Page 65 P O R C U P I N E N O R T H E A S T E R N O N T A R I O M I N E S A F E T Y G R O U P W e are a mining networking group which shares pro-active safety information to ensure workers return home safe to their families Committee Members Graham Reid, Brigus Gold, Mangament Co-chair Laura Krupka, Lake Shore Gold, W orker Co-chair Mario V ottero, Liberty Mines, Secretary Page 64 By Gregory Reynolds Claude Resources Inc. has high hopes for its Marsden Gold Project in the prolifc Red Lake Mining Camp of Northwestern Ontario. The company says it is entering a new era in its development. Of particular note is the expansion and mining of satellite deposits at the Seabee Gold Operation in Northern Saskatchewan, the signifcant potential of the Madsen Project and the expanding resource base at the Amisk Gold Project near Flin Flon Manitoba. Claude is a fully integrated Canadian gold exploration and mining com - pany that has the proven ability to Discover , Develop and Deliver Gold. The company has a strong operating base and signifcant upside. Having been in operati on during time s of low gold prices, Claude has proven that it has the ability to survive challenging business environments. The Red Lake Gold Camp is consid - ered by many to be the highest grade gold camp in the world with its fag - ship property being the Red Lake gold mines operated by Goldcorp Inc. The Madsen consists of a 4,000 hect - are land packa ge with four past pro - Claude Resources enters ducing mines on the property . The Madsen currently has an Indicated resource of 928,000 ounces of gold and an Inferred resource of 297,000 ounces in National Instrument 43-101 category . The past-producers were the Madsen, Starratt-Olsen, Buf falo and Faulken - ham Mines. The Madsen project currently has 3,236,000 t at 8.93 g/t Au in the Na - tional Instrument 43-101-compliant Indicated Resources catego ry and 788,000 t at 1 1.74 g/t Au in the In - ferred Resources category . The Seabee Gold Operation consists of two producing mines, the Sea - bee Gold Mine (since 1991) and the Santoy 8 Gold Mine (since January 201 1). The Seabee is located in the La Ronge Mining District at the north end of Laonil Lake approximately 125 km northeast of the T own of La Ronge, Saskatchewan and about 150 km northwest of Flin Flon. T opography of the region is character - ized by low rocky ridges interspersed with lakes and muskeg. Access to the mine site is by fxed wing aircraft from La Ronge or Flin Flon to an air - strip located on the property . Equipment and bulky or heavier sup - plies are trucked to the site via a 60 km winter road from Brabant Lake on Highway 102. The winter ice road is typically in use from January through March. The Seabee Gold Operation directly supports a workforce of ap - proximately 355 employees with per - manent camp facilities. Electrical power is provided by a transmission line to the operation by the provincial power authority . In 2012, Claude’ s net proft was $5.6 million, or $0.03 per share, after a $3 million, or $0.02 per share, non-cash deferred income tax expense. • Cash fow from operations before net changes in non-cash op - erating working capital of $25.8 mil - lion, or $0.15 per share. • Cash cost per ounce of gold were $997 (U.S. $998). • It generated $80.8 million in revenue from gold sales of 48,672 ounces at an average price of $1,660 (U.S. $1,661). At Marsden, the company maintained current water levels below the 17th Level and had two diamond drill sta - tions set up on the 16th level. The company carried out 19,100 m of un - der ground and surface diamond drill - ing in 16 holes. The system continues to remain open down plunge and along strike to the east. The Austin T uf f unit contained the historic Madsen workings (1938 to 1976) and the McV eigh T uf f was explored under ground by a ramp sys - tem 1997 to 1999. Claude completed three deep surface diamond drill holes to evaluate the Austin T uf f at elevations of 1,200 to 1,800 m below surface. Drill holes AD-1 1-01, AD-12-01b and -02a in - tersected widespread alterat ion and mineralization, returning gold assays of up to 14.3 g/t Au over 2.00 m. These holes are the deepest complet - ed to date on the property and confrm the developme nt of the Austin T uf f 600 m below historic mine stopes. The Austin T uf f continues to remain open down plunge and along strike. new development era