CLAUDE RESOURCES INC

The material change report confirming the 31 May closing: Claude became a wholly-owned subsidiary of Silver Standard and every share was exchanged for 0.185 of a Silver Standard share plus C$0.001 in cash, with the Toronto and OTCQB listings ending around 6 June and deregistration to follow. Twenty-five years after Seabee poured its first gold in 1991 and just under five years into the SEC record held here, holders were paid in the acquirer's stock rather than wiped out.

other material event

The acquisition completed on 31 May 2016. Adding Seabee to Silver Standard's Marigold and Pirquitas mines gave a producer expected to make about 390,000 gold-equivalent ounces in 2016 at cash costs of US$715, and Claude's former board chairman Brian Booth joined the Silver Standard board. Silver Standard also repaid Claude's debt on closing.

business combination

Claude shareholders approved the arrangement with about 94% of votes cast, and Silver Standard shareholders approved issuing the consideration shares with about 93%. Closing was set for 31 May subject to final court approval.

business combination

2015 net earnings of $32.3 million ($0.17 a share), including a $4.4 million non-cash tax recovery, against $4.6 million in 2014, on record production of 75,748 ounces and an all-in sustaining cost of C$1,122 (US$878) an ounce, down 14%. Cash and bullion rose $28.6 million to $39.8 million and reserve grade rose 8% to 7.62 g/t. This is the last full-year result before the takeover, and the strongest in the record held here.

production update

Drilling at Santoy Gap returned 29.16 g/t cut over 6.26 m true width up-dip and 137.58 g/t uncut (41.99 g/t cut) over 1.12 m at depth, with 7.44 g/t over 12.96 m in a Santoy 8A step-out. An 83,000 m programme was set for 2016 - 65,000 m underground and 18,000 m of surface exploration - funded, management said, off the balance sheet's own strength. Announced nine days after agreeing to be taken over.

drilling result

Silver Standard Resources agreed to acquire Claude Resources outright: 0.185 of a Silver Standard share plus a nominal cash amount per Claude share, worth C$1.65 a share on Silver Standard's 4 March close and implying an equity value of C$337 million. That was a 30% premium to Claude's C$1.27 close on 4 March and about 25% on 20-day volume-weighted averages, leaving Claude holders roughly 32% of a combined company expected to produce about 390,000 gold-equivalent ounces in 2016 at cash costs near US$735.

business combination

Record 2015 production of 75,748 ounces, 20% above 2014 and past the raised guidance, from 277,368 tonnes at 8.82 g/t with 96.3% recovery; the fourth quarter alone produced 18,340 ounces at 8.99 g/t. Cash and bullion closed the year at $39.8 million and 2016 was guided at 65,000-72,000 ounces. Grade, not tonnage, did all the work: throughput was essentially unchanged from 2012.

production update

The deepest hole yet at Santoy Gap, SUG-15-048, returned 43.28 g/t uncut (30.54 g/t cut) over 1.15 m true width at 675 m depth, and up-dip step-outs returned up to 31.10 g/t uncut over 7.06 m. A 6,000 m drill programme began from a new underground chamber to follow JOY-13-692, the 2013 hole that cut 30.08 g/t uncut over 5.90 m.

drilling progress report

Third-quarter production of 15,722 ounces despite losing ten days of underground mining to the forest-fire evacuation, taking nine-month output to a record 57,408 ounces, up 13%. Guidance was raised to 70,000-75,000 ounces and cash and bullion rose $6.1 million in the quarter to $27.0 million.

production update

Claude secured a $25 million Scotiabank senior secured facility, a $10 million revolver and a $15 million term loan, maturing September 2018. It priced at 3-4% over prime and the term loan was repayable at $1.25 million a quarter with no early-repayment penalty. It replaced the $19.9 million, 10% Crown Capital term loan and the undrawn Canadian Western Bank revolver.

debt financing

Suspended underground mining at Seabee as a precaution and pulled non-essential staff out, with a forest fire about 8 km south of the mine threatening heavy smoke and ash. The mill kept running on a 10,000-tonne surface stockpile, roughly twelve days of feed, and full-year guidance was held.

production update

2014 net profit of $4.6 million against a $73.4 million loss in 2013 that had included $63.8 million of impairments, on record production of 62,984 ounces and an all-in sustaining cost of C$1,310 (US$1,186) an ounce, down 29%. Reserve grade rose 23% to 7.03 g/t and debt fell $10.6 million - the turn from the going-concern warning of April 2013 is complete in these numbers.

