Comparisons With Historical Mines - A Mine Synopsis

"La Ronge Gold Belt’

Golden Band holds a land package in the La Ronge Domain of over 875 km2 that hosts numerous known gold deposits, many of which have Mineral Reserve/Resource estimates (Table 2). Development activity at the producing Roy Lloyd mine continues and includes deepening of the decline ramp and underground drilling. Exploration and development is also ongoing at the past producing Komis deposit (Table 2) and the Golden Heart and EP deposits, which are the next scheduled for mining within the La Ronge gold project. Rehabilitation of the past producing Komis underground mine is reportedly well advanced, with dewatering of existing workings near completion and re- establishment of ventilation and access to former mining areas underway. Drilling at Komis in 2011 has confirmed the continuation of high-grade ore down-dip and along strike to the west of the deposit. High-grade mineralization was also intersected during 2011 infill drilling at the Golden Heart deposit. The Golden Heart project is currently in the environmental review process, anticipated to be completed this fall. Open pit mining of the EP deposit was originally scheduled for mid-2011, but was delayed in order to complete bulk sampling at the Alimak zone at the site of the past-producing Jolu mine. This bulk sampling will test the continuity of near surface mineralization detected by drilling in 2011, and will also provide waste rock to construct a 3 m dam lift on the Jolu above-ground tailings management facility. Mining at EP is anticipated to commence upon completion of this bulk sampling. Golden Band has also initiated clearing and dewatering of the portal to the past-producing Decade mine (Table 2) to undertake underground exploration for unmined ore. Additional properties, including those encompassing the North Lake, Preview, and Little Deer Lake projects, were acquired by Golden Band over the past year and additional exploration will be undertaken on new prospects identified in the Upper Waddy Lake area during a summer bulk till sampling program."

Mining And Exploration Highlights 2011, Govt. Of Saskatchewan

Roy Lloyd Mine

One thing that strikes you when you see the following image is just how much this picture resembles the Roy Lloyd mine. The initial grade out of the open pit at surface exceeded the grade from this mine.

The subsequent grade from the UG mine is more dilute, though I suspect that with the departure of Gary Haywood, that grades might actually improve.

The Roy Lloyd mine compares directly with the Pickle Crow Lake mine!

source: http://www.pcgold.ca/en/NI_43-101_Resource_Images_100.html

But let's not stop there. Considering that there is an en-echelon structural duplication of the mine 300m to the north west of the Roy Lloyd mine, there is much room for expansion. But details about this discovery remain sketchy, the information not forthcoming on this since as early as 2007.

Including the Kruger Lake deposit north of the Roy Lloyd mine and its structural duplication, has a very similar cast to the Beardmore - Geraldton gold belt in Ontario in its entirety. The Leitch-Sand River mine was an historical mine that operated for decades. I speculate that the Dickens Lake property will turn out to be its doppleganger.

There are significant differences in geology between the two, but the disposition of the Dickens Lake prospect is awfully similar with the Leitch-Sand River mine. The Leitch Sand-River mine is East-West in orientation, while the Dickens Lake prospect and its deposits are North-South.

supersize: http://www.flickr.com/photos/11747277@N07/6763672315/sizes/l/in/photostream/

source: http://www.premiergoldmines.com/s/Leitch-Sandriver.asp

The Leitch Sand-River mine was easily acquired from Goldstone Resources (formerly Roxmark) by Premier Gold.

The one mine whose geology is the same is the Lamaque mine in the Val D'or gold belt. This is a large deposit that operated for decades and probably dwarfs the Roy Lloyd mine. But the geology is the same. Would it not be true that the same geology infers that the mine should be the same?

Perhaps, but perhaps not. Just that the rocks are so similar. Not only that, but the financial circumstances of discovery are almost the same. Right after the Rich Man's panic, you had major discoveries in gold mining in Canada in Ontario and Quebec. Canada became one of the world's top producers. The Rick Man's Panic in 1907 was not unlike the 1987 stock market crash. But there are strong similarities between the 2007 financial disaster and the Rich Man's Panic. So too, did gold discoveries in Canada follow in its wake.

