EXPLORATION – Gold discovery reported at Pine East property

A gold discovery at the Pine East property has prompted partners Shane Resources (SEI-V) and Claude Resources (CRJ-T) to change the terms of their current agreement.

The discovery was made on Shane’s property at Munro Lake in Saskatchewan, a mere four miles from Claude’s producing Seabee gold mine.

Shane’s management is negotiating to retain a 25% carried interest in the property through to production, rather than the previously arranged 30% participating interest. The company believes the proposed new arrangement will enable it to participate in a potential mine without the dilution associated with having to issue shares to finance development.

Grades of up to 0.35 oz. gold per ton were encountered in a wide shear zone at the Pine East property. Several other gold-bearing zones were found nearby in a previously untested area. The showings are believed to be geologically similar to gold-bearing zones at the Seabee mine, which produced 42,900 oz. gold in the first nine months of this year. Cash costs were US$180 per oz.

Once the new agreement is concluded, Claude will operate a systematic, followup program. If a deposit is outlined, it could be mined and trucked to Claude’s mill at Seabee.