Eastern Resources, Inc. to Provide Current Corporate Presentation

 Eastern Resources, Inc. to Provide Current Corporate Presentation  DENVER, June 12, 2012 /CNW/ - Eastern Resources, Inc. (OTC Bulletin Board:  ESRI), a Delaware corporation ("ESRI" or, the "Company"), announced today that  the Board of Directors of the Company will post its current Corporate  Presentation on its website www.easternresourcesinc.com, this week.  The Corporate Presentation details the history and development of the  Company's Golden Dream Mine, the Montana Tunnels Mine, and the Diamond Hill  Mine. Through a reverse triangular merger completed on April 6, 2012, the  Company acquired from Elkhorn Goldfields LLC ("EGLLC"), the two operating  subsidiaries of EGLLC, Elkhorn Goldfields, Inc. ("EGI"), a Montana corporation  and the owner of the Golden Dream Mine, and Montana Tunnels Mining Inc.  ("MTMI"), a Delaware corporation and the owner of the Montana Tunnels Mine and  Diamond Hill Mine[1].  Presented below is a brief review of the material information contained in the  Corporate Presentation and not previously presented:  Summary of Investment Highlights: The Company owns three fully permitted mines  in the Unites States; has an experienced management team; the existing  permitted mines present strong economics; the Company expects approximately  150,000 ounce[2] equivalents of gold production annually at full production;  more than $300 Million has been spent on existing infrastructure; and there is  an additional exploration potential of 2 to 3 million ounces of gold[2].  Timeline:  1998 - EGI purchased the Elkhorn Project from Newmont Gold Corp.;  Sept. 2006 - EGI and Apollo Gold Corp. entered into a 50:50 joint venture to  operate the Montana Tunnels Mine; July 21, 2008 - EGI was granted its  Exploration Permit by the Montana DEQ; Oct. 27-Nov. 3, 2008 - MTMI received a  Favorable Records of Decision for the M-Pit expansion of by the Montana DEQ  and US BLM; April 2009 - EGI acquired the remaining 50% of MTMI; November 30,  2011 - the Montana DEQ granted EGI a full operating permit; April 6, 2012 -  ESRI acquired EGI and MTMI via reverse merger.  Current Development Plan Reserves:        --  Elkhorn Goldfields: Golden Dream ("GD") Reserves[2] – 1.1         M tons; Initial GD Mine Life - 5+ Years; GD Contained Metal -         Gold 258,000 oz, Copper 9.5 M lbs.; Golden Dream Resource         Extension - Additional 1.1 M Tons; Adds 250K to 300K oz to GD;         Extends GD mine life by 5+ years; Other known Resources - 1.4M         oz; Additional exploration potential - 2-3M oz     --  Montana Tunnels Mine: M-Pit Mine Reserves[3] - 38 M tons; M-Pit         Mine Life - 8.5+ Years; M-Pit Contained Metal - Gold 480K oz.,         Silver 7.9M oz., Lead 124M lbs., Zinc 370M lbs.; Add'l         Expansion 60M tons below M-pit; Mill and existing         Infrastructure -$250M+ in replacement cost     --  Diamond Hill: ESRI's third fully permitted and bonded mine;         Production to date - 700,000 tons; produced 165,000 ounces of         gold; Diamond Hill Reserves & Resources - Probable 13.7K oz.;         Inferred(3 34.4K oz.; 75 road miles to Montana Tunnels mill         facility.  Montana Permitting: Montana Regulation - In 1998, Montana's voter initiative  banned the use of cyanide in open pit cyanide-leach gold and silver mining for  new operating permits.  ESRI's Solution - Redesign mine plans utilizing  underground mining methods and conventional milling scenarios.  Permitting  Results - ESRI has operating permits for Golden Dream Mine, the Montana  Tunnels Mine, and the Diamond Hill Mine from the Montana DEQ (Department of  Environment Quality) and the BLM (Bureau of Land management).  EGI - Elkhorn Property History: Located in Elkhorn Mining District, Jefferson  County, Montana, the original Elkhorn mine discovered Silver, Lead & Gold in  the 1870s; silver & lead mining ran sporadically through the 1940s; modern  exploration techniques lead to the discovery of the Carmody gold mine in 1984  by Gold Fields Mining Corp., and concentrated exploration began; since the  mid-1980s exploration including approximately 500,000 feet of drilling by  mining majors, including Gold Fields Corp., Santa Fe Pacific, and Newmont  Corp. have outlined a mineral resource of 1.653 million ounces[3] of gold and  four mineralized deposits within the Elkhorn Property boundaries; in 1996,  Sante Fe Pacific Gold completed a resource estimate for the Sourdough/Golden  Dream Deposit; the initial mine target, the Golden Dream Mine, developed  approximately 20% of the known Elkhorn gold resources; EGI purchased the  Elkhorn Property from Newmont Corp. in 1998; East Butte, Carmody and Gold Hill  expansion planned for after development of Golden Dream Mine; and on November  30, 2011, EGI received its operating permit for the Golden Dream Mine from the  Montana DEQ.  