May 28 2013
Banks Island Gold Ltd. (the "Company") is pleased to report that Seabridge Gold Ltd. (Seabridge) has agreed to amend the option agreement on the Red Mountain Gold Property, dated June 15, 2012 (the "Agreement"), to defer the upcoming $1,500,000 property payment on the Red Mountain Gold Property until January 15th 2014.
As consideration for the extension of the property payment the Company will issue Seabridge 250,000 common shares from its treasury at a deemed price of $0.50 per Common Share.
The Company has initiated a work program to advance the Red Mountain Gold Property located near Stewart, British Columbia. The objective of the program is to improve and refine the Company's strategy for the Property as detailed in the "Technical Report & Preliminary Economic Assessment on the Red Mountain Gold Property" dated February 1st 2013. The Company will evaluate production rates, cut-off grades, environmental aspects, mineral processing, and methods of accessing the Red Mountain mineral zones.
An exploration diamond drill program will commence in early June 2013 with the goal to provide definition of higher grade areas of mineralization. The Company will conduct metallurgical and environmental testwork on the drillcore which will be used for detailed plant design and upcoming mine permit applications for the Red Mountain project.
Banks Island Gold has begun compiling the extensive historical environmental baseline studies and plans further environmental fieldwork this summer to complement and complete the historical data. These studies and data will be used as a basis for future mine permitting applications.
The Company plans to conduct detailed engineering to study alternative options for accessing the Red Mountain deposit from the existing Bitter Creek Access Road. The Company will complete aerial surveys, engineering designs, and capital costing to extend this road from the current terminus of the existing 14km access road to the existing mine workings and mineral zones at the Red Mountain Cirque.
Mr. Mossman, President and CEO of the Company stated; "The Company is very excited about the upcoming program at Red Mountain. Our primary focus remains on the Yellow Giant Gold Project this year. However, it is important to continue advancing the Red Mountain project in order to achieve our objective of building Banks Island Gold Ltd. into a premier precious metals producer in British Columbia."
Mr. Benjamin Mossman P.Eng, CEO of Banks Island Gold is the qualified person who reviewed and approved the contents of this news release.
The Company is a junior mining resource exploration company focused on exploring for and developing economically viable mineral resources. The Company's mineral properties are located in British Columbia. For more information, please refer to the Company's website.
ON BEHALF OF THE BOARD OF DIRECTORS
Benjamin W. Mossman, P.Eng, President, Director, & Chief Executive Officer
Source: http://www.banksislandgold.com