TSX.V: GBN OTCQX: GBRIF
SASKATOON, Dec. 9, 2013 /CNW/ - Golden Band Resources Inc. ("Golden Band" or the "Company") (TSX.V: GBN) (OTCQX: GBRIF) reports that its mining operations, including its operations at the Roy Lloyd and Golden Heart mines and the Jolu mill, will be suspended for an indefinite time beginning January 1, 2014.
Further to the Company's news release dated August 7, 2013 wherein the Company announced recommencement of operations having completed certain upgrades of infrastructure; and despite restructuring operations and significant cost cutting, declining gold prices and lower than anticipated ore grades from both the Roy Lloyd underground mine and the Golden Heart surface mine have hindered the Company's ability to return to profitability. At the present time, the Company anticipates the shutdown period will be approximately 6 months although there is no assurance when mining operations may resume.
In order to preserve cash, the Company will place the operation into care and maintenance mode and mining and milling operations will be shut down in a systematic manner so that they are available for start-up in as short a time as possible. During the shutdown, the Company will be evaluating all of its options to return the mining operations to profitability. In order to improve our economic performance, the Company intends to engage external consultants with the necessary expertise to develop more effective mining plans. Engineering plans will focus on priority targets, specifically Decade, Komis, Golden Heart and Greywacke.
A longer-term objective of the Company remains the significant increase in our resource base through the continued exploration of our other deposits and exploration targets. A key component to this will be completing baseline environmental studies and the commencement of permitting procedures. Geological, mining and permitting studies will continue on the various deposits that make up the La Ronge properties. Exploration diamond drilling will continue at various locations on the property to better define mineralization for future mining consideration. A 5,000 metre drill program at Roy Lloyd will be completed to better determine grade intervals and the potential for extending the life of the mine.
The Company believes the temporary suspension of operations is the only currently viable option to preserve its limited cash and will continue to apprise its shareholders of important developments. Management greatly appreciates shareholders' support as we strive to build shareholder value.
About Golden Band
Golden Band Resources Inc. is a gold producer operating in the La Ronge Gold Belt in northern Saskatchewan and is listed on the TSX Venture Exchange in Canada under the symbol GBN and traded in the United States on the OTCQX under the symbol GBRIF. Commercial production was declared on April 1, 2011. 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.,
Paul Saxton, 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 regarding the shutdown and future development and production plans 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 operations, current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, cost overruns, 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. The Company makes all reasonable efforts to update its corporate information on a timely basis.
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.
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