CRJ-T Claude Produces 15,722 Ounces of Gold in Q3 and Improves Full Year Guidance
SASKATOON, Oct. 7, 2015 /CNW/ - Claude Resources Inc. ("Claude" and or the "Company") reported third quarter 2015 gold production and gold sales of 15,722 ounces and 16,528 ounces, respectively. Year to date, the Company achieved record gold production of 57,408 ounces, a 13% increase over the first nine months of 2014. The record breaking production performance year to date was largely attributed to the Santoy Gap ore body producing ahead of schedule and at higher grades. The improved performance has resulted in the Company increasing its 2015 gold production guidance to 70,000 - 75,000 ounces.
Brian Skanderbeg, President and CEO commented, "Notwithstanding the evacuation and loss of 10 days of underground mine production during the quarter, we were able to safely achieve strong production results. The solid operating performance resulted in a $6.1 million increase in cash and bullion since the second quarter of 2015. During the quarter, we were also able to decrease the cost of capital on our long-term debt from 10% to approximately 4.8%. This is a testament to the strength of our business plan going forward and a clear indication that our current production and cost performance is sustainable."
"Our outlook for 2015 has improved. The Santoy Gap deposit continues to exceed our expectations and we are increasing our 2015 gold production guidance to 70,000 - 75,000 ounces. Along with higher gold production volumes, we are confident that our costs will remain on budget and we will continue to generate strong free cash flow margins."
| Production Highlights | Q3 2015 | Q3 2014 | Change | YTD 2015 | YTD 2014 | Change | | Santoy Mine Complex | | | | | | | | | Tonnes milled | 53,747 | 33,221 | 62% | 134,361 | 88,005 | 53% | | | Head grade (grams per tonne) | 6.92 | 6.75 | 3% | 7.96 | 5.45 | 46% | | | Produced ounces | 11,575 | 6,957 | 66% | 33,160 | 14,758 | 125% | | Seabee Gold Mine | | | | | | | | | Tonnes milled | 15,641 | 41,709 | -62% | 77,057 | 131,041 | -41% | | | Head grade (grams per tonne) | 8.56 | 10.57 | -19% | 10.18 | 8.93 | 14% | | | Produced ounces | 4,147 | 13,657 | -70% | 24,248 | 35,942 | -33% | | Total tonnes milled | 69,388 | 74,930 | -7% | 211,418 | 219,046 | -3% | | Head grade (grams per tonne) | 7.29 | 8.88 | -18% | 8.77 | 7.53 | 16% | | Recovery (%) | 96.7 | 96.4 | - | 96.3 | 95.6 | 1% | | Total gold produced (ounces) | 15,722 | 20,614 | -24% | 57,408 | 50,700 | 13% | | Total gold sold (ounces) | 16,528 | 17,578 | -6% | 54,388 | 46,133 | 18% |
Operations Review
Third quarter gold production was solid, overcoming the 10 days of lost underground mine production due to local forest fires. The Santoy Gap deposit continued to ramp up ahead of schedule, achieving an average mill throughput of 584 tonnes per day or 77% of total mill throughput. Year to date, gold production from the Seabee Gold Operation increased 13% over the same period in 2014 to 57,408 ounces. The increase in production is primarily due to the Santoy Gap deposit being ahead of schedule, contributing higher tonnage with continued positive grade reconciliation.
During the third quarter, development of a drill chamber to test depth extensions of the Santoy Mine Complex was on-going and is expected to be completed in October. The program is designed to follow up on hole 13-692 which graded 30.08 grams per tonne over 7.9 metres (See news release May 22, 2013, "Claude Discovers Significant Extensions at the Santoy Gap and Santoy 8 Deposits"). Further details outlining the program are expected to be released in the coming weeks.
Outlook
Due to the strong operating performance year to date and better than budgeted performance from the Santoy Gap, the Company is increasing its annual gold production guidance to 70,000 - 75,000 ounces (previously 68,000 - 72,000 ounces) from the Seabee Gold Operation. With the increase in gold production, the Company forecasts a decrease in both unit cash costs per ounce of gold (2) (3) to$685 - $750 (U.S. $535 - $600) and all-in sustaining costs per ounce of gold (2) (3) to $1,065 - $1,175 (U.S. $830 - $920).
Release Date for Q3 Operating and Financial Results
Further information regarding Claude's third quarter operating and financial results will be released on November 5, 2015. The Company will also conduct a conference call and webcast following the news release. Specific details of the conference call and webcast will be announced shortly.
Footnotes
| (1) | Cash and bullion relates to current cash on hand of $24.5 million and $2.5 million of bullion (gold poured in dore bars which has not yet been sold and is valued at market prices). | | (2) | Denotes a non-IFRS measure. For an explanation of this and other non-IFRS measures, refer to the "Non-IFRS Financial Measures and Reconciliations" in the Company's most recently filed MD&A available on the Company's website at www.clauderesources.comor on www.sedar.com or www.sec.gov. | | (3) | Forecast uses a foreign exchange rate assumption of $1.28 CDN$/U.S.$. |
Qualified Persons
Brian Skanderbeg, P.Geo. and M.Sc., President and Chief Executive Officer, is the Qualified Person who has reviewed and approved the contents of this news release.
Claude Resources Inc. is a publicly traded gold exploration and mining company based in Saskatoon, Saskatchewan, whose shares trade on the Toronto Stock Exchange (TSX: CRJ) and the OTCQB (OTCQB: CLGRF). Its asset base is located entirely in Canada and since 1991, Claude has produced over 1,000,000 ounces of gold from its Seabee Gold Operation in northeastern Saskatchewan. The Company also owns 100 percent of the Amisk Gold Project in northeastern Saskatchewan.
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