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Golden Band Rides Saskatchewan Sweepstakes
Tue Feb 1, 2005
Golden Band Rides Saskatchewan Sweepstakes
Publisher: Resource Investor
Thanks to the downturn for the mining industry in the late 1990s, Saskatoon-based Golden Band Resources has emerged as a key player in the Saskatchewan gold sweepstakes. The company has been active on the La Ronge gold belt of northern Saskatchewan since 1993, and when properties were discounted or ignored later in the decade, Golden Band was able to scoop up almost all of the gold belt through staking and acquisitions.
"We are now the predominant player in this gold belt," said Rodney Orr, Golden Band's VP of Operations, in an interview with Resource Investor. To put their holdings in perspective, back in the 1980s there were over 65 companies active in the area.
The company's primary objective is to see its gold deposits at the Waddy Lake area in northern Saskatchewan through scoping and feasibility stages towards eventual development.
The advanced exploration project has been a top priority since 2002, when Golden Band swapped shares with Cameco Corporation, Cogema, and CDG Investments in order to acquire the gold-related mineral rights in Saskatchewan north of the Churchill River. The project is now 100% owned by Golden Band, save for Tyler Resources' 50.1% stake in the Golden Heart deposit.
Golden Band's second, and nearer-term objective, involves the Jolu gold mill which is located within the central portion of the company's land holdings."It gives us a near-term cash opportunity," says Orr. The 350 tonne/day mill, built originally by Royex Gold in 1988, also has a licensed tailings facility. The company's goal is to delineate a high grade gold resource of 100,000oz within trucking distance of the mill.
The Golden Band story is playing out at a time when interest in Saskatchewan mining projects is skyrocketing. According to Orr, the provincial government there can take some of the credit for the surge in prairie interest from the mining community.
"Government support is excellent," he says. "We have a very mining-friendly government; they're very pro-active in that regard. And infrastructure is excellent."
Fellow Saskatchewan miner Shore Gold, with its diamond exploration project in the province's Prince Albert area, has enjoyed huge interest and a fast-growing base of shareholders in the past year. Other mining companies are scoping out the province for acquisitions and joint ventures.
Shares of Golden Band have yet to take off, however. The stock, which trades on the TSX Venture Exchange, trades hands at about C$0.26. Golden Band's 52-week range is $0.16 to $0.36. "We think that we're definitely undervalued with the resources and assets that we have in the company," says Orr.
Back on the ground, drilling is now underway on the 2005 winter exploration program on its La Ronge Gold Belt projects in northern Saskatchewan. Also, says Orr, "We're looking at an underground exploration program at the Bingo deposit this year, with the intention of going into production in about 2 years time."
And with other mining companies in the district, opportunities are aplenty for potential partnerships and co-ventures down the road. "There are synergies out there that we are looking at," said Orr.
Some deal-making with Tyler Resources may also be at hand. A previously-negotiated option deal between Tyler and Golden Band, related to exploration at the Weedy Lake Gold Property, has gone south.
This statement from the Tyler Resources Web site: "Golden Band did not meet its obligations under the agreement and negotiations are being conducted with Golden Band for an outright sale of Tyler's interest or a revised farm-out arrangement."
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GBN: TSX Venture Exchange |
