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Transcript of Eastmain apr13agm pres
Eastmain Resources Inc.
AGM Presentation
April 2013
EASTMAIN
Adding Value Through Discovery
5252oo 3737’’ 0606”” NN7272oo 0505’’ 1919”” WW 7575oo 5757’’ 2020”” WW5252oo 1818’’ 0101”” NN7575oo 4848’’ 5252”” WW 5252oo 1313’’ 0101”” NN
EASTMAIN
2
Forward Looking Statements
Certain information set forth in this Presentation may contain forward‐looking statements that involve substantial known and unknown risks and uncertainties. These forward‐looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of Eastmain, including, but not limited to the impact of general economic conditions, industry conditions, dependence upon regulatory approvals and the availability of financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward‐looking statements. Some of my commentary may contain forward‐looking information, therefore, you are cautioned that the Corporation’s actual results could differ materially from my conclusions, forecasts or projections. I refer you to the section entitled “Risk Factors” in our Annual Information Form available on www.SEDAR.comwhich sets out certain material factors that could cause actual results to differ.
EASTMAIN
3
Investment Highlights
Goldcorp increased share ownership of ER to 9.9% (Dec. 2012)
Analyst Coverage (4): Target Price $1.25 to $2.50
Eastmain Mine – Royalty free(1) with new infrastructure
Clearwater Project (Eau Claire) – Royalty free!
New High‐grade zones defined from 2012 drilling & trenching
High‐grade Open Pit resource at 4.7 g/t Au (75% M&I)
(1) Franco Nevada Corporation and Virginia Mine Inc. purchased the Initial Production Royalty (2% NSR) from CBay Minerals Inc. on 250,000 ounces of gold. Eastmain purchased the remaining Production Royalty.
EASTMAIN
4
Overview of Eastmain Resources
• Two high‐grade gold deposits:
‐ Eau Claire (Clearwater Project)
‐ Eastmain Mine
• Reservoir Project – C52 Zone
• Goldcorp JV – Eléonore South
• James Bay Quebec – Positive Jurisdiction
• Financial incentives (50% rebate)
• Mine‐ready infrastructure (roads, power)
• Québec’s Plan Nord program constructing
permanent road access to Eastmain Mine
• Share ownership: (approx: 50% institutional)
‐ Goldcorp is the largest shareholder (9.9%)
(1) As at close on April 19, 2013(2) As of Jan 31, 2013, Eastmain had cash and cash equivalents of $6.1 M, plus marketable securities of $2.6M; prepaid accounts $0.8M; $2M Quebec rebate receivable (not included).
5.46 MOptions (average price $1.09)
0.15 MWarrants (average price $1.40)
nilTotal Debt
C$9.5 MTreasury (2)
C$50 MMarket Capitalization
112.2 MShares Outstanding (Fully Diluted)
106.6 MShares Outstanding (Basic)
C$0.43 – 1.18Share Price Range (1)
TSX:ERSymbol / Exchange
EASTMAIN
Summary Market Statistics
Focused on Gold Exploration in Mine‐Friendly James Bay, Québec
Company Overview
EASTMAIN
5
Resource Assets (Pre 2012 drilling)
Resource Summary
(1) 2012 Resource estimate includes drilling up to the end of 2011 and was completed by P&E Mining Consultants.(2) Underground grade based on a 2.5 g/t cut‐off grade; Open pit grade using a 0.5 g/t cut‐off grade.(3) The Eastmain Mine Historical Resources may not be NI 43‐101 compliant. A Qualified Person has not done sufficient work to classify them as current mineral resources. The issuer is not
treating these historical resources as current mineral resources and these resources should not be relied upon.
