Eastmain Resources Inc. (“Eastmain” or the
“Company”) (TSX:ER) (OTCQX:EANRF) announces the Company has filed
the 43-101 Technical Report titled,
“Technical Report,
Updated Mineral Resource Estimate and Preliminary Economic
Assessment on the Eau Claire Gold Deposit, Clearwater Property,
Quebec, Canada”, prepared by P&E Mining Consultants
Inc. (“P&E”) as initially disclosed May 23rd, 2018 on the
Company’s profile on SEDAR (www.sedar.com), and on the Company’s
website (www.eastmain.com). The PEA demonstrates robust economics
for a combined open pit and underground mining operation with a
mine life of 12 years.
As described in the report, the PEA is based on
a combined open pit and underground development scenario of a 2018
updated Mineral Resource Estimate prepared by SGS (Canada) Inc.
containing 1,210,000 tonnes of open pit Measured and Indicated
Mineral Resources grading 5.86 g/t Au (228,000 oz Au) and 43,000
tonnes of Inferred Mineral Resources grading 5.06 g/t Au (7,000 oz
Au) with subsequent development of underground Mineral Resources
including Measured and Indicated Mineral Resources of 3,084,000
tonnes grading 6.30 g/t Au (625,000 oz Au) and Inferred Mineral
Resources of 2,339,000 tonnes grading 6.56 g/t Au (493,000 oz
Au).
The PEA demonstrates that approximately 71% of
the 2018 updated Mineral Resources are potentially extracted under
the mine plan supported by the PEA. For purposes of mine planning,
the Potentially Extractable Portion of the Mineral Resource
Estimate is comprised of 6.4 million tonnes at a diluted grade of
4.9 g/t Au, containing just over 1 million ounces of gold. The
mineralized material modeled to be mined in the PEA contains
Inferred Mineral Resources (30%) which cannot be considered Mineral
Reserves. These Inferred Mineral Resources will require further
exploration and definition to potentially meet the criteria to be
classified as Indicated or Measured Mineral Resources before being
considered for conversion to Mineral Reserves at the next level of
detailed economic study.
PEA Highlights
- Pre-tax Net Present Value at 5% discount rate (“NPV5%”):
$381 million
- After-tax NPV5%: $260 million
- Pre-tax Internal Rate of Return (“IRR”): 32%
- After-tax IRR: 27%
- After-tax Payback: 3.1 years
- Pre-production Capital Cost, including contingency: $175
million
- Life of mine (“LOM”) Sustaining Capital Cost: $108
million
- Average LOM Total Cash Cost: $632 Au per ounce (oz)
(US$486/oz)
- Average LOM All-In Sustaining Costs (“AISC”): $746/oz Au
(US$574/oz)
- Average Annual Production (LOM): 79,200 oz gold
- Average Annual Production (yrs 1-10): 86,100 oz gold
- LOM recovered gold production: 951,000 oz;
Opportunities to Enhance Project Value
Exploration - Deposit Expansion and Property-Scale
Satellite Mineral Resource Development
Opportunities exist to expand and build Mineral
Resources proximal to the proposed underground mine infrastructure
at Eau Claire. In particular, exploration on the 450W Zone has
indicated that gold mineralization may extend at depth to the
southeast.
Gold mineralization has been historically
identified and recently confirmed at numerous surface prospects
within several kilometres of Eau Claire. Additional Mineral
Resources which may be defined at these prospects could support
larger scale production and extend mine life.
Advanced Exploration Ahead of Advanced
Technical and Feasibility Studies
Underground exploration via a ramp, combined
with underground bulk sampling, will provide enhanced understanding
of the high-grade vein systems and detailed geotechnical
information which could optimize the mining and financial
considerations used in future advanced technical studies for Eau
Claire.
PEA Key Assumptions and Inputs
- Assumed Gold Price: US$1,250/oz
- Exchange Rate: US$/C$ 0.77
- 12-year Mine Life (3 years O/P, 10 years UG)
- Years of Full Production: 10
- Open Pit Strip Ratio: 9.4:1
- Total Open Pit Mining Dilution: 26%
- Main Underground Mining Method: Captive Longhole
- Total Underground Mining Dilution: 40%
- Average Mining and Processing throughput: 1,500 tonnes
per day (“tpd”)
- Process Plant Recovery: 95%
About the Eau Claire Deposit
The Eau Claire Deposit is located in the
province of Québec, approximately 800 kilometres north of Montreal
and 350 kilometres northwest of Chibougamau. The Deposit is readily
accessible by road along the Route du Nord extending from
Chibougamau and via Hydro Québec’s Eastmain-1 road network.
