News Release: Eastmain Resources 6mo results Eastmain Resources Inc ER Shares issued 16,200,000 Jan 22 close $0.27 Mon 25 Jan 99 Company Review Mr. Donald Robinson reviews the company The 1998 exploration program completed on the Clearwater project by SOQUEM, focused on the Rosemary copper zone and Eau Claire gold deposit. During the quarter, Soquem earned its 50 per cent interest in the property by completing $2.0-million in work. To date SOQUEM has completed $2,331,156 in expenditures and is obliged to finance an additional $193,844 to match previous contributions by Eastmain. SOQUEM has recommended a 4,100 metre diamond drill program to commence in early June, 1999 at an estimated cost of $500,000. Eastmain's share of this exploration phase is $153,000. Exploration drilling at Eau Claire intersected two new gold-bearing structures extending the deposit to the northwest. The westernmost hole 98-44 on section 9W intersected a 14.6 metre-wide interval grading 2.43 gpt Au, including 7.09 gpt Au across 3.2 metres, approximately 40 metres below surface. Drill hole 98-43, collared on section 8W intersected a 4.8 metre-wide interval grading 6.77 gpt Au, 80 metres below surface. These new gold-bearing structures confirm that the Eau Claire deposit is open to the northwest and that there is excellent potential to advance the project with additional exploration drilling. The first phase on the next drill program will include grid drilling the deposit to the northwest on 100-metre sections, with three 200-metre-long holes per section. SOQUEM's 1998 program confirms that the Rosemary zone consists of low-grade, subeconomic copper mineralization of large dimensions. Previous surface sampling identified a kilometre-scale copper soil anomaly coinciding with an isolated magnetic high. Drilling in 1997 and 1998 on sections spaced up to one kilometre apart intersected wide intervals of low grade copper, up to 0.32 per cent over 49.2 metres. No gold was found associated with this copper mineralization and therefore no further work is recommended at this time. However, geological mapping on the Rosemary extension outlined actinolite-tourmaline schists, one kilometre west of, and on the projected trend of the Eau Claire gold deposit. Gold mineralization within the Eau Claire deposit is associated with actinolite-tourmaline schists. Future exploration drilling will test this potential extension of the Eau Claire gold deposit. Eastmain is actively seeking a senior joint venture partner on its other major gold projects within the Eastmain River greenstone belt. Kilometre-scale zones of gold mineralization and rock alteration have been outlined on the Lac Elmer and Reservoir properties. Several senior mining companies are currently evaluating these projects for a potential joint venture with Eastmain. Base metal exploration Eastmain completed 100 kilometres of induced polarization and magnetic surveys on its wholly owned Railroad project, immediately southeast of Noranda's 20-million-tonne Heath Steele mine. Three very promising VMS base metal prospects are being evaluated: Island Lake, Captain West and Railroad. Geological mapping at Island Lake has identified a 1,600-metre-long by up to 100-metre-wide pyritic and sericite-altered horizon situated at the same contact as the major mines of the Bathurst Camp. Trenching at Railroad has also detected a pyritic- and strongly chlorite-altered horizon coinciding with a 1,000-metre-long IP anomaly, within the extension of the Brunswick base metal mine horizon. This newly defined IP anomaly has not been drill tested and is open to the south. Surface surveys have also detected a 900-metre-long linear magnetic high coinciding with BHP's base metal discovery at the Railroad VIES prospect. Previous drilling in 1996 intersected 10 per cent combined zinc-lead-copper sulphide, along with typical mine grade precious metals over mineable widths. This magnetic anomaly corresponds with the extrapolated contact of the Brunswick mine horizon and remains untested. Additional surface surveys, trenching and diamond drilling are recommended to test these high priority targets. Eastmain has signed an option agreement with Bubbee Ventures Inc. on two base metal claim blocks within the Bathurst Camp. Bubbee can earn a 25 per cent interest in the Tingley Brook and Tingley Brook North properties by financing $150,000 in exploration work prior to Dec. 31, 1999. Previous geochemical stream and soil sampling completed by BHP identified four areas, the largest up to 1.2 kilometres long, with anomalous zinc, lead, copper and silver coinciding with the Bathurst mine horizon geology. Airborne geophysical surveys completed by BHP have also detected isolated electromagnetic conductors associated with these geochemical anomalies. Several of the large base metal mines of the Bathurst camp were discovered with airborne geophysical methods, as the ores contain metallic minerals which have strong electromagnetic and magnetic characteristics. Financial Eastmain has $1,187,966 in working capital as of Oct. 31, 1998. To maintain its equity position, the company has raised an additional $150,000 for its 1999 base metal exploration program through Bubbee Ventures. Eastmain is required to contribute $153,000 toward the 1999 drilling program at Clearwater. Eastmain has sufficient working capital to complete its exploration commitments. In spite of the depressed metals and minerals market, Eastmain is in a relatively strong financial position with an excellent property portfolio.
STATEMENT OF OPERATIONS Six months ended Oct. 31
1998 1997
Revenue
Interest and dividends $ 42,455 $ 36,021
Gain on sale of marketable securities (5,232) 73,093 -------- -------- 37,223 109,114 -------- -------- Expenses
Accounting 5,129 5,072
Legal and audit fees 11,429 19,518
Travel 3,058 7,432
Government fees and taxes 7,677 8,245
Consulting fees - 15,000
General and office 32,454 59,276
Shareholder information 9,703 9,189
Writedown of marketable securities to market value 188,414 -
Salaries and expenses 12,327 -
Depreciation 5,073 3,501 -------- -------- 275,264 129,717 -------- -------- Net loss for the period $238,041 $ 20,603 ======== ======== Net loss per share 1 cent 0 cents
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