City Company Sees Potential for Gold Mine |
Text size:
A | A | A
|
Fri Oct 8, 2004
City Company Sees Potential for Gold Mine
Publisher: The Star Phoenix
Author: Business Editor Murray Lyons
A Saskatoon company is getting ready to do some preliminary work in the La Ronge gold belt that could lead to a relatively low-cost mine that has a potential of producing 100,000-plus ounces of gold from ore located within 50 to 100 metres of surface. That resource could be worth $40 million plus at today's gold prices.
Golden Band Resources Inc., which is a junior company trading on the TSX Venture exchange, has approval from Saskatchewan Environment to do surface work on its "Bingo" gold deposit, 90 kilometres north of La Ronge, according to Rodney Orr, a geologist and vice-president of operations. The company is seeking a permit to go underground this winter.
Orr says the company is awaiting the close of a flow-through share offering that could raise between $1.5 million to $1.8 million for the project. He says the money would be used to extract a bulk sample that would determine the size and grade of the resource. The company says past drilling has found evidence of gold ranging in grade from 11 to 55 grams per tonne.
"It's a good grade for the La Ronge gold belt," Orr says. Should grades be proven, the company would process ore from the Bingo deposit at the former Jolu mine, which it owns. The mill last processed gold in about 1998, and is capable of processing 400 tonnes of ore a day.
