Claude Resources Extends 8 Zone at Depth and Discovers Extension to McVeigh Tuff at Madsen
Trading Symbols
TSX – CRJÂ Â
NYSE Amex – CGR
SASKATOON, Dec. 21, 2011 /PRNewswire/ – Claude Resources Inc. (TSX-CRJ; NYSE Amex-CGR) (“Claude” and or the “Company”) today provided an interim update from
on-going exploration activities at the Company’s 100 percent-owned,
Madsen Project in Red Lake, Ontario. Drilling has successfully
extended the 8 Zone plunge to approximately 250 metres down plunge of
previous drilling as well as discovered significant depth extensions to
the McVeigh Tuff. Based on these encouraging results, the Company has
approved a 29,000 metre, underground and surface-based drill program
for 2012.
Highlights from the latest drill results are summarized below and in
Table 1 and Figures 1 and 2.
-- 15.70 grams Au per tonne over 2.00 metres in MUG-11-13 McVeigh
Tuff
-- 6.27 grams Au per tonne over 2.00 metres in MUG-11-14 McVeigh
Tuff
-- 8.06 grams Au per tonne over 2.02 metres in MUG-11-14b 8 Zone
-- 5.69 grams Au per tonne over 2.14 metres in MUG-11-16 8 Zone
-- 53.70 grams Au per tonne over 0.70 metres in MUG-11-17 McVeigh
Tuff
-- 5.64 grams Au per tonne over 2.00 metres in MUG-11-17 McVeigh
Tuff
In 2011, Phase II underground drilling has completed 12,700 metres and 9
holes, targeting the 8 zone plunge and strike continuity as well as
sub-parallel footwall structures. Drill holes targeting the plunge
continuity of the 8 Zone include MUG-11-12, 14 (14b) and 16 (Figure
2). Drill hole 14b and drill hole 16, the deepest hole ever completed
on the Madsen property, intercepted silicified and visible
gold-bearing, basalt and returned 8.06 g/t gold over 2.02 metres and
5.69 g/t gold over 2.14 metres, respectively. These intercepts extend
the 8 Zone system 250 metres down plunge from previous drilling to
approximately 1,600 metres below surface. The system continues to
remain open down plunge and will be the target of future drilling.
Drill holes targeting the strike continuity of the 8 Zone include
MUG-11-10, 11, 13, 15, 17 and 19. Drill hole 13 and drill hole 17
intercepted silicified, biotite-altered basalt and returned 15.70 g/t
gold over 2.00 metres and 53.70 g/t gold over 0.70 metres,
approximately 950 metres below surface. These intercepts are in the
hanging-wall of the 8 Zone system and interpreted to correlate with and
be an extension of the McVeigh Tuff, located approximately 650 metres
up-dip. Importantly, the McVeigh Tuff hosts a current Indicated
Resource of 115,000 ounces at 9.59 g/t gold and has seen very limited
drill testing below the 350 metres depth. In addition to the McVeigh
mineralization, the 8 Zone structure is developed in all holes
completed along strike and is characterized by anomalous gold
associated with biotite-altered, variably silicified basaltic and
ultramafic lithologies.
Moving into 2012, Claude has approved a 29,000 metre, underground and
surface exploration program at Madsen with budgeted expenditures of
$6.6 million dollars. The program will include two underground rigs and
one surface rig, targeting to complete 40 to 50 holes. Exploration will
focus on continued testing of the 8 Zone Trend as well as the McVeigh
and Austin Tuff depth continuity.
“These latest results provide encouragement for our 2012 program. They
continue to demonstrate that the 8 Zone is a high grade gold system
that has strong vertical continuity, remaining open at depth and along
strike to the northeast. Furthermore, the discovery of economic grades
and widths hosted within the depth continuity of the McVeigh Tuff opens
up significant exploration potential,” stated Brian Skanderbeg,
Vice-President Exploration, Claude Resources Inc.
The Madsen Gold Mine, located in the town of Madsen, is approximately 10
kilometres from the town of Red Lake, Ontario and is in one of the
highest grade gold districts in the world. The Madsen Mine was the
third largest gold producer in the Red Lake camp behind the Campbell
and Dickenson Mines with a total of 2.45 million ounces of gold
produced over its 38 year mine life. The property currently hosts a
National Instrument 43-101 compliant Indicated Resource of 928,000
ounces at 8.93 g/tonne and an Inferred Resource of 297,000 ounces at
11.74 g/tonne (see December 7(th), 2009 press release, ‘Claude Resources Inc. Reports Independent NI 43-101 Resource at Madsen
Mine’).
