Saskatchewan gold mine yields profits for Claude

The Seabee gold mine in Saskatchewan’s La Ronge district continues to generate operating profits for Claude Resources (CRJ-T).

The Saskatoon-based company posted operating earnings of $1.8 million for the first nine months of this year based on production of 42,900 oz. gold from Seabee. However, after including results from the oil and gas division and a $1.3-million provision for foreign currency fluctuations, Claude ended up with a net loss of $300,000 for the 9-month period.

Cash operating costs at Seabee were US$180 per oz., compared with US$230 per oz. in the first nine months of 1997. The mill processed an average of 620 tonnes per day in the recent nine months at a grade of 8.63 grams gold per tonne, with a 92.9% recovery rate.

Meanwhile, Claude has been tuning up the mill at its newly acquired Madsen gold mine in Ontario’s Heyson Twp. Throughput of low-grade ore averaged 490 tons per day in August and 625 tons in September, and the company was expecting to boost the rate to 800 tons this month. Pending a production decision, revenue from the 2,600 oz. gold produced during this perid was netted against preproduction expenditures.

The Madsen mine has been dewatered to below the 13th level to facilitate mine development and rehabilitation of shafts and hoists. The mine plan initiated for underground development, which focused on the past workings of the main Austin zone, is being redesigned as results did not always meet expectations. However, encouraging results were obtained from surface drilling on the McVeigh zone, which runs parallel to the Austin zone and has been traced on surface for more than 2,000 metres.

Because of the high number of ore-grade intercepts from this target, Claude plans to collar a portal and construct a ramp in order to reach the upper levels of this zone. The goal here is to provide, by the first quarter of 1999, complementary feedstock to augment the 500 tons per day being mined from the Austin zone.

Also, Claude is on schedule with development work at the Currie Rose property in Saskatchewan, which is being prepared for production next year. The company plans to process at least 30,000 tonnes annually from this property, starting in 1999. In the meantime, exploration will continue.