Claude prepares new reserve figure for Seabee project

The number-crunchers at Claude Resources (TSE) Seabee project in northern Saskatchewan will attach a reserve estimate to the recently discovered 161 zone within the next few weeks, said company President Gary Billingsley.

Based on the results from 22 surface holes (10,000 ft.),the estimate will determine whether a drift over to the new zone, which lies about 700 ft. from the main zone, is justified.

“We believe it has at least a year or two’s reserves at this point,” said Billingsley. He declined to speculate on hard numbers.

Results from the 161 zone include a 52.5-ft. interval grading 1.23 oz. per ton at 135-ft. and 16.4-ft. interval grading 0.32 oz. at 470 ft. The zone remains open to the west and at depth.

To date, Claude has outlined proven, possible and probable reserves of 1.14 million tons grading 0.40 oz. per ton in narrow, high-grade veins at Seabee. Another one million tons have been assigned to the preliminary category.

Mill construction is under way at the mine site in preparation for a November startup. Although Billingsley said the construction team is already ahead of schedule, production is dependent on the completion of a $60-million hydro line. The power line, being built to service the uranium mines in northern Saskatchewan, is not expected to reach the Seabee site until late autumn.

The mine is expected to produce 52,000 oz. gold annually at production costs of US$250-270 per oz.