production update

Record 2014 production of 62,984 ounces, up 44%, from 279,597 tonnes at 7.32 g/t and 95.7% recovery - the gain came almost entirely from grade, with throughput flat, after Santoy Gap came on ahead of schedule. Debt fell $10.6 million during the year, cash ended at about $11.2 million, and 2015 was guided at 60,000-65,000 ounces.

production update

A second consecutive record quarter at 20,614 ounces, up 96% year on year, on a head grade of 8.88 g/t. Nine-month output of 50,700 ounces already beat the whole of 2013, and guidance was raised to 61,000-64,000 ounces from 50,000-54,000.

production update

Record quarterly production of 18,742 ounces, up 51% on the same quarter of 2013, driven by a 50% jump in head grade to 7.70 g/t on essentially flat throughput of 79,746 tonnes. Half-year output reached 30,086 ounces.

production update

Santoy Gap produced its first ore ahead of schedule - about 125 tonnes a day at roughly 7.1 g/t in May from three levels - two and a half years after discovery. It held 266,100 ounces of proven and probable reserves at 5.68 g/t, and infill drilling was coming in above reserve grade.

production update

Filed the executed documents behind the previous eighteen months of balance-sheet work: the 5 April 2013 credit agreement showing the $25 million lender was Norrep Credit Opportunities Fund, managed by Crown Capital; the 14 February 2014 waiver and credit amendment for the year-end covenant breach; the Laurentian asset purchase agreement of 19 December 2013 for Madsen; and the 20 March 2014 royalty purchase and net smelter returns agreements with Orion's 8248567 Canada Limited.

asset acquisition disposition

First-quarter output of 11,344 ounces was up 40% on a year earlier on a 34% higher head grade of 5.76 g/t, the best first quarter in a decade despite severe winter conditions. Guidance of 47,000-51,000 ounces was held, with Santoy Gap - then 266,100 ounces of reserve at 5.68 g/t - on track for production in the fourth quarter.

production update

Issued 4,545,454 shares at C$0.22 to Crown Capital as payment for waiving a covenant breach at 31 December 2013 under the April 2013 credit agreement and for modifying the covenants; the 5.75 million warrants from the original deal were cancelled as part of the same bargain. Read plainly: the company had broken a covenant on the expensive debt taken a year earlier and paid in stock to be let off.

capital raising announcement

Sold Orion Mine Finance a 3% net smelter royalty over the whole Seabee Gold Operation for US$12 million, with an option to buy half of it back for the same US$12 million before the end of 2016. Together with the Madsen proceeds this was the money that carried Santoy Gap into production - a permanent claim on revenue traded for cash at the bottom of the cycle.

material agreement

Closed the Madsen sale, taking C$6.25 million cash on closing (rather than the staged C$3.75m plus C$2.5m originally set out), about 9.8 million Laurentian shares for roughly 10.1% ownership, and a further C$2.5 million due at six months. Cash went to cutting bank debt. The company also engaged a financial adviser.

asset acquisition disposition

Produced 43,850 ounces in 2013 from record mill throughput of 280,054 tonnes at 5.11 g/t and 95.25% recovery, selling 44,823 ounces at about $1,423 - below the 50,000-54,000 ounce guidance, on grade. Mine production also set a record at 286,145 tonnes with 10% fewer site staff.

production update

Filed the Seabee technical report behind the 7 November reserve increase, setting out proven and probable reserves of 2,785,200 tonnes at 6.19 g/t for 554,100 ounces (Seabee 221,100 oz at 7.26 g/t, Santoy 8 89,900 oz at 4.45 g/t, Santoy Gap 243,000 oz at 6.24 g/t), 77,000 ounces measured and indicated and 603,400 ounces inferred at 6.35 g/t.

resource reserve update

Agreed to sell the Madsen project in Red Lake outright to Laurentian Goldfields for C$3.75 million cash on closing, C$2.5 million three months later, a further C$2.5 million in cash or shares at six months, and shares equal to 19.9% of Laurentian. Two years of drilling at Madsen ended with the asset going for cash to fix the balance sheet, with equity upside retained.

asset acquisition disposition

Santoy Gap converted to reserve for the first time - 243,000 ounces at 6.24 g/t - lifting Seabee's total reserves 78% to 554,100 ounces. This is the payoff from the 2011 surface discovery, and the reason the company could talk about growing production rather than just sustaining it.

