GBN: TSX Venture Exchange
SASKATOON, Oct. 5 /CNW/ - Golden Band Resources Inc. announced today that it has updated its development plans for the Company's La Ronge Gold Project in northern Saskatchewan. The Company has revised the start date of production to occur by Q4 2010 so as to allow the Company time to increase the Measured and Indicated Resource base that can be converted into reserves for the mining operations, specifically at the high-grade Bingo Gold Deposit and the Komis Gold Deposit. Insufficient resources in the Measured and Indicated categories are currently an issue in obtaining debt financing. As was previously announced, the Company remains in discussions with various parties to secure the financing necessary to start gold production in 2010.
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
- 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 May 26, 2009).
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 September 17, 2009).
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 September 18 after completing only 140 metres of the planned 620 metre-target depth (down-hole) because of difficulties in maintaining the accuracy of the drillhole. That drillhole will be re-started after navigational drilling equipment is brought to site. The second (and last in the current program) deep drillhole will be re-started in mid-October, with an expected time to completion of up to one-month because of the new technology being used here for the first time.
In the meantime, an earlier step-out drillhole (WD-182), described in the news release of September 17, 2009 was successfully deepened. Also, two shallow drillholes testing Bingo's Cockrum zone have also been completed (see news release of June 23, 2009). Assays are pending for these holes.
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 Gary Haywood, Golden Band's Vice President of Operations.
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 Golden Band
Golden Band Resources, already Saskatchewan's leading gold explorer, is now poised to become a gold producer. Golden Band is a Saskatchewan-based, publicly listed company (GBN: TSXV) 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 750 km(2), including 12 known gold deposits, five 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 to becoming 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, supported by a positive Pre-Feasibility Study completed in January 2009, is the annual production of at least 100,000 ounces of gold over a ten-year project life. Other longer-term objectives include the continuation of its highly successful exploration and acquisition strategy.
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 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.
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 United States Private Securities Litigation Reform Act of 1995 (collectively "forward looking statements")." Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "forecast", "expect", "potential", "project", "target", "schedule", budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding potential mineralization, interpretation of prior exploration and potential exploration results, the timing and success of exploration activities generally, the timing and results of future resource estimates, and future plans and objectives of Golden Band 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. Forward-looking statements are based on a number of material factors and assumptions including, with respect to mineral resource or reserve estimates, the key assumptions and parameters on which such estimates are based, as set out in the pre-feasibility report for its La Ronge Gold Belt properties. Important factors that could cause actual results to differ materially from Golden Band's expectations include availability of capital and financing on acceptable terms, economic evaluations prove to be correct, changes in project parameters as plans continue to be refined, future gold prices and the strength of the Canadian dollar against the US dollar, possible variations in ore reserves, grade or recovery rates, timeliness of getting the Jolu mill ready for production, failure of plant, equipment or processes to operate as anticipated, equipment breakdowns, availability of personnel, materials and equipment on a timely basis, labour disputes, general economic, market or business conditions, uninsured risks, regulatory changes, defects in title, accidents, delays in receiving government approvals or in the completion of development or construction activities, unanticipated environmental impacts on operations, reclamation costs, exploration results, and other exploration and development or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking 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: For further information: Golden Band Resources Inc.: Rodney Orr, President & CEO, Phone: (306) 955-0787 x7123, Fax: (306) 955-0788, Email: firstname.lastname@example.org; Wani Capital Corp.: Raju Wani, (403) 240-0555, Email: email@example.com, www.goldenbandresources.com