100% Ownership of Two high‐grade Gold Deposits in Québec
449,0005.122,728Measured
255,7509.95800Measured & Indicated
Eastmain Mine (3)
1,148,0005.486,513Total Inferred
780,0004.914,938Total Measured & Indicated
935,0007.204,035Inferred
145,0006.37706Measured & Indicated
Eau Claire – Underground (2)
213,0002.682,478Inferred
635,0004.674,228Measured & Indicated
Eau Claire ‐ Open Pit (1)
(oz, uncapped)(g/t)(000’s)
In Situ GoldAu GradeTonnes
EASTMAIN
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Share Performance Comparables
Gold Equities and spot price comparison
(37%)
(41%)
(43%)
(46%)
(49%)
(51%)
(17%)
(34%)
Emerging
Tier II
Tier III
S&P/TSXGoldIndex
Tier I(34%)
(16%)
(46%)
(44%)
(43%)
(43%)
(38%)
(36%)
Emerging
Tier II
Tier III
S&P/TSXGoldIndex
Tier I(43%)
(18%)
(53%)
(51%)
(49%)
(49%)
(44%)
(44%)
Tier II
Emerging
S&P/TSXGoldIndex
Tier III
Tier I(29%)
(11%)
(46%)
(44%)
(42%)
(38%)
(32%)
(31%)
Emerging
Tier II
Tier III
S&P/TSXGoldIndex
Tier I(40%)
(15%)
(58%)
(55%)
(55%)
(44%)
(41%)
(40%)
Emerging
Tier II
S&P/TSXGoldIndex
Tier III
Tier I
Prepared by: RBC Capital MarketsSource: Bloomberg as at market close on April 19, 2013Tier I, Tier II, Tier III, Emerging and Explorer names from RBC Research (See Appendix A for full listing of peer groups)
12 Months 9 Months 6 Months YTD 3 Months
Gold Price Gold Price Gold Price Gold Price Gold Price
Eastmain Eastmain
Eastmain Eastmain
Eastmain
Explorers
Explorers
Explorers
Explorers
Explorers
• Gold companies with cash flow and limited financing requirements have outperformed junior peers • Eastmain's price performance over recent periods has been in‐line with its explorer peers
EASTMAIN
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Project De‐risking & Valuation Objectives
• Large, low grade, CAPEX intensive mining projects in difficult (any) jurisdictions
are off the radar screen;
• New focus on CASH FLOW and shareholder returns versus production growth at
the expense of PROFITABILITY;
• Our 2013 objectives are to De‐Risk Clearwater by demonstrating an attractive
potential annual production profile with a LOW CAPEX combined with a
compelling IRR and NPV;
• Eau Claire has one of the best GRADE profiles of all of the undeveloped gold
projects in North America; and
• Internal Economic Assessment – deposit modeled to OPTIMIZE a future mining
plan and current exploration program
Confirm a Long‐Life, Low Cost, Highly Profitable Gold DepositValuation Parameters have changed with current market conditions
‐ 20.0 40.0 60.0 80.0
10
9
8
7
6
5
4
3
2
1
GOLD DEPOSITS
> 3 - 5 M OZ
> 10 M OZ
> 0.3 - 3 M OZ< 0.3 M OZ
> 5 - 10 M OZ
500 km
Gold Mining Camps in the Canadian Shield
James Bay, Québec – An emerging Top 10 Mining Camp
CANADA • Over 200 million ounces gold produced from Canadian Shield Greenstone Belts
• Several “Mining Camps” occur within these belts; each defined by one or more Giant deposits (>10 million oz)
• James Bay, Québec, mining district ranks amongst the top 10 gold camps in the Canadian Shield
• James Bay, Québec is underexplored and climbing in significanceJAMES BAY, QUE
James Bay, Quebec
Geraldton
Timmins
Rainy River
DetourNorandaRed LakeHemloVal d’Or
Kirkland Lake
Past Production + Current Gold Resources (millions oz)
CANADIAN SHIELD
Hemlo
Detour
Val d’Or
RR
KL
GL
CWEM
EL
Abbreviations: CW – Clearwater; EL – Eleonore; EM – Eastmain Mine; GL – Geraldton; KL – Kirkland Lake; RR – Rainy River
EASTMAIN
Gold Mining Camps in the Canadian Shield Overview
Top 10 Canadian Gold Camps
Gold Mining Camps in the Canadian Shield
EASTMAIN
9
JAMES BAY REGION
Clearwater Project(Eau Claire Deposit)
Eastmain Mine
Eléonore Project(Roberto Deposit)
(Goldcorp)
50 kms
James Bay, Québec – Project Location Map
Excellent infrastructure – Roads, power, airports, fuel …James Bay – New Mining District QUEBEC
Map AreaDY
RK
LE
LG LH
ES
RH
RH
RD
EastmainProject
ClearwaterEastmain MineDY – DynaES – Eléonore SouthLE – Lac ElmerLG – LidgeLac LessardLH – Lac HudsonRD – RadissonRK – Road KingRS – ReservoirRH – Ruby Hill
RSEastmain
JamesBay
Nemaska
Radisson/LG2
Plan Nord Road Under Construction
StornawayRenard Deposit
Temiscamie
EASTMAIN
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Legend
Expl/Mining ProjectOtish ParkSection A: 0-82 kmSection B: 82-143 kmSection C: 143-195 kmSection D: 195-245 km
Route 167 North Extension and Eastmain Mine Access
Quebec’s Plan Nord Infrastructure program – permanent road access• Quebec government’s Plan Nord program
provides new infrastructure to James Bay region; MTQ are building Sections A & B of Route 167 North Extension
• Stornoway constructing Sections C & D (financial assistance by Quebec)
• Eastmain Mine linked to Route 167 by Q4 2013
Photos courtesy of Stornoway Diamond Corporation; MTQ – Quebec Ministry of Transport
Km 0
Km 195
Km 245
Km 143
Km 82
Sections C & DStornoway97 km of Mine Road(50 km/hr)
Western Troy
Renard
Eastmain
Strateco
25 km
Temiscamie
Sections A & BMTQ143 km of RegionalHighway (70 km/hr)
Route 167
D
A
B
C
EASTMAIN
11
• Eastmain Mine and Ruby Hill East – 100% Ownership – 125 km2
• New Route 167 Northwill provide permanent road access
• Eastmain Mine ‐ Au‐Ag‐Cu‐rich deposit‐ Three Zones A, B & C
• Historical M&I resource 255,750 ounces gold (1M tonnes at 9.95 g/t Au)(1)
• Mine Trend >10 km long repeated on Ruby Hill Property
• Previous drill intercepts up to 53.3 g/t Au across 13.2 m
• 100‐person mine camp, airstrip, fuel farm, ramp & underground development
• 2013 ‐ $1M Exploration Budget
Eastmain Mine – Project Overview
A High‐Grade Gold Deposit with significant exploration potential
(1) The Eastmain Mine Historical Resources are not NI43‐101 compliant. A Qualified Person has not done sufficient work to classify them as current mineral resources. The issuer is not treating these historical resources as current mineral resources and these resources should not be relied upon.
