Golden Band Update on the Komis Mine and New Bonanza Grade Pipe
SASKATOON, Dec. 14, 2012 /CNW/ - Golden Band Resources Inc. (TSXV: GBN; OTCQX: GBRIF) is pleased to provide an update on the commissioning of the Komis open pit mine and the continued ramp-up of production. Mining at the Komis open pit started with the first blast in ore on September 29, 2012 and the first shipment of ore to the Jolu mill on October 3, 2012 (see news release of October 4, 2012). A bonanza grade (approximately 9,300 grams/tonne gold (g/t)) gold pipe was discovered in October.
The bonanza grade pipe appears to be the result of significant "remobilization" of the primary gold deposition concentrating gold along specific andesite and rhyolite host rock contacts and is associated with the late stage felsic diking found within the ore body. While the volume of this pipe was not significant, localized pipes of bonanza grade gold containing values in excess of 9,300 g/t (300 ounces/tonne) were encountered during historic underground operations. As mining continues, a better understanding of these bonanza zones will be generated and will enhance the predictability of chutes through the mine and below the economic limits of the current pit design. This knowledge will also be incorporated into an assessment of future underground high-grade mine targets.
Komis mine production for the first two months of operations was approximately 187,000 total tonnes, of which 23,833 tonnes were ore and low grade material averaging 1.65 g/t gold versus a planned 150,000 total tonnes containing 4,200 tonnes ore at 4.24g/t gold over the same area.
Matthew Conklin, Vice-President of Operations for Golden Band Resources commented, "Mine production at Komis in the initial two months of operations was intentionally minimized in an effort to maximize surface ore definition, to gather a better understanding of the geologic conditions controlling the deposit and to rationalize actual sub-crop to resource expectations now that the overburden has been removed".
The Komis deposit is geologically very complex with five discrete ore structures, major stockworking between structures and post mineralization diking and faulting. Ore control is dependent upon blast-hole assays as visual confirmation methodology alone is not conclusive. To compensate, a tight blast-hole pattern is utilized for ore definition.
The updated mine plan for Komis includes two phases. The first, a smaller pit designed to extract the near-surface ore, has total mineable tonnes of approximately 1.7 million. Ore production is expected over nine months at an average of 15,000 tonnes/month at a grade of 6.46 g/t gold. Phase 2 is a larger pit designed to extract ore from the deeper levels of the Komis deposit, with total mineable tonnes of approximately 4.4 million. Ore production is expected over 18 months at a monthly average of 13,000 tonnes at a grade of 7.13 g/t gold.
Work to verify the resource model across the now exposed surface has indicated a very tight correlation between actual surface showings and the projected ore structures of the model. This leads to a high level of confidence in the resource model. However, production drilling has also identified significant additional resources between ore structures noted as stockwork features not included in the resource model. As a result, nearly 19,000 additional tonnes of low grade ore ranging between 1.00 and 2.50 g/t gold was recovered and mostly stockpiled from the recent mining of the 410 and 405 benches.
With this high level of confidence in the model, Golden Band Resources believes that over the life of the mine the grades and volumes will be as predicted. However, with lower than planned mine production over the first two months, operational and financial results for the quarter ended October 31, 2012 will be impacted. These results are expected to be released on December 21, 2012.
Saimon Ngindi, P.Geol., of Golden Band Resources, has acted as the Qualified Person as defined in National Instrument 43-101 for this disclosure and has approved the technical information contained in this release.
About Golden Band
Golden Band Resources is a gold producer operating in the La Ronge gold belt in northern Saskatchewan and publicly listed on the TSX Venture exchange in Canada under the symbol GBN and is traded in the United States on the OTCQX under the symbol GBRIF. Commercial production was declared on April 1, 2011 and the Company has production from two mines, Roy Lloyd and Komis. Processing is at the centrally located Jolu mill, with a nominal capacity of 650 tonnes per day. The Company has been actively exploring the La Ronge Gold Belt since 1994 and has assembled a land package of 870 km2, including 13 known gold deposits and four former producing mines, being Jolu, Decade, Star Lake and Komis. The Company plans to undertake aggressive drill programs throughout the La Ronge Gold Project with the goal of significantly expanding the existing NI 43-101 gold resources that have been identified to date.
On behalf of the Board of Directors of Golden Band Resources Inc.,
A. Robson Garden, President and CEO
Caution Regarding Forward-Looking Information and Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the potential mineralization and geological merits of the mine properties, estimates of production, costs of production, the sufficiency and availability of capital and financing and other future plans, objectives or expectations of Golden Band Resources Inc. (Company) are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators available on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Accordingly, readers should not place undue reliance on forward-looking information. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Golden Band Resources Inc.For further information:
Matthew Conklin, VP, Corporate Development
Golden Band Resources Inc.
Phone: 306 385 7124
Fax: 306 955 0788