Claude Resources Inc.2 hours ago Trading Symbols: TSX: CRJ; OTCQB: CLGRF
SASKATOON, Oct. 7, 2014 /PRNewswire/ - Claude Resources Inc. ("Claude" and or the "Company") achieved record gold production of 20,614 ounces during the third quarter of 2014 at its 100% owned and operated Seabee Gold Operation in Saskatchewan, Canada (surpassing the previous record of 18,742 ounces of gold set during the second quarter of 2014). The strong third quarter represents a 96% increase in production compared to the third quarter of 2013. Year to date gold production of 50,700 ounces was 63% higher than the first nine months of 2013. Based on the excellent performance year to date, the Company is revising its 2014 production guidance upward to 61,000 to 64,000 ounces of gold from the previous guidance of 50,000 to 54,000 ounces of gold.
Third Quarter and Year to Date Highlights:
- New record quarterly gold production of 20,614 ounces, a 96% increase from Q3 2013;
- Year to date gold production of 50,700 ounces, a 63% increase from the first nine months of 2013 and 16% better than full year 2013;
- Q3 2014 mill head grade of 8.88 grams per tonne, a 68% increase from Q3 2013;
- Year to date mill head grade of 7.53 grams per tonne, a 52% increase from the first nine months of 2013;
- Revised 2014 gold production of 61,000 to 64,000 ounces from previous guidance of 50,000 to 54,000 ounces;
- Ramp up of the Santoy Gap deposit resulted in year to date production of approximately 26,000 tonnes at 8.1 grams per tonne; and
- In addition to normal course principal repayments, the Company voluntarily prepaid the remaining $1.1 million in demand loans outstanding.
Mike Sylvestre, Interim President and CEO stated, "Our strategy this year has been to focus on cost containment, consistent operating performance and the ramp up of the Santoy Gap deposit towards production. Results to date clearly demonstrate that our operating team has done an excellent job in executing on these strategies. Our record breaking performance has been driven by grades reconciling better than budget, proper execution of the Alimak mining method at the L62 and bringing Santoy Gap into production ahead of schedule. Furthermore, the strong performance to date allows the Company to continue focusing on generating earnings and reducing debt. To date, we have been able to increase our cash and bullion position to approximately $13.3 million while decreasing our debt by $9.7 million.
Due to our strong operating performance, we are increasing our 2014 gold production guidance to 61,000 to 64,000 ounces. During the fourth quarter, production from the L62 will be reduced while throughput from Santoy Gap is expected to increase. By the end of the third quarter, production from the Santoy Gap deposit reached approximately 330 tonnes per day and we expect that to drive further unit cost improvements and continued strong operating performance."
| |
| Seabee Gold Operation Production Data |
| | Q3 | Q3 | YTD | YTD |
| 2014 | 2013 | 2014 | 2013 |
| Tonnes Milled | 74,930 | 64,642 | 219,046 | 205,596 |
| Head Grade (grams per tonne) | 8.88 | 5.30 | 7.53 | 4.94 |
| Recovery (%) | 96.4 | 95.8 | 95.6 | 95.2 |
| Gold Produced (ounces) | 20,614 | 10,541 | 50,700 | 31,061 |
| Gold Poured (ounces) | 20,948 | 10,778 | 49,495 | 31,708 |
| Gold Sold (ounces) | 17,578 | 10,781 | 46,133 | 31,614 |
The strong third quarter results were driven by an increase in mill throughput and grade period over period. Mill throughput during the third quarter of 2014, primarily from the L62 and Santoy Gap deposits, was 74,930 tonnes, a 16% increase from the third quarter of 2013. The grade during the third quarter increased significantly to 8.88 grams per tonne, a 68% increase from the third quarter of 2013. These results were due to positive reconciliations from the L62 and from additional higher grade tonnes from the Santoy Gap deposit. To date, the Santoy Gap deposit has produced approximately 26,000 tonnes at 8.1 grams per tonne which is significantly higher than the current Mineral Reserve grade of 6.40 grams per tonne.
Year to date, the Company has produced 50,700 ounces of gold from throughput of 219,046 tonnes at an average grade of 7.53 grams per tonne. The main drivers of the 63% increase in production and 52% increase in grade compared to the first nine months of 2013 were positive reconciliation on tonnes, grade and ounces from the L62 and the replacement of the lower margin Santoy 8 ore with higher margin Santoy Gap ore.
Further information regarding Claude's third quarter operating and financial results will be released on November 3, 2014 prior to market open. The Company will also conduct a conference call and webcast following the news release. Specific details of the conference call and webcast will be announced shortly.