Golden Band Resources Inc GBRIF

RE: RE: Q2 NR

[fungi294fr]

I like it!! As reported the first Net Income in company history. IMO here are some of the highlights:
Alimak Zone bulk sampling completed with production of 6,284 tonnes of ore with an average 
grade of 6.76 g/t gold.
Mill feed consisted primarily of high grade ore from the Roy Lloyd Mine, and supplemented by ore grade 
material produced from the Alimak Zone exploration bulk sample.  During the month of September, the mill 
reached a daily high of 656 tonnes throughput as the  Company continued to test operational aspects of 
operating the mill at a capacity of 700 tpd. 
During Q2 2012, production costs were $10,755,726  (YTD $19,794,660). Non-IFRS total cash costs per 
ounce were $900 for Q2 2012 and $901 YTD. Mining costs at the Roy Lloyd were higher in Q2 2012 
relative to Q1 2012 as a result of additional development completed on each production level to improve 
flexibility in the production stopes. Changes to mine design in the lower levels of the mine have b
implemented to better accommodate the mining method to the changes in ore body geometry. As well, 
mining costs in the Alimak Zone bulk sample extraction were higher than expected as a result of 
productivity losses due to physical constraints for drilling and blasting  and material movement out of the 
open pit.
Mine development continued to focus on establishing access below existing production areas. The decline 
ramp was extended down to the 1200 level with further development to the 1175 level planned for Q3 2012.  
Phase 1 of a surface diamond drill program will commence in Q3 2012, to provide additional data on the 
Inferred Mineral Resource below existing mineral reserves.  This is to be followed up with an underground 
diamond drill program with the objective of providing detailed information for production planning purposes
During Q2 2012, the Company produced 11,870 gold ounces and 2,745 silver ounces. Year-to-date the 
Company produced 22,803 gold ounces and 5,536 silver ounces
Financial Report juggling from last quarter includes $2.5M less cash but $2.5M less deficit. Assets of Mine and Mill up $3M and Total Assets up $1.3M. Current Liabilities down $2.6M Total liabilities down $1.7M. $6.7M Note Payable...GONE!! NET INCOME $2.3M!! Last quarter nil. Quarterly Earnings of .01/share!! Not that it should be a shock considering an increase in production of 1000 oz and a $240/oz higher gold price.
Alimak produced ~1350 oz for the Q. The quoted mill averaged 367 tpd but I am sure there was a few days scheduled maintenance so the average was closer to 395 tpd. Extraction rate from Roy Lloyd increased from 240 tpd last Q to 310 tpd this Q!! 
The facts on Roy Lloyd mining on the 92 days last Q - 21956 tonnes @ 12.94 g/t = ~9176 oz. Mining production from this 92 day Q - 28656 tonnes @ 11.95 g/t = 11055 oz. If you notice mine production is improving as the grade was lower but the ounces increased!!
Note the slow steady improvement and growth that GBN portrays with costs improving from $901/oz to $900/oz. 
And what are they doing with the Silver? There are no recorded sales revenue.