Results so far this year from infill drilling at Saskatoon-based Claude Resources’ (CRJ-T, CGR-X) Seabee mine, 125 km northeast of La Ronge, is starting to turn some heads. Earlier this month, Sprott Asset Management picked up 7.7% of the gold miner’s shares.
The most recent highlights from the company’s 2009 underground drill program include 14.25 grams per tonne of gold over 1.1 meters true width in hole 626; 14.98 grams per tonne gold over 4.7 meters true width in hole 630; 10.23 grams per tonne gold over 1.8 meters true width in hole 22; and 8.99 grams per tonne gold over 1.9 meters true width in hole 23.
The intercepts extend and better define gold mineralization at Seabee Deep and will likely raise the mine’s average head grade, the company says.
While Claude Resources suffered a net loss of $1 million in the first quarter, or 1¢ per share, compared with a net earnings of $0.4 million in the year-earlier period, production rose 26% to 10,613 ounces of gold, up from the 8,423 ounces produced in the first quarter of 2008.
The gold exploration and mining company has high expectations this year. It plans to produce from its satellite deposit at Santoy 7 as well as the Seabee mine and to continue an underground bulk sample program at Porky West. It also plans to move its Santoy 8 deposit towards commercial production pending environmental approval and permits.
A total of 35,000 meters of surface and underground diamond drilling is planned at Seabee and its satellite deposits.
The Seabee operation milled 54,190 tonnes of ore at a grade of 6.36 grams gold per tonne during the first quarter ended Mar. 31, compared with 51,110 tonnes at a grade of 5.37 grams per tonne during in the same quarter of 2008.
Sales volume at Seabea increased 15% year-on-year in the quarter to 10,070 oz. gold. The combination of increased sales volumes and improving gold prices resulted in significant revenue gains. Gold revenue increased from $8.1 million in the first quarter of 2008 to $11.5 million in the first quarter of 2009.
Since 1991, the Seabee Camp in northeastern Saskatchewan has produced about 845,000 ounces of gold.
Claude Resources also owns 100% of the 10,000 acre Madsen property in the Red Lake gold camp of northwestern Ontario. The company is working towards completing a National Instrument 43-101 resource for Madsen.
Underground drilling since December 2008 from the tenth level of the Madsen mine shaft has returned high-grade gold intercepts including 127.12 grams gold per tonne over 0.75 metres; 21.52 grams per tonne over 0.45 metres; 33.39 grams gold per tonne over 2.49 metres; and 25.77 grams gold per tonne over 7.90 metres.
At press-time in Toronto, Claude Resources was trading at 94¢ per share, near the higher end of its 52-week trading range of 15¢-$1.10 per share.
The company has 111.5 million shares outstanding.
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