Golden Band Resources Acquires Cameco’s Preview Lake and Little Deer Lake Gold Projects in the La Ronge Gold Belt
Saskatoon, Saskatchewan, August 23, 2011. Golden Band Resources Inc. (TSX-V: GBN) (the Company) announced today that it has agreed to purchase Cameco Corporation’s interests in the Preview Lake and Little Deer Lake projects within the southern La Ronge Gold Belt. These properties are 60 kilometres north of La Ronge along Highway 102, near to the former Contact Lake mine which is six km by road from the highway, thereby providing excellent access for exploration in the area. The properties are 40 km by highway south of Golden Band’s operating Roy Lloyd gold mine (Bingo deposit) and 85 km south of the Company’s Jolu gold mill, which has been in production since January.
These two projects saw considerable exploration by Cameco (and its predecessor company, SMDC) dating back to 1979, which led to their discovery of the Contact Lake gold mine in 1989. Golden Band believes that there is considerable exploration potential in these claims given their proximity to the former Contact Lake mine. The total area being acquired is 10,099.7 hectares (17 dispositions covering 8,696.5 at Preview Lake; 1,403.2 ha in one claim at Little Deer). The Cameco interests that are being acquired in this transaction are 66.66% in the Preview Lake property and 50% in the Little Deer claim. There is an existing joint venture on Little Deer, with Cameco’s partner having a 30-day right of first refusal to match Golden Band’s offer on that one claim.
"These acquisitions represent another excellent opportunity for Golden Band to secure additional resources for our long-term production plans in the La Ronge gold belt", noted Ronald Netolitzky, Golden Band’s Chairman. "Given our long-term focus and strategy of consolidating the best ground in this past-producing gold belt, these properties offer excellent exploration and development potential that meshes very well with our plans to add to our pipeline of available resources for both near-and long-term gold production in the La Ronge Gold Belt."
Numerous known gold occurrences, some dating to the 1930s, are being acquired by Golden Band with this purchase. The Company will receive SMDC/Cameco’s historical exploration files from their work that totalled some $24.5 million. The claims are in good standing, with assessment work credits on much of the land until 2023. Although located within the Lac La Ronge Provincial Park, mineral exploration and development is permitted within a provincially defined Mineral Disposition Zone. As with all of Golden Band’s other activities in the La Ronge Gold Belt, it will consult on its exploration plans and future developments with the Lac La Ronge Indian Band on whose traditional lands the Company is working.
Gary Haywood, Golden Band’s VP of Operations, was Cameco's Mine Superintendent at the Contact Lake mine. Gary says, "This acquisition by Golden Band of the Preview and Little Deer properties from Cameco is very welcomed as it provides excellent exploration-stage ground within reach of the past-producing Contact Lake gold mine. While considerable exploration work will be required, the potential for additional gold resources within the immediate area of the mine and beyond is without question."
Opened in January 1995, the Contact Lake mine had published reserves of 499,000 ounces of gold (1.62 million tonnes at a grade of 9.6 g/t gold or 0.28 oz/ton gold). Cameco has reported that, during its mine life, Contact Lake produced 190,000 ounces of gold, and that the mine was closed in 1997 as the orebody was depleted. As further evidence of Golden Band’s in-house experience with the project area, John Tosney, now a Golden Band Director, was involved for SMDC/Cameco in the feasibility study, environmental assessment, licensing, construction, operations, and early decommissioning of the Contact Lake mine.
About Golden Band
Golden Band Resources, already Saskatchewan's leading gold explorer, is now also its newest gold producer. Golden Band is a Saskatchewan-based, publicly listed company (GBN: TSXV) whose focus is the long-term, systematic exploration and development of its 100%-owned La Ronge Gold Belt properties. Since 1994, Golden Band has assembled through staking and strategic acquisition a land package of more than 775 km2, including 12 known gold deposits, four former producing mines, and a licensed gold mill. Golden Band's key value drivers are the methodical and systematic targeting of primary to advanced-stage exploration while progressing along a parallel path of being a sustainable gold producer. The Company is aggressively pursuing its near-term goal of commercial production of its Bingo, Komis, and EP deposits with processing at the 100%-owned Jolu mill. The Company’s objective, supported by a positive Pre-Feasibility Study completed in January 2009, is the annual production of at least 75,000 ounces of gold over a ten-year project life. Other longer-term objectives include the continuation of its highly successful exploration and acquisition strategy.
