred resources:
3,049,660 tonnes @ 6.90 g/t gold (0.20 oz/ton)
680,000 ounces gold


This resource estimate is based on 187 diamond drill intercepts and includes multiple veins (D, G, H, I, P, JQ, R, S, 6V1, 6V2, 6V3 & 6V4) and one Au-Cu-Ag-rich sulphide zone. Calculations are based on a 4.0-g/t gold and a 2.5-g/t gold cut-off grade, over a minimum 1.5-metre horizontal thickness, and a drill hole pierce-point spacing of 25 and 50 metres for indicated and inferred categories respectively. A specific gravity of 2.85 t/m3, determined from metallurgical sampling, was used to calculate the tonnage of each ore block.

The Eau Claire resource grade varies directly with cut-off grade, as illustrated in Table 3. The indicated and inferred resource grade increases to 15.1 g/t gold and 11.8 g/t gold respectively at a cut-off grade of 7 g/t gold. Over half of the gold within the deposit is within higher grade ore shoots. Furthermore, the average gold grade for the G, H and I veins is substantially higher than the deposit average, ranging from 10.5 to 17.4 g/t gold (Table 2). Back to Top

Table 2: Eau Claire Deposit Mineral Resource Estimate

*For the purposes of calculating a resource cut grade, all assays greater than 34.28 grams gold per tonne have been reduced to 34.28 g/t gold. Channel sample and drill core samples were analyzed by fire assay methods at ALS Chemex Laboratories. Duplicate check assays were completed for all samples containing more than 500 ppb gold. The inferred and indicated resource classification has been applied in accordance with the Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions (CIM Oct. 2000, v.93, No. 1044, p.53-61) and conforms to National Instrument 43-101. Mr. Eddy Canova (Qualified Person) supervised the calculations. Due to the uncertainty which may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Back to Top

Table 3. Eau Claire Deposit - Resource Grade versus Cut off grade

Cut-off grade refers to the leanest or lowest grade material included in the resource estimate. Table 2 illustrates the effect of applying various gold cut-off grades to the resource calculation. A positive correlation exists between higher resource grades with higher cut-offs. As the cut-off grade for the deposit is increased the average resource grade (inferred and indicated) also increases while the total tonnage decreases. With additional closer-spaced drilling it is assumed that there may also be an increase in the number of ounces at higher average grades. Back to Top

Preliminary metallurgical work from surface samples of ore veins at Eau Claire demonstrated that 60 to 80% of the gold can be recovered through a gravity circuit and 95 to 98.5% recoveries can be expected from conventional extraction techniques. In 2001, four composite samples were taken from the P, JQ, R and V16 veins for metallurgical testing. This sampling provides important information on ore density, grinding characteristics, grade, gold fineness, gravimetric- and total gold recovery. Metallurgical tests indicate that the ore is free milling and that density was previously underestimated. Assay data from the metallurgical samples correlated very well with surface channel assay results. Back to Top

A more comprehensive metallurgical test has been initiated with SGS Minerals (Lakefield Research) in order to further evaluate and determine an optimum flow-sheet design for the gold deposit. Six tonnes of quartz-tourmaline vein and schist material from HQ drill core has been submitted for testing. Back to Top

Eastmain contracted P & E Mining Consultants for the purposes of completing an in-house economic analysis or scoping study of the Eau Claire gold deposit. The evaluation began with converting the existing geological database (drilling and trenching data) into a three dimensional format using GEMCOM mining software. Preliminary results have confirmed that there is excellent continuity of gold mineralization within the deposit from vein to vein. Three dimensional solid models have been created for each vein, with the objective of determining new target zones within the deposit. The modeling will also help to determine the best way to convert resource ounces to mineable ounces and provide a framework for future exploitation. From this study it was evident that the upper portion of the deposit might be suitable for extraction by open pit mining methods. This study initiated the large diameter (HQ) drill program which has generated a large number of high grade gold intercepts over the past 16 months. Back to Top

In November 2007 the Corporation initiated a definition drill program focused on the upper 1/3rd of the Eau Claire Gold deposit, to outline near surface, high grade resources which could be extracted by open pit mining methods. 125 large diameter (HQ) drill holes have intersected over one thousand veins and schist zones. 365 of these vein intersections have an average grade of 14 grams gold per tonne or (0.41 ounces per ton), including over 250 vein intercepts with an average grade of 19.6 grams gold per tonne (0.57 ounces) and 100 vein intercepts at 40.4 grams gold per tonne (1.18 ounces per ton). Recently hole 190 intersected a half-metre wide vein containing 10.2 ounces gold per ton, 580 metres west of the discovery hole which intersected 14 ounces gold per ton across two metres from the same vein. Visible gold has been observed in 147 veins from the recent drilling including 2.54 kilograms gold per tonne in hole 98 (74 ounces per ton) and 92.7 grams gold per tonne (2.71 ounces per ton) over 3 metres in hole 87 at a depth of 18.5 metres. The drill program is scheduled to continue throughout the 2009 field season. Back to Top

During the 2008 drilling campaign a number of drill holes were extended north of the known limits of the Eau Claire Gold Deposit. Sixty high-grade gold-bearing veins were intersected, referred to as the T Veins, including 17.99 g/t Au (0.53 ounces per ton) over 4.7 metres in hole ER136, 24.57 g/t Au (0.72 ounces) over 3.0 metres in hole ER08-145, 15.49 g/t Au (0.45 ounces) over 3.0 metres in hole ER08-148 and 74.15 g/t Au (2.17 ounces) over a metre in hole ER08-132. All of these gold-bearing veins are outside of the previous resource estimate. The T Vein intercepts occur within an area 300 metres long between vertical depths of 100 to 250 metres. Future drilling in 2009 will test the lateral and vertical continuity of this new vein series and evaluate if they extend to surface. Back to Top