Project Geology Project Overview
Eastmain Mine Property
Ruby Hill East
A & B GoldZones
2.5 kms
Winter RoadRoute 167 North
Mine Trend
C ZoneMineCamp
>1 to 5 g/t Au
Rock Assay Data
>30 g/t Au >10 to 30 g/t Au >5 to 10 g/t Au
Priority Target
Airstrip
N
EASTMAIN
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• Existing mine site infrastructure includes:
‐ Ramp & U/G access to the A & B Zones ~100,000 tonnes mined in 1994‐95
‐ Airstrip, fuel farm, 100‐person mine camp, tailings pond, mining lease
• Winter road access soon to become permanent all weather road with Québec’s “Plan Nord”
Eastmain Mine – Existing Infrastructure at Mine Site
$40 M Invested by Previous Owners on Exploration & Development
Mine Site Infrastructure
Eastmain Mine buildings and UG ramp (foreground)Aerial view of Mine buildings & tailings pond (foreground)
EASTMAIN
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Eastmain Mine – 3D Underground View (Looking South)
3D Longitudinal View – A & B Zones with mine development workings
Gold resource grade shells
High‐grade Gold deposit – significant resource expansion potential
1500 m E
1000 m E
2000 m E B Zone
F ZoneTarget
Surface
‐ 500 m EL
Underground Development
Ramp
500 m
A Zone
TargetTarget
EASTMAIN
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JAMES BAY REGION
Eleonore South JV
Eléonore Project(Roberto Deposit)
(Goldcorp)
50 kms
James Bay, Québec – Project Location Map
Excellent infrastructure – Roads, power, airports, fuel …James Bay – New Mining District QUEBEC
Map AreaDY
RK
LE
LG LH CW
RH
RD
EastmainProject
CW ‐ ClearwaterEM ‐ Eastmain MineDY – DynaES – Eléonore SouthLE – Lac ElmerLG – LidgeLac LessardLH – Lac HudsonRD – RadissonRK – Road KingRS – ReservoirRH – Ruby Hill
RSEastmain
JamesBay
Nemaska
Radisson/LG2
Plan Nord Road Under Construction
StornawayRenard Deposit
Temiscamie
RH EM
EASTMAIN
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N
JT Gold Zone
ÉléonoreSouth JV2.5 km
Goldcorp’s RobertoGold Mine
Éléonore Project
12 kms
Eléonore South JV – Project Overview
Eastmain – Goldcorp – Azimut Joint Venture contiguous with Mine Property
Eleonore Project Gold Target
Project Geology Highlights
• JV project between Eastmain (36.8%), Goldcorp (36.8%) and Azimut (26.4%); 147 km2
• Eastmain JV project operator
• Roberto – Sedimentary‐hosted gold deposit owned by Goldcorp Inc. (>9 M ounces)
• Gold Production forecast ‐600,000 oz/year ($400/oz)
• JT Gold Zone – kilometric‐size gold anomaly within mine rocks
• No previous exploration between Roberto & JT Zone
• Recommended Budget $1M
Key Mine rock formation (Sedimentary‐hosted)
EASTMAIN
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JAMES BAY REGION
Reservoir Project
50 kms
James Bay, Québec – Project Location Map
Excellent infrastructure – Roads, power, airports, fuel …James Bay – New Mining District QUEBEC
Map AreaDY
RK
LE
LG LH CW
RH
RD
EastmainProject
CW ‐ ClearwaterEM ‐ Eastmain MineDY – DynaES – Eléonore SouthLE – Lac ElmerLG – LidgeLac LessardLH – Lac HudsonRD – RadissonRK – Road KingRS – ReservoirRH – Ruby Hill
ES
Eastmain
JamesBay
Nemaska
Radisson/LG2
Plan Nord Road Under Construction
Temiscamie
RH EM
StornawayRenard DepositRoberto Gold Deposit
Eau Claire Gold Deposit
EASTMAIN
17
Reservoir – Project Overview
Conglomerate
Project Geology Project Overview
• 100% Eastmain; 87 km2
• Project straddles Eleonore Mine horizon (sediments)
• C‐52 Gold Zone – Copper Gold Silver system 2 km by 100 m
• Mitlin Showing ‐ avg 4.53 g/t Au, 27.4 g/t Ag and 4.86% Cu
• C‐58 Zone ‐ up to 8% copper and 86 g/t gold
• Drilling results include: ◦ 5.35 g/t Au over 6m◦ Numerous m‐wide intervals >10 g/t Au
• Surface channel samples up to 5% Cu, 36 g/t Au and 52 g/t Ag
• 2013 ‐ $800k exploration budget
Large copper‐gold system underlain by favourable geology
