Banks Island Gold Ltd. Reports First Cash Flow from Yellow Giant
Project
- Provisional payment on first concentrate shipment received for
proceeds of CDN$615,000
- Underground mine development at Bob advancing rapidly to 2nd
level.
- Mining of Bulk Sample at Bob Zone scheduled for March.
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 11, 2014) -
Banks Island Gold Ltd. (TSX-VENTURE:BOZ) (the "Company") is pleased
to report an update on the Bob Zone bulk sample program at the
Yellow Giant Gold Property, located on Banks Island, British
Columbia.
Provisional Payment on
First Concentrate Shipment
The Company reports that it has received a provisional payment
of US$560,000 (~CDN$615,000) for the first shipment of gold
concentrate from the Yellow Giant project. The provisional payment
represents 90% of the total invoice for the shipment and final
settlement is expected to occur in approximately 2 months.
The first shipment was processed from approximately 500 tonnes
of mineralized material mined from the B10 level (1st level) at the
Bob Zone. Two previously drilled diamond drill holes were
encountered in the underground workings at B10 level as displayed
in Table 1.
Table 1 - Diamond Drill Holes intersected at B10 level
of Bob Zone |
Hole |
From (m) |
To (m) |
Core |
Estimated |
Au (gpt) |
Ag (gpt) |
Cu (%) |
Interval (m) |
True Width (m) |
BOB12-04 |
41.5 |
45.5 |
4.0 |
3.3 |
38.0 |
95 |
1.0 |
BOB12-07 |
37.9 |
44.3 |
6.4 |
5.0 |
37.8 |
114 |
1.4 |
The first shipment was comprised of two lots. Lot 1 (129 dry
tonnes of concentrate grading 62.9gpt Au) was concentrate produced
from the DMS Plant. Lot 2 (294 dry tonnes of concentrate grading
38.8gpt Au) was fines material (-1mm) that bypassed the DMS plant
and was bagged and shipped at insitu grade.
The high grade material processed from the B10 level was
composed of massive sulphide mineralization. During crushing, a
high proportion of material (~60%) was pulverized to a sizing below
1mm (fines). These fines are screened out of the crushed feed
material and consequently a substantial portion of Mill Feed was
not concentrated by the DMS Plant. This level of fines generation
is not typical and should normally be less than 25%. The Company
has replaced its (rented) crushing plant to reduce fines generation
in future processing.
The Lot 2 fines material was essentially pulverized
mineralization with very similar grades to those expected from
diamond drill intersections in the area. The Company was able to
negotiate and sell this material even though it did not meet the
contracted minimum grade of 50gpt Au. Table 2 displays the two lots
that comprised the first concentrate shipment.
Table 2 - First Shipment Concentrate Grade |
LOT |
Sizing |
Dry Tonnes |
Au (gpt) |
Ag (gpt) |
Cu % |
1 |
+1mm to 1/2" |
129.0 |
62.9 |
266 |
5.2 |
2 |
-1mm |
294.4 |
38.8 |
111 |
1.5 |
Total |
|
423.5 |
46.1 |
158 |
2.6 |
The Company is replacing the initially installed impact crusher
with jaw and cone crushing units, which are scheduled to arrive on
February 17th. The new crushing plant is expected to dramatically
decrease fines generated from crushing. All fines material will be
processed using flotation once the grinding and flotation circuits
are commissioned. The Company has also purchased a spiral
concentrator to test upgrading of DMS fines material to improve the
grade of this gravity concentrate as an interim measure.
Bob Bulk Sample -
Progress and Schedule
The Company reports that underground mine development is
efficiently proceeding at Bob, the first of its four high grade
gold deposits, with advance of the Bob decline at a rate of ~6m per
day and expects to reach the planned extraction drift ( B30 level
(2nd level)), for mining the majority of the bulk sample on
February 19th. The B30 level will provide mill feed from
development in mineralization and, when completed, will provide a
drill platform and extraction level for bulk long hole mining of
the upper Bob Zone. The B30 level is scheduled for completion by
February 28th and the mine development required for full extraction
of the Upper Bob Zone scheduled to be completed by March 5th. Mine
development crews will then move to commence development at the Tel
Zone. The planned mine development showing the anticipated four
week schedule is displayed in Figure 1.
Longhole drilling for bulk mining is scheduled to commence on
February 15th and continue until mid-March. Mineralized material
will be generated throughout this period through intermittent
blasting of stopes. The Company anticipates mining 9,000 tonnes of
mineralized material from the upper Bob Zone from the period of
February 19th through March 15th. The planned longhole schedule is
displayed in Figure 2.
The Company has drilled 3 additional diamond drill holes to
determine the extent of skarn lithology adjacent to mineralization
in the planned stopes at the upper Bob Zone. Based on the drilling
results, the Company believes that the majority of the upper Bob
Zone can be processed through the DMS Plant to make saleable
concentrate. The plans related to construction and commissioning of
the grinding and flotation circuit, disclosed by news release on
January 15th, are ongoing and progress will be reported over the
coming months.
To view "FIGURE 1 - Bob Mine Development Schedule," please visit
the following link:
http://media3.marketwire.com/docs/Boz10Fig1.pdf.
