Each one in plain English, with the numbers worked through for a shareholder.
6 Apr 2010drilling result▲ Good
Claude reported Seabee underground drilling from December 2009 to 28 February 2010, with highlights of 50.00 g/t over 1.1 m true width (U10-610), 33.17 g/t over 2.0 m (U09-393), 28.29 g/t over 2.0 m (U09-395) and 28.89 g/t over 1.9 m (U09-401), mostly in the 2c and 2b zones. Management calls this a near-term chance to raise 2010 mill grades. The plan for 2010 is over 40,000 m of drilling and moving Santoy 8 towards commercial production later this year. Many holes in the table returned low grades.
Claude reported surface drill results at Madsen testing a near-surface extension of the Austin Tuff, within 100 m of mine infrastructure. The best was 44.38 g/t over 2.0 m (AP-09-08), with others such as 18.72 g/t over 1.10 m and 11.34 g/t over 3.00 m. These were not in the December resource, so they may add to it. Separately, the underground drilling program is delayed to Q4 2010 from Q3 because of a catch pit failure below the 200 level of the shaft, and dewatering has paused for shaft inspections and repairs. Note: the release says the inferred resource was 297,000 oz, while the December release said 328,000 oz.
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.
Claude reported more Seabee underground drilling, best hits 28.05 g/t over 1.6 m (U09-671), 16.71 g/t over 1.4 m, 12.15 g/t over 2.6 m and 10.14 g/t over 3.7 m. Management says the results show potential to raise reserve grade and tonnage, and it still forecasts 2009 gold production of 46,000-48,000 oz. Santoy 8 is still seeking environmental approval and permits.
Claude reported more Seabee drilling, best hits 20.13 g/t over 1.3 m (U09-665), 10.71 g/t over 2.9 m (U09-339), 10.16 g/t over 1.6 m and 8.68 g/t over 4.5 m. Management says the results show potential to raise the reserve grade (no new reserve figure is given) and should help 2009 production. The 2009 plan is restated; Santoy 8 is still pending approvals and permits.
Claude reported July 2009 Seabee drilling, best hits 19.36 g/t over 3.3 m (U09-655), 15.23 g/t over 3.9 m, 11.18 g/t over 3.6 m and 7.60 g/t over 4.5 m, all next to existing development. It also said production from 1 July to 16 August is averaging about 160 oz per day (over 750 tonnes per day) versus 85 oz per day in Q2, and 2009 guidance stays at 46,000-48,000 oz.
Claude reported more 2009 underground drilling at Seabee, with best hits 14.07 g/t over 3.2 m (U09-639), 23.39 g/t over 1.0 m (U09-637), 13.53 g/t over 1.8 m and 13.42 g/t over 2.4 m. Management says the 2c ore shoot at Seabee Deep is being better defined, is already helping mill head grade, and early results east of existing development (19v/2b) are encouraging. This continues the May 2009 2c Zone story; the 2009 plan (Santoy 7, Porky West bulk sample, Santoy 8 pending permits, 35,000 m drilling) is restated.
Claude reported a fifth 8 Zone hole at Madsen: MUG-09-05 returned 24.30 g/t over 3.39 m (0.71 oz/ton over 11.45 ft), including 62.09 g/t over 1.22 m, and was lost while still in mineralization. The company says all five holes have shown visible gold and the zone is confirmed 450 feet down plunge of old workings and remains open; this extends the 300-foot result from April. Management says drilling has been slower than expected because of wedging and difficult conditions. It has added a surface rig (surface drilling began in early June) and is preparing an NI 43-101 technical report due by Q4 2009; the release cites a historic non-compliant resource of 483,000 oz at 0.29 oz/t.
Claude reported more 2009 Seabee underground drilling, with the best hits 14.98 g/t over 4.7 m true width (U09-630), 14.25 g/t over 1.1 m, 10.23 g/t over 1.8 m and 8.99 g/t over 1.9 m. Management says the 2c Zone should lift head grade to the mill for the rest of 2009 as lateral development into that ore shoot has begun. The release restates 2009 production plans from Santoy 7 and Seabee, the Porky West bulk sample, and 35,000 m of drilling planned at Seabee and satellites.
