Claude Resources Inc. Updates Mineral Inventories
CALGARY, April 8 /CNW/ - Claude Resources is pleased to announce the
following reserves and resources for its Madsen and Seabee mines as audited by
ACA Howe International Limited.
Mineable reserves for both operations stand at 804,198 tonnes grading
8.84 grams per tonne containing 228,628 ounces. These reserves are part of a
total mineral inventory of 3,271,000 tonnes grading 8.4 grams per tonne
containing an estimated 887,000 ounces of gold.
The cut-off grade for both mines of 4.85 grams per tonne (gpt) was
established using a U.S. $325 gold price.
Detailed information on the individual mine mineral inventories is as
follows:
The Madsen Mine is located in the Red Lake area of northwestern Ontario.
The deposit is shear-related and hosted by variably altered, Archean mafic
metavolcanic rocks. In general, there is a positive correlation of gold grade
with sulfide content. During its 38 year history from 1938 to 1976, the mine
produced 2.6 million ounces of gold from 7.71 million tonnes of ore. Madsen's
audited mineral inventory includes the following:
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MADSEN MINE
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Category Tonnes Grade Ounces Comments
(in gpt)
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Proven Reserve 56,610 9.60 17,474 Surface to 6 Level (275m)
Proven Reserve(1) 70,827 12.00 27,328 (1)Upper level pillars,
concerns with salvage
extraction
Probable Reserve 187,780 8.23 49,683 Surface to 6 Level (275m)
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Mineable Reserves 244,390 8.55 67,157 *Excludes pillars in(1)
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Indicated Resource 665,000 11.7 250,000 Substantially below the 6
Level to the 27 Level
(1,235m)
Inferred Resource 362,000 7.5 87,000 Substantially below the 6
Level to the 27 Level
(1,235m)
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Total Resources 1,027,000 10.2 337,000
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>>
The proven and probable reserves quoted in the above table are the
product of a 'first principles' estimation that has been completed on the
Austin and McVeigh ore blocks between surface and the 6 Level (275m). Until
the remainder of the mine from the 6 Level to the 27 Level (1,235m) is
subjected to the same estimation process, this material has been placed in the
indicated and inferred resource categories. This action is deemed consistent
with the spirit and intent of the National Instrument 43-101 and is in
compliance with the TSE-OSC proposed guidelines for reserve and resource
estimations. Claude's management is confident that upon completion and
independent auditing of this estimation process the majority of this material
will be upgraded to the proven and probable categories. It is expected the re-
estimation process at Madsen will be completed in the next six months.
In addition to delineating known blocks in advance of mining, Madsen is
the focus of an aggressive exploration program. A number of targets have been
identified within the existing mine workings, as well as over the wholly-owned
property's ten kilometres of favourable strike length. Claude believes that
there is significant potential to develop mineable reserves in structures
parallel to the Austin and McVeigh zones as well as on strike and below the
existing 1273-metre deep mine workings.
The Seabee Mine is a gabbro-hosted lode gold deposit located 125
kilometres northeast of La Ronge, Saskatchewan. In continuous operation since
its opening in 1991, the Seabee Mine has historic production of 377,000
ounces. In 1998, the mine produced a record 60,200 ounces.
The Seabee Mine's mineral inventory comprises the following:
<<
SEABEE MINE
-------------------------------------------------------------------------
Category Tonnes Grade Ounces Comments
(in gpt)
-------------------------------------------------------------------------
Proven Reserve 287,807 9.96 92,122 Above 400m Level
Probable Reserve 272,001 7.94 69,447 Above 400m Level
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Mineable Reserves 559,808 8.97 161,447
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Possible Reserve 348,900 7.2 80,800 Depth projection
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Inferred Resource 1,020,000 6.5 213,000 Extensions from diamond
drilling
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Total Resources 1,020,000 6.5 213,000 Extensions from diamond
drilling
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>>
Exploration drilling at the Seabee mine has been successful in generating
a number of isolated intersections with favourable widths and grades removed
from the current mine workings. These intersections occur near surface within
a corridor that possesses a minimum two kilometre width over at least five
kilometres of strike length. Based on past experience, it is expected many of
these drill holes will be upgraded into the reserve categories by a
combination of additional drilling and access drifting. All known ore
structures at the Seabee mine are wide open to depth.
Based on its current reserve position coupled with its imminently
upgradable resource base and evolving exploration targets, Claude's management
is convinced it can successfully continue to expand its operations over a
sustained period of time.
An appendix that more fully describes the criteria and definitions used
in the preceding mineral inventory estimations is available on Claude
Resources Inc. web site www.clauderesources.com or may be obtained by
telephoning Val Michasiw at Claude's Saskatoon office at (306)668-7505.
%SEDAR: 00000498E
-30-
For further information: Neil McMillan, President, Phil Olson,
Vice-President, Exploration, (306) 668-7505 |
