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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