Golden Band Resources Reports Results For The Fourth Quarter And Year Ended April 30, 2014

TSX.V: GBN

SASKATOON, Aug. 28, 2014 /CNW/ - Golden Band Resources Inc. ("Golden Band" or the "Company") (TSXV: GBN) today reported results for the fourth quarter 2014 and year ended April 30, 2014.

The Company incurred an adjusted net loss before an impairment provision on mine, plant and equipment in amount of $36,626,706  in 2014 compared to a loss of $26,850,868 in 2013, which was weakened by increase in cash cost per ounce of gold sold and the suspension of mining activities in January 2014.  As at April 30, 2014 management reassessed the expected cash flows from its mining projects and considered the recoverability of its property, plant and equipment. The impairment provision in amount of $71,000,000 (2013 – Nil) was recognised as a difference between the carrying value of the mine, mill and equipment and the present value of the estimated future cash flows. Due to the impairment provision, the net loss increased to $107,626,706 for 2014 period. No impairment provision was recognised in 2013.

The Company incurred an adjusted net loss before an impairment provision of $9,099,915 in Q4 2014 compared to a loss of $13,136,216 in Q4 2013. Due to the impairment provision, the net loss increased to $80,099,915 in Q4 2014.

A summary of financial results is presented below. All dollar amounts presented are Canadian dollars, unless otherwise specified.

SUMMARY QUARTERLY INFORMATION

During Q4 2014, the Company produced Nil gold ounces compared to 2,383 gold ounces in Q4 2013 due to the suspension of mining operations in January 2014. 

During Q4 2014, the Company sold 3,178 gold ounces at an average realized gold price of $1,352 per ounce and generated $4,296,656 of revenue. This amount is net of 1,124 ounces of gold sold for the total value of $1,534,327, which was recovered from Greywacke bulk sample. In Q4 2013 the Company sold 3,532 gold ounces at an average realized gold price of $1,612 per ounce and generated $5,726,324 of revenue. 

HIGHLIGHTS FOR 2014

• Gold sales for the year were 8,978 ounces at an average price of $1,341, for revenue of $12,043,943.
  
  
• The Jolu mill processed 70,639 tonnes of ore at an average grade of 5.03 g/t gold.
  
  
• The declining gold prices over the reporting period and lower than anticipated ore grades from both the Roy underground mine and the Golden Heart surface mine, have hindered the Company's ability to return to profitability despite of restructuring operations and significant cost cutting. On January 1, 2014, the mining operations, including operations at the Roy Lloyd and Golden Heart mined and the Jolu mill were suspended for an indefinite time.
  
  
• Production from underground operations at Roy Lloyd mine had a combined total (high and low grade) of 41,199 tonnes of ore at an average grade of 6.9 g/t gold.
  
  
• Production from open pit operations at Golden Heart totalled just under 25,254 tonnes of material with a head grade of about 3.2 g/t gold.
  
  
• Production from open pit operations at Greywacke (JV) totalled 16,326 tonnes of material with 13,564 tonnes milled at a reconciled head grade of 6.87 g/t gold. Recoverable gold from the bulk sample is reported to be 2,533.4 troy oz.
  
  
• More efficient stoping methods at Roy Lloyd underground mine to improve grade and reduce dilution continued.
  
  
• Continued strong safety performance. Subsequent to the year end the Roy Lloyd operation reported 365 days non lost time accidents.
  
  
• No reportable environmental spills during the year.

SUMMARY ANNUAL INFORMATION

For year ended April 30, 2014, the Company sold 8,978 gold ounces at an average realized gold price of $1,341, for revenue of $12,043,943. This amount is net of 1,124 ounces of Company's portion of gold sold for the total value of $1,534,327, which was recovered from Greywacke bulk sample. For year ended April 30, 2013, the Company sold 23,263 gold ounces at an average realized gold price of $1,612, for revenue of $37,665,266.

Cost savings have been initiated through the Company with the intent to return to full production as soon as feasible. From a sustainable production platform the Company intends to resume its efforts towards growth and expansion from its extensive property portfolio. It will be essential to resume permitting efforts on a number of our deposits to ensure an adequate supply of mill feed.

For full details of the Company's financial statements and management's discussion and analysis for the fourth quarter and year ended April 30, 2014, please see the financial reports posted on SEDAR at www.sedar.com.

About Golden Band

Golden Band Resources Inc. is a gold producer operating in the La Ronge gold belt in northern Saskatchewan and is listed on the TSX Venture Exchange in Canada under the symbol GBN. Commercial production was declared on April 1, 2011. The Company has recently suspended mining operations ( see news release of June 30, 2014) but has been actively exploring the La Ronge Gold Belt since 1994 and has assembled a land package of 870 km², including 13 known gold deposits and five former producing mines, being Jolu, Decade, Star Lake, EP and Komis.

On behalf of the Board of Directors of Golden Band Resources Inc.,

"Paul Saxton"
Paul Saxton, CEO

Caution Regarding Forward-Looking Information and Statements

This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the restructuring of operations, estimates and costs of production, and other future plans, objectives or expectations of Golden Band Resources Inc. (Company) are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to the actual results of operations, current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, cost overruns, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company. The Company makes all reasonable efforts to update its corporate information on a timely basis.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Golden Band Resources Inc.