Claude reported more 8 Zone underground results at Madsen, the best being MUG-09-04 at 25.77 g/t over 7.90 m (0.75 oz/ton over 25.92 feet), with visible gold, and MUG-09-03 at 33.39 g/t over 2.49 m. The company says the zone is mineralized 300 feet down plunge of historic infrastructure and may be improving with depth based on four holes, and that a parallel footwall structure has been intercepted, with assays outstanding on two holes. This builds on the February 17 first hole.
Claude reported the first hole from its 2009 8 Zone underground program at Madsen: MUG-08-01 returned 127.12 g/t (3.71 oz/ton) over 0.75 m with visible gold, about 130 feet down plunge of historic mine development. It is a single narrow intercept, but management calls it a positive first result for the 20-hole Phase 1 program announced on January 22.
Claude released the follow-up results from a 13-hole 2008 program at Starratt Olsen on the Madsen property, the follow-up to the April 2008 discovery. Highlights are 21.25 g/t over 1.00 m, 21.07 g/t over 1.00 m, 14.90 g/t over 0.99 m and 13.86 g/t over 0.95 m, all narrow intervals, in structures 100-250 m in the footwall of the old Starratt Olsen workings. Management says the shear system resembles the 8 Zone, but no size for the find is given.
Claude reported January 2009 underground drilling at Seabee Deep, with the best hits 30.60 g/t (cut) over 2.5 m true width in U09-605, 16.53 g/t over 1.6 m and 11.34 g/t over 2.2 m. Management says the results extend high-grade mineralization and, being close to existing development, should lift the head grade to the Seabee mill in 2009. The release also says 2009 production is forecast from Santoy 7 and Seabee, with a Porky West bulk sample continuing and Santoy 8 moving toward commercial production pending environmental approval and permits. Some holes in the table returned little (0.01 and 0.03 g/t).
Claude announced a 22,000 meter underground drill program at Madsen aimed at the historic high-grade 8 Zone: 12,000 m in Phase 1 (started December 2008, running through Q2 2009) and 10,000 m in Phase 2 (second half of 2009). It also plans 10,500 m of surface drilling at Fork Zone (3,000 m), an up-plunge 8 Zone target (2,500 m) and Starratt Olsen (5,000 m), with assays from 13 Starratt Olsen follow-up holes expected in early Q1. Shaft dewatering continues and passed the twelfth level in December 2008. This is the 2009 follow-through on the 2008 Madsen discoveries; no cost for the program is stated.
Claude launched its Phase 1 underground drilling at Madsen, a 20-hole program running to the end of the second quarter of 2009, with the 8 Zone's plunge and strike extensions as first targets. This follows the June 2008 plan for a 10-hole, 10,000 m program starting in the fourth quarter; the release now says 20 holes and notes the program was advanced because the 8 Zone could be reached from the 10th level.
Claude reported more Fork Zone drilling at Madsen, with the best intercepts of 49.83 g/t over 1.30 m (RUM-08-68), 31.37 g/t over 1.00 m (RUM-08-66) and 31.03 g/t over 2.70 m (RUM-08-52). The mineralized shear systems now extend over more than 450 m of strike and remain open along strike and at depth, about 500 m from Madsen underground infrastructure. This builds on the earlier 17.32 g/t over 10.33 m result; no resource is stated.
Claude says it will start its Madsen underground drilling from the 12th level in the fourth quarter of 2008, instead of from the 16th level toward the end of the first quarter of 2009. The first phase is 10,000 m and 10 holes, aimed at the historic high-grade 8 Zone. Dewatering of the shaft, begun in June 2007, had passed the 10th level by May 2008 and is to continue to the 24th level.
Claude reported first-quarter 2008 underground drilling at Seabee, with the best hole at 32.52 g/t gold uncut (22.23 g/t cut) over 4.80 m true width (U08-603). Management says the results extend several ore blocks next to existing mine infrastructure and reserves, and that the widths are greater than the average widths of existing reserves. No new reserve figure is given.
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.
