Eastmain options Lac Lessard in Quebec

Image by Eastmain Resources.

Eastmain Resources has optioned its Lac Lessard platinum group metals project in Quebec to a private company.

Under the option agreement, Eastmain has received an initial option payment of C$85,000.

In order to earn a 100% interest in the project, the vendor needs to spend at least C$100,000 on exploration and make a C$100,000 payment within 12 months of the agreement. Eastmain will keep a 2% NSR (net smelter return) royalty on any material mined and sold from this site. Half of this royalty may be purchased for C$500,000 to reduce it to a 1% NSR.

"We are thrilled to monetize another one of Eastmain's non-core assets," Blair Schultz, the company's interim president and CEO, said in a release.

"The option allows our team to focus our exploration efforts on our highly prospective James Bay properties. We are casting a wide exploration net on our Reservoir, Radisson and Clearwater properties this summer/fall and will utilize funds from this option towards these programs."

Lac Lessard is 15 km northeast of the Eastmain Mine property, optioned to Benz Mining. In May, Eastmain also optioned the Ruby Hill East and West properties directly west of the Eastmain Mine to Benz. Lac Lessard features an intrusive complex prospective for platinum group metals.

Eastmain's principal asset is the 220-sq.-km Clearwater gold property in Quebec's James Bay region, which includes the pre-development Eau Claire gold project. The 203-sq.-km Radisson property is northwest of Clearwater while the 82-sq.-km Reservoir site sits to the west.

(This article first appeared in the Canadian Mining Journal)