News from Saskatchewan, Mexico, Yukon and the Dominican Republic
by Greg Klein
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A third mine has begun operations at penny-stock gold-producer Golden Band Resources’ TSXV:GBN central Saskatchewan La Ronge Gold Project. The first ore shipment left the Komis open pit on October 3 for the company’s Jolu Mill, 32 kilometres southwest. Komis is expected to produce 340,000 tonnes grading an average 6.62 grams per tonne gold over an 18-month life.
“The Komis orebody remains open along strike and at depth,” company President Rob Garden said in an October 4 news release. “More drilling is planned that we believe will delineate an increased resource.”
The company began commercial production from its Roy Lloyd underground mine in April 2011, with additional production from its EP open pit starting in December 2011. Golden Band’s La Ronge land package covers 870 square kilometres.
But cash costs of $1,377 an ounce during fiscal 2013 Q1 (ending July 31, 2012) contributed to a quarterly net loss of $3.6 million. The company projects fiscal 2013’s cash costs between $1,000 and $1,150 an ounce. Golden Band expects to produce about 40,000 to 45,000 ounces during that year.
Golden Band shares closed October 4 at $0.185 after opening the day at $0.175, half a cent below their October 3 close. The company’s 52-week high and low are $0.35 and $0.14.
Among companies reporting assays on October 4, GoGold Resources TSXV:GGD announced some long intervals from the Chispa De Oro Target of its flagship San Diego Project in Durango State, Mexico. Some highlights include
- 56.9 grams per tonne silver, 0.21 g/t gold and 0.65% copper over 129.7 metres
- (including 111.5 g/t silver, 0.42 g/t gold and 1.08% copper over 70.1 metres)
- (including 96.3 g/t silver, 0.28 g/t gold and 3.37% copper over 22 metres)
- 33.4 g/t silver, 0.09 g/t gold and 0.25% copper over 83.5 metres
- (including 43 g/t silver, 0.13 g/t gold and 0.28% copper over 47.5 metres)
- (including 35 g/t silver, 0.11 g/t gold and 0.32% copper over 17 metres)
- 12.6 g/t silver, 0.02 g/t gold and 0.31% copper over 118.6 metres
- (including 70.5 g/t silver, 0.1 g/t gold and 1.3% copper over 18.5 metres)
- 11 g/t silver, 0.02 g/t gold and 0.36% copper over 104.2 metres
- (including 17 g/t silver, 0.02 g/t gold and 0.48% copper over 55.1 metres)
True widths have yet to be determined. Depths extend to 130 metres.
An additional drill is now focusing on the Chispa South Target, within the 3.5-kilometre Chispa De Oro Target, which the company describes as a “large high-sulphidation epithermal system potentially underlined by a silver-gold-copper porphyry.” Chispa South shows an intrusive quartz diorite and injection breccia which GoGold believes is part of a porphyry system in the area. The breccia and the quartz diorite intrusive are exposed on surface, the company stated.
GoGold has an April 2012 resource estimate for its Parral Tailings Project to the north, in Chihuahua State. Using a cutoff of 0.4 g/t gold-equivalent, the measured category shows 34,000 gold ounces and 4.7 million silver ounces, while the indicated category shows 180,000 gold ounces and 21.7 million silver ounces.