GOLD AND PRECIOUS METALS — Claude buys Tartan Lake mine in Manitoba

As a result of an aggressive acquisition spree, Saskatoon-based Claude Resources (CRJ-T) has moved several steps closer to its goal of producing 150,000 oz. gold per year by the turn of the century.

The junior gold miner recently acquired the assets of the Tartan Lake mine near Flin Flon, Man., from Vista Gold (VGZ-T) in exchange for 999,444 treasury shares, the equivalent of $2.59 million. The acquisition follows close on the heels of Claude’s friendly takeover of Madsen Gold (MGF-T), owner of the Madsen mine in northern Ontario.

The Tartan assets, including a permitted tailings pond and a 440-tonne-per-day mill, could hasten production from Claude’s nearby Amisk/Laurel Lake project, which is currently undergoing advanced exploration.

Amisk Lake lies within a recreational area, but is within trucking distance of Tartan Lake.

“Given the location of Amisk Lake, and the permitting problems we might encounter there, acquiring Tartan Lake was a logical move,” says Arnie Hillier, Claude’s vice-chairman. “The two could make a nice fit.” The Tartan Lake mine also has the potential to resume production, says Hillier. The narrow-vein mine was placed on care and maintenance by Granges (now Vista Gold) in 1989, after about two and a half years of difficult operation.

Other assets at Tartan Lake include about $2-million worth of rolling stock, mining equipment and related parts, as well as 2,700 ha of mineral and land leases.

This year, Claude’s Seabee mine in northern Saskatchewan is expected to produce a record 60,000 oz. gold at a cash cost of US$208 per oz. The recently-acquired Madsen mine, where underground development is now under way, should add another 50,000 oz. to Claude’s annual gold production.

The Amisk/Laurel Lake project may be the company’s next producer. Claude is spending more than $1 million on dewatering and underground sampling to increase its interest in the property to 35% from 10%.

By spending another $14 million or by bringing the property into commercial production, Claude can increase its interest to 70%. Joint-venture partners Cameco (CCO-T) and Husky Oil would hold the remaining 30%.

Based on a new geological interpretation, Claude has outlined a preliminary resource of 210,000 tonnes grading 15 grams per tonne gold (uncut) for Laurel Lake. The deposit remains open at depth and along strike.