On behalf of the Board of Directors of Golden Band Resources Inc.,
"Ronald K. Netolitzky"
Ronald K. Netolitzky, Executive Chairman
For further information please contact:
Rodney Orr, VP of Corporate Development,
Golden Band Resources Inc.
Phone: 306 385 7123
Fax: 306 955 0788
Raju Wani: 403 240 0555
Tony Perri: 604 682 6852
All of Golden Band's exploration programs and pertinent disclosure of a scientific nature are prepared and/or designed and carried out under the supervision of Charlie Harper, P.Geo., who serves as the qualified person (QP) under the definitions of National Instrument 43-101. 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, P.Eng., Golden Band's VP of Operations and COO, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.
Caution Regarding Forward-Looking Information and Statements
This document includes statements and information about the Company's expectations for the future. When Golden Band’s strategy, plans and future financial and operating performance, or other things that have not yet taken place, are discussed, the Company is making statements considered to be forward-looking information or forward-looking statements under Canadian and United States securities laws. Such forward-looking information and statements in this document are referred to as "forward-looking information".
Generally, forward-looking information can be identified by the use of forward-looking terminology such as, for example, "plans", "expects" or "does not expect", "is expected", "budget", "goal", "target", "project", "potential", "strategy", "outlook", "scheduled", "predicts", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes", and similar expressions, or the negative connotation thereof or variations of such words and phrases or statements that certain actions, events or results, "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Forward-looking information contained in this document includes, but is not necessarily limited to, statements with respect to the Company’s expectation of being able to conduct the necessary work to complete its obligations under the agreement discussed herein.
Readers are cautioned that the forward-looking information in this document represents Golden Band’s current views and can change significantly. Forward-looking information contained in this document is based on certain material assumptions, including, but not limited to:
- geological and other conditions that may affect exploration, development, and the amenability for mining;
- the Company’s ability to comply with current and future environmental, safety and other regulatory requirements, and to obtain and maintain required regulatory approvals; and
- the Company’s operations not being significantly disrupted as a result of political instability, nationalization, terrorism, sabotage, blockades, breakdown, natural disasters, governmental or political actions, litigation or arbitration proceedings, or other development or operating risks;
Readers are cautioned that such assumptions are not exhaustive and may prove to be incorrect. Although the Company believes that the assumptions on which the forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking statements because Golden Band can give no assurance that they will prove to be correct.
Actual results and events may be significantly different from those currently expected due to a number of material risks. These include, but are not limited to:
- the Company’s inability to enforce its legal rights, or its being subject to litigation or arbitration that has an adverse effect on the Company;
- defects in title to the Company’s properties;
- the Company’s reserve and resource estimates being inaccurate;
- unexpected or challenging geological, hydrological or mining conditions;
- environmental, safety and regulatory risks, including increased regulatory burdens or delays;
- the Company’s inability to obtain or maintain necessary permits or approvals from government authorities or other third parties;
- changes to government regulations or policies, including, but not limited to, tax and trade laws and policies;
- natural phenomena, including, but not limited to, inclement weather, fire, and flooding; and,
- operational disruption of the Company due to problems and other developments and operating risks.
In addition, Golden Band’s annual and interim MD&A, which are available on SEDAR at www.sedar.com, include a discussion of other material risks that could cause actual results to differ significantly from the Company’s current expectations.
Forward-looking information is designed to help the reader understand management’s current views of the Company’s near and longer term prospects, and it may not be appropriate for other purposes. The forward-looking information contained in this document is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
The forward-looking information is expressly qualified by these cautionary statements.
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.