Golden Band Resources Inc.
TSX VENTURE : GBN

Golden Band Resources Inc.

April 19, 2007 09:00 ET

Golden Band Resources Inc. Receives Positive Preliminary Economic Assessment on La Ronge Gold Projects

SASKATOON, SASKATCHEWAN--(CCNMatthews - April 19, 2007) - Golden Band Resources Inc. (TSX VENTURE:GBN) is pleased to report that a positive Preliminary Economic Assessment ("PEA") has been completed on the Company's La Ronge Gold Belt Bingo, Komis, and EP gold deposits in northern Saskatchewan. This scoping study report is co-authored by P & E Mining Consultants Inc. ("P&E") of Brampton, Ontario, Dan Mackie & Associates, and Ronald G. Simpson, P.Geo., of Geosim Services Ltd. The report will be filed on SEDAR (www.sedar.com) and the Company's website at (www.goldenbandresources.com) within 45 days of this press release.

P&E considers that Golden Band's La Ronge Gold Project operating plan, based on the Komis, EP, and Bingo potentially recovered resources, and using the Jolu mill, has a high probability of economic viability. The project can be quickly brought into production in less than one year from project inception. The project is highly sensitive to metal prices and moderately sensitive to changes in operating and capital costs.

The PEA is based on a four-year mining plan on Golden Band's Komis, EP, and Bingo gold deposits with production at the rate of 700 tonnes per day using the Company's Jolu mill. Mine life could be increased significantly beyond this initial period with the realization of resource potential on a number of nearby exploration properties currently being drilled and/or evaluated. Since 1994, Golden Band has assembled through staking and strategic acquisition a land package of more than 750 km2 in the La Ronge Gold Belt, including ten known gold deposits, four former producing mines, and a licensed gold mill.

Project Cash Flow

The pre-production capital expenditures total C$17.1 million, assuming 100% debt financing through the lease purchase of surface major mining equipment, Jolu mill facility refurbishment and expansion, and surface infrastructure installations. The project has a payback period of 2.2 years.

Based on a 12-month trailing average price for gold of US$629/oz as of March 31, 2007, the project generates a net pre-tax cash flow of C$11.3 million. This results in a pre-tax IRR of 24.9 percent and a pre-tax NPV of C$6.5 million at a discount rate of 7%.

Total operating costs are calculated at C$91.45 per tonne processed, which is US$464 per recovered gold ounce.

Resources

The potentially mineable portion of the resources determined by the PEA were derived by applying preliminary economic criteria to the resource estimates of the Komis, EP, and Bingo deposits. The Komis open-pit resource was prepared by A.C.A. Howe International Limited and announced on April 6, 2005, while the Bingo underground and EP open pit resources were prepared by GeoSim Services Inc. and announced on June 29, 2006 and April 11, 2007 respectively.

The Komis and EP open pit potentially mineable portion of the resources were determined via Whittle 4X pit optimizations and subsequent preliminary designs. The Bingo underground potentially mineable portion of the resource was determined subsequent to a preliminary development and stoping design.

The open pit gold cut-off grade for the mineable portion of resource determination for Komis and EP was based on an internal cut-off grade of 1.96 g/t gold. This cut-off grade was derived from a gold price of US$629/oz, a C$/US$ exchange rate of $0.88, 95% process recovery, mining costs of $2.59/tonne mined, haulage costs of $9.32/tonne, process cost of $27.37 per tonne, and General & Administration Cost of $6.06 per tonne processed.

The underground gold cut-off grade for the mineable portion of resource determination for Bingo was based on an internal cut-off grade of 6.97 g/t gold. This cut-off grade was derived from a gold price of US$629/oz, a C$/US$ exchange rate of $0.88, 95% process recovery, mining costs of $112.51/tonne mined, haulage costs of $6.30/tonne, process cost of $27.37 per tonne, and General & Administration Cost of $6.06 per tonne processed.

The Komis, EP, and Bingo deposits have a measured and indicated potentially mineable portion of the resource of 652,000 tonnes, in addition to which there are 163,000 tonnes in the inferred classification as tabled below:



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Mineable Resource Classification: Komis, EP, Bingo Gold Deposits
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Gold Gold
Tonnes (g/t) (oz)
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Komis Mineable Portion of Resource by Classification
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Measured 50,000 4.30 7,000
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Indicated 551,000 4.15 73,500
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Measured & Indicated 601,000 4.16 80,500
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Inferred 17,000 3.65 1,900
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EP Mineable Portion of Resource by Classification
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Measured
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Indicated 24,000 6.40 4,900
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Measured & Indicated 24,000 6.40 4,900
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Inferred 13,000 6.50 2,700
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----------------------------------------------------------------------
Bingo Mineable Portion of Resource by Classification
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Measured
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Indicated 27,000 11.71 10,200
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Measured & Indicated 27,000 11.71 10,200
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Inferred 133,000 11.39 48,700
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Total Mineable Portion of Resource by Classification
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Measured 50,000 4.30 7,000
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Indicated 602,000 4.58 88,600
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Measured & Indicated 652,000 4.56 95,600
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Inferred 163,000 10.19 53,300
----------------------------------------------------------------------

1) Mineral resources, which are not mineral reserves, do not have
demonstrated economic viability. The estimate of mineral resources may
be materially affected by environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues.