To view "FIGURE 2 - Bob Longhole Mining Schedule," please visit
the following link:
http://media3.marketwire.com/docs/Boz10Fig2.pdf.
Bob Zone Bulk Sample -
Mineral Resource Estimate
Based on the current Mineral Resource model the estimate for the
area of mineralization to be mined as the bulk sample is displayed
in Table 1.
Table 1 - Bulk Sample (Upper Bob Zone) Mineral
Resource |
|
Measured |
Indicated |
Inferred |
Zone |
Tonnes |
Au Grade |
Ag Grade |
Tonnes |
Au Grade |
Ag Grade |
Tonnes |
Au Grade |
Ag Grade |
|
(gpt) |
(gpt) |
(gpt) |
(gpt) |
(gpt) |
(gpt) |
Upper Bob Zone (Bulk Sample) |
2,900 |
40.9 |
65 |
4,800 |
40.2 |
60 |
1,300 |
36.7 |
53 |
Total Measured & Indicated: 7,700 tonnes @ 40.5gpt Au &
62gpt Ag = 10,000oz Gold, 15,000oz Silver
Total Inferred: 1,300 tonnes @ 36.7gpt Au & 53gpt Ag =
1,500oz Gold, 2,000oz Silver
The Upper Bob Zone mineral resource estimate is a subset of the
current mineral resource disclosed in the NI43-101 Technical
Report on the Yellow Giant Gold Property dated February 1tst
2013 prepared by independent consultant, Mr. Robert Baldwin, P.Eng.
available on SEDAR and on the Company's website. The mineral
resource was calculated using Minesight® 3D software, a commercial
and industry accepted geology software at a 6gpt Au cut-off grade.
The cutting of high gold and silver assays was performed before
resource inventory calculations were made. Gold assays were cut to
157gpt and silver assays were cut to 200gpt.
The Company is not basing its production decision on a
feasibility study of mineral reserves with demonstrated economic
and technical viability. Banks Island Gold Ltd. has decided to put
the Property into production without first establishing mineral
reserves supported by a NI43-101 compliant technical report and
feasibility study. Mineral resources that are not mineral reserves
do not have demonstrated economic viability. The Company cautions
readers that such production may not be economically feasible and
historically such projects have a much higher risk of economic or
technical failure.
Mr. Mossman, President and CEO of the Company stated; "It is
with great satisfaction to report the Company's first cashflow and
confirmation of the high grade gold mineralization at Yellow Giant.
Upon successful mining and processing of the Bob bulk sample we
will have a seasoned team and the resources to push towards full
production at the Yellow Giant Gold Project. We are very excited
about our transition to a gold producer and look forward to
continuing the growth of both the Yellow Giant project and Banks
Island Gold."
Mr. Benjamin Mossman P.Eng, CEO of Banks Island Gold is the
qualified person who reviewed and approved the contents of this
news release.
Analytical work on concentrates was carried out by ALS Mineral
Services in North Vancouver, British Columbia. Quality assurance
and quality control programs include the use of analytical blanks,
standards, and duplicates in addition to the lab's own internal
quality assurance program. Samples are fire assayed with a
gravimetric finish to determine gold and silver values.
The Company is a junior mining resource exploration company
focused on exploring for and developing economically viable mineral
resources. The Company's mineral property is located in British
Columbia. For more information, please refer to the Company's
website at www.banksislandgold.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Benjamin W. Mossman, P.Eng, President, Director, & Chief
Executive Officer
The TSX Venture Exchange has not reviewed and does not
accept responsibility for the accuracy or adequacy of this release.
Neither the TSX Venture Exchange nor its Regulation Service
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release contains forward-looking statements. All
statements, other than statements of historical fact, constitute
"forward-looking statements" and include any information that
addresses activities, events or developments that the Company
believes, expects or anticipates will or may occur in the future
including the Company's strategy, plans or future financial or
operating performance and other statements that express
management's expectations or estimates of future
performance.
Forward-looking statements are generally identifiable by the
use of the words "may", "will", "should", "continue", "expect",
"anticipate", "estimate", "believe", "intend", "plan" or "project"
or the negative of these words or other variations on these words
or comparable terminology. These statements, however, are subject
to known and unknown risks, uncertainties and other factors that
may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed, implied by or projected in the forward-looking
information or statements. Important factors that could cause
actual results to differ from these forward-looking statements
include but are not limited to: risks related to the exploration
and potential development of the Company's project, the actual
results of current exploration activities, conclusions of economic
evaluations, changes in project parameters as plans continue to be
refined, future prices of gold, as well as those factors discussed
in the sections relating to risk factors of the Company prospectus
dated September 30, 2011 filed on SEDAR.
There can be no assurance that any forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, the reader should not place any undue
reliance on forward-looking information or statements. Except as
required by law, the Company does not intend to revise or update
these forward-looking statements after the date of this document or
to revise them to reflect the occurrence of future unanticipated
events.
Banks Island Gold Ltd.Benjamin W. MossmanPresident, Director,
& Chief Executive
Officer604-245-0066www.banksislandgold.com
Banks Island Gold Ltd. (TSXV:BOZ)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Banks Island Gold Ltd. (TSXV:BOZ)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024