The Golden Dream Mine:  March 2006, EGI commenced work on the Golden Dream  Mine Exploration Permit, which was granted by the Montana Department of  Environmental Quality (MDEQ) in May 2006; Autumn 2006, EGI commenced work on  the Golden Dream Mine plan, confirmation drilling and Full Operating Permit.   The Permit was granted on July 18, 2008 by the Montana DEQ; summer 2011, EGI  put in place the reclamation bond and commenced construction of the Golden  Dream Mine; December 2011, Golden Dream Mine intercepted the ore body as  targeted; and Golden Dream Mine estimated to be in full production in 4Q 2012.  Golden Dream Mine Development Plan: EGI is implementing a staged expansion at  the Golden Dream Mine: 1) Install water treatment system - Originally, it was  believed EGI could successfully mine the oxide zone prior to the installation  of the water treatment system. However, water was encountered above the water  table, but within the oxide zone.  The water treatment system was completed in  March 2012 and is now operational.  Production from the oxide zone is likely  to be 1,500-2,000 tons/month due to the fractured nature of the ore.  2)  Extend primary access ramp at Golden Dream Mine to reach deeper ore zones in  early summer. 3) Diamond Hill mill will be fully refurbished and $5 million in  bonding will be placed with the Montana DEQ before start up. 4) A "bore" raise  will be completed from surface into the main access ramp as a secondary egress  - Full production expected to be achieved by September/October 2012.   ____________________________________________________________________ |EGI Reserves and Resources:                                         | |____________________________________________________________________| |          |              |         |Gold |Copper |Gold   |Gold      | |Deposit   |Classification|Tons     |     |       |       |Equivalent| |          |              |         |(opt)|(%)    |Ounces |          | |          |              |         |     |       |       |Ounces    | |__________|______________|_________|_____|_______|_______|__________| |Golden    |Mineable      |         |     |       |       |          | |Dream     |              |1,171,000|0.221|0.406% |258,000|287,000   | |          |Reserve[1]    |         |     |       |       |          | |__________|______________|_________|_____|_______|_______|__________| |Gold Hill |Probable      |400,000  |0.195|Not    |75,000 |75,000    | |          |              |         |     |Assayed|       |          | |__________|______________|_________|_____|_______|_______|__________| |East Butte|Probable      |300,000  |0.183|Not    |55,000 |55,000    | |          |              |         |     |Assayed|       |          | |__________|______________|_________|_____|_______|_______|__________| |Carmody   |Probable      |300,000  |0.151|Not    |45,000 |45,000    | |          |              |         |     |Assayed|       |          | |__________|______________|_________|_____|_______|_______|__________| |Subtotal  |              |2,171,000|     |       |       |462,000   | |__________|______________|_________|_____|_______|_______|__________| |Property  |              |         |     |       |       |          | |          |Inferred      |         |     |       |       |1,191,000 | |Resources |              |         |     |       |       |          | |__________|______________|_________|_____|_______|_______|__________| |Property  |Proven,       |         |     |       |       |          | |Total     |Probable &    |         |     |       |       |1,653,000 | |Ounces of |Inferred[2]   |         |     |       |       |          | |Gold      |              |         |     |       |       |          | |__________|______________|_________|_____|_______|_______|__________| |1. Internal estimates, not SEC Guide 7 compliant proven & probable  | |reserves. EGI has taken its geologic reserve of 1,183,484 tons      | |grading 0.243 ounces of gold per ton and copper of 0.406% copper and| |applied an industry standard dilution and deletion percentage to    | |achieve its Mineable Reserve.                                       | |____________________________________________________________________| |2. Santa Fe Pacific determined Measured and Inferred gold ounces to | |be 1,653,000 within the four known Elkhorn Property deposits –| |Golden Dream, Gold Hill, East Butte and Carmody.                    | |____________________________________________________________________|  Montana Tunnels Mine Production History: Mine Startup - February 1986; Length  of Operation - 24 Years; Total Ore Processed - 98 Million tons; Gold Recovered  - 1.7 Million oz.;  Silver Recovered - 30.8 Million oz.; Lead Recovered - 400  Million lbs.; Zinc Recovered - 1.1 Billion lbs..  $4.85 billion at today's  prices.  M-Pit Fully Permitted: July 2004 - MTMI applied for a Major Amendment for the  M-Pit mine expansion.   November 2008 - Following an Environmental Impact  Statement process, MTMI received favorable Records of Decision from the  Montana Department of Environmental Quality ("DEQ") and the US Bureau of Land  Management ("BLM").  2008 – 2009 - MTMI received authorization to construct  compensatory wetlands for the M-Pit plan from the US Army Corps of Engineers.  Wetland mitigation was completed.   2009 - Additional reclamation bond has  been agreed to for the M-Pit mine expansion plan. Present posted bond amount  is $18.7 million ($15.1 million cash and $3.6 million appraised real estate).  An additional approximately $15.0 million bond posting is required to be  funded in order fulfill the M-Pit bonding requirement of approximately $34  million.  Today – All other permits and licenses required to operate the  Montana Tunnels Mine are current subject to bonding.   __________________________________________________________________ |M-Pit Reserves                                                    | |__________________________________________________________________| |        |          |Gold  |Silver|Lead|Zinc|           |Gold      | |        |Tons      |      |      |    |    |Gold Ounces|Equivalent| |        |          |(opt) |(opt) |(%) |(%) |           |          | |        |          |      |      |    |    |           |Ounces    | |________|__________|______|______|____|____|___________|__________| |Proven  |27,673,000|0.0127|.211  |.164|.491|358,089    |572,471   | |________|__________|______|______|____|____|___________|__________| |Probable|10,105,000|0.0130|.211  |.160|.434|130,759    |198,967   | |________|__________|______|______|____|____|___________|__________| |Proven &|37,778,000|      |      |    |    |488,848    |771,438   | |Probable|          |      |      |    |    |           |          | |________|__________|______|______|____|____|___________|__________|   _____________________________________________________________ |M-Pit Zinc and Lead Concentrates:                            | |_____________________________________________________________| |M-Pit                      |Zinc Concentrate|Lead Concentrate| |___________________________|________________|________________| |Annual Projected Production|~46,000 tons    |~16,000 tons    | |___________________________|________________|________________| |Contained Zinc             |52-56%          |8-11%           | |___________________________|________________|________________| |Contained Lead             |1-2%            |50-55%          | |___________________________|________________|________________| |Contained Gold             |0.1-0.3 oz/ton  |2.0-3.5 oz/ton  | |___________________________|________________|________________| |Contained Silver           |5-20 oz/ton     |20-50 oz/ton    | |___________________________|________________|________________| |Contained Copper           |1-1.5%          |0.5-1%          | |___________________________|________________|________________| |Contained Iron             |6-8%            |7-11%           | |___________________________|________________|________________| |Impurities                 |Very Low        |Very Low        | |___________________________|________________|________________|  Long-term Growth Strategy:  ESRI plans to grow aggressively utilizing its  current asset profile, knowledge of Montana's precious metals landscape, and  existing infrastructure.  EGI and MTMI both have exploration potential outside  of their currently defined resources. As further resources are proven, the  amount of production and life of mine are expected to increase.  Diamond Hill  has been extensively mined, but surrounding drill results suggest additional  mineralized structures. Diamond Hill can provide valuable ore to process  through the Montana Tunnels mill facility.  ESRI has the capability to acquire  and develop nearby projects in Montana that have already been identified  through management's local knowledge and experience over the past 15 years   The milling facilities, especially at Montana Tunnels Mine, have excess  capacity to process additional ore discovered at ESRI's current projects or  deposits acquired nearby  ESRI's long term goal is to be a major gold producer  with annual production of 500,000 ounces of gold.  There can be no assurances,  however, that ESRI will achieve these goals.        --  YEAR 1: Production 60,000 oz. Deposits mined - Golden Dream         Mine. Strategy - Begin operations at the Golden Dream Mine         deposit.     --  YEAR 2: Production 100,000 oz. Deposits mined - Golden Dream         Mine, Montana Tunnels Mine. Strategy - Full production at         Golden Dream Mine and start up Montana Tunnels Mine.     --  YEAR 3: Production 150,000 oz. Deposits mined - Golden Dream         Mine, Montana Tunnels Mine. Strategy - Full production at         Golden Dream Mine and Montana Tunnels Mine.     --  YEAR 4: Production 250,000 oz. Deposits mined - Golden Dream         Mine, Montana Tunnels Mine, East Butte. Strategy - Convert         already identified resources at current projects into mineable         reserves. Begin mining the East Butte deposit.     --  YEAR 5: Production 325,000 oz. Deposits mined - Golden Dream         Mine, Montana Tunnels Mine, East Butte, Diamond Hill. Strategy         - Begin sending ore from Diamond Hill deposit to Montana         Tunnels mill. Identify and acquire nearby deposits.     --  YEAR 6: Production 500,000 oz. Deposits mined - Golden Dream         Mine, Montana Tunnels Mine, East Butte, Diamond Hill, Golden         Hill. Strategy - Full production on all projects. Maximize         capacity of Montana Tunnels mill with ore from nearby deposits.  About Eastern Resources, Inc. Eastern Resources, Inc. is an early stage, U.S.  public company currently pursuing a business strategy in the precious and base  metals mining sector in the United States. On April 6, 2012, the Company  completed the acquisition of Montana Tunnels Mining, Inc. and Elkhorn  Goldfields, Inc., and these two companies are now wholly owned subsidiaries of  the Company.  About Montana Tunnels Mining, Inc. Montana Tunnels Mining, Inc., a Delaware  corporation, owns the Montana Tunnels Mine which is a fully integrated,  open-pit mining operation, which is seeking to recommence mining and milling  operations.  Currently, operations are limited to care and maintenance  functions. Montana Tunnels Mine staff engineers, in association with outside,  independent mining consultants, have designed a mine plan for the expansion of  the existing mine.  Montana Tunnels Mine has received favorable records of  decisions to begin this pit expansion from the Montana Department of  Environmental Quality and the Bureau of Land Management. This deposit  incorporates a proven and probable mineral reserve of 37.8 million tons of ore  containing 488,000 ounces of gold, 8.2 million ounces of silver, 358 million  pounds of zinc and 124 million pounds of lead. Ore will be processed through  Montana Tunnels Mine's 15,000 ton-per-day concentrating facilities.  About Elkhorn Goldfields, Inc. Elkhorn Goldfields, Inc., a Montana  corporation, owns the Elkhorn Property which is a property with four  identified gold and gold-copper mineral deposits. At the time Elkhorn  Goldfields, Inc. acquired the Elkhorn Property from Newmont Mining Corporation  in 1998, a mineral resource of 1.6 million ounces of gold had been delineated  on the property.  Elkhorn Goldfields, Inc. has advanced the first of these  four deposits – the Golden Dream deposit – to the point where it is fully  permitted and underground development is underway. The Golden Dream mine  deposit incorporates a probable mineral reserve of 1.17 million tons of ore  containing 258,000 ounces of gold and 8.3 million pounds of copper. Ore  Production from the Golden Dream operation will be trucked 35 road miles to  the Montana Tunnels Mine for processing through a separate 1,000 ton-per-day  mill located within the Montana Tunnels concentrating facility.  Cautionary Note Regarding Forward Looking Statements  This press release of Eastern Resources, Inc. ("ESRI" or, the "Company")  contains forward-looking statements within the meaning of the U.S. securities  laws. Such forward-looking statements may include, without limitation,  statements regarding the business strategy, plans and goals of the Company,  plans for the Montana Tunnels Mine and the Golden Dreams Mine (the "Mines")  including anticipated scheduling and production estimates, and direction of  production, as well as estimated capital and other costs; future gold, silver,  zinc, lead and copper prices; reserve and resource estimates; estimated gold  and silver and base metal potential for expansion of existing resources;  timing and results of drilling programs; hedging practices; currency exchange  rate fluctuations; government regulation of mining operations; environmental  risks; unanticipated reclamation expenses; share valuation, including  valuation relative to other resource companies and other statements that are  not historical