Notes: Au ‐ gold, Ag ‐ silver, Cu ‐ copper, Cp ‐ chalcopyrite, Po ‐ pyrrhotite, Mt ‐ magnetite
N
C‐58 ZoneMitlin
C-52 Gold Zone
Priority TargetsOpinaca Reservoir
EASTMAIN
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JAMES BAY REGION
Clearwater Project(Eau Claire Deposit)
Eastmain Mine
50 kms
James Bay, Québec – Project Location Map
Excellent infrastructure – Roads, power, airports, fuel …James Bay – New Mining District QUEBEC
Map AreaDY
RK
LE
LG LH
ES
RH
RH
RD
EastmainProject
ClearwaterEastmain MineDY – DynaES – Eléonore SouthLE – Lac ElmerLG – LidgeLac LessardLH – Lac HudsonRD – RadissonRK – Road KingRS – ReservoirRH – Ruby Hill
RSEastmain
JamesBay
Nemaska
Radisson/LG2
Plan Nord Road Under Construction
StornawayRenard Deposit
Temiscamie
Roberto Gold Deposit
EASTMAIN
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• High‐Grade Open Pit & Underground Gold Resource
• Quebec – Low Political Risk & Significant Financial Incentives
• Infrastructure – Permanent road access & proximal to power
• Metallurgy – High Gold recoveries
• Resource expansion priority – above 500 m
• Objectives – Long‐life, low‐cost, highly profitable gold deposit
• 2013 – Expand resources & define project economics
Clearwater Project - Eau Claire Gold Deposit
Eau Claire is higher grade than 75% of all gold deposits worldwideOverview
EASTMAIN
20
Clearwater Project Overview
Clearwater: Eastmain’s Flagship Project (Contains Eau Claire Gold Deposit)
Eau ClaireGold Deposit
Eau Claire Gold Deposit0.78 M oz Measured & Indicated1.14 M oz InferredUnderground & Open Pit Resources
VA
SD
NL
Hydro QuebecAccess Road
445000
mE
450000
mE
465000
mE
440000
mE
455000
mE
460000
mE
5780000 mN
5790000 mN
5785000 mN
5 km
KN
Regional Target Areas: SD – Serendipity; VA – Vanna; KN – Knight; NL – Natel
EastmainReservoir
1.to 2.5 g/t Au30 to 500 g/t Au 10 to 30 g/t Au 5 to 10 g/t Au 2.5 to 5 g/t AuRockAssays
•Mining Camp‐scale gold‐bearing corridor – 5kms long
• >1000 rock samples ranging from >1 to 500 g/t Au
SD
EASTMAIN
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2012 Airborne Magnetic Survey (TFM)
Eau Claire coincides with two major regional structures & a fold hinge
• Magnetic highs (red); Magnetic lows (blue)• Magnetic data highlights both structural breaks & folds (controlling features for gold deposits)• Untested exploration targets evident elsewhere on the property
Eau Claire Gold Deposit 2.5 km
Major gold deposits throughout the world are found near deep‐seated structures
EASTMAIN
22
2012 TFM Survey & Regional Structures (Plan View)
Eau Claire gold‐bearing veins are aligned parallel to structural breaks
850 West Shear Zone
450 West Shear Zone
450 Vein Set
850 Vein Set
450 & 850 West Zones coincide with junction of major structures & an F2 anticlinal fold.
F2 Fold
EASTMAIN
23
Eau Claire Gold Deposit – Key Horizon
• Eau Claire consists of two sets of parallel gold‐bearing quartz‐tourmaline veins known as the 450 & 850 West Zones
• Gold mineralization occurs as 0.5 to 25 metre‐wide veins & altered rock ranging from 0.5 to 3.5 g/t Au and 0.5 to 4.0 metre‐wide bonanza‐style feeder veins from 10 to >100 g/t Au
• 450 West Zone – consists of an Upper (Veins A to I),Main (P, JQ, R & S Veins) and Lower Group of veins (T to T20); oriented East‐West dipping south at 45o
• 850 West Zone – parallel vein set aligned northeast with a sub‐vertical dip; Veins V4 to V23
• Veins are aligned parallel with two regional structures
Mineralization OverviewEau Claire gold deposit is within a District Scale Gold Belt
Two gold zones – both have Open Pit & Underground resources
Note – Gold discoveries found from trenching and drilling outside the limits of the known gold resource: PC – Pascal Veins, up to 66 g/t Au (north‐south quartz‐tourmaline veins); FV – Valli Veins; BM – Boomerang up to 254 g/t Au; CW15‐ trench 15 up to 20 g/t Au; DH – Discovery drill hole – 500 g/t Au / 2m
