Vancouver–The high-grade gold resource in Golden Band Resources’ (GBN-V, GBRIF-o) Bingo deposit is small but growing steadily.
A new estimate pegs Bingo’s measured and indicated resources at 148,564 tonnes grading 14.04 grams gold per tonne. Inferred resources add 42,099 tonnes grading 14.75 grams gold. Both estimates use a 5-gram gold cutoff grade over a diluted maximum width of 2 metres. The new estimate increases measured and indicated resources by 53%, compared with a January estimate.
Located in northern Saskatchewan, about 95 km north of La Ronge, gold mineralization at Bingo is hosted in quartz veins. The project is part of the 700-sq.- km La Ronge land package, which includes eight proven gold deposits and the Jolu gold mill, not currently in operation.
In early October, Golden Band submitted an environmental impact statement for La Ronge, where it hopes to restart Jolu and feed it with ore from three satellite mines. One of those mines would be at Bingo. A prefeasibility study for the plan, which was investigated by way of a preliminary economic assessment earlier in the year, is almost complete.
Komis and EP are the other two deposits where Golden Band wants to develop mines to feed Jolu. At Komis, the company has proved up 990,000 measured and indicated tonnes grading 3.81 grams gold as well as 94,000 inferred tonnes averaging 2.98 grams gold. At EP, measured and indicated resources come in at 22,700 tonnes grading 7.18 grams gold; inferred resources add 62,600 tonnes of 3.84 grams gold.
The scoping study concluded that Golden Band’s plan for La Ronge had realistic potential for economic viability. Using a gold price of US$680 per oz. for the first four years of operation and US$609 for years five to eight, the project carries a 20.6% internal rate of return and a $23.1-million net present value, using a 7% discount rate. Payback could be achieved in just under two years and operating costs average US$427 per oz. gold. Capital costs came in at $51.5 million.
In mid-September, the company closed a $1.8-million financing, comprising 9 million share-and- warrant units at 20 apiece, with which it plans to fund the Jolu refurbishment and expansion. Preliminary work is already under way.
News of the expanded Bingo resource lifted Golden Band’s share price half a penny to 16.5. The company has a 52-week trading range of 13-56 and has 130.6 million shares issued.
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