SASKATCHEWAN – Golden Band Resources of Saskatoon has been forced by low gold prices to suspend work at its Roy Lloyd underground and Golden Heart open pit mines as well as it Jolu mill for an "indefinite" time beginning Jan. 1, 2014. The shutdown will last perhaps six months, but no restart date has been determined.
Despite upgrades to infrastructure, restructuring and significant cost cutting, the falling gold price made the mines economically questionable. The last straw was lower than anticipated ore grades.
The shutdown decision was made to conserve cash. While the production facilities are on care-and-maintenance, Golden Band intends to hire consultants to aid it in developing more effective mining plans. Engineering plans will focus on the Decade, Komis, Golden Heart and Greywacke targets.
Exploration diamond drilling will continue at various locations on the property to better define mineralization for future mining consideration. A 5,000 metre drill program at Roy Lloyd will be completed to better determine grade intervals and the potential for extending the life of the mine. Over time, the company wants to increase the resource base significantly though continued exploration of other deposits and targets.
Read additional news releases at GoldenBandResources.com.