Results so far this year from infill drilling at Saskatoon, Sask.-based Claude Resources’ (CRJ-T, CGR-X) Seabee mine, 125 km northeast of La Ronge, is starting to turn some heads. In early June, Sprott Asset Management picked up 7.7% of the gold miner’s shares.
The most recent highlights from the company’s 2009 underground drill program include 14.25 grams per tonne of gold over 1.1 metres in hole 626; 14.98 grams gold over 4.7 metres in hole 630; 10.23 grams gold over 1.8 metres in hole 22; and 8.99 grams gold over 1.9 metres in hole 23. All intercepts are true widths.
The results extend and better define gold mineralization at Seabee Deep and will likely raise the mine’s average head grade, the company says.
While Claude Resources suffered a net loss of $1 million in the first quarter, or 1¢ per share, compared with net earnings of $400,000 in the year-earlier period, production rose 26% to 10,610 oz. gold, up from the 8,420 oz. produced in the first quarter of 2008.
The gold exploration and mining company has high expectations this year. It plans to produce from its satellite deposit at Santoy 7 as well as the Seabee mine and to continue an underground bulk-sample program at Porky West. It also plans to move its Santoy 8 deposit towards commercial production pending environmental approval and permits.
A total of 35,000 metres of surface and underground diamond drilling is planned at Seabee and its satellite deposits.
The Seabee operation milled 54,190 tonnes of ore at a grade of 6.36 grams gold per tonne during the first quarter ended March 31, compared with 51,110 tonnes grading 5.37 grams per tonne during the same quarter of 2008. Sales volume increased 15% year-on-year in the quarter to 10,070 oz. gold. The combination of increased sales volumes and improving gold prices resulted in significant revenue gains. Gold revenue increased from $8.1 million in the first quarter of 2008 to $11.5 million in the first quarter of 2009.
Since 1991, northeastern Saskatchewan’s Seabee camp has produced about 845,000 oz. gold.
Claude Resources also owns 100% of the 40.5-sq.-km Madsen property in Ontario’s Red Lake gold camp. The company is working towards completing a National Instrument 43-101-compliant resource for Madsen.
Underground drilling since December 2008 from the 10th level of the Madsen mine shaft has returned high-grade gold intercepts including 127.12 grams gold over 0.8 metre; 21.52 grams over 0.5 metre; 33.39 grams gold over 2.5 metres; and 25.77 grams gold over 7.9 metres.
At presstime in Toronto, Claude Resources was trading at about 77¢ per share, in a 52-week trading range of 15¢-$1.05.
The company has 111.5 million shares outstanding.
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