Trading Symbols: TSX: CRJ; OTCQB: CLGRF
Highlights:
- Increased gold production guidance to 70,000 - 75,000
ounces;
- Record nine month gold production of 57,408 ounces, a 13%
increase over YTD 2014;
- Increased cash and bullion (1) to $27.0 million, from the $20.9 million in Q2 2015; and
- New debt facility with Scotiabank lowered cost of capital to
approximately 4.8% from 10%.
SASKATOON, Oct. 7, 2015 /CNW/ - Claude Resources Inc.
("Claude" and or the "Company") reported third quarter 2015 gold
production and gold sales of 15,722 ounces and 16,528 ounces,
respectively. Year to date, the Company achieved record gold
production of 57,408 ounces, a 13% increase over the first nine
months of 2014. The record breaking production performance year to
date was largely attributed to the Santoy Gap ore body producing
ahead of schedule and at higher grades. The improved performance
has resulted in the Company increasing its 2015 gold production
guidance to 70,000 - 75,000 ounces.
Brian Skanderbeg, President and
CEO commented, "Notwithstanding the evacuation and loss of 10 days
of underground mine production during the quarter, we were able to
safely achieve strong production results. The solid operating
performance resulted in a $6.1
million increase in cash and bullion since the second
quarter of 2015. During the quarter, we were also able to decrease
the cost of capital on our long-term debt from 10% to approximately
4.8%. This is a testament to the strength of our business plan
going forward and a clear indication that our current production
and cost performance is sustainable."
"Our outlook for 2015 has improved. The Santoy Gap deposit
continues to exceed our expectations and we are increasing our 2015
gold production guidance to 70,000 - 75,000 ounces. Along with
higher gold production volumes, we are confident that our costs
will remain on budget and we will continue to generate strong free
cash flow margins."
Production Highlights
|
Q3
2015
|
Q3 2014
|
Change
|
YTD
2015
|
YTD 2014
|
Change
|
Santoy Mine
Complex
|
|
|
|
|
|
|
|
Tonnes
milled
|
53,747
|
33,221
|
62%
|
134,361
|
88,005
|
53%
|
|
Head grade (grams per
tonne)
|
6.92
|
6.75
|
3%
|
7.96
|
5.45
|
46%
|
|
Produced
ounces
|
11,575
|
6,957
|
66%
|
33,160
|
14,758
|
125%
|
Seabee Gold
Mine
|
|
|
|
|
|
|
|
Tonnes
milled
|
15,641
|
41,709
|
-62%
|
77,057
|
131,041
|
-41%
|
|
Head grade (grams per
tonne)
|
8.56
|
10.57
|
-19%
|
10.18
|
8.93
|
14%
|
|
Produced
ounces
|
4,147
|
13,657
|
-70%
|
24,248
|
35,942
|
-33%
|
Total tonnes
milled
|
69,388
|
74,930
|
-7%
|
211,418
|
219,046
|
-3%
|
Head grade (grams
per tonne)
|
7.29
|
8.88
|
-18%
|
8.77
|
7.53
|
16%
|
Recovery
(%)
|
96.7
|
96.4
|
-
|
96.3
|
95.6
|
1%
|
Total gold
produced (ounces)
|
15,722
|
20,614
|
-24%
|
57,408
|
50,700
|
13%
|
Total gold sold
(ounces)
|
16,528
|
17,578
|
-6%
|
54,388
|
46,133
|
18%
|
Operations Review
Third quarter gold production
was solid, overcoming the 10 days of lost underground mine
production due to local forest fires. The Santoy Gap deposit
continued to ramp up ahead of schedule, achieving an average mill
throughput of 584 tonnes per day or 77% of total mill throughput.
Year to date, gold production from the Seabee Gold Operation
increased 13% over the same period in 2014 to 57,408 ounces. The
increase in production is primarily due to the Santoy Gap deposit
being ahead of schedule, contributing higher tonnage with continued
positive grade reconciliation.
During the third quarter, development of a drill chamber to test
depth extensions of the Santoy Mine Complex was on-going and is
expected to be completed in October. The program is designed to
follow up on hole 13-692 which graded 30.08 grams per tonne over
7.9 metres (See news release May 22,
2013, "Claude Discovers Significant Extensions at the Santoy
Gap and Santoy 8 Deposits"). Further details outlining
the program are expected to be released in the coming weeks.
