Claude extends work program at Seabee

Exploration work on Claude Resources’ (TSE) Seabee gold deposit in northern Saskatchewan is expected to lead to a production decision by May, the company says.

The current exploration program, which began last October, was originally scheduled to reach completion by year-end 1989. But, the company recently decided to continue drilling and underground work through the winter.

Preliminary estimates have placed Seabee’s total gold reserves (in all categories) at just over one million tons grading 0.36 oz. gold per ton. Claude has been exploring the deposit for the past four years.

Relying on a 30-mile winter road for access, the company is contemplating a possible fly-in mining operation for Seabee. There are indications that a power line, which would serve another uranium project further north in the province, could be built by 1991. That line would pass within 10 miles of the Seabee site, according to Claude.

“One of the biggest problems at Seabee is getting the fuel into the site,” President Gary Billingsley told The Northern Miner.

“A power line would certainly save the hassle of storing and hauling fuel along a winter road.”

Earlier this winter, a 12,000-ft. surface drilling program was completed on two of the deposit’s main gold zones (2B and 5). Some of the better results from those holes are as follows: 0200,0311,0311,0108,0000 GradeWidthDepth Hole(oz./ton)(ft.)(ft.) 2B zone S-2230.58 4.7 551 S-2240.46 4.1 731 S-2170.6717.4738 S-2250.47 4.8763 S-2160.39 6.3817 S-2261.03 6.7933 5 zone S-2220.12 3.9156 S-2190.22 4.1221 S-2200.40 6.4308 S-2210.16 4.3383

The company is encouraged by the fact that the deepest holes in the 2B zone hit a number of high-grade gold values indicating that the zone continues strongly at depth. Infill drilling in the 5 zone demonstrated continuity of the shear system and encountered good grade intercepts in an untested area between two previously known ore blocks.

“We’re trying to upgrade much of the possible reserves to the probable category, and build our overall minable reserves for a production decision,” said Billingsley. “We hope to plug the results of this work into the feasibility study.”

This year’s extended exploration program will include additional diamond drilling (about 13,000 ft.) and an extension of the underground decline to a depth of around 650 ft. below surface.

“The decline extension will be driven in waste rock to provide stations for the diamond drilling,” he said.

Underground drifting and raising in the 2B zone are also being carried out, and a 3,000-ton bulk sample is being extracted. This material is to be run through an on-site crushing plant and sent for independent assay with results to follow.

Last month, Claude completed an $8-million prospectus financing which took advantage of Saskatchewan’s provincial stock savings plan. That incentive allows investors to receive tax credits of up to 30% on certain income taxes. The proceeds from the financing will be used to help fund the Seabee project to production.

Shares of Claude Resources have traded recently at around $3.20 which is just above the 12-month low of $3.15.