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Banyan drills 76.5 m of 0.49 g/t Au at Aurex-McQuesten

2018-12-10 07:46 ET - News Release

Ms. Tara Christie reports

BANYAN CONFIRMS NEW MINERALIZED TARGETS, AT THE AUREX-MCQUESTEN GOLD PROJECT, YUKON

Banyan Gold Corp. has released analytical results from the final five holes from the 2018 12-hole diamond drill campaign on the Aurex-McQuesten property, central Yukon. The property is located just 50 metres off the main Yukon highway and also the all-season road that leads to Victoria Gold's Eagle mine, just 40 kilometres away, which is currently under construction with Victoria's first gold pour in the second half of 2019.

The final five holes of the Aurex-McQuesten 2018 program served to successfully define:

  1. The interpreted downdip extension of the stratabound McQuesten gold zone block 1 via drilling returning:
    • 76.5 metres of 0.49 gram per tonne gold from 57.5 m in DDH MQ-18-36 including 1.5 m of 7.21 g/t from 129.5 m.
  2. The on-strike extension of the McQuesten gold zone and a new mineralized target stratigraphically above of the main calcareous McQuesten block (MQ-18-39 to MQ-18-41):
    • 23.4 m of 0.34 g/t Au from 6.1 m in DDH MQ-18-39 including 1.5 m of 1.47 g/t from 17.5 m;
    • 80.7 m of 0.13 g/t Au from 90.0 m in DDH MQ-18-40;
    • 9.0 m of 0.66 g/t Au and 5.4 g/t Ag from 20.5 m in DDH MQ-18-40;
    • 17.0 m of 0.45 g/t Au and 13.2 g/t Ag from 7.62 m in DDH MQ-18-41 including 1.1 m of 1.57 g/t Au and greater than 100 g/t Ag from 23.8 m.

"This season's exploration drilling on our Aurex-McQuesten gold project has validated the McQuesten gold zone geologic model," stated Tara Christie, Banyan's president and chief executive officer. "In addition to the geologic model being confirmed, similar nearby gold-bearing targets have been identified through this exploration campaign. Banyan is confident a potential open-pit minable resource exists on the property and will look to continue to develop this rapidly growing target. The recent expansion of the Victoria Gold's resource at Eagle by 450,000 ounces or 12.5 per cent and a 2.5-per-cent increase in grade (Victoria Gold news release Dec. 5, 2019), to over a 4.0-million-ounce resource in the measured and indicated category* and their continued exploration success on their plus-13-kilometre Potato Hills trend, continues to validate that this is truly an underexplored and highly mineralized area of the Yukon. The property is adjacent to two mines, Victoria Gold and Alexco Resource Corp., with existing year-round roads and power lines, making it well positioned to add value for Banyan following the old adage, the best place to find a new mine is in the shadow of the headframe of another mine."

Drill hole MQ-18-36 along with the additional 13 drill holes released in news releases dated Nov. 19, 2018, Oct. 24, 2018, Sept. 13, 2017, Sept. 11, 2017, and Aug. 28, 2017, respectively, have demonstrated that an approximately 500 m wide zone of the interpreted downdip extension of the stratabound McQuesten gold zone persists and is preferentially gold mineralized. The McQuesten gold zone represents the surface expression of an approximately 90 m thick, calcareous package interpreted to host gold mineralization preferentially within retrograde skarn-related altered horizons.

McQuesten gold zone block 1 intercepts from Banyan's 2017 and 2018 drilling campaigns are summarized below:

  • 68.3 m of 0.42 g/t Au from 22.7 m in DDH MQ-17-24;
  • 73.7 m of 0.23 g/t Au from 15.1 m in DDH MQ-17-25;
  • 96.4 m of 0.74 g/t Au from 5.8 m in DDH MQ-17-26;
  • 79.0 m of 0.22 g/t Au from 0.0 m in DDH MQ-17-27;
  • 71.2 m of 0.45 g/t Au from 36.2 m in DDH MQ-17-28;
  • 107.7 m of 0.66 g/t Au from 33.7 m in DDH MQ-17-29;
  • 80.8 m of 1.06 g/t Au from 10.1 m in DDH MQ-18-30;
  • 62.5 m of 0.21 g/t Au from 12.2 m in DDH MQ-18-31;
  • 68.1 m of 0.30 g/t Au from 3.1 m in DDH MQ-18-32;
  • 80.3 m of 0.32 g/t Au from 25.8 m in DDH MQ-18-33;
  • 113.0 m of 0.74 g/t Au from 63.5 m in DDH MQ-18-34;
  • 75.7 m of 0.28 g/t Au from 45.0 m in DDH MQ-18-35;
  • 76.5 m of 0.49 g/t Au from 57.5 m in DDH MQ-18-36;
  • 94.9 m of 0.64 g/t Au from 8.9 m in DDH MQ-18-37.

* True widths are estimated to be greater than 90 per cent of drilled interval lengths.

