Claude sizes up new zone

Drilling in the footwall at the Madsen gold mine in Red Lake, Ont., has intersected a gold-bearing structure similar to the producing Austin zone.

Claude Resources (CRJ-T) drilled 144 holes totalling 11,185 metres, resulting in 50 intervals averaging between 0.86 and 19.2 grams gold per tonne over 0.82-4 metres. Mineralization is associated with a structure, dubbed McVeigh, consisting of multiple zones situated 75-125 metres from the Austin zone. Historically, that zone has produced 7.7 million tonnes grading 9.9 grams gold; currently it provides Claude with 50,000 oz. yearly.

Drilling indicates that the grade and width of mineralization increase with depth, though the average is greater than 1.2 metres and more than 3.43 grams gold. A ramp and other underground structures are being driven to establish continuity and potential minability.

Claude acquired the Madsen mine in early 1998, following its friendly takeover of then-owner Madsen Gold. The acquisition roughly doubled the company’s yearly output (Claude operates the Seabee gold mine in Saskatchewan’s La Ronge district) to more than 100,000 oz. and added 1.1 million tonnes grading 9.26 grams gold to its reserve base. At last report, reserves at Seabee stood at 960,000 tonnes grading 9.86 grams gold.