_____________________________________________________________
|Table 1: Summary of Phase II drill results from Madsen |
|underground drilling. |
|_____________________________________________________________|
|Hole ID |Width|Au (g/t) |Elevation*|Zone |
|__________|_____|__________________|__________|______________|
|MUG-11-10 | |Anomalous | | |
|__________|_____|__________________|__________|______________|
|MUG-11-11 | |Anomalous | | |
|__________|_____|__________________|__________|______________|
|MUG-11-12 | |Anomalous | | |
|__________|_____|__________________|__________|______________|
|MUG-11-13 |2.00 |15.70 |927 |McVeigh |
|__________|_____|__________________|__________|______________|
|MUG-11-14 |2.00 |6.27 |1,051 |McVeigh |
|__________|_____|__________________|__________|______________|
|MUG-11-14b|2.02 |8.06 |1,543 |8 Zone |
|__________|_____|__________________|__________|______________|
|MUG-11-15 | |NSI | | |
|__________|_____|__________________|__________|______________|
|MUG-11-16 |2.14 |5.69 |1,595 |8 Zone FW |
|__________|_____|__________________|__________|______________|
|MUG-11-17 |0.70 |53.70 |927 |McVeigh |
|__________|_____|__________________|__________|______________|
|and |2.00 |5.64 |1,079 |McVeigh |
|__________|_____|__________________|__________|______________|
|MUG-11-19 | |Assays Outstanding| | |
|__________|_____|__________________|__________|______________|
|* Elevation presented as metres below surface. Composites |
|calculated using a 3 g/t |
|Au cut-off grade. Reported width is drilled length and |
|interpreted to represent 75 - |
|85 percent of true width. NSI - No Significant Intercept. |
|Anomalous - Assayed between |
|1 and 3 g/t gold. Note that hole MUG-11-14 was lost with hole|
|MUG-11-14b wedged |
|off and completed. |
|_____________________________________________________________|
A Madsen property longitudinal section and detailed longitudinal section
are available on Claude’s website www.clauderesources.com.
Brian Skanderbeg, P.Geo. and M.Sc., Claude’s Vice President Exploration,
is the Qualified Person who has reviewed and approved the contents of
this news release. Drill core was halved with samples averaging 1.5
metres submitted to ALS Chemex in Vancouver, an ISO approved facility.
Rigorous quality assurance and quality control procedures have been
implemented including the use of blanks, standards and duplicates. Core
samples were analyzed by a 30 gram gold fire assay with an atomic
absorption, conventional gravimetric and/or screen fire techniques.
Claude Resources Inc. is a gold producer with shares listed on both the
Toronto Stock Exchange (TSX-CRJ) and the NYSE Amex (NYSE Amex-CGR). The
Company is also engaged in the exploration and development of gold
mineral reserves and mineral resources. The Company’s entire asset base
is located in Canada. Its main revenue generating asset is the 100
percent owned Seabee Gold Operation, located in northern Saskatchewan.
Since 1991, Claude has produced over 962,000 ounces of gold from the
Seabee Gold Operation. Claude also owns 100 percent of the 10,000 acre
Madsen Property in the prolific Red Lake gold camp of northwestern
Ontario and has a 65 percent working interest in the Amisk Gold
Property in northeastern Saskatchewan.
Cautionary Note Regarding Forward-Looking Information
This document contains certain forward-looking statements relating but
not limited to the Company’s expectations, intentions, plans and
beliefs. Forward-looking information can often be identified by
forward-looking words such as “anticipate”, “believe”, “expect”,
“goal”, “plan”, “intent”, “estimate”, “may” and “will” or similar words
suggesting future outcomes or other expectations, beliefs, plans,
objectives, assumptions, intentions or statements about future events
or performance. Forward-looking information may include reserve and
resource estimates, estimates of future production, unit costs, costs
of capital projects and timing of commencement of operations, and is
based on current expectations that involve a number of business risks
and uncertainties. Factors that could cause actual results to differ
materially from any forward-looking statement include, but are not
limited to, failure to establish estimated resources and reserves, the
grade and recovery of mined ore varying from estimates, capital and
operating costs varying significantly from estimates, delays in
obtaining or failures to obtain required governmental, environmental or
other project approvals, inflation, changes in exchange rates,
fluctuations in commodity prices, delays in the development of projects
and other factors. Forward-looking statements are subject to risks,
uncertainties and other factors that could cause actual results to
differ materially from expected results.
Potential shareholders and prospective investors should be aware that
these statements are subject to known and unknown risks, uncertainties
and other factors that could cause actual results to differ materially
from those suggested by the forward-looking statements. Shareholders
are cautioned not to place undue reliance on forward-looking
information. By its nature, forward-looking information involves
numerous assumptions, inherent risks and uncertainties, both general
and specific, that contribute to the possibility that the predictions,
forecasts, projections and various future events will not occur. Claude
Resources undertakes no obligation to update publicly or otherwise
revise any forward-looking information whether as a result of new
information, future events or other such factors which affect this
information, except as required by law.
Cautionary note to U.S. investors concerning resource estimate
The resource estimates in this document were prepared in accordance with
National Instrument 43-101, adopted by the Canadian Securities
Administrators. The requirements of National Instrument 43-101 differ
significantly from the requirements of the United States Securities and
Exchange Commission (the “SEC”). In this document, we use the terms
“measured”, “indicated” and “inferred” resources. Although these terms
are recognized and required in Canada, the SEC does not recognize them.
The SEC permits U.S. mining companies, in their filings with the SEC,
to disclose only those mineral deposits that constitute “reserves”.
Under United States standards, mineralization may not be classified as
a reserve unless the determination has been made that the
mineralization could be economically and legally extracted at the time
the determination is made. United States investors should not assume
that all or any portion of a measured or indicated resource will ever
be converted into “reserves”. Further, “inferred resources” have a
great amount of uncertainty as to their existence and whether they can
be mined economically or legally, and United States investors should
not assume that “inferred resources” exist or can be legally or
economically mined, or that they will ever be upgraded to a higher
category.Â
SOURCE CLAUDE RESOURCES INC.
