SASKATOON, SK, Dec. 23 /CNW/ - Golden Band Resources Inc. (GBN: TSXV) is pleased to provide a progress update for the 100%-owned La Ronge Gold Project in northern Saskatchewan. Processing of high-grade stockpiled material from the Roy Lloyd Mine (Bingo Deposit) has now commenced and the first pour of gold bullion at the Company's Jolu mill will occur when sufficient gold-in-circuit inventory has been achieved. The Company plans for this to occur before the end of December.
Jolu Mill Refurbishment and Construction
Refurbishment and construction of the Jolu Mill and associated infrastructure including the Jolu above ground tailings management facility, assay lab, offices and workshop has been completed. The commissioning phases required to test all systems have been completed and the Jolu mill is now operational. During the commissioning phase, a parcel of low-grade material from the Roy Lloyd Mine (Bingo deposit) was treated through the gravity and leach circuits of the mill. The mill is now operating at a capacity of 400 tonnes per day as planned.
Gary Haywood, VP Operations and COO, reports, "It was our plan to use a diesel generator to provide main power for the initial commissioning of the mill, however, that generator suffered mechanical issues that forced us to switch over to the grid power earlier than planned. Although this switch required more initial time to implement, we now have a consistent power supply and a reliable backup for the winter months. During the switch over, cold weather consequently caused freeze-up of the thickening circuit, and we experienced a longer delay than anticipated."
Ore haulage from the Roy Lloyd Mine (Bingo deposit) is underway and a high grade stockpile has been established at the Jolu mill.
Roy Lloyd Mine Development
The Company is pleased to report that the pre-production phase is nearing completion. Surface construction of the workshop, office and warehouse facilities is completed, and the remaining work to install the main ventilation fan and heaters is in progress.
All underground mine development associated with the first production areas of the mine, from the 1340 Level to surface, have now been completed and work is progressing to prepare the first ore block for production drilling and blasting.
Open pit mining is also nearing completion as the final 5-metre bench is expected to be completed in early January.
Current stockpile levels of ore feed from the mine are estimated as 12,326 tonnes of high grade @ 14.00 g/t gold for a calculated gold content of 5,550 ounces. A low grade stockpile containing 10,981 tonnes @ 4.77 g/t gold has also been established and will remain in place for future processing consideration. At full operation, the Roy Lloyd Mine will produce 350 tonnes per day of high grade ore.
Komis / EP Mine Development
The Company reports that construction and site preparation of the Komis / EP site has been completed in preparation for open pit mining of the EP gold deposit. Kitsaki Procon JV has mobilized equipment to site and the Company expects that mining operations will commence in January, 2011 upon completion of open pit mining at the Roy Lloyd Mine (Bingo Deposit). The EP open pit will produce an average of 425 tonnes of ore per day, and will provide the additional mill feed required to increase the ore feed rate at the Jolu mill to 700 tonnes per day.
Resource Definition Drilling
The Company reports that drilling on the Komis gold deposit has been successfully completed (see previous news release of October 28, 2010). Eight holes, totalling 1,532 metres, were drilled to test extensions to the current resource (see previous news release of December 9, 2009) along strike and at depth. Samples have been submitted to the Saskatchewan Research Council (SRC) laboratory in Saskatoon and assay results should be available by end of January.
Drilling will start at the Golden Heart gold deposit in early January, 2011.
About Golden Band
Golden Band Resources, already Saskatchewan's leading gold explorer, is now poised to also become its newest 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 km2, including twelve known gold deposits, four former producing gold mines, and the licensed Jolu 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 for the development and production of its Bingo, EP, Komis, and Golden Heart gold deposits, with processing at the 100%-owned Jolu mill. Longer-term objectives include production from the Company's other deposits and the continuation of its highly successful exploration and acquisition strategy.
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 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")." All statements other than statements of historical fact included in this release, including, without limitation, statements regarding planned development, potential mineralization, interpretation of prior exploration and potential exploration results, the timing and success of potential financing, development and 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. 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.
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