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"
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.