Claude Resources Inc TSX:CRJ announced assays from the L62 discovery of its Seabee gold mine in Saskatchewan. Results include
12.81 g/t gold over 6.7 metres
14.83 g/t over 5.2 metres
195.06 g/t over 2.3 metres
22.03 g/t over 4.4 metres
24.16 g/t over 5.7 metres
27.06 g/t over 4.8 metres
VP Exploration Brian Skanderbeg tells ResourceClips.com, “Seabee has been our sole-producing asset for the last 20 years. Claude has had approaching one million ounces of historic production and the current resource base is about 660,000 ounces. L62 is a new lens that we discovered in 2Q last year. It’s been the focus of quite a bit of exploration over the last six months, and these drill holes are really showing how it continues to grow. It’s proximal to our infrastructure; it’s a new discovery; and it’s open, so it has the potential to significantly change our resource base. Obviously, the grades are much higher than what we’re currently mining, so the grade of the lens is quite attractive to us.
“We will see mill feed [from the L62 discovery] this calendar year; we’ll have it in production. Because it’s so close to our infrastructure and it’s showing a pretty impressive grade, we’re definitely fast-tracking the development. By 3Q/4Q, we’ll see production out of it.
We will see mill feed [from the L62 discovery] this calendar year; we’ll have it in production—Brian Skanderbeg
“Right now, we’re looking at a pretty aggressive exploration budget this year,” Skanderbeg continues. “We’ll drill about 130,000 metres on the property. That’s surface and underground. Dollar-wise, we’ll spend $7.6 million at Seabee on the regional exploration. In terms of production, our guidance this year will be around 50,000 ounces. Moving forward, we see a mill expansion and certainly—driven by the resource growth we anticipate this year—we would look for much more during 2013, in terms of a production profile.
“We’ve traded like our peers in the market during the last two quarters, so we’re down about 40% from our 52-week high. We’re undervalued, but the entire sector is. I think companies with production assets and cash flow like ours have much more leverage to grow moving forward and are not at the risk of the market and the fundamentals, which can be quite challenging on the capital side. I think we’re in a very good position to go forward.” Skanderbeg adds, “Year-end we were around $35 million in the bank, so we’re financed fairly well. We are aggressively exploring and doing capital development for Seabee, so we’ve got a fairly high burn rate, but we’ve got good money in the bank for the interim.”
He concludes, “During the 20 years of its mine life it’s never looked brighter for Seabee. I think the resource growth that we’re seeing right now, driven by these exploration results, is going to really have a big impact on Seabee’s economics and growth. So I’m quite excited to see these deposits move into the production profile and feel their impact. I think Seabee’s got a very bright future, brighter than at any point in its past.”
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or Brian Skanderbeg
by Ted Niles