The Eau Claire Deposit is a
structurally-controlled gold deposit. Mineralization occurs
primarily in a series of sheeted en-echelon quartz-tourmaline veins
with biotite and actinolite alteration of host rock of varying
width. Subordinate mineralization occurs as disseminations in the
host rock. The en-echelon pattern is hosted within a structural
corridor and trends from northwest to the southeast. Individual
veins range from less than one metre to several metres thick and
extend for at least 100 metres along strike.
Qualified Persons and NI 43-101 Disclosure – Preliminary
Economic Assessment (“PEA”)
This PEA is preliminary in nature and includes
Inferred Mineral Resources that are too speculative geologically to
have economic considerations applied that would enable them to be
categorized as Mineral Reserves. There is no certainty that PEA
results will be realized. Mineral Resources are not Mineral
Reserves and do not have demonstrated economic viability.
The PEA was prepared under the supervision of
Mr. Eugene J. Puritch, P. Eng. FEC, CET, President of P&E. Mr.
Puritch is an independent Qualified Person as defined by NI 43‐101
and has reviewed and approved the contents of this news release
related to the Preliminary Economic Assessment.
Qualified Persons and NI 43-101 Disclosure – 2018
updated Mineral Resource Estimate
The updated Mineral Resource Estimate for the
Eau Claire Gold Deposit described herein was prepared by SGS Canada
Inc. (“SGS”) and complies with all current disclosure requirements
for Mineral Resources set out in the NI 43-101 Standards of
Disclosure for Mineral Projects. The classifications described in
the 2018 updated Mineral Resource Estimate are consistent with
current CIM Definition Standards - For Mineral Resources and
Mineral Reserves. The 2018 updated Mineral Resource Estimate was
prepared by Allan Armitage, Ph.D., P. Geo., (“Armitage”) of SGS.
Mr. Armitage is an independent Qualified Person as defined by NI
43-101.
About Eastmain Resources Inc. (TSX:ER)
(OTCQX:EANRF)
Eastmain is a Canadian exploration company
advancing three high-grade gold assets in the emerging James Bay
gold camp in Québec. The company holds a 100% interest in the Eau
Claire and Eastmain Mine gold deposits where the Company has
prepared NI 43-101 Mineral Resource Estimates in 2018. Eastmain is
also a partner in the Éléonore South joint venture located
immediately south of Goldcorp Inc.'s Éléonore Mine which hosts a
new high-grade gold discovery found in 2017. In addition, the
company has a pipeline of exploration projects in this favourable
mining jurisdiction with nearby infrastructure.
For more
information:
Claude Lemasson, President and CEO+1
647-347-3765lemasson@eastmain.com
Laurenn Russell, Investor Relations Consultant+1
647-347-3735lrussell@eastmain.com
Forward- Looking Statements – Certain
information set forth in this news release may contain
forward-looking statements that involve substantial known and
unknown risks and uncertainties. Forward-looking statements consist
of statements that are not purely historical, including statements
regarding beliefs, plans, expectations or timing of future plans,
and include, but not limited to, statements with respect to the
potential success of the Company’s future exploration and
development strategies. These forward-looking statements are
subject to numerous risks and uncertainties, certain of which are
beyond the control of Eastmain, including, but not limited to the
impact of general economic conditions, industry conditions,
dependence upon regulatory approvals, the availability of
financing, timely completion of proposed studies and technical
reports, and risks associated with the exploration, development and
mining industry generally such as economic factors as they affect
exploration, future commodity prices, changes in interest rates,
safety and security, political, social or economic developments,
environmental risks, insurance risks, capital expenditures,
operating or technical difficulties in connection with development
activities, personnel relations, the speculative nature of gold
exploration and development, including the risks of diminishing
quantities of grades of Mineral Resources, contests over property
title, and changes in project parameters as plans continue to be
refined. Readers are cautioned that the assumptions used in the
preparation of such information, although considered reasonable at
the time of preparation, may prove to be imprecise and, as such,
undue reliance should not be placed on forward-looking statements.
The Company assumes no obligation to update such information,
except as may be required by law.