2) The reader is cautioned that inferred mineral resources are considered
too speculative geologically to have the economic considerations applied
to them that would enable them to be categorized as mineral reserves,
and there is no certainty that any value from such resources will be
realized either in whole or in part.


The mineral resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.

Conceptual Geological Resource Potential

The basis for the PEA are N43-101-compliant resource estimates incorporating grade capping during block modelling due to the high nugget effect in the deposits. The resources outlined and included in the PEA therefore represent only a portion of the uncut resources. Golden Band is optimistic that further resource exploration and development work may confirm higher average grades and tonnages for the resources at Bingo and EP. Golden Band intends to examine the extent of high grade portions and capping requirements in the deposits under review through further drilling and underground exploration work over the second half of 2007. A geological upside potential at depth at Bingo will be drill-tested during the summer of 2007. The lateral extent of the EP deposit will also be tested with additional drilling at EP/Komis.

Furthermore, the potential for economic copper mineralization within the supergene portion of the EP deposit will be lab tested. A copper by-product has not been economically evaluated in the current PEA for the EP deposit.

Apart from expanded resource potential from resource development work at Bingo and EP, Golden Band has a number of other resources in the area that can potentially provided additional or supplementary mill feed for Jolu. These deposits are subject to ongoing exploration and development work with the objective of extending the overall production life of the mining and milling operations.

Mining and Processing

Open pit mining at Komis and EP is envisioned with conventional a conventional drill, front-end loader and three 50 tonne haulage trucks. The Bingo deposit will be mined with conventional underground shrinkage stoping methods employing jacklegs and mucking from drawpoints with LHDs. The Jolu process plant and tailings facility is located 75 kilometres by provincial highway southwest of the Komis/EP deposits and 55 kilometres northeast by highway of the Bingo deposit. As part of the development plans, the existing 500 tonne per day (tpd) Jolu mill will be refurbished and expanded to handle up to 700 tpd. The mill's process flowsheet uses conventional crushing, grinding, gravity separation, and cyanide leaching with CIP to produce dore gold.

Conclusions and Recommendations

P&E considers that Golden Band's La Ronge Gold Project operating plan, based on the Komis, EP, and Bingo potentially recovered resources, and using the Jolu mill, has a high probability of economic viability. The project can be quickly brought into production in less than one year from project inception. The project is highly sensitive to metal prices and moderately sensitive to changes in operating and capital costs.

P&E has made several recommendations in the PEA. The Company should finance and develop the Waddy Lake Gold Project according to the mine production plan and schedule in the PEA subsequent to confirmation with a pre-feasibility or feasibility study. Exploration programs should focus on developing additional potential resources within or adjacent to the current resources or at nearby properties currently being explored and evaluated. NI 43-101-compliant resource estimates should be completed on these nearby properties so that they may be included in future studies.

Golden Band is pleased with the PEA and intends to carry out the recommendations of the report. Based on these preliminary report findings, Golden Band will now proceed to establish the necessary timelines in which to complete all of the technical, financial, and permitting-related requirements in order to achieve the Company's objective of becoming Saskatchewan's next gold producer.

Eugene Puritch, P.Eng., Alfred Hayden, P.Eng., and Michael Davie, P.Eng., of P&E Mining Consultants Inc., Ronald G. Simpson, P.Geo., principal of Geosim Services Ltd., and Dan Mackie, P.Eng., of Dan Mackie & Associates are independent "Qualified Persons" responsible for the PEA. Mr. Puritch has reviewed and approved the contents of this press release.

About Golden Band

Golden Band Resources is a well-financed Saskatchewan-based company whose focus is the long-term, systematic exploration and development of its La Ronge Gold Belt properties - most of which are 100%-owned. Since 1994, Golden Band has assembled through staking and strategic acquisition a land package of more than 750 km2, including ten known gold deposits, four former producing mines, and a licensed gold mill. Development of these assets and processing at the Company's 100%-owned Jolu Mill along with continued exploration of both advanced and generative targets will be the parallel focus of Golden Band as it continues to advance towards its objective of becoming Saskatchewan's next gold producer.

On behalf of the Board of Directors,

Ronald K. Netolitzky, President and CEO

Forward Looking Information: Certain information contained in this document, including any information as to our future financial or operating performance, constitutes "forward-looking statements". The Company may, from time to time, also make oral forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Many factors may affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this document are qualified by these cautionary statements. We disclaim any intention or obligation to update or revise any oral or written forward-looking statements whether as a result of new information, future events, or otherwise.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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