Lots of Gold

MICHAEL GRAY, Macquarie Research (12/19/2008)
"ER has taken steps to support a higher grade, near surface, measured resource estimate at its Eau Claire gold deposit. Higher estimate grades would imply increased resource potential to 2.1mm oz based on our geological rationale.

ER's approach of drilling larger diameter HQ-core holes on tighter spacing to provide a better sample with higher average gold grades appears to be validated. The existing indicated resource grade of 9.46 g/t gold is expected to increase substantially for the vein material within 150m of surface, given that the average grades of significant intersections are close to 15 g/t gold.

A lot of visible gold—Of the approximately 81 intersections from the core area in the 450 West zone, approximately 53% had visible gold. This is a very high hit ratio for visible gold in veins."

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