GOLDEN BAND RESOURCES ACHIEVES TARGETED PRODUCTIONGOLDEN BAND RESOURCES ACHIEVES TARGETED PRODUCTION RATE AT JOLU MILL
12:41 EST Thursday, Mar 03, 2011
SASKATOON, March 3 /CNW/ -
Golden Band Resources Inc. (TSXV:GBN) is pleased to provide a progress update on gold production and resource definition drilling for the Company's 100%-owned La Ronge Gold project in northern Saskatchewan.
Jolu Gold Mill Operation
Golden Band achieved the planned mill throughput of 400 tonnes per day (tpd) at its Jolu gold mill in February, 2011.
The increase in mill throughput in February has brought year-to-date gold doré production to 2,671 troy ounces with a further 1,800 troy ounces anticipated over the next week of operation from current in-circuit gold inventory. This will draw the inventory down to normal operating levels. The Company expects to meet its annual gold production target of 45,000 ounces.
The high level of in-circuit gold inventory was the result of start-up issues that had caused delays in the extraction of gold in processing the 16,500 tonnes of ore from the Roy Lloyd mine in January and February. These issues have now been largely resolved.
Ronald Netolitzky, Executive Chairman, reported "This is a significant achievement for Golden Band. With mill throughput reaching the targeted rate of 400 tonnes per day, we have taken a big step towards attaining our targeted annual gold production of approximately 45,000 ounces. With the price of gold at or near record levels, it is an exciting time for the Company. We can now focus our efforts and resources on developing the EP and Komis gold deposits, which will allow us to ramp up to a mill throughput rate of 700 tpd and annual production of 70,000 ounces".
Roy Lloyd Mine Operation
Pre-production development and construction of surface and underground infrastructure is complete and the Company has commenced production mining of the first stoping block of high grade ore on the 1340 level.
The Company has also commenced development of the decline to extend ramp access below the existing 1265 level. This development will gain access at the 1200 level and enable an underground diamond drilling program to be conducted later this year. This diamond drilling is planned to convert the current National Instrument 43-101 inferred resource of 155,074 tonnes at 13.89 grams/tonne gold to the National Instrument 43-101 measured and indicated resource category and allow production planning to a depth of 400 metres.
Resource Definition Drilling: Komis, Golden Heart, and Alimak Gold Deposits
Surface drilling was completed at the Golden Heart gold deposit at the end of January with assay results pending. Drilling of the Alimak Zone at the historic Jolu underground gold mine has been completed, while drilling on the nearby Decade gold deposit was suspended to allow ice conditions at the Mallard tailings management facility to improve. Drilling is scheduled to resume in March.
Golden Heart Project Permitting
As expected, the Company was notified on November 16, 2010 by the Saskatchewan Ministry of Environment (MoE) that the Company's project proposal describing the operation of an open pit and underground mine submitted in September 2010, will require Ministerial Approval pursuant to the provincial Environmental Assessment Act. Confirmation was received from the Canadian Environmental Assessment Agency on January 6, 2011 that the Canadian Environmental Assessment Act does not apply to the project.
Draft project specific guidelines were issued by MoE on January 15, 2011 for public review and comment. The project specific guidelines will be used by the Company to develop an environmental impact statement for the proposed project. Public information meetings were held in January and February in the following communities: La Ronge, Brabant Lake, Southend, Missinipe, Grandmother's Bay, Stanley Mission, and Sucker River.
Gary Haywood, Vice President, Operations and Chief Operating Officer, reports that "The environmental assessment of the Golden Heart Mine is part of Golden Band's plan for sustained gold production from the La Ronge Gold project. We are very pleased that the provincial environmental assessment process is proceeding in a timely manner that allows us to move ahead with our planning process. We expect to submit an environmental impact statement for this project in March of this year".
Corporate Update
The Company has added an additional $3 million over-allotment to its recently announced equity offering (see news release dated February 18, 2011), bringing the size of the offering to $18 million. This additional $3 million in equity (both flow-through and non flow-through units) will be issued at previously announced terms on a private placement, non-brokered basis.
The Company reports that effective February 1, 2011, Rodney Orr was appointed Vice President of Corporate Development. Responsibilities include: community and northern affairs; regulatory and corporate affairs; marketing, communications and investor relations; non-production exploration; land management; and strategic planning.
About Golden Band
Golden Band Resources, already Saskatchewan's leading gold explorer, is now 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 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.
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.
For further information:
| Gary Haywood, P.Eng., COO | Fax: 306 955 0788 |
| Golden Band Resources Inc. | Email: gary.haywood@goldenbandresources.com |
| Phone: 306 955 0787 x7124 |
| | |
| Investor Relations: |
| Raju Wani, 403 240 0555 | Email: info@goldenbandresources.com |
| Tony Perri: 604 682 6852 | www.goldenbandresources.com |