Amisk Gold Project

The Amisk Gold Property is a gold and silver exploration property located in the province of Saskatchewan 20 kilometres southwest of Flin Flon, Manitoba. The property hosts the Amisk Gold Deposit, the past-producing Monarch Mine as well as a large number of gold occurrences and prospects. At 13,900 hectares, this gold and silver exploration property one of the largest land positions in the prolific Flin-Flon mineral district. Claude owns a 65 percent interest while St. Eugene Mining owns the remaining 35 percent; Claude is the operator of the Joint Venture. The Flin Flon mining district where the Amisk Gold Project is located is home of Hud Bay Minerals. Hud Bay Minerals has several projects in the area such as the 777 Mine, Trout Lake Mine, a zinc plant and concentrator. Also the Konuto Lake Mine located near the Amisk Gold Project operated from 1998 to 2005. The Flin Flon mining district has state of the art infrastructure as well as a mining friendly community. 

Surface Projection  Cross Section  

Fall Drill Program

Note: Intervals noted are intercepted width not true width, have been calculated using a 0.3 g/tonne cut-off and are uncut. True width is variable between 60 and 100 percent of drilled width. They may include internal dilution intervals of up to 10 metres. NSI – No Significant Intercept

Figure 1: Amisk Gold Project Plan Map

Figure 2: Amisk Gold Property, Flin Flon Regional Location Map

Positive Metallurgical Testwork at Amisk Gold Project

The initial metallurgical testing indicates that gold and silver mineralization is amenable to conventional cyanide leaching. Results from testing on three composite samples from the Amisk Gold Deposit have returned an average of 89.4% recovery for gold, ranging from 85.2% to 91.7% and an average of 80.8% recovery for silver, ranging from 66.4% to 92.8%. Finer grinds resulted in higher recoveries for all metals, with peak recoveries for the medium grade composite of 91% for gold and 92.8% for silver. Details of the metallurgical results are presented in Table 1. 

 

Amisk Gold Project National Instrument 43-101

Claude and St. Eugene commissioned SRK Consulting (Canada) Inc. (“SRK”), to prepare an independent mineral resource evaluation and Technical Report for the Amisk Gold Project. This mineral resource evaluation is based on historical drilling completed by Saskatchewan Mining Development Corporation (“SMDC”) between 1983 and 1989 and Claude between 1996 and 1998 as well as recent core drill holes drilled by the Joint Venture during 2010. The entire database comprises 299 drill holes (53,507 metres), of which 21 (5,657 metres) were drilled by the Joint Venture in 2010. Resource evaluation was undertaken in January 2011 on eight domains that comprise the Amisk Gold Deposit. The mineral resource statement reported herein is the culmination of that work. There is potential for expansion of the resource both along strike and at depth below the conceptual pit bottom. Highlights of the Amisk Mineral Resource estimate are presented in Table A.

Brian Skanderbeg, Claude’s Vice-President Exploration, stated that “The successful integration of our 2010 exploration with historic drilling to generate this geological model and open pit resource estimate is the culmination of an aggressive 12 month exploration program and is a major milestone for the Amisk Gold Project and Claude Resources. Moving forward at Amisk, we will focus on expansion of the open pit resource, preliminary metallurgical, engineering and economic studies, as well as an evaluation of the underground potential. Furthermore, with the support of a continued strong gold price, strong working capital, planned initiation of Phase II underground drilling at Madsen in the first quarter 2011 and improving economics at our Seabee Gold Project, Claude is well-positioned to capitalize on the current gold market and execute on its strategy of discovering, developing and producing gold in established belts proximal to existing infrastructure.”

The breakdown of mineral resources for each modeled domain, using a cut-off grade of 0.4 grams of gold equivalent per tonne for the Amisk Gold Deposit are outlined in Table B below.

The mineral resources for the Amisk Gold Project are sensitive to the selection of cut-off grade. Table 3 presents the quantity and grade estimates at a range of cut-off grades inside the conceptual pit shell considered for reporting the Mineral Resource Statement. A cut-off value of 0.4 grams of gold equivalent per tonne was selected based on optimization results and benchmarking against similar deposits.

Figure 3: Amisk Gold Property Cross Section A - A' with Pit Projection 

Figure 4: Amisk Gold Property Cross Section B - B' with Pit Projection

Exploration Results
New and historical drill results are presented below. Table 1 outlines drill results from the 2010 fall drill program where intercepts tested from surface to approximately 400 metres depth Table 2 outlines drill results from the 2010 winter drill program where intercepts tested from surface to approximately 300 metres depth with mineralization intercepted in all holes. 

Winter 2011 Program

A total of 8 holes, 3,234 metres, were completed and assayed from the 2011 winter drill program. The program tested from surface to in excess of 600 metres depth and was designed to expand the limits of the Amisk Gold Deposit as well as infill within the northern portion of the deposit.

 Table 1: Summary of Amisk Gold Deposit Winter 2011 Drill Program

Figure 5: Amisk Gold Deposit Surface Projection - 2011 Winter Drilling Program

Back to top

 Figure 6: Amisk Gold Property Cross Section A - A' (click on image to enlarge)

Back to top