By Ragnar Haagen

Gold companies shine on higher prices

Aug 24, 2011 | 11:47 AM

Gold reserves in Northern Saskatchewan are continuing to pay dividends for two local mining companies who released news this week.

Shares of Claude Resources rose almost 18 per cent Wednesday after the company announced a new gold discovery.

The company has “mobilized two underground drills on the L62 Zone and are looking to add a third drill to explore and define the L62 Zone and other near mine targets,” said Philip Ng, senior vice-president.

“This series of intercepts with above average true widths and economic gold grades are strong indications that we have discovered a new gold-bearing structure.”

He continued by saying the company will likely be in a position to start mining the new zone in the first half of 2012.

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Claude Resources operates the Seabee gold operation in the La Ronge mining district at the north end of Laonil Lake.

Golden Band Resources have released first quarter results — including 340 kilograms, of which almost half was produced in the month of July.

Golden Band vice president of operations, Gary Haywood said this is right in line with expectations.

“Things are running very well, we’re very pleased with progress so far,” said Haywood.

“We’re on track to meet our gold production for the first year and we’ve resolved a lot of the technical issues.”

The company is mainly into exploration, and only has one producing claim at this point. However the continued rise in the price of spot gold has made the exploration side a lot more feasible.

“With the way gold prices have been moving it certainly makes some of the lower grade deposits look more interesting in terms of being viable,” said Haywood.

“Obviously things become more economic at higher prices. But it hasn’t really changed our focus in terms of where we are as a company.”

rhaagen@panow.com