GOLD: Eastmain options high-grade project to Benz Mining

Eastmain Resources has optioned one of its three gold projects in Quebec’s James Bay region to junior Benz Mining. The past-producing Eastmain […]
The locations of Eastmain Resources’ properties in Quebec. Credit: Eastmain Resources

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Eastmain Resources has optioned one of its three gold projects in Quebec’s James Bay region to junior Benz Mining. The past-producing Eastmain project has indicated resources of 899,000 tonnes grading 8.19 g/t gold, 0.13% copper and 8 g/t silver. Inferred resources add 579,000 tonnes grading 7.48 g/t gold, 0.16% copper and 8.2 g/t silver. Benz can earn a 75% stake in the project through payments of $2.5 million (up to $875,000 can be paid in shares) and project spending of $3.5 million over four years. To earn a 100% interest, Benz will also need to make milestone payments of $1 million and $1.5 million linked to the company achieving project financing and then production. Eastmain will also hold a 2% NSR royalty after the first 250,000 oz. of production. The Eastmain project produced around 40,000 oz. gold at a grade of 10.58 g/t gold in the 1990s. Eastmain Resources is focused on its most advanced property, Clearwater, as well its Eleonore South joint venture with Newmont Goldcorp and Azimut Exploration. Clearwater hosts the high-grade Eau Claire gold project, for which the company released a preliminary economic assessment in May 2018. For more detail on the agreement, see www.eastmain.com or www.benzmining.com.

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