Resource World Magazine

12 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 8 Découverte property, our team is excited to be drilling the prop- erty under the guidance of Danae Voormeij, a successful geologist with a history of discovering economic gold desposits. Our team is looking forward to providing value for all of our shareholders in 2018." Durango is well funded with less than 38 million shares outstanding. Eastmain Resources Inc. [ER-TSX; EANRF-OTCQX] is advanc- ing three high-grade gold assets in the emerging James Bay gold camp. The company has a 100% interest in the Eau Claire and Eastmain mine gold deposits. Eastmain is a partner with a 36.7% interest in the Éléonore South joint venture adjacent to the south of Goldcorp's Éléonore gold mine. Goldcorp is a 36.7% partner and Azimut Exploration Inc. holds a 26.6% interest. In addition, the company has a number of other exploration projects in this region with nearby infrastructure. Eastmain recently filed an independent NI 43-101 Technical Report, Updated Mineral Resource Estimate and Preliminary Economic Assessment on the Eau Claire Gold Deposit, Clearwater Property. The PEA demonstrates robust economics for a com- bined open pit and underground mining operation with a mine life of 12 years. The PEA is based on a combined open pit and underground development scenario of a 2018 updated estimate of 1,210,000 tonnes of open pit measured and indicated resources grading 5.86 g/t gold (228,000 oz) and 43,000 tonnes inferred grading 5.06 g/t gold (7,000 oz) with subsequent development of under- ground resources, including measured and indicated resources of 3,084,000 tonnes grading 6.30 g/t gold (625,000 oz) and inferred resources of 2,339,000 tonnes grading 6.56 g/t gold (493,000 oz). Approximately 71% of the 2018 updated resources are poten- tially extracted under the mine plan supported by the PEA. For purposes of mine planning, the potentially extractable portion of the resource estimate is comprised of 6.4 million tonnes at a diluted grade of 4.9 g/t Au, containing just over 1 million ounces of gold. PEA Highlights: • Pre-tax NPV at 5% discount rate: $381 million • After-tax NPV at 5%: $260 million • Pre-tax IRR: 32% • After-tax IRR: 27% • After-tax Payback: 3.1 years • Pre-production Capital Cost, including contingency: $175 million • Life-of-mine (LOM) Sustaining Capital Cost: $108 million • Average LOM Total Cash Cost: $632/oz • Average LOM All-In Sustaining Costs: $746/oz • Average Annual Production (LOM): 79,200 oz • Average Annual Production (yrs 1-10): 86,100 oz • LOM recovered gold production: 951,000 oz; Claude Lemasson, President and CEO of Eastmain, told Resource World that they have been lowering both the open pit strip ratio and underground dilution at the road-accessible Eau Claire Project which has a camp. "We do think there's room for improvement with improving dilution." Regarding raising the $175 million pre-production capital cost, Lemasson said, "It's still a ways down the road. We wouldn't make a financing decision for another two to three years. We'll certainly look at all options, including bringing in a strategic group or investor or a senior partner or doing a joint venture." Lemasson said exploration will probably start in August at Éléonore South and go the rest of the year. "It's actually double in size of other programs we've done in the past." Regarding the Eastmain Mine Project, "We are not planning on spending too much money in Eastmain Mine," said Lemasson. "We are planning some minimal work to advance the project but we're also looking to see if anybody is interested in partnering to advance the project." Eastmain has NI 43-101 indicated resources of 236,500 oz gold and 2.6 million lb copper. Eldorado Gold Corp. [ELD-TSX; EGO-NYSE] acquired the Lamaque Project near Val d'Or in June 2017 by acquiring Integra Gold Corp. Eldorado has both exploration and construction pro- grams underway. Mill refurbishment and underground mine development are ahead of schedule and production from the refurbished mill remains on track for 2019. Exploration results include over 12,000 metres of resource expansion drilling received QUÉBEC

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