resource reserve update

Announced it would voluntarily delist from the NYSE MKT to rationalize costs, with the last US trading day expected around 31 October and a Form 25 due about 21 October. The TSX listing continued, and the company would keep filing with the SEC for now but intended to deregister when permitted.

listing compliance notice

Three step-out holes, two of them decisive: JOY-13-692 cut 18.80 g/t over 13.86 m (including 73.49 g/t over 3.00 m) some 400 m below the base of the Santoy 8 inferred resource, and JOY-13-690 cut 330.35 g/t over 1.55 m at 684 m depth at Santoy Gap. Both were materially higher grade than the existing reserve and resource base.

drilling result

Closed the $25 million five-year Crown Capital facility at 10%, with no principal due for twelve months then $300,000 a month and $10.9 million at maturity, and granted 5.75 million warrants at $0.70. With the expanded Canadian Western Bank lines that gave access to $50 million of debt at a blended cost of about 8% - deliberately chosen, management said, over a large equity raise.

capital raising announcement

Disclosed, as NYSE MKT rules require, that its auditors had put a going-concern qualification on the 2012 accounts filed a week earlier. The company was producing about 50,000 ounces a year and had just arranged $50 million of debt, but its auditors were not satisfied it could fund itself - the low point of the record held here.

listing compliance notice

Completed the Seabee shaft extension from 600 m to 980 m depth. The 20-day shutdown was covered by ore from Santoy 8 and the upper Seabee mine at over 700 tonnes a day, and mining costs at Seabee Deep and L62 were expected to fall by as much as 10% a tonne on shorter trucking and better ventilation.

production update

Met guidance with 49,570 ounces in 2012 from record mill throughput of 275,230 tonnes at 5.86 g/t, up about 10% on 2011, and guided 2013 to 50,000-54,000 ounces. The shaft extension was due to finish in January and the newly upgraded Santoy Gap resource - 281,000 ounces indicated at 8.80 g/t - was being worked into the life-of-mine plan.

production update

Two facilities. Canadian Western Bank's lines were expanded to $25 million in total (line of credit to $10m, leases and demand loans to $10m, a new $5m revolver) at a weighted average rate near 4.5%, with only $8.6 million drawn. And a new five-year $25 million facility with Crown Capital Partners at 10% interest, principal repayments starting in 2014, with 5.75 million warrants struck at $0.70 - expensive money, and not yet closed.

debt financing

Updated Santoy Gap resource from 194 holes and 71,600 m: 994,000 tonnes at 8.80 g/t for 281,000 ounces indicated, plus 1,875,000 tonnes at 5.92 g/t for 357,000 ounces inferred, over 800 m of strike to 690 m depth. A significant part of the earlier 495,000 inferred ounces was upgraded, and about 265 m of the planned 800 m exploration drift had been developed.

resource reserve update

The 2012 Santoy Gap programme extended the system down-dip to 650 m and south towards the Santoy 8 mine (8.16 g/t over 5.93 m in JOY-12-686, 6.91 g/t over 16.73 m in JOY-12-636) and discovered a sub-parallel lens about 150 m to the east - evidence the Santoy shear hosts several deposits over a three-kilometre strike.

drilling result

The widest Santoy Gap intercept to date, 14.58 g/t over 29.74 m in JOY-12-677, confirming a high-grade core with combined vein widths of 20 to 30 m. Santoy Gap then held an inferred resource of 495,000 ounces at 6.63 g/t, and underground development from the Santoy 8 workings had started.

drilling result

The first resource statement to take in L62 and Santoy Gap. Inferred resources rose 236% to 873,400 ounces at 6.48 g/t from 260,100 ounces at 6.23 g/t, measured and indicated rose 43% to 70,700 ounces at 5.35 g/t, and reserves edged up net of depletion to 355,600 ounces at 5.37 g/t from 352,600 at 5.58 g/t. L62 alone added 70,400 ounces of probable reserve and Santoy Gap 495,000 ounces of inferred - both within reach of existing infrastructure. 130,000 m of drilling was budgeted for 2012.

resource reserve update

Guided 2012 to about 50,500 ounces after producing 44,760 ounces in 2011, a 5% fall the CEO called disappointing: Santoy 8 reached commercial production but lower-grade ore and unforeseen problems held output back. The response was capital spending - a shaft extension, a mill expansion and more mine development - to lift production sustainably and cut unit costs.

