Claude has engaged the firm of Cominco Engineering Services of Saskatoon to manage the program, with the participation of Northward Mining Contractors and Coates Enterprises to carry out underground work and diamond drilling.
The $2-million program, currently under way, consists of 1,000 ft of lateral and vertical development, bulk sampling and 13,000 ft of diamond drilling on two zones. The program began earlier this month as part of a final feasibility study.
According to a previous estimate, done by the consulting firm of A.C.A. Howe International, the deposit hosts reserves of 1,013,000 tons grading 0.365 oz gold per ton (all categories). Most of the gold is contained in two zones about a quarter mile apart. Access to the largest of the gold zones is provided by an underground decline.
The total capital cost to build a 440-ton-per-day mining operation at the Seabee project has been estimated at $23-24 million. Claude is hoping production can begin in 1990 at an annual rate of about 52,000 oz of gold per year. The company did not disclose what gold price would be required to make the project economically viable.
The Seabee property, 78 miles northeast of La Ronge, was named after the amphibious Seabee aircraft that serviced the property back in the 1940s.
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