Outlook
Due to the strong operating
performance year to date and better than budgeted performance from
the Santoy Gap, the Company is increasing its annual gold
production guidance to 70,000 - 75,000 ounces (previously 68,000 -
72,000 ounces) from the Seabee Gold Operation. With the increase in
gold production, the Company forecasts a decrease in both unit cash
costs per ounce of gold (2) (3) to $685 - $750 (U.S. $535 -
$600) and all-in sustaining costs per ounce of gold (2)
(3) to $1,065 - $1,175 (U.S.
$830 - $920).
Release Date for Q3 Operating and Financial
Results
Further information regarding Claude's third
quarter operating and financial results will be released on
November 5, 2015. 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.
Footnotes
(1)
|
Cash and bullion
relates to current cash on hand of $24.5 million and $2.5 million
of bullion (gold poured in dore bars which has not yet been sold
and is valued at market prices).
|
(2)
|
Denotes a non-IFRS
measure. For an explanation of this and other non-IFRS measures,
refer to the "Non-IFRS Financial Measures and Reconciliations" in
the Company's most recently filed MD&A available on the
Company's website at www.clauderesources.com or on www.sedar.com or
www.sec.gov.
|
(3)
|
Forecast uses a
foreign exchange rate assumption of $1.28 CDN$/U.S.$.
|
Qualified Persons
Brian
Skanderbeg, P.Geo. and M.Sc., President and Chief Executive
Officer, is the Qualified Person who has reviewed and approved the
contents of this news release.
Claude Resources Inc. is a publicly traded gold
exploration and mining company based in Saskatoon, Saskatchewan, whose shares trade on
the Toronto Stock Exchange (TSX: CRJ) and the OTCQB (OTCQB: CLGRF).
Its asset base is located entirely in Canada and since 1991, Claude has produced
over 1,000,000 ounces of gold from its Seabee Gold Operation in
northeastern Saskatchewan. The
Company also owns 100 percent of the Amisk Gold Project in
northeastern Saskatchewan.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
All statements, other than statements of historical fact,
contained or incorporated by reference in this news release
and constitute "forward-looking information" within the
meaning of applicable Canadian securities laws and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (referred to herein as
"forward-looking statements"). Forward-looking statements
include, but are not limited to, statements with respect to the
future price of gold, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing
and amount of estimated future production, costs of production,
capital expenditures, costs and timing of the development of new
deposits, success of exploration activities, permitting time lines,
currency exchange rate fluctuations, requirements for additional
capital, government regulation of mining operations, environmental
risks, unanticipated reclamation expenses, title disputes or claims
and limitations on insurance coverage. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate" or
"believes", or the negative connotation thereof or variations of
such words and phrases or state that certain actions, events or
results, "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved" or the negative connotation
thereof.
All forward-looking statements are based on various assumptions,
including, without limitation, the expectations and beliefs of
management, the assumed long-term price of gold, that the Company
will receive required permits and access to surface rights, that
the Company can access financing, appropriate equipment and
sufficient labour, and that the political environment within
Canada will continue to support
the development of mining projects in Canada.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of Claude
to be materially different from those expressed or implied by such
forward-looking statements, including but not limited to:
actual results of current exploration activities; environmental
risks; future prices of gold; possible variations in ore reserves,
grade or recovery rates; mine development and operating risks;
accidents, labour issues and other risks of the mining industry;
delays in obtaining government approvals or financing or in the
completion of development or construction activities; and other
risks and uncertainties, including but not limited to those
discussed in the section entitled "Risk Factors" in the Company's
Annual Information Form. These risks and uncertainties are
not, and should not be construed as being, exhaustive.
Although Claude has attempted to identify important factors that
could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
Forward-looking statements in this news release are made as of
the date of this news release and accordingly, are subject to
change after such date. Except as otherwise indicated by
Claude, these statements do not reflect the potential impact of any
non-recurring or other special items that may occur after the date
hereof. Forward-looking statements are provided for the
purpose of providing information about management's current
expectations and plans and allowing investors and others to get a
better understanding of our operating environment.
Claude does not undertake to update any forward-looking
statements that are incorporated by reference herein, except in
accordance with applicable securities laws.
SOURCE Claude Resources Inc.