Claude finds more high-grade at Seabee Deeps

Vancouver – Claude Resources (CRJ-T) is being rewarded for its effort to find new mineralization to feed its Seabee mine in central Saskatchewan.

The Seabee mine, 125 km northeast of La Ronge, has been producing gold since late 1991, averaging close to 45,000 oz. each year. The underground mine taps into a narrow vein. In late 2007 Claude started mining a second deposit, known as Santoy 7. And the company hopes to add Santoy 8 to its mine count by the end of the year.

But the resource at the main Seabee deposit is far from depleted, according to recent results from an underground drill program. Intercepts from Seabee Deeps returned short, high-grade hits. Hole 605 cut 2.2 metres grading 59.19 grams gold per tonne, hole 605 hit 2.5 metres of 43.13 grams gold, and hole 609 intercepted 2.6 metres averaging 23.64 grams gold. Other promising results include 212.34 grams gold voer 2.3 metres in hole 607 and 18.28 grams gold over 1.6 metres in hole 610.

Claude says the new high-grade area is close enough to existing underground development that it will be incorporated into the mine plan for 2009 and will likely raise the average head grade.

With Seabee Deeps and Santoy 7 providing feed for the Seabee mill, Claude plans to continue with a bulk sampling program at Porky West, another nearby satellite deposit, and to move Santoy 8 towards commercial production. Produciton at Santoy 8 is still subject to environmental approval and permitting.

In 2008 Claude produced 45,466 oz. gold from the Seabee deposits. For the first nine months of 2008 the company recorded a net loss of $2.1 million, likely due to the cost of de-watering an old mine at its other exploration property, the Madsen mine near Red Lake, Ontario.

In the two trading days following news of the Seabee Deeps drill results Claude’s share price gained 6¢ to close at 67¢. The company has a 52-week trading range of 15¢ to $1.39 and has 97 million shares outstanding.