Golden Band Resources: Development Update and Start of Follow-Up Diamond Drilling on New Discovery

GBN: TSX Venture Exchange

SASKATOON, Sept. 20, 2011 /CNW/ - Golden Band Resources Inc. (TSX-V: GBN) is pleased to provide an update on development activities for August and announces the start of follow-up diamond drilling on gold targets discovered during this summer's recently completed exploration program in the La Ronge Gold Belt of northern Saskatchewan. The exploration drilling will focus on the Fireweed Prospect and on the Round Lake area targets, all of which are in the Company's Komis/EP mine area. The Company is also pleased to announce the signing of the Greywacke Joint Venture.

Ron Netolitzky, Golden Band's Chairman, notes "The exploration potential in the Round Lake area has long been recognized and pursued, but it is only with these very recent bulk till anomalies that this area has been explored this effectively and with this degree of encouragement. The exploration program led by Dr. Klaus Lehnert-Thiel focused our exploration efforts on the Round Lake Stock area that prior work had not been able to effectively evaluate due to the presence of thick clay cover. The identification of immediate drill targets is very gratifying. The combination of our current till results (work in progress) with all the historical data, points to the requirement of extensive exploration in the greater Waddy Lake area with the initial step being the drilling of new targets. On a longer term basis the results warrant an integrated effort including geophysics, geochemistry, and geology that will commence this winter."

Diamond Drilling Underway at the Newly Discovered Fireweed Gold Prospect

The Company is pleased to announce that an initial phase of follow-up diamond drilling has started to test the newly discovered Fireweed gold prospect (see previous news release of September 7, 2011). Golden Band sees this summer's exploration results in the Komis/EP mine area as especially encouraging and is immediately undertaking an initial four-hole program (300 m) at Fireweed to test the prospect's down-dip and on-strike continuity.

Surface work this summer had indicated a potential width of over six metres and an anomalous strike length of 250 metres from the gold-in-till anomaly. The area is covered by overburden up to several metres thick and trenching over a 36-metre strike length has exposed the subcrop. As previously announced, initial assays from the highly weathered rock returned 3.06 g/t gold over 6 metres, including 8.17 g/t gold over one metre.

Immediately following the drilling at Fireweed, an initial two diamond-drillholes (300-400 m) will be done on the 301 Pit bulk till anomaly (see news release of September 7, 2011). Located 300 m from the Komis mine, this target is especially interesting because of cobbles and pebbles in the pit of quartz-rich intrusive rocks of containing chalcocite, chalcopyrite and visible gold grains. The potential source may represent either high-grade or bulk-tonnage type of mineralization.

The Company also reports that it completed mapping, outcrop and channel sampling, prospecting and soil sampling fieldwork on the North Lake Project on September 13, 2011. These results will be announced as soon as they are available.

Development Update

Gold sales in August were 4,435 troy ounces, at an average price of US$1746.48

Roy Lloyd Mine

Development activity at the Roy Lloyd Mine continues to focus on extending the decline access to depth, and will reach the 1200 Level, at a depth of 200 metres below surface, before the end of September. At this stage, all capital development for the current Mineral Reserve will be completed. A diamond drill drift will be developed at this level, to enable a 22-hole (2,800 metre) underground drilling program to target Inferred Resources (155,074 tonnes at 13.89 g/t Au for 67,756 ounces gold) below the 1200 Level and upgrade to Measured and Indicated for continued mine production into 2012 and 2013. Drilling is expected to commence in late October 2011.

Development activity on the Mineral Reserve block between the 1200 and 1265 levels is now underway, with the 1220 Level and 1245 Level access drifts established.

Komis Underground Project

Dewatering of the former Komis underground is now completed, and the Company has commenced a detailed geological assessment of the deposit. P&E Mining Consultants have been retained to provide expert geological advice on the structural and mineralogical controls to assist the Company in determining the optimal resource modelling technique.

Phase 2 of a surface-drilling program is now underway to follow up on results obtained from a winter drilling program (see news release of February 16, 2011). A total of 15 holes (3,600 metres) are planned to infill drill the deposit along strike to the west and to depth below the known Mineral Resource. The objective is to expand the current Mineral Resource for long term mine planning purposes. Upon completion of the geological assessment and Phase 2 surface drilling, the Company will undertake detailed mine design and pre-production development.

Golden Heart Project

This mining project is advancing through the environmental approval process with the 30-day public review period starting on September 16, 2011. The environmental approval process is anticipated to be completed this fall and, subject to obtaining the approvals in time, the Company intends to proceed with site clearing and road access clearing this winter.

