While gold stocks posted stellar returns in 2009, Canadian-based gold mining company Claude Resources (CGR) rallied 268% as investors sought exposure to the gold price as well as to a gold stock that traded at a depressed valuation relative to its peers. Gold stocks, as measured by the Market Vectors Gold Mining ETF (GDX) appreciated by 36.4% in 2009, an impressive gain, but significantly less than the return achieved by Claude Resources - which gained 7.36x the GDX. The company released a Quarterly Update for the fourth quarter 2009 - a time frame that saw the gold price hit an all-time record of $1,226.50 per ounce. The Update included a recap of the company’s two gold projects - the advanced exploration Madsen gold deposit in Red Lake Ontario, Canada and the Seabee gold mine in Laonil Lake, Saskatchewan, Canada. Claude Resources laid out its corporate growth strategy and outlined a list of “ 2010 Corporate Milestones. ”

The highlight of the quarter at Madsen occurred in December when Claude Resources announced an NI 43-101 gold resource. The gold deposit, which is located in one of the highest grade gold districts in the world, continues to be the centerpiece of the growth story at Claude. The company’s announcement of an indicated resource of 928,000 ounces of gold at 8.93 grams per tonne (g/t) and an inferred resource of 328,000 ounces of gold at 11.74 g/t was the highlight for the quarter. The reported resource of 1.25 million ounces of gold was greater than the approximately 500,000 ounces of gold expected by the market. Claude went on to say that the successful completion of Phase I of its exploration program at the 8 Zone demonstrated down plunge continuity. Deep underground drilling of the 8 Zone is scheduled to begin from the 16th level in the second half of 2010.

At the company’s flagship Seabee gold mine , Claude highlighted the successful intersection of several above average grades - notably at hole U09-671, with 28.05 grams of gold per tonne over 1.6 meters true width. Claude reported gold production of approximately 14,300 ounces for the fourth quarter and 28,500 ounces in the second half of 2009 - a 12% increase versus the second half of 2008 and a 55% rise from the first half of 2009. The Canadian gold producer attributed the increased gold production at Seabee to the company’s ability to deliver higher tonnage and better grades to the mill.

Claude Resources laid out its plans for gold production growth at Seabee, where development of the Santoy 8 deposit - located near Seabee - is scheduled to begin in the first half of 2010. The gold miner expects steady gold production growth through 2012 stemming from the expansion of satellite ore bodies in and around the Seabee Mining Camp. Growing cash flow from operations was also highlighted, as Claude expects higher margins due to increased gold production and lower cash costs by mining Santoy 8 and bringing higher grade ore to the mill. Finally, the Canadian gold producer pointed to growing its resource base at both Madsen and Seabee - announcing at the latter an upcoming release of an updated NI 43-101 compliant resource in March of 2010.

In the coming year, Claude expects to achieve several Corporate Milestones, listed in their expected order:

- Seabee Mining Camp - Santoy 8 satellite deposit environmental approval and permits

- De-watering completed to the 16th level at Madsen

- Exploration of satellite deposits at Seabee

- Exploration of surface targets at Madsen

- Rehabilitation and construction of drill chambers on the 16th level at Madsen

- Deep drilling of the 8 Zone from the 16th level

- Seabee Mining Camp - Santoy 8 satellite deposit reaching commercial production

Since 1991, Claude Resources has produced approximately 880,000 ounces of gold from its Seabee Operation, located in northeastern Saskatchewan. The gold producer also owns 100% of the 10,000-acre Madsen property in the Red Lake gold camp of northwestern Ontario, Canada. Claude recently received an investment from former Kinross Gold (KGC) Chief Executive Officer, Robert Buchan, of roughly C$5.3 million. Shares of Claude Resources (CGR) finished the day unchanged at $1.04 while the GDX closed down $0.06 to $43.13.