"Golden Band Resources Inc. said this week it will update the resource estimate for its Bingo deposit after finding gold mineralization at the site 150 metres deeper than the previously deepest drill hole.

The Saskatoon-based company said it has successfully intersected high-grade gold mineralization at Bingo at a vertical depth of 525 metres below surface, extending the mineralization depth by 150 metres. An updated resource estimate to confirm the size of the additional resource will be done after the current drilling program at Bingo is complete, the company said. Golden Band says the new deep drilling level could significantly increase the Bingo deposit's mine life.

"These drillholes are some of the deepest ever completed in the La Ronge gold belt and support the company's view that the potential for more of this type of high-grade mineralization in the belt is still untapped," said Frank Hrdy, the company's vice-president of exploration. "Planning of a future underground drill program at Bingo is in progress."

Golden Band says resource estimates for the Bingo deposit include almost 74,000 ounces of gold in the measured and indicated category and almost 68,000 ounces of gold in the inferred category.

Additionally, the company says a second diamond drill is being mobilized to follow-up on the newly discovered Thunder gold showing located near its Komis and EP deposits at Waddy Lake. Golden Band says up to three drillholes are planned to test the highly prospective Thunder target."

http://www.thestarphoenix.com/business/.....lack+Lake+drilling+plan/2018639/story.html

The company is focussing a lot on the depth of the Bingo deposit, giving the impression that its strike length is very much smaller, only over the length of the high grade portion. At the extremities, you have some very low grade material which is normal, but the Cockrum zone hasn't had much definition drilling as of yet, so we don't really know how much the extensions uncovered in 2008 will add to the resource.

By comparison, the Bingo deposit is the roughly the same strike length as the Seabee mine, not far off. The Seabee mine has run for a good 17 years of operation, and they're talking about another 15 years, perhaps to mine to a depth of 2km. The geology of Seabee is exactly similar to Bingo, with the exception that grade calculations suggest the overall grade may be higher. The bulk sample is said to grade around 8g/t. Seabee grades just under 7g/t. And yet, with the grades of Komis and Bingo added together, we're talking 7g/t. Not much adding up in the way of company guidance on the grade of the Bingo deposit. Please explain for us idiots how this works.

You can actually compare the strike length of Bingo using the longitudinal diagram from the corporate presentation, and the longitudinal diagram of the Seabee mine, which Claude Resources has posted to their website(200m grid).

The Bingo deposit has drill holes at the extremities almost a kilometer apart in the longitudinal diagram. Note that the Seabee mine has satellite deposits, much like Bingo with its nearby gold showings, and that such deposits as the Seabee mine widen out as they go deeper. Dollars to doughnuts that Claude Resources will mine out Seabee with a total of 1.6m oz. overall or better.

There is a very strong likelihood that GBN.V will discover another deposit similar in size with a decent strike length, I assume this will be RKN once drilled off.(which I believe they were negligent in the way the drilling was conducted in 2008. It must be said, however that Bingo did amazingly well, though it had no reaction in the market.) Birch Crossing is smaller overall in size. There's an immense amount of drilling to be completed in the La Ronge gold belt.

With a much higher gold price, the known Waddy Lake deposits will start to look like a great opportunity, since they comprise the bulk of GBN.V's near surface resource. Considering the scope of the mineralizing system of over several kilometers, this means you have a large mineralizing system, where some of these deposits are actually fed by the same source. This is not well known about the type of deposits in La Ronge.

Why Gold Prices Can Go Much Higher

A higher gold price will cure all ills for this company. Adrian Ash has an excellent article on the real price of gold priced in commodities vs. its monetary value. The monetary gold price lags by at least a couple of hundred dollars in terms of year 2000 constant dollars:

Should commodities now see a continued decline after the crash of 2008, then gold's monetary value will lag its real value even further. This is just one of the great imbalances that need to be corrected in the world economy. The gold price adjusts against the real price in monetary terms on a two year cycle, and we are in an adjustment phase which will last several months, very likely seeing the decline once again of commodities prices with the adjustment of the gold price in monetary terms.

http://www.safehaven.com/article-14515.htm

The longterm development and growth potential is unmistakeable here, though it goes entirely unrecognized by the market. Its a terrible curse to preside over moose pasture with gold in it.

Another article that caught my attention was this one:

"Thoughts From A Gold Mining Tour"

http://news.goldseek.com/GoldSeek/1253294000.php

I had no idea that sell side equity research analysts actually go on mining tours. I was operating under the presumption that naked shorting operations merely picked their noses and couldn't tell the difference between base metals and gold. They get no respect, they are after all, our biggest participants in trading the shares and become huge shareholders unexpectedly.

F6