Claude Resources TSE.CRJ Undervalued Junior Gold Anyone? Message Board

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Gold/Mining/Energy : Claude Resources TSE.CRJ Undervalued Junior Gold Anyone?

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To: geoffb_si who wrote (294)	3/29/2002 11:43:56 AM
From: Gord Bolton	of 359

Canaccord option This spring could be a very interesting time for many junior golds and CRJ in particular. In case you have not been watching the POG has been climbing fairly steadily in recent times. There are at least two factors in play. There is a perception of economic and political instability. There is potential peril in the stock market and in international relations. During such times people, institutions and governments increase their holdings of gold. In recent years exploration for new gold deposits has been muted by low gold prices and the fall out from BRE-X. There is a potential for significant imbalance between demand and supply in the immediate future. If the POG does go up significantly in the near future it will take years for gold explorers to gear up for exploration, feasibility and approvals, mining licences, financing, plant design and construction etc. Many large producers have already sold much of their future production. China and Japan may trigger significant increase in POG. April 1st, Japan will no longer gaurantee the security of savings deposits at banks above a certain level. Individual Japanese are big savers. Japanese banks are shall we say suspect for liquidity. Many people in Japan have already begun converting their excess savings to gold. This process may accelerate in April. Last one to convert may be the biggest loser. And of course one has to wonder what happens to the banks when so many people begin to withdraw cash to buy gold. China is ecpected to deregulate its gold exchange and allow individual citizens to hold gold other than in jewelery form. For the potential impact of this on the world gold market one may click on the following links. chinaonline.com search.chinadaily.com.cn; gold-eagle.com So why is Canaccord interested in Claude? Seabee In Claude's third quarter 2001, Claude reported signifcant drilling sucess in exploring below their previous workings on the Seabee property. For the last six months Claude has been doing more drilling do define reserves and should make some announcements soon. Last year Claude developed a large stope that turned out to be of lower grade than expected. The poor past results have driven the stock price down. The losses are minimized by running the broken low grade through the mill while developing the high grade ore zone. Claude expects to begin putting the high grade ore through the mill in the 3rd quarted which begins July 1st--only three months away. THe future ore is at least twice and up to four times as rich as historical ore mined at Seabee. This means very good profits from Seabee in the near future. Claude has also been exploring the area around Seabee. I have heard rumours of some success in this area. Amisk/Laural Lake Some time ago Claude announced that they were ready to do a bulk sample and prepare for production from this unit when the POG was right. The Tartan mill is close by, and owned by Claude. Madsen Property Placer Dome may soon announce their exploration plans for this year at Madsen. Last year they drilled four stratographic holes through part of the Madsen property. They did not really expect any high grade intersections. Their purpose was to gain knowledge of the structure as a whole. I previously described this exercise as determining whether the environment was favourable for the existance of elephants and to detect evidence of elephant trails. It is my own understanding that Placer Dome was extremely encouraged by their findings. The Madsen property includes a vast corridor capable of housing numerous elephants similiar to other Red Lake high grade elephants. It is also my understanding that Placer Dome will sink several holes below the known high grade #8 zone at Madsen. They will then employ high tech directional drilling and shives to intersect the #8 zone at various levels from the same main hole or holes. I am willing to bet that there will be some high grade intersections to report from Madsen this spring. In addition to the high grade excitement there is reason to believe that there are vast areas of lower grade sulphide ore at Madsen which could be mined very profitably at slightly higher gold prices. There is a fully operational mill on the Madsen property which is still 100% owned by Claude. Other In addition to SeaBee, Madsen and the advanced Amisk/Laural Lake gold properties, Claude has producing oil and natural gas properties, an interest via shares in the Shore Gold Star Kimberlite property, a royalty on the Rottenstone PGE property which Uravan has optioned to BHP and some 30 other properties which have potential for economic deposits. Canacord has wisely obtained an option to buy 7.5 million shares of Claude should POG and exploration plans work out. Claude will have ready access to cash should conditions call for immediate production of lots of gold at good prices.

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