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Gold/Mining/Energy : Claude Resources TSE.CRJ Undervalued Junior Gold Anyone? -- Ignore unavailable to you. Want to Upgrade?

To: reg who wrote (112)	1/9/1999 3:49:00 PM
From: Gord Bolton	Read Replies (1) \| Respond to of 359

Claude finds more gold By Joanne Paulson SP Business Editor New drilling at Claude Resources Inc.'s property in Ontario has uncovered ore containing 6.5 grams of gold per tonne, a finding that sharply drove up the Saskatoon company's share price this week. Claude Resources purchased the Madsen Gold Corp. mine in the Red Lake area of Ontario last year. Part of the purchase conditions included raising $10 million in new financing to cover development and exploration at the property. Initial drilling has shown there is more gold just 100 metres away from the original vein, which was dubbed the Austin zone. Claude president Neil McMillan said the company is “enthusiastic” about the possibility of finding substantial new resources in what is called the McVeigh zone. The ore grade is not spectacular, as compared to the eight grams per tonne being produced at the company's Seabee mine in Saskatchewan, he said. However, the grade in the McVeigh zone is following the same pattern as the Austin zone, which improved as mining went deeper. “The significant thing is those drill holes lead us to believe that we may have a parallel zone to the original Madsen zone that is multi-million ounce,” McMillan said. in a Thursday interview. The Toronto Stock Exchange halted trading in Claude Resources (symbol CRJ) stock Thursday morning after findings large number of buy orders waiting to be fulfilled. Claude had planned to release the drill results after a company meeting Friday, but had to react to the exchange's demand for information a day early, said McMillan. Claude's share price bottomed out at $1.10 before Christmas, and traded as high as $2 Thursday before closing at $1.95. Barry Cooper, gold analyst with, CIBC Wood Gundy, said it is not unusual to see share prices rise after interesting drilling results are discovered. People start talking about the results, and information begins to flow to potential share buyers, “These results are encouraging,” said Cooper. “I wouldn't say that they're guaranteeing anything at this point in time.” However, when a company uncovers ore in an area like Red Lake also home to Placer Dome's Campbell mine — it is an encouraging find, he said. More than 10 million ounces of gold have already come out of the Red Lake area. The results could indicate an important find, providing Claude with a much longer mine life span, because the original Madsen zone has already produced 2.5 million ounces of gold, said Cooper. “If this winds up being a duplicate of it — and it's much too early to say that— it would have a significant impact on a company the size of Claude in terms of the share price.” The Madsen mill has been in production since July, although the mine, is not yet up to commercial production. McMillan said he expects to reach commercial production in the first quarter of this year. -30-