By Brent Bosker

Gold firm set to start mining near La Ronge within weeks

Dec 7, 2010 | 3:58 PM

panNOW Staff

Saskatchewan's newest gold mine is set to come online at a time when gold is fetching a record price.

Golden Band Resources Incorporated (TSX:GBN) is commissioning its Jolu Mill north of La Ronge and could be pouring gold within weeks if everything goes according to plan.

“We imagine that there will about five days of processing material through the (mill’s) circuits before were in a position to start producing gold,” said Gary Haywood vice president operations.

Haywood said it’s exciting to finally get this point after 16 years of exploration in the area.

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The start-up of the Jolu Mill and the mining of the Bingo deposit are all happening while the spot price for gold is trading at more than $1400 U-S an ounce.

“Timing is everything,” said Haywood, who says he’s heard rumblings of gold prices climbing even higher.
“People are certainly out there saying there is a case being made for $2500 an ounce for gold.”

Haywood said they are taking the speculation in stride, however record gold price bodes well for this project and future ones.

“It allows us to put money back into the project and into the company, and develop other things that are out there,” he said.

“There (are) a number of deposits we want to drill and develop, so it all helps in the long term for us.”
Bingo is the first of five gold deposits the company plans to mine in the coming years.

The project will produce 100 jobs, paying out around $30 million worth of salary, once all of its mines open.

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