production update

Closed the St. Eugene acquisition by court-approved plan of arrangement for about 9.6 million Claude shares, taking Amisk to 100% ownership at 23,450 hectares. St. Eugene holders also received 0.25 of a share in the spun-out Satori Resources per share, which took the Tartan Lake project and began trading as BUD; Claude kept its pro-rata Satori stake, assumed St. Eugene's warrants and cut its Tartan Lake royalty to 2%, repurchaseable at $1 million per percentage point.

business combination

Final 2011 underground results from L62: 195.06 g/t over 2.29 m true width (U11-651), 27.06 g/t over 4.83 m, 24.16 g/t over 5.71 m and 22.03 g/t over 4.41 m. Six months after discovery the zone measured up to 85 m of strike by 400 m of dip and was heading into an updated resource for the first quarter.

drilling result

The widest Santoy Gap intercepts yet - 19.10 g/t over 20.48 m (JOY-11-556) and 12.79 g/t over 20.25 m (JOY-11-555), with 36.51 g/t over 1.72 m and 25.10 g/t over 1.20 m in step-outs. The results were to feed a first Santoy Gap resource in the first quarter of 2012.

drilling result

Agreed to buy the rest of St. Eugene Mining - its 35% of Amisk - for about $19 million in Claude shares, at 0.0789 of a Claude share per St. Eugene share, worth $0.145 each on 20-day averages: a 28% premium to St. Eugene's own 20-day average and 53% to where it traded before Claude first approached it in July. St. Eugene's Tartan Lake project and $800,000 of cash were to be spun out to its shareholders, with Claude keeping its pro-rata share and cutting its Tartan Lake royalty to a flat 2%.

business combination

Surface drilling at Santoy Gap, on strike from and within 400 m of the producing Santoy 8 mine, expanded the system to over 400 m of strike and beyond 450 m depth: 10.30 g/t over 5.43 m (JOY-11-535), 22.06 g/t over 2.82 m (JOY-11-551) and 49.60 g/t over 1.36 m (JOY-11-554), from 30 holes and 11,000 m drilled in 2011. A third surface rig was added.

drilling result

L62 returned 261.28 g/t over 3.6 m true width in U11-638, including 1,563 g/t over 0.5 m, 45 m from the earlier 39.75 g/t hole. Three months after discovery the zone was outlined over 75 m of strike and 300 m of dip, open in all directions, and management said it would materially change Seabee's reserves and production outlook, with development starting in the fourth quarter.

drilling result

Follow-up drilling at the new L62 zone returned 39.75 g/t uncut (6.90 g/t cut) over 10.0 m true width in U11-629, including 528.10 g/t over 0.7 m, plus 8.81 g/t over 4.9 m and 5.33 g/t over 4.8 m. Four of nine new holes were essentially barren, so results were patchy.

drilling result

Half-year underground exploration at the Seabee Gold Operation returned 11.47 g/t over 3.7 m true width (U11-617) and 35.79 g/t over 1.2 m (U10-683) at Seabee Deep, 6.18 g/t over 15.1 m (SUG-11-006) at Santoy 8, and first economic grades from a brand-new zone, L62, 200 m from existing underground infrastructure (6.13 g/t over 4.8 m in U11-345). A second rig was moved onto L62.

drilling result

Claude reported 2011 winter drilling at its Neptune target, 6 km north of the Seabee minesite, best 84.66 g/t gold over 3.20 m (hole NEP-11-007). It also reported 13 holes (4,051 m) in all, with visible gold in many and two holes with no significant intercepts. Neptune was a grassroots discovery in 2010. Based on these results and Santoy work, Claude expanded its 2011 Seabee exploration to 26,500 m of surface drilling, running early June to late October. This answers the November 2010 note that an expanded 2011 Seabee program was being considered. The results are exploration drilling only, with no resource or reserve stated for Neptune.

drilling result

Claude completed a bought-deal share sale of 23,000,000 common shares at $2.50 each, for gross proceeds of $57,500,000 (20,000,000 shares plus 3,000,000 under the underwriters' over-allotment option). This is the offering first announced on April 6, 2011. The money is meant for exploration and development of its projects and general corporate purposes. For existing shareholders it means about 23 million new shares, so their ownership is diluted. It is also a much higher price than the $1.15 paid for the December 2009 special warrants.

capital raising announcement

Claude announced that the Santoy 8 mine, about 14 km east of the Seabee mine and mill, has reached commercial production. This meets the 'commercial production by Q1 2011' target set in April 2010 (the release is dated 11 April 2011, so the filing gives no exact date it was reached), following the permit in April 2010 and ore development from June 2010. Management expects it to supply up to 50% of mill feed over the life of mine plan and to lower unit cash costs. No production or cost figures are given.

