Golden Band To Delay La Ronge Gold Belt Production

Golden Band To Delay La Ronge Gold Belt Production

Wednesday, October 07, 2009 at 14:21

 

 

Golden Band Resources is pushing back development plans for its La Ronge Gold Project.

 

Company president Rodney Orr says financing issues have forced them to adjust their schedule.

 

He explains that Golden Band had wanted to start gold production at the end of this year, but it doesn’t look like that’s going to happen, because the financing is not yet in place to build the first three mines and also refurbish the Jolu mill.

 

“We’ve not been able to secure that financing yet, and because a lot of that work has to be done during the summer construction season, we now have to defer the start for any construction,” Orr says.

 

Orr says he’s disappointed by this recent twist, but notes financing is always a significant hurdle for any commercial operation.

 

He adds he’s confident construction can begin next spring, with production starting up later in the fall.

 

“I believe that as soon as we can demonstrate the additional (mineral) resources necessary to have at least a three-year project life for the Bingo deposit, this project will be financed, and I’m quite confident that we’ll see a production start on this new date of the fourth quarter of 2010,” Orr says.

 

He adds that the spot price of gold is quite healthy right now, which is another point in Golden Band’s favour.