Claude, Placer strike gold in Red Lake

Echoing the exploration success of their rival, Goldcorp (G-T), partners Placer Dome (PDG-T) and Claude Resources (CRJ-T) have discovered a high-grade gold system in the Red Lake camp of northwestern Ontario.

The pair found the system near the old Madsen mine, in metabasalts overlying the structural contact with a large komatiite unit. The lithological picture is identical to the nearby, producing Red Lake mine of Goldcorp and the adjoining Campbell mine of Placer.

Mineralization is characterized by pyrite and pyrrhotite, with visible gold reported in three holes. Folded and broken quartz-iron-carbonate-tourmaline veins are the predominant host, with carbonate veinlets and colloform quartz veins playing lesser roles.

Eight holes, spaced 600-900 ft. apart, have been drilled. Complete results are available for the first four, and partial results for the next three.

So far, drilling has traced the system over a length of 3,000 ft., a width of 1,000 ft. and a height of 1,200 ft. Multiple gold sections are noted, including the following:

– 1.41 oz. per ton over 0.8 ft. (starting at about 915 ft.), 0.1 oz. over 23.1 ft. (at 939 ft.), and 0.14 oz. over 7 ft. (at 1,025 ft.) in hole 9;

– 0.1 oz. over 2.4 ft. (at 352 ft.) in hole 10;

– 0.06 oz. over 9 ft. (at 770 ft.), 0.15 over 1.3 ft. (at 1,179 ft.), and 0.13 over 0.8 ft. (at 1,289 ft.) in hole 11;

– 0.11 oz. over 1.3 ft. (at 1,277 ft.) and 0.11 oz. over 9.6 ft. (at 1,383 ft.) in hole 12;

– 0.05 oz. over 4 ft. (at 234 ft.), 0.12 oz. over 4 ft. (at 313 ft.) and 0.15 oz. over 1 ft. (at 2,457 ft.) in hole 13;

– 0.21 oz. over 1.1 ft. (at 492 ft.) in hole 14; and

– 0.04 oz. over 1.2 ft. (at 792 ft.) and 2.6 oz. over 0.26 ft. (at 809 ft.) in hole 15.

The remaining holes are testing anomalies in the vicinity and should be drilled by November. After that, the results will be studied in relation to surface and geophysical data.

Infill drilling is planned.

Between 1938 and 1976, Madsen cranked out 2.4 million oz. from 8.4 million tons, worked to 4,000 ft. below surface on 24 levels. Claude tried to resume production a few years back, before dealing an option to Placer.

Placer can earn a 55% stake by spending $8.2 million by 2005 and delivering a bankable feasibility study by 2007. The option period coincides with the expected depletion of Campbell’s reserves, assuming no more minable material is outlined.