A company with a gold mine in northern Saskatchewan is reporting a first quarter net loss of $2.5 million.

That compares to a net loss of $500,000 for Claude Resources for the same three months a year ago.

President Neil McMillan says production in the first quarter came in below budget.

McMillan says the company experienced lower grades of ore from two zones at the Seabee Mine.

He says they do not expect this to continue and have already seen improvement in grade and volume during the month of April.