why invest in claude resources inc
TRANSCRIPT
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Why Invest in Claude Resources Inc.?
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Canadian Focused
Claude Resources Inc. has three Canadian Gold Projects: Seabee, Amisk and Madsen. Each project hosts over 1 million ounces of gold and each has the potential to produce over 100,000 ounces per year. All of our assets are located in safe, politically stable provinces where mining is a widely accepted practice and an industry that many people are proud to have a career in. The Fraser Institute has consistently ranked Canada among the top mining jurisdictions in the world. In 2011/12, Saskatchewan was ranked 6th and Ontario was ranked 13th out of 93 mining jurisdictions in the world for the best place to mine.
(Source: Fraser Institute Annual Survey of Mining Companies 2011/2012)
A MISK PROJECT
MA DSEN
SEA BEE MINE
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Growing Resource Base
806,000 735,000 662,000 1,300,000
1,225,000 1,225,000
1,225,000
1,018,000
1,566,000
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500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
2008 2009 2010 2011
Resource Base
Amisk
Madsen
Seabee
Claude has an exceptional record of low-cost reserve & resource base growth over the past four years. This demonstrates the ability of our exploration team, the strength of the exploration program and the quality of the Company’s exploration assets. The industry average finding cost per ounce is approximately $35 while our finding costs have averaged $18 over the past 4 years. We continue to focus on exploration around our Seabee Gold Operation while advancing the Amisk and Madsen Gold Projects.
(Source: Minex Consulting Pty Ltd.)
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Increasing Production
The Company expects to increase gold production by 10-15% per year over the next 5 years at the Seabee Gold Operation. In 2012, the Company completed the mill upgrade and a camp expansion and the shaft extension to be completed in Q1 2013. These initiatives will enable Claude to increase production significantly over the next 5 years. Key drivers to increase production: • Increased reserve & resource base • New, near infrastructure discoveries: L62 and
Santoy Gap • Improved mining infrastructure
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$800
$1,000
$1,200
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10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
2011 2012 2013 2014 2015 2016 2017
Upside
Base Case
Costs
Increasing Production & Decreasing Cash Costs
By 2017, we expect annual gold production to exceed 90,000 ounces, an increase of 80% over the next 5 years.
Max. Min. Costs
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Why Invest in Gold?
• Demand & Supply – Long lead times in gold mining mean production of gold is relatively inelastic, regardless of increases in demand.
That’s why the rally in the gold price since 2001 has not resulted in a meaningful increase in gold production levels.
– Demand for gold has shown sustained growth recently, due at least in part to rising income levels in key markets.
• Portfolio Diversification – Diversifying your portfolio can offer added protection against fluctuations in the value of any single asset or group
of assets. Risk factors that may affect the gold price are quite different in nature from those that affect other assets. Statistically, portfolios containing gold are generally more robust and less volatile than those that do not.
• Inflation Hedge – Market cycles come and go, but over the long term, gold retains its purchasing power. Gold’s value, in terms of
real goods and services that it can buy, has remained remarkably stable for centuries. In contrast, the purchasing power of many currencies has generally declined, due for the most part to the rising price of goods and services.
• Currency Hedge – Gold is employed as a hedge against fluctuations in currencies, particularly the U.S. dollar. If the world’s main
trading currency appreciates, the dollar gold price generally falls, and vice versa. For this reason, gold has consistently proved to be one of the most effective assets in protecting against dollar weakness.
• Risk Management – Gold is significantly less volatile than most commodities and many equity indices. It tends to behave more like a
currency. Assets with low volatility will help to reduce overall risk in your portfolio, adding a beneficial effect on expected returns.
(Source: World Gold Council “Why Invest”)
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If you need more reasons on why to invest, please contact us at 306-668-7505 or at
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Cautionary Note Regarding Forward-Looking Information This document contains certain forward-looking statements relating but not limited to the Company’s expectations, intentions, plans and
beliefs. Forward-looking information can often be identified by forward-looking words such as “anticipate”, “believe”, “expect”, “goal”, “plan”, “intent”, “estimate”, “may” and “will” or similar words suggesting future outcomes or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-looking information may include reserve and resource estimates, estimates of future production, unit costs, costs of capital projects and timing of commencement of operations, and is based on current expectations that involve a number of business risks and uncertainties. Factors that could cause actual results to differ materially from any forward-looking statement include, but are not limited to, failure to establish estimated resources and reserves, the grade and recovery of mined ore varying from estimates, capital and operating costs varying significantly from estimates, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and other factors. Forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from expected results.
Potential shareholders and prospective investors should be aware that these statements are subject to known and unknown risks,
uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. Shareholders are cautioned not to place undue reliance on forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and various future events will not occur. Claude Resources undertakes no obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
Cautionary note to U.S. investors concerning resource estimate The resource estimates in this document were prepared in accordance with National Instrument 43-101, adopted by the Canadian
Securities Administrators. The requirements of National Instrument 43-101 differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”). In this document, we use the terms “measured”, “indicated” and “inferred” resources. Although these terms are recognized and required in Canada, the SEC does not recognize them. The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that constitute “reserves”. Under United States standards, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically and legally extracted at the time the determination is made. United States investors should not assume that all or any portion of a measured or indicated resource will ever be converted into “reserves”. Further, “inferred resources” have a great amount of uncertainty as to their existence and whether they can be mined economically or legally, and United States investors should not assume that “inferred resources” exist or can be legally or economically mined, or that they will ever be upgraded to a higher category.
Cautionary Statement
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Claude Resources Inc. Experience. Stability. Potential.
Creating the Capacity to
Discover. Develop. Deliver.
TSX: CRJ NYSE MKT: CGR
200, 224 - 4th Avenue South Saskatoon, Saskatchewan, S7K 5M5 Canada P. 306.668.7505 F. 306.668.7500