Tuesday 25th October 2016

Resource Clips

Golden Band COO Gary Haywood on Sask gold assays of 119.86 g/t over 1.5 m

“Komis has been around for a while. It’s a previously mined deposit that was mined back in ’96 and ’97. At the time, the company that had it shut it down on account of the low gold price.

“We’ve always been very encouraged by what we’ve seen at Komis, in terms of samples and the core that we have. This was actually the very first drilling program that we’ve done on the deposit. So all of the information we’ve had has been historical information. One of the things that really struck us with this deposit is that it has very good potential for hosting high grade gold, and it’s never really been tested to depth. The deepest hole that’s been drilled into it was only 125 or 150 metres, and that was done from underground. So we see its potential as being very deep-rooted, and for that reason we wanted to see what we had at depth. That was the intent of this program—to drill it with a bit of an exploratory view to test the waters and see what we came up with it. And based on these results, we’re extremely pleased with what we came up with. And I think that’s the encouragement we need to, now, go back in and do a full-fledged drilling program to prove up the resource.

“We’ve done a preliminary mine plan for the Komis Deposit on the known resource. One of the things we need to do is test the assumptions that we have made about the resource but also about the existing infrastructure that’s underground. The only way we can really do that is get it de-watered, get underground, refurbish the decline and then take a good look at what we’ve got. That would also give us an opportunity in 2011 to do some development underground. The decline goes down to a 125-metre depth, and from the bottom of that decline we’d be able to develop out into the deposit, then do a small exploration program actually drifting on the ore. We’ve got that slated for this year, and if those things prove up in terms of the exploration, plus also the drilling that we do, then we can make an informed decision about whether to put this into production.

“We see this as being a replacement for the EP Deposit, which is actually adjacent to Komis. EP is a fairly small deposit which could be mined by open pit—it’s not a long-term proposition, and it never has been. It’s always been a short-life pit. We want to take the mill capacity up to 700 tonnes per day later this year using the EP Deposit ore, and then Komis would be a direct replacement for that. So it would give us sustained mill production at 700 tonnes per day. Our Roy Lloyd Mine is currently producing 350 tonnes per day providing 50% of the mill feed, and Komis would, later on this year, also provide 50% of the mill feed at 350 tonnes per day.”

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