Century Mining was a top speculative pick by gold mining stock gamblers, only to their chagrin was bought out undervalued by White Tiger Mining. The stock had become heavily diluted and the grades at depth were disappointing. But the gist of the story is that the geologists were adamant that the mine could go to great depth, approx. 3500m. deep. Same geology at Roy Lloyd, with the exception that they start at the outcrop in the Dickens Lake prospect as opposed to pressing into service the Lamaque mine with decades of production, its geological potential exhausted, will require starting up @~1500m. underground.

Reference: http://www.whitetigergold.com/site/projects/lamaque.php

http://www.ir.gov.sk.ca/dbsearch/MinDepositQuery/default.aspx?ID=2627

NTS Number: 73 - P - 10 Commodity: au

The Komis Deposit

Essentially un-mined and waiting to be developed, is the Komis mine. Much work had been completed over the years by various companies, Golden Band even had a resource estimate since 2003. But the historical drilling work was thrown in the garbage. Millions of dollars of past work put into the property was thrown out the door, and the mill put on care and maintenance after the Bre-X scandal.

Brien Lundin maintained that it was merely a matter of 'flipping the switch' on the mill and starting mining on Komis and the various deposits in the La Ronge Gold Belt. How wrong he was on that score. But the obvious advantage was the consolidation of the gold belt property along with mill ownership.

The historical information should be read in conjuction with the technical report.

Golden Rule had abandoned a gold mining project in the Quebec Val D'or gold belt for the sake of the Komis deposit.

http://www.ir.gov.sk.ca/dbsearch/MinDepositQuery/default.aspx?ID=0425a

NTS number 64 - D - 04 Commodity: au

The EP Zone

The presentation by GBN.V on containing a rudimentary sketch of the EP Zone is the first time any such information about the disposition of the deposit had come to light. Its been 10 years since GBN.V tabled information about the EP Zone.

Its source was never, ever tabled at any time and the resource estimate dates back to 2002. But, the technical report contains no such information. This depiction looks east, while the deposit comes upwards at a shallow angle from the south.

Originally geologists speculated that this was just a part of the Komis deposit.

source: http://www.goldenbandresources.com/html/news/whats_new/index.cfm?view=article&wnID=53

The EP Zone and Komis deposits can be looked up in conjuction with their technical reports, and the following report from 1984:

http://www.er.gov.sk.ca/Default.aspx?DN=fed0174d-35d5-4a25-8114-96f5809fce31

The 'A' Zone or RKN Deposit

Richmont Mines maintains they have found a large deposit right beside the old mine. One of their mines is the past-producing Beaufor mine, which produced 900,000 ozs. over its service life. The geological aspect of this mine is very similar to the 'A' Zone or RKN Deposit, with its 30m wide low grade quartz veins. This would be one difiicult-to-mine prospect if it were by itself. Some of the best grades in the La Ronge gold belt have come from this prospect.

But with the Golden Heart deposit en echelon to the RKN Deposit, the Golden Heart deposit need only be developed and the RKN pressed into production later, as works expand. The Golden Heart deposit is an exceptional acquisition by GBN.V from a copper mining company Tyler Resources that was subsequently bought out by a Chinese copper company.

This was the impetus for me to start buying shares in GBN.V, since the consolidation of the Gold belt was the obvious strategy here. Richmont Mines aught to be exstatic should it have stumbled across a Golden Heart deposit on their property. But nobody takes any notice.

The Golden Heart deposit had been reconfigured as an UG mine.

http://www.ir.gov.sk.ca/dbsearch/MinDepositQuery/default.aspx?ID=0423a

http://www.ir.gov.sk.ca/dbsearch/MinDepositQuery/default.aspx?ID=0423d

-F6