Claude jumps into the black

Despite lower gold prices, Claude Resources (CRJ-A) earned $1.3 million (or 4 cents per share) during the first nine months of the year, compared with a loss of $300,000 (1 cents per share) in the corresponding period of 1998. Revenue between the periods declined 3.5%, to $21.7 million.

Cash flow in the recent period totalled $5.1 million, compared with $7.2 million a year ago. The decrease is attributed to lower gold prices and higher operating costs.

From the Seabee mine in Saskatchewan, Claude pulled 41,840 oz. in the recent period at a cash cost of US$199 per oz. Production is expected to top 58,000 oz. by year-end, with total cash costs projected at under US$240 per oz.

The company also owns the Madsen gold mine in northern Ontario, plus interests in producing oil and gas wells in Alberta and Saskatchewan. Mining at the former was recently suspended, and dewatering and shaft rehabilitation are under way in preparation for deep drilling next year.

Prospecting on claims surrounding Seabee has led to the discovery of gold-bearing quartz veins. Follow-up work is will begin shortly.

Drilling of a splay off the 2b zone returned several mineralized intercepts averaging 2.37 metres of 9.34 grams gold per tonne. An indicated resource is estimated at 85,800 tonnes grading 7 grams gold for the structure, between levels 80 and 190, though subsequent development on the 140-level returned an average of 18.6 grams over 50 metres of strike length.

At Sept. 30, Claude had $3.2 million in working capital.