Claude Resources Enters New Development Era

By Gregory Reynolds

Claude Resources Inc. has high hopes for its Marsden Gold Project in the prolific Red Lake Mining Camp of Northwestern Ontario.

The company says it is entering a new era in its development. Of particular note is the expansion and mining of satellite deposits at the Seabee Gold Operation in Northern Saskatchewan, the significant potential of the Madsen Project and the expanding resource base at the Amisk Gold Project near Flin Flon Manitoba.

Claude is a fully integrated Canadian gold exploration and mining company that has the proven ability to Discover, Develop and Deliver Gold. The company has a strong operating base and significant upside. Having been in operation during times of low gold prices, Claude has proven that it has the ability to survive challenging business environments.

The Red Lake Gold Camp is considered by many to be the highest grade gold camp in the world with its flagship property being the Red Lake gold mines operated by Goldcorp Inc.

The Madsen consists of a 4,000 hectare land package with four past producing mines on the property. The Madsen currently has an Indicated resource of 928,000 ounces of gold and an Inferred resource of 297,000 ounces in National Instrument 43-101 category.

The past-producers were the Madsen, Starratt-Olsen, Buffalo and Faulkenham Mines.

The Madsen project currently has 3,236,000 t at 8.93 g/t Au in the National Instrument 43-101-compliant Indicated Resources category and 788,000 t at 11.74 g/t Au in the Inferred Resources category.

The Seabee Gold Operation consists of two producing mines, the Seabee Gold Mine (since 1991) and the Santoy 8 Gold Mine (since January 2011). The Seabee is located in the La Ronge Mining District at the north end of Laonil Lake approximately 125 km northeast of the Town of La Ronge, Saskatchewan and about 150 km northwest of Flin Flon.

Topography of the region is characterized by low rocky ridges interspersed with lakes and muskeg. Access to the mine site is by fixed wing aircraft from La Ronge or Flin Flon to an airstrip located on the property.

Equipment and bulky or heavier supplies are trucked to the site via a 60 km winter road from Brabant Lake on Highway 102. The winter ice road is typically in use from January through March. The Seabee Gold Operation directly supports a workforce of approximately 355 employees with permanent camp facilities. Electrical power is provided by a transmission line to the operation by the provincial power authority.

In 2012, Claude’s net profit was $5.6 million, or $0.03 per share, after a $3 million, or $0.02 per share, non-cash deferred income tax expense.

• Cash flow from operations before net changes in non-cash operating working capital of $25.8 million, or $0.15 per share.

• Cash cost per ounce of gold were $997 (U.S. $998).

• It generated $80.8 million in revenue from gold sales of 48,672 ounces at an average price of $1,660 (U.S. $1,661).

At Marsden, the company maintained current water levels below the 17th Level and had two diamond drill stations set up on the 16th level. The company carried out 19,100 m of underground and surface diamond drilling in 16 holes.

The system continues to remain open down plunge and along strike to the east. The Austin Tuff unit contained the historic Madsen workings (1938 to 1976) and the McVeigh Tuff was explored underground by a ramp system 1997 to 1999.

Claude completed three deep surface diamond drill holes to evaluate the Austin Tuff at elevations of 1,200 to 1,800 m below surface. Drill holes AD-11-01, AD-12-01b and -02a intersected widespread alteration and mineralization, returning gold assays of up to 14.3 g/t Au over 2.00 m.

These holes are the deepest completed to date on the property and confirm the development of the Austin Tuff 600 m below historic mine stopes. The Austin Tuff continues to remain open down plunge and along strike.