Wednesday, October 13, 2010

Gold in Canada: Golden Band still expects gold production in Q4 GBN.v, GRC.to, TNR.v, GG, NGQ.to, SGC.v, KTN.v, AMM.to, BTT.v, BVA.v, BVG.v., MAX.to, NEM, ABX, FCX, BVN, AUY, HUI, XAU, GDX



"Last few weeks we are hearing a lot of voices about the currency war, when all governments are trying to debase their currencies again each other. So far they are all successful in driving Gold up against all Fiat currencies.

US Dollar will have it's own destiny here: General Bernanke is winning his war against deflation. US corp. With it's total obligations above 100 Trillion dollars will have to debase it currency not only against Gold on par with other Fiat currencies, but also against other fiat currencies. We will remind you the basic math about inflation economics and the value of Debt."


 

   Another forgotten junior in Canada is coming back to life - Golden Band Resources is on track to start production from is La Ronge gold project. Share price does not reflect yet this significant transformation in this Junior's business cycle in our opinion. With recent gold price run gold in the ground with past producing mines will be reevaluated to the upside in the near future.


   Golden Band Resources Inc. (GBN:TSX-V) is Saskatchewan's Next Gold Producer. Located in the La Ronge Gold Belt of northern Saskatchewan, GBN has over 750 km2 of claims with 12 known gold deposits and 4 former producing mines. We're poised to begin gold production in the 4th quarter of 2010, beginning with our Bingo deposit, to be followed initially by our EP and Komis properties. Development of the underground infrastructure at the Bingo deposit is on schedule. Production from these deposits will feed our centrally located and 100% owned Jolu mill. We have our provincial environmental permits in place, and we have an established infrastructure including a 400 tonne-per-day mill, year-round road access, and access to grid power. Construction of the grid power line and the above ground tailings facility are underway.









2010-10-13 09:40 ET - News Release


Mr. Ronald Netolitzky reports


GOLDEN BAND RESOURCES' LA RONGE GOLD PROJECT ON TRACK FOR Q4 PRODUCTION START



Golden Band Resources Inc. has provided a progress update for the La Ronge gold project. The project remains on track for the start of gold production in the fourth quarter of 2010.



Bingo deposit exploration development



The company has received final assay data from face chip samples taken from the exploration drifts on the 1355 level and 1340 level (see news in Stockwatch on Aug. 18, 2010), and have updated the grade and tonnage estimates of the development muck stockpile.



To date, a total of 8,805 tonnes of high-grade gold mineralized material has been stockpiled from the Bingo deposit with an average grade of 15.02 grams per tonne (g/t) gold based on underground face chip sample assays. The company now estimates a high-grade stockpile gold content of 4,250 ounces (see news in Stockwatch on July 13, 2010).



A further 11,800 tonnes of low-grade material with an average grade of 4.39 g/t gold has been stockpiled. The low-grade stockpile will be transported to the Jolu mill for processing during the commissioning phase of the operations.



A continuous chip sampling method was used for each development face, using a pneumatic hammer to collect a one- to two-kilogram sample from each discreet sample intersection across the face. Upper and lower sample lines on each face, usually consisting of several one-metre-long samples, resulted in at least six assays per face. The round-by-round faces are usually three to four metres apart along the ore drift. Samples were sent to the Saskatchewan Research Council and TSL Laboratories in Saskatoon and assayed for gold content using the standard fire assay and screened metallics methods.



Composite assay data from the sampling program are shown in the tables for each ore drift, and are calculated for a minimum mining width of 2.0 metres. Where the mineralization exceeded the minimum mining width, the actual measured mineralized width was used to calculate the composite assay grade.



Face sample locations for each level can be viewed on the company website, with each plan showing the top-of-face and bottom-of-face sample lines, and the mineralized structure of the Bingo deposit.



The current phase of preproduction development is well under way with completion of the decline extension down to the 1265 level, at a depth of 120 metres below surface. Development of the 1265 level access crosscut has been completed and development of the main fresh air raise is well under way.



Surface construction is nearing completion with the installation of permanent facilities including office facilities, workshop and warehouse. A main ventilation fan and mine air heater will be installed by the end of October, 2010. Mining of the Bingo open pit is also under way, with removal of the first bench of overburden nearing completion. The subcrop of the Bingo deposit has been exposed and is being sampled and assayed prior to mining of the second bench.



Jolu mill refurbishment and construction



Progress on the Jolu mill refurbishment and construction of associated infrastructure is well advanced and remains on schedule for a fourth quarter production start.



Gary Haywood, vice-president of operations and chief operating officer, reports: "We have taken delivery of most of the major items that were either refurbished or purchased new and we have started the process of putting the plant back together for operational readiness. The very detailed assessment and engineering work we completed prior to starting refurbishment is now paying off, as the work has proceeded as planned."



Construction of the above ground tailings management facility is nearing completion, as is construction of the assay lab, offices and workshop. SaskPower has completed construction of the grid power line to site and the company is in the process of re-establishing power supply to the site transformers and associated site power distribution network. Photos of the progress of the construction and refurbishment work can be viewed on the company website.



Komis/EP mine development



The company is pleased to report that construction and site preparation of the Komis/EP site has commenced in preparation for open pit mining of the EP gold deposit late in the fourth quarter of 2010. The access road is being upgraded, brush clearing and ground levelling is under way and construction of surface water settling ponds is nearing completion. It is anticipated that by the end of October, the site will be ready for Kitsaki Procon JV to commence mobilization of the mining equipment and crews.



Golden Heart project



The company is pleased to report that it has submitted a project proposal to the Saskatchewan Ministry of Environment detailing the company's plans to develop an open pit and underground gold mine at the project site in 2013. Preliminary open pit design estimates the extraction of 162,000 tonnes of the potential minable portion of the measured and indicated resources, at an estimated grade of 4.07 g/t gold, and an overall strip-ratio of 7.33:1. Preliminary underground mine design is in progress.



It is expected that the company will be required to submit a further environmental impact study for the proposed development, so the necessary environmental baseline data collection has already been completed in anticipation of that requirement.



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, PEng, Golden Band's vice-president of operations and chief operating officer, who serves as the qualified person (QP) under the definitions of National Instrument 43-101. Golden Band's exploration programs and pertinent disclosure of a scientific nature are prepared and/or designed and carried out under the supervision of James Wong, PEng, PGeo, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.



We seek Safe Harbor."


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