Claude gets more gold out of the ground and out of the mill

Claude Resources (CRJ-T, CGR-X) is keeping a few balls up in the Saskatchewan air.

The company announced drill results from part of its 35,000 metre program at its Seabee mine in the province and announced increased production at the mine.

Highlights from the program included: 11.18 grams per tonne of gold over 3.6 metres; 7.6 grams gold over 4.5 metres; 15.23 grams gold over 3.9 metres; and 19.36 grams gold over 3.3 metres. All lengths reported were true widths.

Claude says the high grades of the intercepts, combined with their location in close proximity to existing development means the company can work them into its mine plan in the short and medium term

As for current production at Seabee, the company says it is has been hitting its guidance of 160 oz. per day from the beginning of July to August 16th – a significant increase from the 85 oz. a day the company was producing in the second quarter.

Better production is coming from higher tonnage — over 750 tonnes per day — as well as higher grade being delivered to the mill.

Overall, Claude says it is on track to produce between 46,000 and 48,000 oz. of gold for all of 2009.

Production has been coming from a satellite deposit known as Santoy 7 as well as the Seabee Mine itself.

But more sources of ore could soon be on their way. An underground bulk sample program at Porky West is ongoing and the Santoy 8 satellite deposit is awaiting environmental approval and permits before it can go into production.

Since 1991, Claude has produced roughly 850,000 oz of gold at Seabee.

In Toronto on August 19, Claude shares traded flat at 69¢ on heavy volume of 325,000 shares. The company has 111 million shares outstanding.