production update

Claude published the first NI 43-101 open-pit resource for Amisk: indicated 30.15 million tonnes at 0.95 g/t gold equivalent (921,000 oz) and inferred 28.65 million tonnes at 0.70 g/t gold equivalent (645,000 oz), at a 0.40 g/t cut-off using US$1,100 gold and US$16 silver. This delivers the resource study promised in December and January, replacing the earlier non-compliant 1988 historic figure. The release says these are resources, not reserves, with no demonstrated economic viability. The deposit is held in the 65:35 joint venture with St. Eugene, so Claude's share is not the whole amount (the release does not give Claude's share). Next steps named are expanding the pit resource, preliminary metallurgical, engineering and economic studies, and evaluating underground potential. A technical report is due on SEDAR within 45 days.

resource reserve update

Claude completed the final sale of its Nipisi, Alberta oil and gas interests; with an August 2010 sale, this covers the rest of its Nipisi assets, for gross proceeds of about $6.2 million. The sale triggered an obligation to offer to prepay its 12% senior secured debentures (indenture of 21 May 2008). Net proceeds are held in trust for 90 days for holders who accept, with payment 7 days after that period. This resolves the oil and gas sale thread and ties the proceeds to debt repayment; how much holders will accept is not yet known.

asset acquisition disposition

Claude received the final ministerial approval and operating permit for Santoy 8, moving it from an exploration project to a production project. The deposit is about 14 km east of the Seabee mine and mill. It holds 40,015 oz of reserves at 7.02 g/t, 157,529 oz indicated at 8.98 g/t and 101,955 oz inferred at 8.10 g/t to 250 m depth. Pre-production is expected in Q2 2010 and commercial production by Q1 2011; the company expects Santoy 8 to supply up to 50% of mill feed over the life of mine plan. This resolves the long-pending Santoy 8 permit thread, and it gives Santoy 8 its first stated reserve figure (the Seabee-wide reserve is still the August 2007 figure).

regulatory community update

Claude completed the sale of its Tartan Lake gold property in Manitoba to St. Eugene Mining, first announced 22 September 2008, for $3,000,000 paid in 10,966,000 St. Eugene shares, plus 700,000 shares ($100,000) for due diligence access. This gives Claude 17.3% of St. Eugene, paid in shares rather than cash. Claude is finalizing a definitive agreement to sell its 35% Amisk Lake interest to St. Eugene as well. This resolves the Tartan Lake sale, and the Amisk sale is now pending.

asset acquisition disposition

Claude completed a private placement of 12,000,000 special warrants at $1.15 for C$13.8 million gross, led by RBC Dominion Securities. Each converts into one share plus half a warrant at $1.75 for 24 months, with a 5.5% commission. Proceeds are for continued exploration of Madsen and general purposes. This is a much larger raise than the C$5.3m Buchan placement in November and at a higher price than the 2009 raises, but it adds up to 12 million shares (13.2 million if no prospectus receipt is obtained by 1 February 2010), diluting existing holders.

capital raising announcement

Claude published an independent resource estimate for its 100%-owned Madsen mine in Red Lake, Ontario, prepared by SRK Consulting: 928,000 oz indicated at 8.93 g/t and 328,000 oz inferred at 11.74 g/t, at a 5.0 g/t cut-off and US$1,000 gold. Zone 8 is the richest part (132,000 oz indicated at 12.21 g/t, 185,000 oz inferred at 18.14 g/t). This delivers the NI 43-101 technical work the company said was due by Q4 2009, replacing the old non-compliant 483,000 oz historic figure. The release says these are resources, not reserves, with no demonstrated economic viability. Dewatering is 137 feet above the 16th level, with Phase II underground drilling chambers expected by 2H 2010.

resource reserve update

Claude completed the Buchan placement announced 23 October: 5 million units at C$0.72 plus 2 million flow-through shares at C$0.85, C$5.3m gross, with warrants at C$0.90 for three years. Bob Buchan joined the board effective 16 November 2009. Buchan, a relative and the Buchan Family Foundation now hold 9,000,000 shares, about 7.5% of the outstanding (11.3% if their warrants are exercised). Flow-through expenses are to be renounced by 31 December 2009.

