Each one in plain English, with the numbers worked through for a shareholder.
19 May 2009drilling result▲ Good
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 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.
What it means for a shareholder
8.6m new shares at $0.750 to raise about $6.4m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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.
30 Dec 2008asset acquisition disposition▲ GoodMajor
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.
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.
4 Nov 2008asset acquisition disposition● NeutralMajor
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.
Claude agreed to sell the Tartan Lake mine property (near Flin Flon, Manitoba) and the Amisk Lake property to St. Eugene Mining. The price for Tartan Lake is $3,000,000 plus a $100,000 fee, payable in cash or St. Eugene shares, with a sliding net smelter royalty; a royalty is also payable on Amisk Lake. The sale is subject to St. Eugene's due diligence and TSX Venture Exchange acceptance. Management says it fits a plan to focus on Seabee and Madsen. (Per later context, Tartan Lake closed in January 2010 and Amisk later became a JV, so this agreement did not complete as announced here.)
Claude produced 19,953 oz of gold at Seabee in the first half of 2008, up 17% on the first half of 2007, and says it is on track for its 2008 target of 48,000 to 52,000 oz. Management credits investment at Seabee, much of it facilitated by the recent debenture offering. Satellite development continues at Santoy 8 and Porky West.
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 completed the flow-through placement announced on October 30, 2007: 3,783,784 shares at Cdn$1.85 for gross proceeds of Cdn$7,000,000. Net proceeds are to be spent mainly on the Madsen property in Red Lake, Ontario, as qualifying exploration expenses renounced effective no later than December 31, 2007. This resolves the open thread and adds new shares, so existing holders are diluted.
What it means for a shareholder
3.8m new shares at C$1.85 to raise about C$7.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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 announced a non-brokered flow-through private placement of up to 3,783,784 shares at $1.85, for a maximum of $7,000,000, expected to close around November 15, 2007. Proceeds are mainly for Madsen property expenditures in Red Lake, Ontario, with finders' fees of up to 5%. This is another small share issue (new shares, dilutive if completed), priced above the $1.65 flow-through raise of November 2006.
What it means for a shareholder
3.8m new shares at $1.85 to raise about $7.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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 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.
What it means for a shareholder
14.4m new shares at C$1.60 to raise about C$23.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
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 completed the October placement: 3,333,028 flow-through shares at Cdn$1.65 for gross proceeds of Cdn$5,499,496.20. Proceeds are for qualifying exploration expenses, renounced effective no later than December 31, 2006.
