TORONTO (miningweekly.com) – TSX-listed Eastmain Resources has launched a $2-million work programme, including 5 000 m of diamond drilling at the Éléonore South joint venture (JV) property, in Quebec's James Bay gold district.
The programme would be managed by TSX-V-listed Azimut Exploration and also include partner Goldcorp's subsidiary Les Mines Opinaca Ltée.
Eastmain president and CEO Claude Lemasson described 2016 as a “breakthrough year” for the company as it planned to significantly increase the scope of its exploration programmes within the James Bay gold district.
“We are especially excited about the significant increase to exploration on the Éléonore South property. We believe this asset is entering a promising new phase and we look forward to keeping our shareholders updated as we progress through the 2016 exploration programme,” he stated.
Eastmain advised that the planned 2016 programme was designed to test high-priority gold targets. Starting in early July with detailed surface prospecting, the programme would increase the sampling density of seven target areas. In August, the first phase of the drill programme would include 2 500 m of core drilling to test the geochemical and geological targets. This would be followed with a further 2 500 m of core drilling during a second phase later in the year.
The Éléonore South property is a JV between Azimut, which holds a 26.57% interest and which is the 2016 JV manager, Opinaca, with a 36.71% interest and Eastmain with a 36.72% interest. The property comprises 282 claims over 147.6 km2 and is located in a prospective part of the Éléonore mining camp positioned between the Éléonore property, which hosts Goldcorp's producing Éléonore mine and the Cheechoo property being explored by Sirios Resources.
FINANCING
Meanwhile, Eastmain on Wednesday announced that it had entered into an agreement with Beacon Securities and Paradigm Capital on behalf of a syndicate of underwriters for a bought deal offering of nearly $10-million. The underwriters would buy 9.8-million flow-through shares and 1.96-million common shares of Eastmain at a price of $0.918 per flow-through share and $0.51 per common share, for gross proceeds of $9.99-million, Eastmain said late on Wednesday.
Eastmain had granted the underwriters an option to buy up to a further 2.2-million common shares at any time up to two business days before closing of the offering, slated around July 20. Lemasson said the funds would be used for an “aggressive” exploration programme at its Eau Claire deposit, in Quebec, as well as the Eastmain mine and Éléonore South JV property in the same region.
“With this additional funding, we can now intensify exploration while also advancing exploration on prospective targets located within strategic land packages,” he stated.