Tuesday, May 26, 2009

Golden Band Resources: Increase in resources at Bingo gold deposit GBN.v, CDNX, RMK.v, HUI, XAU, GDX

Another forgotten Junior close to Gold production and Mr Market is giving us second chance to play Junior Investment Cycle with rising Gold price and valuation still reflecting lack of confidence from Investors..

Saskatoon, May 26, 2009 - Golden Band Resources Inc. (GBN: TSXV) is pleased to announce an updated NI 43-101 mineral resource estimate for the Bingo gold deposit. Gold resources (capped) now total 73,777 ounces in the Measured and Indicated category and 67,756 ounces in the Inferred category, using a cut-off of 5 g/t gold over a diluted minimum width of 2.0 metres. These figures represent an 18% increase in the Measured and Indicated resource and a 368% increase in the Inferred resource since the previous resource estimate of November 5, 2008. As previously announced, the high-grade gold mineralization in the Bingo deposit now continues to depth along a steep plunge to the north for an additional 200 m vertically, and it remains open to depth. In addition, the nearby Cockrum zone, now incorporated into the resource model for the first time, is also open in several directions (see Figures 1 and 2). Bingo is a high-grade quartz vein-hosted gold deposit located at the southern end of Golden Band's land package in northern Saskatchewan, and is 45 kilometres southwest of the Company's Jolu gold mill. The initial disclosure of a mineral resource for the Bingo deposit was made by the Company on June 29, 2006 and updated resource estimates were made by the Company on January 8, 2008 and November 5, 2008. This fourth mineral resource estimate was completed by the Company and conforms to National Instrument 43-101 (NI 43-101) standards for the reporting of mineral resources.The Bingo deposit (including the Cockrum zone) is estimated to contain a Measured plus Indicated Mineral resource of 174,668 tonnes grading 13.14 grams per tonne (g/t) gold at a cut-off of 5 g/t gold over a diluted minimum width of 2.0 metres. An additional 155,074 tonnes with an average grade of 13.89 g/t gold is classified as an Inferred Mineral resource. Golden Band is encouraged by the very positive results from the most recent drill program and the 368% increase in the Inferred resource tonnes. In addition, the Cockrum Zone has been identified as having the potential to contribute a significant resource to the Bingo deposit with additional drill testing. The Cockrum zone, which is open to the northeast, southwest, and down plunge, appears to be a potentially high-grade gold zone sub-parallel to the Bingo deposit. Based on nine shallow drillhole intersections, the Cockrum zone accounts for an Inferred resource of approximately 3,000 tonnes at an average grade of 6.0 g/t Au. The Quarry showing represents the northern extension of the Bingo deposit and is now included in the Bingo geological model.Frank Hrdy, Golden Band's Vice President of Exploration said "The results from this first attempt in the fall of 2008 of a deeper drill program at Bingo prove that the high grade gold mineralization continues to depth in a continuous and geologically predictable way, and is open in this down-plunge direction. It is also evident that other gold zones like Cockrum exist in close proximity to the main Bingo gold mineralization and now that we have a better understanding of the local structures we can target our exploration more effectively. A drill program designed to continue testing the extent of the high-grade gold mineralization at depth and other nearby structures is recommended for the upcoming field season." Table 1 lists the estimated tonnes and grade for the Measured, Indicated, and Inferred resources when a statistically derived cap grades of 105 g/t gold for the Measured category and 70 g/t gold for the Indicated and Inferred categories are applied. For comparison, the variation of tonnes and grade for cut off grades of 4, 5 and 6 g/t gold is also reported.Click here to view table
Also for comparison, Table 2 lists the estimated tonnes and grade for Measured, Indicated, and Inferred resource categories when capping grades are not applied. The variation of tonnes and grade are also shown for when cut off grades of 4, 5 and 6 g/t gold are used. Table 2 is included to show how grade capping affects the resource estimate. Grade capping is commonly used when high-grade deposits demonstrate a strong "nugget effect", as is the case with Bingo; however, as the capped grade is a statistical estimate, it may not reflect the true nature of the deposit. For the uncapped grades in this case, at the 5 g/t gold cut-off, there is a 39% increase of gold ounces in the Measured + Indicated resource and a 79% increase of gold ounces in the Inferred resource.Click here to view table
