Seabee project nearing mine status

The Seabee deposit is located in the Laonil Lake area, about 78 miles east of La Ronge, Sask.

Claude is currently in the process of tendering a $2-million underground exploration contract to continue evaluation of the Seabee project.

The company says it expects work to be under way by July or August, and that a positive production decision could follow later this fall.

A fly-in/fly-out mining operation is currently being contemplated for the property, where undiluted reserves of one million tons grading 0.365 oz gold per ton have been outlined so far.

According to a company spokesman, one of the local native bands in the area has also expressed some interest in forming a joint venture with Claude on the Seabee property. Placer Dome Inc. (TSE) had been Claude’s previous joint venture partner on the property.

Possible extensions of the Seabee gold zones were intersected last year by drilling on adjacent property owned by partners Currie Rose Resources (VSE) and Placer Dome. Some of the better intersections from that drill program included 3.2 ft grading 1.32 oz gold and 12.8 ft of 0.31 oz gold.

A $700,000 exploration program will get under way this month to continue testing the gold potential of the Currie Rose property.

On Claude’s Ithingo Lake gold project, 65 miles north of Buffalo Narrows, Pine Channel Gold Corp. (VSE) has taken over as operator from Newmont Mines, a wholly- owned subsidiary of Newmont Mining. The Ithingo Lake project is a joint venture between Claude Resources, Pine Channel and Newmont, the previous operator.

To date, 10,000 ft of diamond drilling has tested various zones on the 41,000 acre property. The best results from this spring’s drill program included 22.9 ft grading 0.12 oz gold per ton and 8.2 ft of 0.18 oz gold. A number of higher grade narrow intersections were also obtained.

Geophysical anomalies north of the main zone are to be tested by this summer’s drilling program, says a spokesman for Pine Channel.

Gold bearing horizons occur in a sequence of metamorphosed sedimentary rocks and amphibolite on the property.

According to the provincial government, exploration expenditures for gold in northern Saskatchewan are expected to fall by about 40% this year, reflecting a general downtrend seen across the country.

Last year saw nearly $55 million spent in the search for gold in that prairie province, but sources estimate this year’s level could drop to around $30 million.

The small but high grade Jolu mine, owned by Corona Corp. (TSE) and International Mahogany Corp. (TSE), stands as one example of the area’s recent gold mining successes.

The Jolu mine has met or exceeded all expectations, and is projected to yield an annual gold production of more than 50,000 oz this year at a cost of about $185 (US) per oz.

But at least two other La Ronge area gold projects — Fork Lakes and Pap SW — have been hampered by disputes among the partners, and unresolved questions regarding land use in a provincial park.

At the Fork Lakes project, which was the site of a successful underground exploration program, a legal dispute among the joint venture partners has been holding up further development.

According to sources in the La Ronge camp, the joint venture partners have been involved in a dispute over where to mill ore from that project. The partners had contemplated using the existing Star Lake mill to process ore from the high-grade Fork Lakes deposit.

In the first quarter of this year, the Star Lake mine was closed down following the depletion of its orebody. The mine had been operated by Cameco.

A $6-million underground exploration program at Fork Lakes outlined reserves of nearly 200,000 tons (probable and possible) at a grade of 0.72 oz gold per ton. The joint venture is operated by Cameco which owns a 36% interest. The other partners are Golden Rule Resources (TSE), Mahogany Minerals Resources (VSE) and the Shore Gold Fund.

On another La Ronge area joint venture project, near Preview Lake, an underground program is being stalled on the Pap SW gold zone. At issue are unresolved questions regarding land use in a provincial park. The Pap SW zone, which lies within the park boundary, was to have been the site of an underground exploration program, but the question of permitting mining within the park boundaries has apparently not been resolved yet.

Geological reserves totalling 544,200 tons averaging 0.36 oz gold have been outlined in the Pap SW zone. Windarra Minerals (VSE) holds a 20% interest in the property. Other partners are Cameco, which is operator of the project with 50%, and Uranerz Exploration and Mining with a 30% interest.

Farther north, in the Lake Athabaska area, two Toronto-based junior mining companies, RJK Mineral Corp. (ASE) and Greater Lenora Resources (TSE) are concentrating their attention on developing the Box and Athona properties. Robert Kasner, president of both companies, says the project has the potential for inexpensive open pit mining, but selective mining of the higher grade sections is currently being considered. Total drill-indicated reserves for the Box and Athona have been estimated at 19 million tons grading 0.056 oz gold.

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