Golden Band Suspends Gold Mining Operations

December 5, 2013

 

Effective January 1, 2014, Golden Band, a Saskatoon-based gold miner, will suspend gold mining operations in the La Ronge area. The miner operates mines and a mill in the region but claims weak gold prices is the reason it will suspend operations for at least six months.

 

The pause in mining for gold will affect approximately 200 workers who will most likely be laid off indefinitely. Some workers will stay on to assist in the shutdown of the mining operation and maintaining the mining equipment in place.

 

CEO Paul Saxton told the Canadian Press, "We're going to be looking at every aspect of the operation and try and make it better into the future."

 

Saxton also told the press the company had not been getting the grades it would like from the mines. While gold prices had been at their highest earlier this year, the excitement cooled significantly over the past six months and now mining companies that had invested heavily in development are scaling back on operations.

 

"It's unfortunate it had to happen right now but the company was suffering significant losses every month and it just can't continue," Saxton said.

 

Golden Band Resources has been active in the lucrative La Ronge gold belt since 1993 and holds a large land package with 13 known gold deposits and 5 former gold mines, three of which still have deposit status.