450 WestZone
850 WestZone
• Eau Claire occurs at a key geological contact coinciding with a regional F2 fold• >1000 rock samples ranging from 0.5 to 500 g/t Au found along the Key Horizon
Gold OccurrenceKey HorizonFelsic Volcaniclastic rock
Mafic Volcanic rock
Gold‐bearing Veins
Felsic Porphyry/Tonalite
CW15
DH
FV
PC
BM
5,787,000 mN
443,
500
mE
5 786 500 mN
ClearwGold D 44
4,00
0 m
E
444,
500
mE
water ProjectDeposit & Target 44
5,00
0 m
E
ts 445,
500
mE
446
000
E
446,
500
mE
446,
000
mE
5,787,000
5,786,50
447,
000
mE
0 mN
00 mN
5,786,000 mN
5,786,500 mN
GEau Claire
Gold Deposit5,786,00
5,786,50
00 mN
00 mN
5,785,500 mN 5,785,5000 mN
443,
500
mE
5,784,500 mN
5,785,000 mN
444,
500
mE
444,
000
mE
N 445,
000
mE
445,
500
mE
446,
000
mE
446,
500
mE
750 m
5,784,50
5,785,0
447,
000
mE
00 mN
00 mN
Channel Sample Assays
30 to 500
10 to 30
Rock Sample A
30 to 500
10 to 30
5 to 10
s (Au g/t)
2.5 to 5
Assays (Au g/t)
5 to 10
2.5 to 5
Gold-bearing
Vein Surface
ProjectionEa
J
750 m
Clearwater Project
au Claire Gold Deposit
James Bay, Quebec
EASTMAIN
25
V19
JQ
T10
I
RS
HG
FDC
B
P
SFV16
V12
V10
V4
V18
V6
SF
T4
V20
T6
T
Eau Claire Gold Deposit – 2012 Drill Program
Wide zones of gold mineralization with bonanza‐grade feeder veins in multiple locations.
• 107 drill holes from 2012 to be added to the resource
• New vein intercepts lateral & north of 450 & 850 West Zones
• Major controlling structures identified parallel to both
450 & 850 West Zones – High‐grade gold vein system
2012 – Drill Highlights
Note – Visible gold and tellurides observed within Quartz‐tourmaline veins in >350 drill intervals. SF Trench –Soccer Field discovery. T10 Vein – 150 m long, 0.5 to 22.0 m wide, traced to >200 m vertical depth; OPEN laterally & to depth. Visible gold in holes 353, 361, 367, 374, 375, 386, 387, 388, 389, 390, 391, 395, 399, 402, 404, 406, 407, 408, 410, 411, 412, 421, 422, 424, 426, 427, 430, 432, 435, 444, 446, 450, 453 & 454.
• New Domains with wide zones of gold mineralization & bonanza‐grade feeder veins
• 357 2.23 g/t Au / 16.5 m• 358 5.90 g/t Au / 6.0 m• 369 12.3 g/t Au / 5.0 m• 375 38.4 g/t Au / 2.0 m• 388 12.6 g/t Au / 2.5 m• 391 10.1 g/t Au / 3.0 m• 395 2.49 g/t Au / 18.0 m• 406 67.5 g/t Au / 2.5 m• 411 41.6 g/t Au / 2.0 m• 412 17.7 g/t Au / 6.5 m• 442 4.83 g/t Au / 7.5 m• 450 4.36 g/t Au / 11.0 m• 456 10.98 g/t Au / 11.0 m
Eau Claire Deposit
0 mW
1000
mW
391
411& 412
High‐gradeGold Zones
10 to >100 g/t Au
456
388
442
450
369
450 WestZone850 West
Zone
Felsic Volcaniclastic rock
Mafic Volcanic rock
2012 Drill Hole
Hole with Visible Gold
Felsic Porphyry/Tonalite
Gold‐bearing Veins
406
450
EASTMAIN
26
Eau Claire Gold Deposit – 3D Model Looking Down
3D Plan View – 0.5 g/t Au grade shell of Eau Claire Surface plan of Eau Claire Gold Deposit – 1.8 km long by 300 m wide traced to 900 m depth
• 3D modeling of Eau Claire illustrates a large crescent‐shaped body with a “hinge” forming between the 450 & 850 West Zones• The gold‐bearing vein system changes direction from the 450 West Zone (E‐W, dipping S) to the 850 West Zone (NE‐SW, subvertical dip).• Bonanza‐style feeder veins have been intersected within both 450 & 850 West Zones
850West Zone 450West Zone
OPEN
OPENOPEN
ER12‐450ER12‐412
ER12‐369
2012 High‐grade gold zone (10 to >100 g/t Au)
2011/2012 gold intercept OPEN
ER12‐388
ER12‐456
ER12‐406
EASTMAIN
27
Eau Claire Gold Deposit – Looking East
3D Cross Section View – 0.5 g/t Au grade shell of Eau Claire
Note: 3D cross‐sectional view looking east. Yellow spheres represent gold intersections from 2011 and 2012 drilling. Red stars represent recent drill intercepts with abundant VG.
