Claude Resources Announces Positive Met Work at Amisk

Claude Resources (CRJ.TSX, AMEX: CGR) announced positive metallurgical and engineering results from test work at the 15,400 hectare Amisk Gold Project in northeastern Saskatchewan, Canada. The Amisk Gold Project is located 20 kilometers southwest of Flin Flon, Manitoba and is a 65:35 Joint Venture between Claude and St. Eugene Mining Corporation; Claude is the operator of the Joint Venture.


* 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..

Neil McMillan, President and CEO:

“We had a very busy and successful first quarter of 2011. During the quarter we achieved commercial production at the new Santoy 8 Gold Mine, conducted two exploration programs at Seabee and Amisk, established the first drill chamber at Madsen to target the high grade 8 Zone and safely executed our major winter re-supply program for the Seabee Gold Operation.”

Catherine Gignac, Northland Securities:

“We look to multiple value creation opportunities in 2011 from the Seabee, Madsen and Amisk assets to drive Claude’s shares higher. Catalysts include infrastructure improvements and expansions, mine life extension, and resource growth at exploration properties.”

Canaco Provides Update on Tigray Spin-Out

Canaco Resources (CAN.TSXV) provided an update on its spin-out of Tigray Resources. Tigray has received conditional listing approval from the TSX Venture Exchange, subject to usual listing requirements. Upon being listed, Tigray will file on or before the filing deadline the necessary election to become a public corporation effective from the beginning of its first taxation year.

The transaction will include the transfer of Canaco’s 70% interest in Harvest Mining PLC, which owns the Harvest VMS Project in Ethiopia, to Tigray, as well as $4 million, which represents 18 months’ working capital and sufficient funds to conduct the recommended first phase drill program.


* Canaco shareholders will be entitled to receive one common share of Tigray for every five common shares of Canaco held.

* Tigray’s initial mandate at the Harvest Project will be to complete geological, geochemical and geophysical profiling to establish targets for continued drill testing.

* An 11,000-meter first phase diamond drill program is planned for 2011, with an additional 3,000 meters follow-up drilling.

Andrew Lee Smith, President and CEO of Canaco and Tigray:

“We believe Tigray represents an exciting opportunity for investors to gain exposure to the emerging mineral exploration sector in Ethiopia. Irrespective of the delay in the listing process, Tigray plans to immediately launch an 11,000-metre first phase drill program at the Harvest project.”

Gold Posts Largest Daily Dollar Move on Record

Gold futures, per the COMEX December contract, rallied to a new record high of $1,723.40 per ounce on Monday as investors continued to seek shelter in the yellow metal.

COMEX gold settled at a new closing high of $1,713.20, representing a gain of 3.7%, or $61.40 per ounce. This marked the largest ever single-day increase for gold futures in nominal dollar terms.

Silver futures climbed alongside the yellow metal, rising $0.67, or 1.7%, to $38.88 per ounce.