GMP Securities - Update FLASH: Initial results from extension drilling at Clearwater (Eau Claire deposit)
Eastmain released initial drilling results from its 15,000m extension drilling program at the Clearwater project in James Bay, Quebec. Following the recent resource update announced on September 11 (refer to our FLASH note of that day); the new drilling program is targeting mineralization extensions and increasing drill density at vertical depths between 400m and 850m.
The first set of six holes continues to demonstrate extensions of the highgrade schist (HGS). The HGS veins (which display higher grades and wider thicknesses) were better defined in the 2016/2017 drilling program and proved to be a good complement to the widespread narrower quartztourmaline vein sets in the recent resource update. The HGS veins now account for approximately 16.8% of the total contained ounces in the latest resource estimate (approx. 23.4% of the M&I ounces).
Impact: Positive
We are encouraged by the results as drilling positively demonstrates extensions of the HGS veins along the line of vein projection. The current drilling program should strengthen the view that there’s good opportunity to continue growing the resource by expanding the limits of known mineralization. Increasing drill density at vertical depths between 400m and 850m should also enhance understanding of vein continuity.
Recommendation: Maintain BUY rating and C$1.00 target