Saskatchewan gold producer suspends mining operations due to weak prices

SASKATOON – Golden Band Resources has announced it is suspending its mining operations indefinitely.

The Saskatoon-based gold miner says weak gold prices are the main reason.

It operates mines and a mill in the La Ronge area.

The suspension starts Jan. 1.

CEO Paul Saxton also says the company hasn’t been getting the grades it would like.

Saxton says approximately 200 workers will be affected by the shutdown.

“We’re going to be looking at every aspect of the operation and try to make it better into the future,” he said.

“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 anticipates the shutdown will be for six months, but could be longer depending on gold prices.

He says some workers will be staying on to help with the shutdown and to maintain the machinery.