Golden Band Resources Inc.: Development Project Update
GBN: TSX Venture Exchange
SASKATOON,
The Company's strategy in the near term is to continue resource expansion to enable it to secure project financing as quickly as possible for the initial three-year high-grade mining operations. The Company's ongoing strategy is to continue to develop resources that will sustain 100,000 ounces per year of gold production.
The highlights of the updated operational plan for the La Ronge Gold Project are:
- These changes are with a focus on the development of high-grade mining operations to achieve lower cash operating costs. - Project financing requirements for the mine and mill operations are being revised to decrease the project debt load. - An improved resource base is being targeted to achieve a minimum three-year production reserve from the Bingo Deposit in order to match the expected term of a debt financing. - Increase the resource base of the Bingo Deposit using controlled surface drilling. Underground development and drilling will also be considered to increase the Measured and Indicated resources at depth, therefore flexibility on timing and associated costs have been built into the operation plan. - Remodelling of the Komis Deposit as a high-grade underground operation with a 2011 production target. Dewatering of the existing production decline and underground mapping and sampling to confirm the viability of this option. Surface drilling will be considered this winter to confirm down-plunge continuity of the mineralization indicated by historical mining and exploration records. - Remodelling of the Golden Heart Deposit as a high-grade underground operation with a 2012 production target. The updated resource study that is currently underway will determine the extent of the deposit that may be mined with a shallow open pit followed by underground mining. Winter drilling will be completed for geotechnical purposes and to confirm ground water conditions. Completion of environmental assessment work to fast-track environmental permitting through 2010. - Jolu Mill refurbishment and construction, and Bingo Deposit pre- production development will proceed in the summer of 2010 at an estimated reduced capital cost of $18M, with financing through project debt and/or equity, depending on the market conditions. - Year 1 (Q4 2010) start-up of the Jolu mill at 400 tonnes per day (tpd) with ore production from the high-grade Bingo deposit underground operation. - Development and gold production from the EP Deposit open pit and Komis Deposit underground operation in Year 2 (2011) funded by cash flow from operations; increase the Jolu mill throughput to 700 tpd. - Increase Jolu mill throughput to 1,000 tpd as early as 2014, upon successful delineation of additional high-grade resources at the Bingo, Komis, Golden Heart, and Corner Lake deposits. - Commence planning for operations including the Memorial, Tower East, and Birch Crossing deposits, including completion of all environmental baseline surveys and assessment work to enable the Company to submit a Project Proposal and Environmental Impact Statement for these deposits in 2011. This will require the permitting of a dedicated 32-kilometre haul road to these deposits from the Jolu mill. Drill and expand the resource base on these deposits with an objective of supporting a sustained milling rate of at least 1000 tpd. Bingo Gold Deposit ------------------
The Bingo Deposit (including the Cockrum zone) was estimated after the 2008 drilling to contain a Measured plus Indicated Mineral Resource of 174,668 tonnes grading 13.14 grams per tonne (g/t) gold at a cut-off of 5 g/t gold over a diluted minimum width of 2.0 metres. An additional 155,074 tonnes with an average grade of 13.89 g/t gold is classified as an Inferred Mineral resource (see news release of
The 2008 drilling identified a potentially mineable portion of resources representing approximately two and a half years of potential mine life. To demonstrate that Bingo could have over three years of mine life, the Company recently undertook a major step-out drillhole to test the high-grade plunge of the deposit at significantly greater depth. This drillhole (WD-184A) was successful and proved that the high-grade plunge of the Bingo Deposit extends to at least 525 metres below surface (see news release of
As previously announced, a second deep drillhole is warranted to provide better definition of the Bingo mineralized structure at that depth. However, the initial attempt was stopped on
In the meantime, an earlier step-out drillhole (WD-182), described in the news release of
Komis Gold Deposit ------------------
A significant updating of the development plans for the Company's Komis Deposit is underway. Most important of the findings to-date is that the detailed in-house geological review of Komis suggests there is excellent potential for high-grade resource development. As a result, the Company is now re-evaluating the mining method as an underground operation, which may be better suited than the planned open pit. An updated resource model and estimate are in progress to re-consider the Komis Deposit as an underground high-grade mining operation.
"The main benefit of revising our plans to mine Komis as an underground operation is to lower the cash operating costs and to reduce the capital cost requirement for pre-development. We believe we have the ability to re-use the existing underground workings, as opposed to the open pit plan that would require a large amount of pre-production waste stripping," stated
Significantly, the Komis Deposit remains open at depth where excellent potential exists to add further high-grade resources. These potential resources would lie beyond the open pit and would add substantially to the mining costs if a deepening of the open pit were planned due to the very high strip ratios that can be expected. The mineable portion of potential resources at depth would be mined by extending development of the planned underground operation, providing a more cost effective development scenario. In addition, already known resources that are adjacent to the pit would also be accessible by underground development.
In order to more accurately define both the potential remaining high grade resources and to assess the best mining method, the Company is planning to dewater the existing underground workings at Komis and to undertake detailed underground evaluation and resource definition drilling from surface to test for additional mineralization beneath the existing drillholes.
About
On behalf of the Board of Directors of Golden Band Resources Inc., "Rodney G. Orr" Rodney G. Orr, P.Geo., President & CEO
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 Frank Hrdy, P.Geo., Golden Band's VP Exploration, 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
Cautionary Statements on Forward-Looking Information: The news release includes certain "forward-looking information within the meaning of Canadian securities legislation and "forward-looking statements" within the meaning of the
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.
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For further information: Golden Band Resources Inc.: Rodney Orr, President & CEO, Phone: (306) 955-0787 x7123, Fax: (306) 955-0788, Email: [email protected]; Wani Capital Corp.: Raju Wani, (403) 240-0555, Email: [email protected], www.goldenbandresources.com
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