Claude reported screen metallic re-assays of two Madsen Fork Zone holes that came in higher than the February 28 results: hole RUM-08-48 rose from 12.11 to 17.32 g/t over 10.33 m, and RUM-08-46 from 14.74 to 18.48 g/t over 1.60 m. The company says coarse visible gold was not fully captured by the earlier method, and it plans further Fork Zone drilling in early May. This updates the February 28 numbers upward.
Claude announced a new discovery at the Starratt Olsen target on its Madsen project: hole ST-08-03 returned 185.62 g/t over 0.41 m and 26.85 g/t over 0.58 m, about 3 km southwest of the Madsen shaft at 190 m depth. The intercepts are very narrow, only two are reported so far, and more assays are pending, so the size of the find is not yet shown. The old Starratt Olsen mine produced 164,000 oz in 1948-1956.
Claude reported Fork Zone results at Madsen, about 600 m southwest of Russet South, with the best hole RUM-08-48 at 12.11 g/t over 10.33 m. Management says strike length of mineralization is now 340 m and still open; assays are pending on 11 more holes. The release says the results are consistent with Placer Dome's 2003 results on the same area.
Claude reported Phase 1 results from Russet South at Madsen: a 22-hole program finished in October 2007, with the best hit 29.08 g/t over 2.0 m (hole RUM-07-25). The program was testing for the upward extension of the high-grade Zone 8 that was drilled in July 2007; the other highlights are 3-6 g/t over 1-2 m. Claude plans to return to Russet South later and has moved its two rigs to Starratt Footwall and the Polymetallic target.
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).
Claude reported more Seabee drilling from the 2C9709 Deep Zone, about 500 m west of the previously reported 2B9714 Deep Zone, drilled June 2 to August 25, 2007. Highlights include 31.78 g/t over 3.50 m (cut) in hole U07-68 and 7.98 g/t over 9.00 m in U07-83. Management says it further extends mineralization at the Seabee mine, adding to the October 18 Seabee Deep results.
Claude reported first results from its Seabee Deep underground drilling, including 15.57 g/t over 6.30 m, 11.03 g/t over 5.20 m and 11.54 g/t over 5.00 m. Management says the results extend Seabee Deep mineralization about 200 m beyond any previously reported reserves and expects a positive effect on reserves and resources. The release cites updated reserves, reported on August 8, 2007, of 802,600 t at 6.94 g/t (179,100 oz). The release also says Claude has produced about 775,000 oz from Seabee since 1991.
Claude reported preliminary results from the Treasure Box zone at Madsen, drilled December 2006 to May 2007: 49 vertical holes, 13,285 m. The best intercepts include 12.08 g/t over 6.05 m (hole TB07-29) and 16.66 g/t over 1.80 m (TB07-02). Mineralization is continuous over 165 m of strike and open on both sides and at depth. The rig has moved to Russet Lake, about 1 km west of the Madsen shaft, to test for an upward extension of the high-grade Zone 8. Further assays are expected by August. This follows the 10,000 m program announced in November 2006, which ended up larger.
Claude reported more drill results from Santoy 7, a satellite deposit about 11 km east of the Seabee mill. 39 holes have been drilled, with several high-grade intercepts (for example 37.18 g/t cut over 2.0 m in hole 07-332), and some holes still await assays. A 15,000 t bulk sample is under way with results expected early in Q2 2007, and a further 20,000 t permit has been applied for. If the bulk samples are positive, Claude expects Santoy 7 ore to feed the Seabee mill. The 2007 Seabee-area exploration budget is up to $7.0m, and the release says about 77.0 million shares are outstanding (82.4 million fully diluted). Claude also owns oil and gas assets producing about 460 boe/d.
Claude announced a 10,000 m surface drill program at its 100%-owned Madsen property in Red Lake, Ontario, starting December 1, 2006, to define the Treasure Box zone 2.4 km north of the Madsen mine complex. Madsen is now described as 100%-owned, with no mention of the Placer Dome option; the release only says Placer drilled 27 holes there in 2002-2004 under the option. The release does not say what happened to the December 2006 feasibility deadline, so that thread is still open.
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.
