The Seabee Gold Mine Uncommon Accomplishment

"By any measure of common practice, Claude Resources' Seabee Gold Mine in Northern Saskatchewan should not now be operating. Not because reserves dwindled, or grade dropped or prices weakened or technical problems arose, but because a host of unimaginable other problems beset the project, any one of which would normally have led to the mine's failure.The success of the Seabee Mine, and it is extremely successful, is a story of the vision and blunt determination of two men. Neither is remarkable in his own right but each possesses the characteristics which were necessary to forge a highly productive and profitable narrow-vein mine in the midst of the most bizarre and unpredictable events which likely have ever beset a mine start-up in Canadian history.Together, Bill MacNeill, a Saskatchewan born, former bush pilot and Ray Gagnon, a big hearted, hard-fisted, miner with 44 years of experience in Canada's underground, built the Seabee Mine.They didn't accomplish this with brilliant geology, outstanding engineering or nimble corporate manouvering but rather a stubbornness and raw common sense which likely are all too often, ingredients missing in failed projects.The Seabee Mine is 100% owned by Claude Resources, a Saskatoon based company taken over by Bill MacNeill, its current chairman, in 1982. The company is listed on the TSE and produces 1200 barrels of oil per day and about 60,000 oz of gold per year. The company has a strong balance sheet, is very profitable and has 18 million shares outstanding.The Seabee property in Northern Saskatchewan started out like many other gold exploration properties in Canada.It was discovered in the l 940's by what is now Cominco, and, while highly regarded by that company the property sat largely dormant until acquired by Claude Resources in 1985.Claude did what most junior exploration companies would do and went looking for a company with a depth of expertise to joint venture the property.That company was Placer Development who could earn a 55% interest in the Seabee by delivering a bankable feasibility study on the Project by July 1988 and providing financing to production.Placer Development was an excellent company and spent over $8 million dollars on the Seabee over a 3 year period. Unfortunately for Claude Resources, Placer Development merged with Dorne Mines in 1987 and the new merged company, Placer Dome, established a minimum production threshold greater than the 50,000 oz per year which the Seabee appeared capable of supporting at that time. Placer Dome's request for an indefinite extension of the joint venture agreement to allow it to drill off a larger ore body was rejected by Claude Resources and the Seabee Property was returned to Claude in 1988."