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  • Claude Resources Inc. (CGR) Gold Output Jumps 24% From Prior Quarter As Seabee Gold Operation Continues To Expand 0 comments
    Oct 2, 2012 2:53 PM | about stocks: CGR

    Claude Resources, the strong, fully integrated Canadian gold mining and production firm, which has proven itself able to operate even during low gold price intervals, was quite pleased to report a 24% uptick in Q3 output over the prior quarter from the company's 100%-owned Seabee Gold Operation in Northern Saskatchewan, milling some 15.1k oz Au from roughly 66.2k tonnes of ore (grading 7.27 g/t).

    The Seabee operation has produced some 995k oz Au since inception and the team managed to pull out approximately 44.8k ounces in 2011, with the Seabee Mine and Santoy 8 Mine (11.4k-acre Santoy Lake Property is just 8.7 miles east of the milling facility via an all-weather road) driving production totals off of some really nice underlying shear systems characterized by heavy mineralization and quartz-tourmaline content. The company is chasing some rich veins with high-grade gold values at the junctions in what is essentially the eastern part of the Laonil Lake Intrusive Complex and there is abundant regional mineralization which should provide the company a long, bright future in this part of Northern Saskatchewan.

    The upcoming mine expansion associated with the Seabee shaft extension, slated for Q4, shouldn't impact the milling schedule (despite having to close the shaft for four to five weeks) and thus the company is confident about meeting their 48-50k ounce production guidance target for 2012. Exceptional news out of CGR as shareholders get to see several positive factors merging in time, from a clear upward trend in the price of precious metals to the clear logistical expansion potential of the company's mining operations. Today's encouraging news places the 2015 annual production target of 78k ounces easily on the table, with the shaft project alone expected to heartily improve basic operating efficiency, as well as lower overall cost of production on the main ore body.

    President and CEO of CGR, Neil McMillan, emphasized the solid jump in production output for the quarter and conveyed the electric atmosphere of excitement at the company over easily delineable growth vectors. This shaft extension will tack on another 1,250 feet to the roughly 2k feet already in place and will amplify the continuous resource extraction activity mightily. McMillan hailed the mine operating staff, asserting that a great deal of the credit for the company's established production record, as well as access to a continued increase in production over the coming years, was attributable to their diligence.

    Today's announcement further codifies what is an extremely solid production and acreage position for the company, especially when taken into context with the regional exploration position, as CGR has a 100% interest in the Amisk Gold Project (roughly 100k acres with an NI 43-101 compliant 1.56M oz Au reserve), not too far from the Seabee, in addition to their 100%-owned Madsen property near Red Lake, over in Ontario (10k acres with an NI 43-101 compliant 1.23M oz Au reserve).

    CGR is looking forward to a Nov 14 pre-session release of the operational and financial data for Q3, followed by a conference call/webcast. Confidence is high across the board at Claude Resources that forward production targets are well within striking distance going into the report, so it should be quite a day for the company.

    Investors should check out the Claude Resources website to learn more: www.ClaudeResources.com

    Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html

    Stocks: CGR
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