Greywacke Joint Venture

The Company (49%) is pleased to announce the signing of the Greywacke Joint Venture Agreement with Masuparia Gold Corporation (51% and Operator) that will allow for the advancement of this exciting project. This will facilitate exploration of the Greywacke Deposit, which has a compliant NI 43-101 Indicated Resource of 184,000 tonnes grading at 8.4 grams per tonne gold (estimated 49,700 troy ounces) plus an Inferred Resource of 58,000 tonnes at 7.29 grams per tonne gold (estimated 13,600 troy ounces) at a cut-off of 5 grams per tonne gold (see Masuparia Gold Corporation news release of April 7, 2008). The property also has other known gold occurrences and favourable geological trends that warrant exploration. The Joint Venture also intends to commence collection of baseline environmental data in preparation for the advancement of the Greywacke deposit. As part of the agreement, the ownership of all claims held by the two companies in the immediate area has been incorporated into the Joint Venture on the basis of 51:49 interests.

About Golden Band

Golden Band Resources, already Saskatchewan's leading gold explorer, is now also its newest gold producer. Golden Band is a Saskatchewan-based, publicly listed company (TSX-V: GBN) whose focus is the long-term, systematic exploration and development of its 100%-owned La Ronge Gold Belt properties. Since 1994, Golden Band has assembled through staking and strategic acquisition a land package of more than 875 km2, including 12 known gold deposits, four former producing mines, and a licensed gold mill. Golden Band's key value drivers are the methodical and systematic targeting of primary to advanced-stage exploration while progressing along a parallel path of being a sustainable gold producer. The Company is aggressively pursuing its near-term goal of commercial production of its Bingo, Komis, and EP deposits with processing at the 100%-owned Jolu mill. The Company's objective is the annual production of at least 75,000 ounces of gold over a ten-year project life. Other longer-term objectives include the continuation of its highly successful exploration and acquisition strategies.

On behalf of the Board of Directors of Golden Band Resources Inc.,

"Ronald K. Netolitzky"
Ronald K. Netolitzky, Executive Chairman

All of Golden Band's exploration programs and pertinent disclosure of a scientific nature are prepared and/or designed and carried out under the supervision of Charlie Harper, P.Geo., who serves as the qualified person (QP) under the definitions of National Instrument 43-101. All of Golden Band's development-related programs and pertinent disclosure of a development nature are prepared and/or designed and carried out under the supervision of Gary Haywood, P.Eng., Golden Band's VP of Operations and COO, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.

Caution Regarding Forward-Looking Information and Statements

This document includes statements and information about the Company's expectations for the future. When Golden Band's strategy, plans, and future financial and operating performance, or other things that have not yet taken place, are discussed, the Company is making statements considered to be forward-looking information or forward-looking statements under Canadian and United States securities laws. Such forward-looking information and statements in this document are referred to as "forward-looking information". 

Generally, forward-looking information can be identified by the use of forward-looking terminology such as, for example, "plans", "expects" or "does not expect", "is expected", "budget", "goal", "target", "project", "potential", "strategy", "outlook", "scheduled", "predicts", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes", and similar expressions, or the negative connotation thereof or variations of such words and phrases or statements that certain actions, events or results, "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.

Readers are cautioned that the forward-looking information in this document represents Golden Band's current views and can change significantly. Forward-looking information contained in this document is based on certain material assumptions, including, but not limited to: 

  • geological and other conditions that may affect exploration, development, and the amenability for mining;
  • the Company's ability to comply with current and future environmental, safety and other regulatory requirements, and to obtain and maintain required regulatory approvals; and,
  • the Company's operations not being significantly disrupted as a result of political instability, nationalization, terrorism, sabotage, blockades, breakdown, natural disasters, governmental or political actions, litigation or arbitration proceedings, or other development or operating risks.

Readers are cautioned that such assumptions are not exhaustive and may prove to be incorrect.  Although the Company believes that the assumptions on which the forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking statements because Golden Band can give no assurance that they will prove to be correct. 

Actual results and events may be significantly different from those currently expected due to a number of material risks.  These include, but are not limited to:

  • the Company's inability to enforce its legal rights, or its being subject to litigation or arbitration that has an adverse effect on the Company;
  • defects in title to the Company's properties;
  • unexpected or challenging geological, hydrological, or mining conditions;
  • environmental, safety and regulatory risks, including increased regulatory burdens or delays;
  • the Company's inability to obtain or maintain necessary permits or approvals from government authorities or other third parties;
  • changes to government regulations or policies, including, but not limited to, tax and trade laws and policies;
  • natural phenomena, including, but not limited to, inclement weather, fire, and flooding; and,
  • operational disruption of the Company due to problems and other developments and operating risks.

In addition, Golden Band's annual and interim MD&A, which are available on SEDAR at www.sedar.com, include a discussion of other material risks that could cause actual results to differ significantly from the Company's current expectations. 

Forward-looking information is designed to help the reader understand management's current views of the Company's near and longer-term prospects, and it may not be appropriate for other purposes. The forward-looking information contained in this document is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. 

The forward-looking information is expressly qualified by these cautionary statements.

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:

Gary Haywood, VP Operations and COO
Golden Band Resources Inc.
Phone: 306 385 7124
Fax: 306 955 0788
Email: gary.haywood@goldenbandresources.com
          Investor Relations: 
Raju Wani: 403 240 0555
Tony Perri: 604 682 6852
Email: info@goldenbandresources.com
www.goldenbandresources.com

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Golden Band Resources Inc.

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