- Banks Island Gold to commence underground bulk sample program in September 2013.
- Dense Media Separation Plant complete and prepared for transit to Banks Island.
- Shipment of Gold concentrates to commence in fourth quarter of 2013.
- Receipt of US$2,000,000 Advance Concentrate Payment.
VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 25, 2013) - Banks Island Gold Ltd. (TSX VENTURE:BOZ) (the "Company") is pleased to report an update of its developments activities and plans for the Yellow Giant Gold Property, located on Banks Island, British Columbia.
Underground Mining & Bulk Sample
The Company has prepared plans and a budget for commencing underground mining of a bulk sample at the Bob Zone. The scope of the underground program consists of 440m of underground drifting in order to extract up to 10,000 tonnes of mineralized material. The bulk sample at Bob Zone is as authorized under exploration permit MX-1-862.
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.
The underground bulk sampling program is expected to commence in September 2013. The Company intends to undertake the underground mine development with its own staff and employees. Detailed design, equipment procurement, and hiring of mine workers are currently in progress.
Mineralized material will be mined and transported from underground workings to surface, crushed, and processed through the Dense Media Separation 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.
The Company anticipates that production will continue on the property, after this initial bulk sampling is complete, at a milling rate of 73,000 tonnes per year. The Company is working diligently towards receiving a British Columbia Mines Act Permit for which an application was submitted in January of 2013.
Dense Media Separation Plant
The Company is pleased to report that the refurbishment of the Company's Dense Media Separation (DMS) Plant is complete. All components, including bins, feeders, and conveyors are now located in Prince Rupert, British Columbia. The DMS Plant will be barged to Banks Island, erected and commissioned in August.
The Company reports that it has received the initial US$2,000,000 advance concentrate payment from Metallica Commodities Corp. as announced by news release on July 23rd 2013. The bulk sample program will be funded from the Company's treasury.
Mr. Mossman, President and CEO of the Company stated; "We are entering into an exciting phase of the Yellow Giant Project. We would like to thank our staff and operations personnel for their work in the rapid advancement of the project."
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
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.