capital raising announcement

Claude completed the private placement announced on March 23 (terms amended March 26, 2009): 8,599,100 units at $0.75 (gross $6,449,325), each with one share and a half warrant exercisable at $0.90 for 18 months, plus 5,333,000 flow-through shares at $0.80 (gross $4,266,400). Underwriters included National Bank Financial, Dundee Securities and Toll Cross, paid 5% commission plus 696,605 broker warrants at $0.83. Unit proceeds are to repay part of the company's outstanding debentures (subject to approvals) and for general corporate purposes; flow-through money is for Canadian exploration expenses. The shares were sold at well below the C$1.60-1.85 prices of 2007, so this dilutes existing holders (about 13.9 million new shares) at a much lower price.

capital raising announcement

Claude completed the sale of its working interests in the Edson Gas Unit No. 1 and Edson Gas Plant to a private Canadian corporation for gross proceeds of $11.23 million. The November agreement was amended to cover only the Edson assets, not Nipisi, and the proceeds are to support Madsen exploration and working capital.

asset acquisition disposition

Claude agreed to sell a majority of its oil and natural gas assets to an unnamed private Canadian corporation for up to $19.4 million if all assets are sold. Closing needs regulatory approvals, and some assets are subject to third-party rights of first refusal that could affect completion.

asset acquisition disposition

Claude reported a new NI 43-101 resource estimate for Santoy 8 (including 8E) at Seabee: indicated 727,500 t at 8.98 g/t (about 210,000 oz) and inferred 391,500 t at 8.08 g/t (about 102,000 oz), at a 3 g/t cut-off. This is the revised resource promised in February, replacing the 2005 inferred estimate of 910,000 t at 6.1 g/t cut; part of the earlier inferred tonnage has been upgraded to indicated. Claude is completing environmental studies ahead of planned bulk sampling and commercial mining of Santoy 8 and 8E in 2009.

drilling result

Claude released results of a 2007 drill program at Santoy 8 and 8E (144 holes, 31,610 m), including 314.25 g/t over 1.74 m and 24.31 g/t over 10.88 m. Management says the drilling extended the mineralization and showed continuity, and that it remains open to the north; both deposits are within 12 km of the Seabee mill. A revised resource calculation is in progress, following the earlier inferred resource of 910,000 t at 8.7 g/t uncut (6.1 g/t cut).

drilling result

Claude completed a bought-deal share offering of 14,375,000 shares at C$1.60, including the full over-allotment, for gross proceeds of C$23,000,000 (C$20,000,000 base plus C$3,000,000). Proceeds are mainly for exploration at Madsen and the Seabee area and for general corporate purposes. This is a large issue of new shares: the company now reports 92.1 million shares outstanding (96.6 million fully diluted), up from 77.0 million cited in March, so existing holders are diluted. The offering was underwritten by a syndicate co-led by National Bank Financial and RBC Dominion Securities, and the release refers to it as announced on March 29, 2007.

capital raising announcement

Claude plans 70,000 m of drilling in 2006 at and around its 100%-owned Seabee mine, about 50,000 m underground and up to 20,000 m on the surface at Porky Lake, Santoy Lake and four new targets. The drilling is designed to replace 2006 production and supply the expanded Seabee mill. A February 2006 review lists reserves of 684,400 t at 6.55 g/t and inferred resources of 1,500,000 t at 8.86 g/t.

drilling progress report

Claude completed the placement announced May 20: 4,023,100 units at Cdn$1.00 and 4,547,273 flow-through shares at Cdn$1.10, for gross proceeds of about Cdn$9,025,000. Proceeds are for bulk sampling and infrastructure at Porky Lake and Santoy Lake and general purposes; each unit carries a half-warrant exercisable at Cdn$1.20.

capital raising announcement

Partner Placer Dome drilled 14 holes (5,315 m) at Madsen in the second half of 2004, found two new high-grade zones (the 'Fork Target'), and has now met the $8.2 million spending requirement of its option with Claude. To vest a 55% working interest in the Madsen JV, Placer must deliver a positive feasibility study by December 2006; Placer and Claude are discussing how to advance the property.

drilling result

Claude reported results of 97 surface drill holes (12,237 m, February-July 2004) at its Santoy Lake property, about 11.5 km from the Seabee mine, finding gold in shear zones over a 4 km strike length. Claude plans more drilling in 2005 and an underground bulk sample (permitting started) to confirm grade and continuity. This is the early stage of the Santoy deposits that later became part of Seabee production.

drilling result