Another important development for Golden Band is the Mallard Lake Tailings Compound. During Q2, there was $4.8M spent on Capital Expenditures. What I find interesting is the $900k spent on the Tailing Compound. Little importance seems to given by investors on such a critical development.

Important developments at JAG TMF where the life of the facility has been extended up to an additional 15 months followed by work at the Mallard TMF which will facilitate up to another 66 months of tailings capacity. Looking at this from a viewpoint of 650 tpd and 80 months of capacity, there is a further 1,560,000 tonnes of tailings capacity at the Jolu site.

To date Jolu processed ~30,000 tonnes to year ended April 30/11, ~130,000 tonnes thru the 2012 year, ~40,000 tonnes in Q1 this year, and 30,000 tonnes in Q2. The total placed into the JAG TMF to date is ~230,000 tonnes over ~20 months of production at Jolu.


Going back to the 2009 PFS, the entire project was to be completed in less than 4 years. Total ore production of 762,100 tonnes and Golden Band's preferred option be that Mallard Lake would be modified to accept the entire tailings from the project. JAG was to add a further 280,000 tonnes of storage capacity.  The total capacity to be no greater than 1,045,000 tonnes.

It is quite interesting that the JAG TMF, now with 230,000 tonnes of tailings, an expected life capacity of 280,000 tonnes, has 15 months of life remaining. With 400 tpd from Komis, 150 tpd from Roy Lloyd, adding in the announced bulk sample from Greywacke, the announced production from Golden Heart in 2013, I think we can be certain of a minimum 550 tpd. To date, Jolu has averaged ~365 tpd. At 550 tpd over 15 months, Golden Band believes they have room for an additional 250,000 tonnes of tailing at the JAG TMF. Consider this does not include production from Golden Heart, Greywacke, or even further bulk samples from locations such as Decade or Corner Lake.


Then after all this is said and done, Mallard Lake has the capacity for 760,000 tonnes. Increasing the production rate to 650 tpd, or a minimum 3.25 years, or 39 months. Conflicting with the stated 66 months tailings capacity.


It's almost comical Golden Band would spend almost $1M on an tailings compund that is not needed.