A Truism In Mining

If anything can be regarded as a trusim in mining or geological terms, is that ore bodies can be depleted after mining a only a third of the reserves. This is the case with the Contact Lake mine. It most certainly is the case with Roy Lloyd that the ore body is grossly understated, based on the same type of truism.

The type of narrow vein geology that is found within the La Ronge gold belt goes to the very technological depth of mining, yet the impression that you get from so many abandoned, underdeveloped projects is that ore can be rapidly depleted with no more to be found, and that for some reason gold deposits like this are somehow conveniently placed only at the surface.

Why miners in Saskatchewan are such habitual liars in reverse remains an open question. Why they chronically seek to deplore their own mine prospects in La Ronge begs the question: What are they trying to hide?

Look at Claude Resources. They were able to get a mine going with a rather average grade, and keep it going for decades, without advising anyone that the ore is suddenly about to be depleted after a year or two of operations.

The rock chemistry can change, but this does not mean that the mine no longer has any ore.

Secondly Cameco is not selling its Contact Lake mine, just the adjacent holdings. Why Cameco wants to add their adjacent holdings to GBN.V, but not the Contact Lake mine is another question.

Cameco aught to be advised to make a favourable deal for GBN.V and sign over their holding to them, and then buy a substantial chunk of the company, since GBN.V managed to sign on the North Lake deposit. Cameco had an anti-dilution agreement with GBN.V. What happened to that?

So two questions remain. Will GBN.V be faced with a change of chemistry in the rock, necessitating a major modification of the mill? Will GBN.V continue with its insane share dilution craze?

It is the season of the acquisition, if you will remember the deal with Tyler Resources. Very probably these warrants have been extended since that time:

"Saskatoon, August 15, 2006 -- Golden Band Resources Inc. (the "Company") is pleased to report that it has acquired the 50.1% interest held by Tyler Resources Inc. ("Tyler") in the Golden Heart gold deposit. Golden Band purchased Tyler's interest in the deposit and the underlying mineral disposition for $1,000,000 in cash and 500,000 common share purchase warrants in Golden Band, with each warrant exercisable for one common share in Golden Band for a period of two years following the closing date at a price of $0.55 per warrant share. The completion of the acquisition is subject to the receipt of all necessary regulatory approvals."

GBN