ER12‐388
0 m RL
+300 m RL
‐500 m RL
2012 High‐grade Gold Zone (10 to >100 g/t Au)
T16
V19
2011/2012 gold intersection
V10ER12‐411
T10
16.4 g/t Au over 13.5 m
391 –3.09 g/t Au over 13.5 m
411 – 3.63 g/t Au over 23.5 m
412 – 17.7 g/t Au over 6.5 m
369 –12.5 g/t Au over 5 m
>900 metre length Down dip
OPEN
EASTMAIN
28
Eau Claire Gold Deposit – Looking North
3D Longitudinal View – 0.5 g/t Au grade shell of Eau Claire Significant resource expansion & New Targets at the 450 & 850 West Zones
Surface850West Zone
2011/2012 GoldIntersection
BoomerangTarget
0.5 g/t Au Grade Shell
OPEN
OPEN
OPEN
450West Zone
• 2012 Resource Expansion ‐ >100 drill holes exceed the resource cut‐off parameters• High priority resource targets lateral, north and below both of the 450 & 850 West Zones• Regional Resource targets occur along the same structural trend as Eau Claire – such as Boomerang
ER12‐411
OPEN
Targets
‐200 m EL
445500 E
‐500 m EL
444500 E
445000 E
444000 E
‐1000 m EL
EASTMAIN
29
Eau Claire Gold Deposit – Longsection Looking North
3D Leapfrog view of gold‐bearing drill intersections >0.5 g/t AuLongitudinal view of Eau Claire Gold Deposit – 450 & 850 Zones – Recent expansion
• Drilling over the past 24 months has DOUBLED the size of the gold deposit near surface• ER12‐412 – 17.7 g/t Au/6.5 m; ER12‐456 – 10.98 g/t Au /11.0 m (incl. 14.9 g/t Au / 7.5 m)
2011/2012 gold intercept
Pre 2011 gold intercept
450West Zone850 West Zone
0 m RL
OPEN
OPEN
‐200 m EL
1 kmER12‐456
ER12‐412
EASTMAIN
30
World Gold Deposits Overview
Eau Claire – 1 of 7 gold deposits in North America >1.5 ‐ 3.0 M ounces & >3 g/tCanadian gold deposits rank 2nd worldwide by Grade
Grade + Resource growth + Project EconomicsEau Claire Catalysts
>75% of all gold deposits worldwideEau Claire Grade
1.06 g/t – average grade (producing deposits)World Average Grade
80 deposits in Canada >1 M oz (1st worldwide)World ranking
189 producing; 250 non‐producingStatus
439 gold deposits worldwide >1 MozDeposits >1M ounces(1)
Criteria Comparison to World Gold Projects (+1 Moz )
Note 1 Source: Visual Capitalist The Gold Series
EASTMAIN
31
Feasibility31%
Reserves Dev.67%
154
311
453
1,502
2,698
3,556
6,428
8,583
18
49
3.0Moz ‐ 5.0Moz6%
1.0Moz ‐ 1.5Moz33%
1.5Moz ‐ 3.0Moz38%
5.0Moz ‐ 10.0Moz17%
>10.0Moz6% Fea s ibi l i ty
11%
Reserves Dev.67% Canada
78%
United States22%
1.0Moz ‐ 1.5Moz29%
1.5Moz ‐ 3.0Moz39%
3.0Moz ‐ 5.0Moz12%
5.0Moz ‐ 10.0Moz14%
>10.0Moz6%
Uni ted States37%
Canada63%
Feas ibi lity15%
Reserves Development
85%
AFR20%
ASI5%
EUR5%
FSU7%
LAT18%
NOA32%
PAC5%
AUS8%
1.0Moz ‐ 1.5Moz27%
1.5Moz ‐ 3.0Moz40%
3.0Moz ‐ 5.0Moz17%
5.0Moz ‐ 10.0Moz
8%
>10.0Moz8%8 sites
41Project is in North America
124Project is not in
Production / Pre‐Production
17
Resource is > 1.5Moz Au
Grade is > 3g/t Au
166Grade is > 1g/t Au
210Resource is > 1Moz Au
353Owner’s Market Capitalization is
>US$50M
1,310Owner is Publicly Traded
2,817Project is Active
4,307Primary
Commodity is Gold
5,391Project Containing Gold
# of Projects# of
Companies
Resource Size Stage Geography(1)Breakdown of Global Gold Projects (+1Moz and +1g/t)
Breakdown of North American Gold Projects (+1Moz and +1g/t)
44 sites20 sites
106 sites24 sites
48 sites
8 sites31 sites
7 sites
12 sites
8 sites
11 sites
49 sites
27 sites
14 sites
3 sites
7 sites
6 sites
19 sites
7 sites
42 sites31 sites
18 sites
58 sites
Screening Criteria
Resource Size Stage Geography
2
1
Overview of Competitive Landscape – Global Gold Projects
3
Breakdown of North American Gold Projects with (+1.0Moz and +3g/t)
7 sites
3 sites
1 sites
6 sites2 sites
16 sites
14 sites
4 sites
Resource Size Stage Geography
3
Source: Metals Economics Group(1) PAC = Pacific, AFR = Africa, ASI = Asia, AUS = Australia, EUR = Europe, FSU = First Soviet Union, LAT = Latin America, NOA = North America
1
2
3
1 sites
Breakdown of North American Gold Projects (+1Moz and +1g/t)
18
154
49
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32
‐
1.0
2.0
3.0
4.0
5.0
6.0
0 2 4 6 8 10
Gold Resource (Millions oz)
Gold Grade
(g/t)
$‐
$20
$40
$60
$80
$100
$120
$140
$160
ATAC
Rubicon
Torex
Queenston
Trelaw
ney
Sulliden
Belo Sun
McEwen
Luna Gold
Average
Prem
ier
Prodigy
Midway Gold
Orom
in
Eastmain
Rainy River
Integra
Midas Gold
Goldgroup
Probe
Eco Oro
Chesapeake
Entrée Gold
Lachlan Star
Maudore
Gold Canyon
Sunw
ard
Mega Precious
Sandspring
Advanced Exploration Gold Companies ‐ Comparables
Eastmain’s High‐Grade Assets – Attractive Value Relative to Peer Group
Peer Group EV Average: $44/oz
(1) Based on non‐diluted shares outstanding, calculated using the treasury stock method(2) EV=market cap + net debt (including convertible debt and preferred) + minority investment – equity investments(3) In‐Situ ounces include only gold ounces (metal by‐products have been excluded)(4) Eastmain’s resources include: Eau Claire – 11.3 M tonnes at 5.08 g/t Au capped containing 1.8 Million Ounces or 5.24 g/t uncapped, containing 1.9 Million Ounces. By‐products
have not been included. Historical gold resources from the Eastmain Mine are not included.
