Claude Resources (CRJ.TSX, CGR: AMEX) reported that it has commenced Phase II Underground drilling at its 100%-owned Madsen exploration property at Red Lake, Ontario, Canada. The results of Phase I drilling indicated that the 8 Zone structure may be improving at depth, as demonstrated by the two deepest intercepts to date returning 0.75 oz/ton over 25.92 feet and 0.71 oz/ton over 11.45 feet. The system remains open in all directions and shows strong similarities to the high-grade mineralization characteristic of the Red Lake Gold District.
Brian Skanderbeg, Vice-President Exploration, Claude Resources:
“Our success in intercepting high grade gold during Phase I of the underground program supports our belief in the potential of the 8 Zone system and the Madsen property. The 8 Zone Trend has all the characteristics of high grade Red Lake systems and has seen limited exploration. Phase II underground drilling has the potential to significantly grow our existing resource base at the fully-permitted and infrastructure-rich Madsen property.”
* Phase II drilling includes 19,500 meters (64,000 feet) in 25 to 30 holes and is expected to continue through the end of the year.
* Dewatering and rehabilitation of the Madsen Gold Mine is on-going with water levels currently 70 feet above the 17th level.
* Drilling began in early April with a single rig on the 16th level, 2,450 feet below surface, and a second platform and drill rig will be established on the level during the second quarter of 2011.