Oct 28 2015
Banks Island Gold Ltd. provides an update on the Yellow Giant Gold Project.
fotovapl | Shutterstock
The Yellow Giant Gold Project achieved commercial production in January 2015 and achieved record production of 1,863oz gold in June 2015 before suspension of operations on July 31st 2015 due to regulatory issues. The Company believes strongly in the potential for Yellow Giant and is working diligently to restart operations as soon as possible.
The Discovery Zone is substantially developed and is ready for production immediately upon receipt of the required permit amendment from the BC Ministry of Mines. The preparation of the application for this amendment is in progress and will be submitted as soon as possible.
The permit amendment application does not require any new area of disturbance or infrastructure. Discovery mineralization will be processed at the existing plant, rock from mine development will used for construction of permitted drill trails, groundwater will be pumped to the permitted discharge outlet in Barge Channel, and all tailings will be backfilled to the underground mine at the Tel Zone.
The Discovery Zone has a current NI 43-101 compliant Measured and Indicated mineral resource of 18,100oz gold (25,000t @ 22.5gpt Au) and an Inferred resource of 5,900oz gold (6,000t @ 30.8gpt Au).
The main decline for mining of the Discovery Zone resource is 75% complete with 100m of development required to reach the 4th level of the Zone. Two levels in mineralization are fully complete and the third level partially completed. Production drilling of the second level stope is fully complete and ready for blasting. As disclosed by news release on July 7th 2015, chip samples from the 1st and 2nd levels indicate an average grade of 21.2gpt gold and 27gpt silver over an average width of 4.0m.
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. 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.
The Company also announces the resignation of Craig N. Kalnin as Chief Financial Officer and the appointment of Benjamin W. Mossman as, interim Chief Financial Officer of the Company.
Benjamin Mossman, P.Eng. is the qualified person who reviewed and approved the contents of this news release.