Claude Resources Delivers Positive Earnings, Reiterates Guidance

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By jturbin | November 15, 2012 3:18 AM EST

Gold Alert

Claude Resources (CRJ.TSX, AMEX: CGR) announced its third quarter financial and operating results, which included a net profit of C$3.0 million, or $0.02 per share.  The Canadian-based gold mining company also generated cash flow from operations of C$8.6 million, or $0.05 per share.  Claude Resources reported that the L62 Zone at its Seabee Gold Operation has been accessed and development is active on three levels. Development tonnage at L62 was accessed during the third quarter with production tonnage scheduled for the fourth quarter.  The final leg of the shaft extension will be completed in stages starting in the fourth quarter and ending in the first quarter of 2013.

The Company also noted that drill results at the Santoy Gap, released during the third quarter, extended the mineralized system up-dip, along strike to the north and at depth as well as confirmed continuity within the existing mineral resource. Drill hole JOY-12-677 returned the widest intercept to date, 14.58 grams of gold per tonne over 29.74 meters, confirming a high grade core that hosts multiple vein sets over combined widths of between 20 and 30 meters.


* Gold production of 15,073 ounces and gold sales of 14,088 ounces at an average realized price of C$1,663 for revenue of C$23.4 million

* Total cash cost per ounce of gold of C$920

* Reiterated full-year 2012 guidance of 48,000-50,000 ounces of gold at $908 per ounce

* Seabee Gold Operation reached one millionth ounce milestone

Neil McMillan, President and CEO of Claude Resources:

“The Seabee Gold Operation delivered positive earnings and higher grade ore from Seabee Deep and the L62 Zone. With the tie-in of the shaft extension during Q1 2013 and higher grade ore anticipated from Seabee Deep and the L62 Zone, improved unit costs are expected to continue.”

Paolo Lostritto, National Bank Financial:

“Santoy Gap drill results directionally positive as the combination infill and step-out drill program returned an uncut weighted average grade of 13.2 g/t, which compares favourably to the current Santoy Gap inferred resource grade of 6.63 g/t and our modelled estimate of 5.52 g/t.”

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