3D geological modeling of the Eau Claire deposit has identified a significant porphyry gold target at depth. Drilling to date indicates there is a spatial association between felsic porphyry intrusions and the gold-bearing the MGV system. Gold grade x thickness contours of this south-dipping, sheeted quartz-tourmaline vein complex illustrate a southeasterly plunge at 45o. Previous drilling at the west end of the deposit confirms the porphyry is mineralized where it has been crosscut by the vein system. A north-dipping tonalite stock or slab, located immediately south of the Eau Claire deposit at surface, is projected to intersect the best grade x thickness trend at a vertical depth of between 750 and 850 metres depth near the eastern end of the deposit. Winter drilling is required to test the plunge extension of the deposit at the projected porphyry gold target. Back to Top

Goldcorp Inc. purchased the Eleonore property including the Roberto Gold deposit in December 2005 from Virginia for approximately $500 million; Gold was trading at US$500 per ounce. As of December 31, 2008, the Roberto deposit contained 2.3 million ounces of measured and indicated gold resources at an average grade of 10.05 grams per tonne, and 3.0 million ounces of inferred gold resources at an average grade of 12.75 grams per tonne. Roberto is a sedimentary-hosted gold deposit, whereas Eau Claire is volcanic-hosted. Both gold deposits occur near a regional structural and stratigraphic "break" situated between two "supergroups" of rocks. This regional break extends throughout the district highlighted by lowermost volcanic rocks overlain by sediments. This key marker unit is also highlighted by a polymictic conglomerate indicative of local basin environments, favourable for "ore" deposition. These key geological criteria along with other observations from both gold deposits will lead to additional discoveries in the district. Back to Top

Clearwater is similar in geology, grade and potential to other multi-million-ounce gold mines within the Canadian Shield. Rock-type, alteration, structure and distribution of gold at Eau Claire are very similar to those found at some of the largest gold producing districts in Canada, such the Timmins mining camp of Ontario. Both Clearwater and the gold deposits of the Timmins camp are associated with mafic volcanic/sedimentary rocks contacts and major deformation zones or breaks, with secondary cross structures. Felsic porphyries are also important to both settings, possibly acting as "heat engines" to ore-forming hydrothermal systems.

Three of the major gold deposits at Timmins (Hollinger, McIntyre and Dome; HMD Complex) account for in excess of 40 million ounces of gold. In Timmins, as at many profitable mining camps, high-grade veins found at surface led to more ore at depth. Dome was discovered in 1909 from stripping of gold-rich quartz veins found at surface, and the mine is still producing today - some 14 million ounces later. The entire 65-million-ounce Timmins gold camp would fit spatially into the western third of the Clearwater Project. Gold deposits often occur in clusters with several deposits in the same area creating a mining camp. Once one deposit is found the chance of finding a second one increases significantly. Major gold-bearing structures or metal pathways often continue at depth for many miles.

At Red Lake, Goldcorp discovered the high grade zone 5,000 ft. below the surface after more than four decades of mining! Ore horizons mined in the early years of production led to the bonanza ore being mined today. The "New" Red Lake discovery is perhaps the richest gold deposit on the planet. At Clearwater, the Eau Claire gold deposit has only been explored over a small area to a depth of 900 metres (2,950 ft). No drilling has been completed below this level. The Red Lake camp, which accounts for 23 million ounces of gold, hosts deposits which extend three to four times this depth. Thus the potential for additional high-grade resources at Clearwater is excellent. Back to Top

The best place to explore for additional ore is beside and below an existing deposit. With five gold deposits discovered to date, and more to be found in the future, the Eastmain/Opinaca region is developing into a formidable mining district. Eastmain Resources Inc. has significant exploration programs in and around three gold deposits in the district.

Our exploration programs include: 1) regional target generative work - soil sampling, prospecting, geological mapping and detailed airborne VTEM geophysical surveys; 2) local target definition and testing - detailed soil and rock sampling and trenching and 3) deposit evaluation work and drilling.

As the price of gold continues its long-term upward trend Eastmain Resources is well positioned to capitalize on its developments in Canada's newest gold mining district.

Regional surface exploration in the search for a second gold deposit on the property is continuing at Clearwater. In light of the recent gold discovery at Eléonore, sedimentary rock formations and margins of felsic intrusions were the focus of our field work. Several target areas have been identified for early- to mid-staged exploration. These include the Serendipity, Clovis Lake, Labyrinth and North Eau Claire River areas. VTEM (Dream Catcher) airborne magnetic and electromagnetic surveys covering 76 km2 have been completed on three of these key areas of the Clearwater property. Back to Top

The Eastmain/Eleonore region is an evolving mining district with future gold production on the horizon. The Corporation is well positioned with 100% ownership of two high-grade gold deposits (Eau Claire and Eastmain Mine) and a new discovery at Eleonore South in joint venture with our major shareholder, Goldcorp. Our near term objectives at Clearwater are to continue the large diameter (HQ) drill program throughout the 2009 field season focused on expanding and outlining near surface gold resources that could be extracted by open pit methods. Drilling over the past 16 months has confirmed the high grade character of the Eau Claire deposit and has expanded its dimensions. Definition drilling will continue both within and outside the known limits of the deposit, especially focused on the newly discovered T Vein series to the north. Surface geological mapping and sampling will focus on a five to eight kilometre corridor lateral to Eau Claire during the 2009 field season. Back to Top