Banks Island Gold Ltd. (the "Company") is pleased to report an update of its construction and project development activities at the Yellow Giant Gold Property, located on Banks Island, British Columbia.
The Company reports that the Dense Media Separation ("DMS") Plant is fully complete and commissioned. The Company has been operating the DMS Plant since mid-October with the focus on optimization and crew training. The Company plans to commence full time operation of the plant at the end of November once plant personnel return to site for their regular work rotations. The Company will commence processing of the surface stockpile from historic mining at the Bob Zone and transition to mineralization from the underground mine development at Bob Zone in December. The Company produced approximately 40t of concentrate during commissioning for which assays are pending.
The Company has completed 66m of underground development at the Bob Zone to date. The portal and main sump were established and the mine crew is currently driving the main access tunnel at the Bob Zone. Mine crews were run on a single shift during October to allow the underground mine to be effectively established and an efficient ramp-up to full productivity. The Company has now commenced 24 hour operation at the mine with two shifts of miners fully staffed. Approx. 150m of tunneling is required to reach the first level in the Bob Zone. Production from the underground mine is expected to be achieved in December.
The upper Bob Zone has been targeted for initial mine development. As reported by news release on May 15th 2012, the Company intersected strong mineralization in this area with 41.5gpt Au over 5.0m (true width) in drillhole BOB-12-07, 39.1gpt Au over 3.3m (true width) in drillhole BOB-12-04 and 35.4gpt Au over 2.9m (true width) in drillhole BOB-12-01.
Mineralized material will be mined and transported from underground workings to surface, crushed, and processed through the DMS Plant. Gold concentrates produced by the DMS plant will be packaged into 2t bags, loaded into containers, sold and shipped to overseas smelters. The Company anticipates shipments to commence in the fourth quarter of 2013.
As reported by news release on July 23rd, 2013 the Company has an offtake agreement with Metallica Commodities Corp. ("MCC") for the sale of concentrates produced at the Yellow Giant Gold Property. The Company has drawn US$2,000,000 of the US$6,000,000 advance payment facility to date and anticipates further drawdowns in the coming months as required.
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 at www.banksislandgold.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Benjamin W. Mossman, P.Eng, President, Director, & Chief Executive Officer