In 2014, the Seabee Gold Operation milled 279,597 tons at a grade of 7.32 grams per tonne with an average mill recovery of 95.7%.

The 44% increase in gold production was driven by a 43% increase in grade as mill throughput remained consistent.

Gold sales grew 40% in 2014 to approximately 62,700 ounces at an average gold price of approximately CDN$1,395 per ounce.

Highlights:

  • Record annual gold production of 62,984 ounces, a 44% increase from 2013
  • Annual mill head grade of 7.32 grams per tonne, a 43% increase from 2013
  • Santoy Gap development completed ahead of schedule and long-hole mining initiated in Q3 2014
  • Year-end cash and cash equivalents position of approximately $11.2 million
  • Total debt reduction of $10.6 million during 2014
  • 2015 gold production guidance of 60,000 to 65,000 ounces

During the fourth quarter, the Company milled 60,551 tonnes at a grade of 6.50 grams per tonne for total gold production of 12,284 ounces. While fourth quarter 2014 gold production was down slightly from the comparable period in 2013, gold sales for the same period were up 26% to approximately 16,600 ounces at an average price of CDN $1,367 per ounce.

Brian Skanderbeg, President and CEO, stated, "Our success in 2014 is the result of discovering two new ore bodies and developing strategies to grow production and more importantly margins. Our record breaking performance is a reflection of the successful implementation of the Alimak long-hole mining method at the L62 deposit and the ramp up of mining at Santoy Gap ahead of schedule. These strategies allowed us to displace lower grade Santoy 8 ore, increase head grades and improve margins. While we set new records in production, we also established new records in safety performance, a testament to the quality of our workforce. Our success in 2014 has materially improved the Company’s liquidity, driving debt reduction of $10.6 million and an increased cash position of $11.2 million."

"2014 was a pivotal year for Claude. The Company successfully underwent management and board changes, managed a challenging gold price environment and was able to deliver the best operating performance in its history."