Claude revisits Amisk project

Vancouver – Claude Resources (CRJ-T, CGR-X) has hit long intercepts of near-surface gold and silver at its Amisk gold project in Saskatchewan.

The company has a 65% working interest in the 12,000-hectare property, which lies about 20 km southwest of Flin Flon Manitoba, while joint-venture partner St. Eugene Mining (SEM-V) holds the rest.

The 2010 winter drill program consisted of 2,300 metres of drilling over 11 holes with all hitting mineralization. The company, however, knows the property well, having completed 18,000 metres of drilling between 1997 and 1999.

The latest drilling tested from surface to roughly 300 metres depth. So far the company has tested a strike length of 550 metres, with the system still open to the west, southwest and down dip to the northeast.

Hole 281 cut 161.9 metres grading 1.29 grams gold per tonne and 8 grams silver per tonne from 87 metres depth. Hole 277 hit 237.4 metres carrying 0.98 gram gold and 8.5 grams silver from 23 metres downhole and included 3 metres grading 13.29 grams gold. Hole 279 intersected 119.1 metres carrying 0.92 gram gold and 5.1 grams silver from 10 metres downhole.

The company reported some early results from the program in May that included 86.7 metres averaging 1.03 grams gold and 6 grams silver and 34.9 metres grading 2.91 grams gold and 4.3 grams silver, both starting 11 metres downhole.

The site saw extensive work by previous owner Cameco (CCO-T, CCJ-N) in the 1980s that included underground bulk sampling and a calculated historic reserve.

Claude first optioned the property in 1995 and spent roughly $3.4 million on its way to earning a 35% stake from Cameco and Husky Energy (HSE-T) by 1999. Over the past decade the company did minor sampling and maintenance work on the site, but only late last year did it decide to re-evaluate the potential of the property. In early 2010 Claude acquired the rest of the property interests from Cameco and Husky and soon after entered into a joint venture with St. Eugene.

The Amisk-Laurel gold zone, where current exploration is concentrated, is hosted within a rhyolite flow-dome complex and overlying pyroclastic tuffs and flows. Mineralization is hosted within a series of moderate to shallow-dipping sulphide vein systems.

The company plans further diamond drilling for the summer as well as re-sampling of historic core. Historic drill results include 79 metres grading 5.41 grams gold and 46.4 grams silver, 196.8 metres carrying 2.09 grams gold and 7.6 grams silver and 10.5 metres carrying 8.82 grams gold and 24.4 grams silver.

Claude also owns the producing Seabee gold mine in Northern Saskatchewan. Claude recently received the final operating permit needed for Santoy 8, a satellite deposit 14 km east of the mine and mill, with production expected by the first quarter of 2011. Santoy 8 contains reserves of 177,300 tonnes grading 7.02 grams gold.

The company recently arranged to sell the majority of its oil and natural gas assets for $6.2 million to an unnamed private Canadian company.

Claude’s share price closed down 2¢ on the day at $1.09. The company has 131 million shares outstanding and a 52-week share price range between 61¢ and $1.46.