facts. Generally, these forward-looking statements can be  identified by the use of forward-looking terminology such as "plans",  "expects" or "does not expect", "is expected", "budget", "scheduled",  "estimates", "forecasts", "intends" "anticipates" or "does not anticipate",  "believes", or variations of such words and phrases or state that certain  actions, events or results "may", "could", "would", "might" or "will be  taken", "occur" or "be achieved". Forward-looking statements are based on our  current expectations and assumptions. The anticipated timing and cost of  activation of the Mines as well as the expected production from the Mines are  based on the following assumptions: Capital and operating cost estimates are  based on recent cost estimates of construction and mining costs developed by  independent consultants and ESRI personnel; production estimates are based  upon the actual metal recovery achieved on the Golden Dream Mine and Montana  Tunnels Mine ores; and ore tonnage estimates and precious and base metal  grades are as indicated in the plans and production schedules for the Mines  developed by Company personnel and outside consultants. Although ESRI  management believes that its expectations are based on reasonable assumptions,  it can give no assurance that these expectations will prove correct. Important  factors that could cause actual results to differ materially from those in the  forward-looking statements include, among others; risks relating to the  planned activation of the Mines including risks of delays in receipt of  reclamation bond approval and delays in completion of construction,  uncertainties relating to availability and timing of capital for financing the  planned reactivation, risks relating to availability of outside contractors,  risks of shortages of equipment or supplies, uncertainties relating to  obtaining approvals and permits from government regulatory authorities, and  risks of inability to achieve anticipated production volume or manage cost  increases; risks that ESRI's acquisition, exploration and property advancement  efforts will not be successful; risks relating to fluctuations in the price of  precious and base metals, the inherently hazardous nature of mining-related  activities and uncertainties concerning reserve and recourse estimates as well  as those factors discussed in ESRI's filings with the U.S. Securities and  Exchange Commission (the "SEC"), including ESRI's latest filing on Form 8-K  (SEC File No. 000-54645) filed with the SEC on April 12, 2012, as amended on  May 16, 2012 and May 31, 2012 and its other SEC filings including. There can  be no assurance that forward-looking statements will prove to be accurate, as  actual results and future events could differ materially from those  anticipated in such statements. Accordingly, readers should not place undue  reliance on forward-looking statements. The Company does not intend to  publicly update any forward-looking statements, whether as a result of new  information, future events or otherwise except as may be required under  applicable securities laws.  Cautionary Note to investors concerning estimates of Measured, Indicated and  Inferred Resources: The terms "Mineable Reserve," "Measured", "Indicated" and  "Inferred" Resources are used herein. Investors are advised and cautioned that  such terms are not recognized by the United States Securities and Exchange  Commission. "Inferred Mineral Resources" have a great amount of uncertainty as  to their existence, and as to their economic and legal feasibility. It cannot  be assumed that all or any part of an Inferred Mineral Resource will ever be  upgraded to a higher category. Investors are also cautioned not to assume that  all or any part of Measured or Indicated Mineral Resources will ever be  converted into Mineral Reserves and not to assume that all or any part of a  Mineral Resource is economically or legally mineable.  [1] For more information about the merger, please refer to the Company's  Current Report on Form 8-K (SEC File No. 000-54645) filed with the Securities  and Exchange Commission on April 12, 2012, as amended on May 16, 2012 and May  31, 2012.  [2] Internal estimates, not SEC Guide 7 compliant proven or probable reserves.  [3] Internal estimate, not SEC Guide 7 compliant proven or probable reserves.    SOURCE  Eastern Resources, Inc.  Robert Trenaman, President and Chief Operating Officer, Eastern Resources  Inc., +1-604-687-4450, robert.trenaman@elkhorngoldfields.com  http://www.easternresourcesinc.com  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/June2012/12/c7968.html  CO: Eastern Resources, Inc. ST: Delaware NI: MNG  
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