This is the flagship Gold related project for Golden Share. It is located 65 km's west of Thunder Bay.
Key Points:
Band-Ore is focused mainly on Gold.
Band-Ore is very close to existing power/highway infrastructure.
Band-Ore mineralization is near surface and focus would lean to an open pit.
The value of Band-Ore could is in order of CAD$500 per tonne.
Here is a map showing the golden share project plus several other projects in the vicinity.
So, lets get to the project itself.
Zone 4: (discovered in 1981)
Last non-43-101 compliant resource was completed by Noranda with the following metrics:
616,000 tonnes at a grade of 4.83 g/t Au and 7.71 g/t Ag
That ratio of Gold to Silver basically makes this a gold deposit with a small amount of silver. The above grade for Silver would add 0.1 g/t Au...so let's make the Gold grade 4.93 g/t.
at US$2K per ounce pricing...that still leads to a rock value of CAD$425 per tonne.
That is a huge value for a piece of rock that can be extracted by open pit.
If we assume a rough CAD$50 per tonne to mine and mill that material....that is a huge profit margin.
profit margin sits at $375 per tonne multiplied by the resource of 616k tonnes = CAD$231 million.
Band-Ore Main Zone:
Last non-43-101 resource with the following metrics:
706,000 tonnes at a grade of 6.86 g/t.
at US$2K per ounce pricing....that leads to a rock value of CAD$600 per tonne.
Subtract off CAD$50 per tonne of Operating cost and you get after operating cost cash flow of:
CAD$388 million.
There are other opportunities on the project with intercepts from 2011 drilling that consists of:
18.27 g/t over 2.7 metres
17.85 g/t over 2.7 metres
Those two historical resources have a combined value of CAD$619 million. With upside left in the ground.
Opportunity here could be a CAD$750 million in the ground resource. That is historic opportunity. A lofty goal that I have heard is to reach 1 million ounces through a concerted exploration and drilling effort. If mother nature were to co-operate (which she rarely does), the upside from that perspective is CAD$2.7 billion in the ground potential.
Another project that has been sitting on the books of Golden Share waiting for the right opportunity, but more importantly leverage to price of gold to elevate to the next level.
