Eastmain Resources Inc (ER.TO)

They haven't indicated a discovery in the St. James Bay area, though he likes the management and this part of the world for exploration.

This has a project in Québec and the recent drilling is now starting to transform it into something that is far more geologically interesting. It is something he is keeping an eye on. Doesn’t feel they have critical mass yet, but it is growing. A very interesting story.

(Market Call Minute) There will be a ton of news flow from this one and excitement over the next year.

Have spent over $30 million delineating a high grade quartz vein in central Québec. This is the year when we finally find out what the economics are of open pitting the upper part of this system and then going underground. They have about 1 million ounces of 4 g per ton and another million more ounces which they actually had to kick out of the resource when they finally understood the controls of the mineralization. If you don’t understand the controls, very bad things happen. The stock does hold promise. Hopes they get more ounces out of the drilling they have done that they can put into the mining plan.

The big catalyst going forward is if they found, identified and drilled out an economic deposit. Have been drilling this project for 10 years plus. They continue to hit mineralization, and there is good mineralization on it, but his concern has always been it’s a shattered up vein system, so it is difficult to put in a high grade mining scenario because the veins are jumping around. Not convinced it is a significantly economic deposit.

Good for a long-term hold? Likes the story. Have a deposit in Québec and they may have 1,000,000 ounces of really high-grade, open pit of 3-4 g per ton. Very economic and very close to Goldcorp’s (G-T) Elinore. In this environment, it could stay at this price for a year or so.