CLAUDE ACHIEVES RECORD QUARTERLY RESULTS BY PRODUCING 18,742 GOLD OUNCES
Claude Resources Inc. had record production results of 18,742 ounces during the second quarter, representing a 51-per-cent increase over the 12,438 ounces produced in the second quarter of 2013. Year to date, the company produced 30,086 ounces of gold, a 47-per-cent increase from the second half of 2013. Total ounces sold during the quarter increased approximately 53 per cent from the second quarter of 2013. Year to date, the company sold approximately 28,600 ounces of gold, representing a 37-per-cent increasing from the first half of 2013. The grade in the second quarter also increased significantly by 50 per cent to 7.7 grams per tonne from the 5.13 grams per tonne during the second quarter of 2013.
SEABEE GOLD OPERATION PRODUCTION DATA Q2 Q2 YTD YTD 2014 2013 2014 2013 Tonnes milled 79,746 79,077 144,116 140,954 Head grade (grams per tonne) 7.70 5.13 6.83 4.77 Recovery (%) 95.0 95.3 95.0 94.9 Gold produced (ounces) 18,742 12,438 30,086 20,520 Gold sold (ounces) 17,700 11,532 28,600 20,833
Mike Sylvestre, interim president and chief executive officer, stated: "During the second quarter we set new operating records in ounces produced and poured. Specifically in June, we achieved both record ounces produced and sold of 7,798 ounces and 9,751 ounces of gold, respectively. The main contributors in the second quarter performance came from both improved grade and increased tonnage from the new Alimak mining method on the L62 deposit at the Seabee mine, and with the Santoy Gap deposit ramping up ahead of schedule. The cash flow optimization plan, which is designed to focus on higher margin ounces and cost containment, also played an important role in improved production and with anticipated improvement in costs. I am confident that we can continue this momentum with our cash flow optimization plan solidly in place and with a current stockpile of ore at the mill of approximately 20,000 tonnes. Along with improved operating performance, the company has made significant advancement in decreasing its debt and expects, at forecast production rates, to effectively manage its interest and principal payments."
In addition, the company continues to make progress in advancing the Santoy Gap deposit. The company had scheduled to begin long-hole mining in the fourth quarter of 2014; however, with the early completion of the ventilation raise, this is now forecast to begin during the third quarter. During the second quarter, the Santoy Gap produced approximately 125 tonnes per day and is expected to ramp up to approximately 200 to 300 tonnes per day by the end of the year. The addition of the Santoy Gap deposit is expected to increase production and margins by the beginning of 2015.
The company remains confident that it will meet or exceed its 2014 production guidance of 47,000 to 51,000 ounces of gold. Further operating and financial details of the second quarter will be announced at the beginning of August.
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