Golden Band Resources says it is regrouping and reorganizing but remains optimistic its current investment in the La Ronge area will pay off.
However, for the time being, the company is shutting down local operations and focusing its attention on exploration for richer gold deposits rather than dumping more money into mining operations.
It’s been a tough year for the company as share values have dropped from about eight cents to two cents
Golden Band’s workforce has been cut from about 150 to just 12 workers.
This skeleton crew will be in charge of maintenance and security at two mine sites and a mill.
Company CEO Paul Saxton says an indefinite suspension of mining and milling operations at the Roy Lloyd and Golden Heart mines and the Jolu mill will begin this coming weekend.
“So we have got to take the time now and really look at the resources even if it takes longer that we thought and get everything permitted so that we can more forward but the area is fantastic for gold, we just have to get it done right,” he says.
Saxton adds the bottom line is the company has to be economically viable and the challenge is to find the right area to mine.
He says geological and drilling for core samples will be taking place and the company’s long term plans are to hit pay dirt and develop a mine that will produce profits for the years to come.
“We have to get the deposits lined up with the grades and get our costs back down and then make sure the next time we get going we are going to be going for five or ten years, so that’s what’s happening.”
Golden Band Resources has been conducting exploration activities in the La Ronge gold belt since 1994 and its operations now include a land area of nearly 900 square kilometers.
Saxton says the company may be down but it is definitely not out.