(4)
EV(1)(2) / In‐Situ Inventory(3)
Average
Eau Claire
Grade vs Deposit Size (& Enterprise Value)
QMI
PGEV/OZ = $50
LEGEND
EV/OZ = $150
EV/OZ = $25
2012 M&ATransaction
MAO
PDG
Enterprise Va
lue pe
r oun
ce of G
old
TRR
6.50
2.53
14.7
2.79
5.20
0.90
0.61
1.69
0.52
1.29
1.83
4.06
0.87
1.83
1.28
5.08
1.13
Gold grade (g/t)
3.13
0.62
0.70
3.00
0.73
0.50
0.40
3.37
1.07
0.50
2.50
Low Grade
High Grade
0.74
EASTMAIN
33
Research Coverage
Analyst research coverage provided by four Brokerage firms
$2.00Brian Szeto
416 342-9918Stonecap Securities
$1.70Eric Lemieux819 472-8037
Laurentian Bank Securities
$2.50Eric Winmill416 628-3772
Casimir Capital
$1.25Michael Gray604 639-6372
Macquarie Equities Research
$7.5 M Exploration program – 30,000 m drilling Block Model Resource UpdateInternal Economic Evaluation
Investment Catalysts
Target PriceAnalystBrokerage
Speculative Buy Recommendations ranging from $1.25 to $2.50
EASTMAIN
34
2013 Exploration Program
Building for tomorrow – today!!
• >30,000 metres of drilling planned on Quebec exploration projects
• Substantial resource growth potential of high margin ounces near infrastructure
• Three programs testing deposits plus a JV program beside a GIANT Gold Mine
• 2,500 m drilling
• 1,500 (2) m drilling
• 2,500 m drilling
• 25,000 m drilling Work Planned
• $0.8 M • $1.0 M (1)• $1.0 M• $5.0 M2013 ExplorationBudget
• Drilling on C-52 Cu-Au-Ag Zone
• Exploration and drilling on JT Zone & regional targets
• Test A, B & C Zones & mine horizon
• Expand resources
• Define project economics
Objectives
ReservoirEléonore South Eastmain MineClearwaterProject
(1) Budget assumes equal funding from Eastmain and Goldcorp. (2) Actual program to be determined by the joint venture management committee.
