Claude at break-even in first quarter

Unlike some of its competitors, Claude Resources (CRJ-T) managed to stay out of the red during the quarter ended March 31 . . . but only by a hair.

The company’s Seabee gold mine in Saskatchewan’s La Ronge district produced 14,500 oz. gold during the period at a cash cost of US$208 per oz. This compares with 15,300 oz. at US$194 per oz. a year ago.

The company posted break-even net earnings on revenue of $7.9 million for the quarter, compared with earnings of $1.2 million on revenue of $8.3 million a year earlier.

In continuous production since 1991, the Seabee underground mine has produced an average of 54,000 oz. gold annually at a historic grade of 8.9 grams per tonne over average widths of about 2 metres.

Recent drilling at Seabee has expanded the newly discovered 2d zone, which has returned grades and widths above the mine’s 9-year production average. The zone is defined by the occurrence of two shear veins hosting massive pyrite. The latest results from this target include: 7.3 metres grading 10.76 grams gold per tonne; 5.5 metres of 11.03 grams; 2.3 metres of 11.19 grams; and 1.1 metres of 8.58 grams.

Claude expects to produce 60,000 oz. gold this year at a cash cost under US$200 per oz. and total production costs of about US$240 per oz. At last report, the Seabee and related Currie Rose properties hosted reserves of 853,104 tonnes averaging 8.56 grams, plus an additional resource of 1.4 million tonnes of 8 grams.

The company continues to explore the Currie Rose claims, where 37 holes totalling 5,397 metres were drilled to test structures in the Laonil Lake shear corridor, west and north of Seabee. This program was described as successful in confirming the presence of the shears, but returned weak-to-modest gold values from quartz veins associated with the shear structures. Other targets were tested, including a new vein north of the mine, which produced the best intersection: 1.41 metres grading 6.25 grams.

Meanwhile, at the Madsen gold mine in northwestern Ontario, Claude is readying the high-grade No. 8 zone for mining, anticipated to begin later this year. Madsen is a former producer in the prolific Red Lake gold camp.