Golden Band Resources Inc.
TSX VENTURE : GBN

Golden Band Resources Inc.

December 12, 2006 11:44 ET

Golden Band Update on Scoping Study and Pre-Development Work

SASKATOON, SASKATCHEWAN--(CCNMatthews - Dec. 12, 2006) - Golden Band Resources Inc. (the "Company") (TSX VENTURE:GBN) is pleased to provide an update on the scoping study (preliminary economic assessment) and related pre-development activities. As previously announced (August 3, 2006), the Company is examining the viability of commencing near-term production using the Company's Jolu mill and higher-grade gold resources in the Company's 100%-owned deposits in the La Ronge gold belt. The target threshold in this study is a minimum project life of five years at an annual production rate of 150,000 tonnes having a blended head grade in the 8 g/t gold range. This scenario will require production from a combination of deposits having ready-accessibility to existing roads. All of the information reported here remains as work in-progress and is subject to revision.

The Company is pleased to report that work by the independent firm, P&E Mining Consultants Inc. is at the stage where the potentially mineable higher-grade portion of the resources have been outlined. When considered together, and applying appropriate mining scenarios, costs, etc., the Bingo, Komis, and EP deposits are likely to meet economic criteria, even at the US$500/ounce gold price used by P&E. A resource estimate for the EP deposit is underway to help confirm these preliminary findings.

Other studies by Golden Band directed at maximizing returns by reducing costs and operating inefficiencies are also indicating positive results. Golden Band has received confirmation from SaskPower that grid electrical power is likely to be available for the Jolu mill operations. This would have a very significant positive impact, as electrical power costs are a significant economic factor. The use of grid power over diesel-generated electricity would result in a very substantial reduction of approximately 75% in the milling energy cost per tonne.

Because of the small size of the planned operations, there is minimal opportunity for automation and economies of scale. However, a cost-benefit Capacity Expansion Study is under discussion with AMEC Americas Ltd. to evaluate the impact of increasing mill throughput. While rated at 450-500 tonnes per day (tpd), the Jolu mill was able during previous operations to run at up to 700 tpd. Golden Band is reviewing how to eliminate bottlenecks in the mill operations with a cost-benefit analysis in order to achieve a higher average throughput rate. This will require consideration of the scheduling of deposits for mining to develop an optimized plan. This could reduce projected labour costs per tonne.

Golden Band has commissioned a haul road and transportation study with Clifton Associates Ltd. to review the haul road building, maintenance, and operating costs for the Waddy Lake, Komis, and Bingo areas. We have also initiated talks with the provincial department of highways for a transportation partnership that would allow the use of heavier trucks for ore transportation and could have a very significant cost per tonne reduction effect on mill feed.

In other related work, environmental baseline studies by CanNorth Environmental Services are proceeding, and an engineering cost proposal for the expansion of Mallard Lake tailings facility is being prepared by Clifton Associates.

On behalf of the Board of Directors,

Ronald K. Netolitzky, President and CEO

All of Golden Band's exploration programs and pertinent disclosure of a technical or scientific nature are prepared and/or designed and carried out under the supervision of Ron Avery, P.Geo., Golden Band's Exploration Manager, who serves as the qualified person (QP) under the definitions of National Instrument 43-101.

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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