The resource estimates are classified as Mineral Resources that are consistent with the guidelines in "CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines" (2003) as required by National Instrument 43-101. Mineral resources are not mineral reserves and by definition do not demonstrate economic viability. Golden Band is not aware of any issues that may materially affect its estimates of mineral resources. Estimation Methodology & Quality Control The assay results from 789 core samples taken during the fall 2008 drill program were incorporated into the Bingo assay database and were used to update the mineral resource. A total of 76 drillcore samples were assayed by the "metallic" method and 713 core samples were assayed by the standard fire assay method. Golden Band implements a rigorous assay quality assurance/quality control program including the use of the reference standards and sample blanks. All samples were consigned for assaying to ALS Chemex in Vancouver, British Columbia, an ISO/IEC guideline 17025 accredited facility. In addition, 69 samples were sent to TSL Labs in Saskatoon, Saskatchewan for re-assay checks. A total of nine surface channel sample cuts, 213 underground development face chip sample lines, 43 underground drillhole intersections, and 158 surface drillhole intersections of the Bingo zone were used to estimate the Bingo deposit gold resource. Resource estimation was constrained by a three-dimensional solid model that has a minimum 2 m width and was developed from the most current geological and analytical data. Block size was 5x5x5 metres and grade estimation was carried out by the inverse distance squared method using 1-metre downhole composite samples. Statistically derived cap grades of 105 g/t Au for the Measured category and 70 g/t Au for Indicated and Inferred categories were applied to all assay results used in the resource estimations. Blocks were estimated using a search ellipse at an orientation of 356 degrees, -65 degrees plunge, and -10 degree dip, with maximum search distances of 25 metres for Indicated and 60 metres for Inferred categories. A factor of 0.75 was used for the semi and major axis of the search ellipse and a factor of 2 was used for the minor axis of the search ellipse. The Measured portion of the resource represents only the areas that were developed underground (see news release of July 21, 2008), with a 12.5-metre influence above and below the existing development. Tonnages were calculated using an average specific gravity of 2.75 grams/cm3, based on 147 measurements taken on mineralized core samples. In order to be included in the estimate, a block was required to have at least two composites within a maximum radius of 60 metres. Surpac version 6.1.1 was the software used to create the geological model and to estimate the resource.Frank Hrdy, Golden Band's VP of Exploration, serves as the Qualified Person as defined by NI 43-101. These mineral resource estimates were prepared pursuant to the Canadian Institute of Mining (CIM) Standards on Mineral Resources and Reserves. prepared by the CIM Standing Committee on Reserve Definitions that were adopted by the CIM Council December 11, 2005 (published in the CIM Bulletin of November 2005), and are compliant with National Instrument 43-101 – Standards of Disclosure for Mineral Exploration and Development and Mining Properties.
Updated La Ronge Gold Project Resources and Reserves With this increase in the Bingo resources, an updated summary of the NI 43-101-compliant gold resources contained in eight of the 12 deposits owned by the Company brings the total Measured + Indicated resources to 817,879 ounces of gold (Table 3). Inferred resources now total 254,657 ounces. Click here to view table In January 2009, Golden Band released details of reserves calculated for a Pre-Feasibility Study of the La Ronge Gold Project. Because the majority of the increase reported in this update is in the Inferred Resource Category, this update does not materially change the Bingo portion (127,000 tonnes grading 14.43 g/t Au or 58,900 ounces) of the total Proven and Probable Reserves (762,000 tonnes grading 6.21 g/t Au or 152,300 ounces) reported in the Pre-Feasibility Study.
About Golden BandGolden Band Resources, already Saskatchewan's leading gold explorer, is now poised to also become a gold producer. Golden Band is a well-financed, 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 750 km2, including 12 known gold deposits, five 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 to becoming 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., "Rodney G. Orr" Rodney G. Orr, P.Geo., President & CEO"

Post a Comment