Phase One $7.5 Million exploration budget for 2013
2013 Drill Program Summary
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35
Reasons to own Eastmain
• Two High Grade Gold Deposits
• Clearwater 1 of 7 gold projects in NA
• Royalty Free
• Mine essential Infrastructure in place
• Top Mining Jurisdiction
• Provincial financial incentives (50%)
• $7.5 M Exploration Budget
• Evidence for long‐life, low cost, highly
profitable gold deposit at Eau Claire
Clearwater One of the Highest‐Grade Undeveloped Gold Projects in Canada
>100 grains of visible gold
ER09‐190 348 g/t Au (10.2 oz/ton) at 101 m
EASTMAIN
36
Appendix
Management Profiles
Clearwater Metallurgy, Mineralization & Grade Sensitivities
Contact Information
EASTMAIN
37
Management, Directors & Advisory Board
Management Team With a Track Record of Exploration Success
Management
Advisory Board
Donald J. Robinson, Ph.D., P.GeoPresident, CEO & Director since 199430 years experience with base & precious metal depositQualified Person (APGO & OGQ)
Catherine I. Butella, B.Sc.Exploration Manager30 years exploration experience in Canada & AustraliaPDAC “Prospector of the Year” Nominee
James L. Bezeau, BBA, CMAChief Financial Officer30 years of financial, accounting & managerial experiencePrevious Mining Industry ‐ Iron Ore Company of Canada
Jay Goldman, BA, MBA, LLBCorporate Secretary>20 years experience in the Canadian Mining IndustryCassels Brock & Blackwell ‐ Partner
Chad StewardManager Corporate Communications35 years experience in marketing & communications
William L. KoyleLead Director, Audit Committee Chair>30 years experience with publically held exploration companiesJohn A. Hansuld, Ph.D.Director since 1985>45 years Mining Executive in global explorationPDAC – Mining Man & Developer of the Year; CMHF David K. Joyce,Director30+ years Mining Industry experienceIan J. Bryans, BADirector, Compensation Committee Chair30 years experience in strategic marketing
Directors
Richard W. Hutchinson, Ph.D. , Professor EmeritusLeading authority in Ore Deposits Geology, CMHFNeil Hillhouse, Ph.D.,50 years experience; credited with numerous discoveriesDr. Ted Moses, former Cree Grand ChiefOfficer of the Order of Quebec; Clearwater Project ‐ Tallyman
CMHF – Canadian Mining Hall of Fame member
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Eau Claire Deposit – Metallurgy
Metallurgical testing demonstrates high gold recoveries
VGVG
1 cm
2,540 g/t Au (74.17 oz/ton; incl. 24.6 g/t Au over 55.6m) 92.7 g/t Au over 3m (2.71 oz/ton; incl. 8.5 g/t Au /36.7m)
• Eau Claire Deposit contains high‐grade vein & bulk tonnage stylemineralization
• Veins contain Visible gold occurring as fine particles ‐ well suited for a gravity circuit
• Low Bond Work Index (10.2 to 11.1, material is soft in ball mill grindability terms)
• Metallurgical tests indicate high‐gravity + flotation recoveries (+92‐97%), conventional circuit up to 98.5%
Abbreviations: VG – visible gold; Metallurgical test work was completed by SGS Minerals Lakefield Research.
S‐Vein (Hole 98 – 65 m depth) P‐Vein (450 West Zone Surface Exposure)
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39
Eau Claire Deposit – Cut‐off Grade Sensitivities
772,000 2.3610,1060.5695,000 3.166,8311.0526,000 5.672,8832.0394,000 10.51,1703.0325,000 18.25564.0
Inferred
1,470,000 5.218,7770.51,434,000 6.187,2131.01,365,000 7.375,7602.01,295,000 8.214,9073.01,243,000 8.724,4304.0
Measured & Indicated
521,000 4.963,2630.5502,000 6.362,4541.0463,000 8.741,6472.0435,000 10.41,3073.0404,000 12.31,0214.0
Measured
(oz, uncapped)(g/t)(000’s)Grade (g/t)
In Situ GoldAu GradeTonnesCut‐OffEau Claire Deposit
Eau Claire ‐ 1.24 to 1.47M ounces M&I plus 0.32 to 0.77 M oz IF
Notes: Close‐spaced (12.5m) large diameter drilling (HQ) at the 450 West Zone has outlined high grade Measured Resources at 12.3 g/t Au (0.36 ounce per ton) using a 4.0 g/t Au cut‐off grade.
EASTMAIN
2
Appendix A – Peer Group Companies
Alamos GoldGreat Basin GoldJaguar MiningNorsemanKingsgateNevsunHighlandLake ShorePan AfricanSilver LakeDundee Precious MetalsMedusaTerangaAllied GoldAllied NevadaAvocetClaudeMinera IRLGran Colombia
Tier III
DetourRandgoldPetropavlovskEvolution MiningCentamin EgyptOsiskoAlacerAfrican BarrickSemafoRegisYamanaNew GoldIAMGOLDEldoradoCenterraAgnico‐Eagle
Tier II
PMIInternational Tower HillSandspringEco OroRomarcoNovaGoldAmpellaColossusKeeganNorth CountryEast AsiaGabrielGryphonGuyana GoldfieldsAureusAtacama PacificProbe MinesATACMidasRainy RiverPremier GoldAzumahKaminakSabina Gold & Silver
Emerging
KiskaVoltaKiloVictoriaJaydenTyheeInter‐CiticTorexHelioTemexGowest AmalgamatedSunwardGolden QueenSullidenGold Canyon
Spanish MountainFreegold Ventures
SeafieldExtorreSeabridgeExeterRye PatchEuromaxRubiconDalradianRiverstoneCoralRio NovoContinentalPretiumChina MineralsPremium ExplorationChesapeakePilot GoldCastillianPC GoldCassidyPatagoniaCarpathian OrominCarlisle GoldfieldsOrezoneCanarcNorthern GoldCalibreNorthern FreegoldBravoMidwayBelo SunMega Precious MetalsBear LakeMediterraneanBateroMaudoreAxminMalbexAurvistaNewcrestMagellanAsturNewmontLydianAmarilloKinrossLupakaAM GoldGoldcorpKlondexAlhambraBarrick
ExplorersTier I
EASTMAIN
40
Adding Value Through Discovery
Tel: 519‐940‐4870Fax: 519‐940‐[email protected]
36 Toronto Street Suite 1000Toronto, OntarioCanada, M5C 2C5
EASTMAINEASTMAIN
Contact Information