These broad zones of gold mineralization intersected with Banyan's 2017 and 2018 drilling campaigns have averaged 0.51 g/t Au, confirming the geologic model developed by Banyan for the McQuesten gold zone to contain near-surface gold mineralization of this tenor over predictable widths.

Prior to exploration activities this season, Banyan completed a geological compilation of all drilling campaigns from previous operators which had optioned portions of the property from 1981, 1983, 1997, 2000, 2003, 2010 and 2012, and Banyan's own drilling in 2017 and outlined a 500 m block of calcareous clastic sediments approximately 90 m thick dipping about 30 degrees to the south that host gold mineralization within stratabound retrograde skarn-altered horizons. With the addition of this year's approximately 1,414 m of diamond drilling, a volume of about 12 million cubic metres of this interpreted mineralized block was tested with nominal drill section spacing of 100 m and nominal in-section drill spacing of 50 metres. Banyan's interpretations and 2018 drill results confirmed potential extensions to the east, west and downdip to the south, all of which remain open to further delineation.

Drill hole MQ-18-38 was designed to test an isolated 2017 gold-in-soil anomaly located about 600 metres east and about 250 m north of block 1. This drill hole intersected 1.0 m of 0.94 g/t Au from 17.5 m and appears to be associated with a quartz vein also anomalous in arsenic and bismuth hosted in a graphitic quartzite unit stratigraphically below the McQuesten gold-mineralized calcareous package. This drill hole was a large stepout from known areas of mineralization and successfully showed that gold-in-soil anomalies in this glacial till covered terrain are successful in identifying locally sourced gold mineralization. Similar quartz veins are seen within the McQuesten gold zone and are interpreted to be important fluid conduits that brought ore-bearing fluids from a buried intrusion below to the McQuesten calcareous package. Drill hole MQ-18-39 was designed to test the stratabound gold mineralization within the McQuesten calcareous package about 520 m east of block 1. Similar styles of mineralization were observed in this drill hole as were observed in block 1 drilling and intersected 23.4 m of 0.34 g/t Au from 6.1 metres. This drill hole was successful in showing that gold mineralization in the McQuesten calcareous package is laterally extensive and that the prospective ground for near-surface gold mineralization is at least 1.5 km wide.

Drill hole MQ-18-40 was designed to test the stratabound gold mineralization within the calcareous package about 160 m east of block 1 and test a near-surface gold and silver mineralization identified in a historic hole (MQ-03-13). Similar styles of mineralization were observed in this drill hole as were observed in block 1 drilling and intersected 80.7 m of 0.13 g/t Au from 90.0 metres. This drill hole was successful in showing that gold mineralization in the McQuesten calcareous package continues for at least 250 m downdip from surface.

The top of drill hole MQ-18-40 and the entire length MQ-18-41 successfully identified similar styles of mineralization as those seen in MQ-03-13. Steeply dipping quartz veins and breccias appear to be the host of the gold, silver and base metal mineralization. This structurally controlled style of gold, silver and base metal mineralization represents a new target, stratigraphically above the McQuesten gold zone, for future drilling programs. Determining the orientation, width and where these mineralized structures crosscut the stratabound McQuesten gold zone will be a continuing focus of future drill programs.

      HIGHLIGHTED RESULTS FROM MCQUESTEN GOLD ZONE DRILLING PROGRAM

Drill hole          From           To     Interval           Au           Ag
                     (m)          (m)          (m)        (g/t)        (g/t)

MQ-18-36            57.5        134.0         76.5         0.49            -
including           60.5         62.0          1.5         3.55            -
including           66.5         68.0          1.5         1.12            -
including          101.1        102.5          1.4         1.59            -
including          112.0        113.1          1.1         1.05            -
including          117.5        119.1          1.6         1.22            -
including          129.5        131.0          1.5         7.21            -
including          131.0        132.5          1.5         1.07            -
MQ-18-38            17.5         20.2          2.7         0.50            -
including           17.5         18.5          1.0         0.94            -
MQ-18-39             6.1         29.5         23.4         0.34            -
including            6.1          7.5          1.4         0.81            -
including           10.8         11.6          0.8         0.97            -
including           17.5           19          1.5         1.47            -
MQ-18-40            20.5         29.5          9.0         0.66          5.4
and                 52.5         58.5          6.0         0.72            -
including           52.5         54.0          1.5         1.48            -
and                 90.0        170.7         80.7         0.13            -
MQ-18-41            10.7         27.7         17.0         0.45         13.2
including           10.7         12.2          1.5         0.83         35.4
                                                                     greater
                                                                        than
including           23.8         24.9          1.1         1.57          100

Banyan is also pleased to announce analytical results from the trench completed on the McQuesten gold zone, confirming the on-surface mineralization theorized with the McQuesten gold zone geologic model. The trenching program returned 26 metres of 0.36 g/t Au before the thickness of the overburden became problematic.

Analytical method

All drill core and trench samples collected from the 2018 McQuesten program were analyzed at Bureau Veritas Minerals of Vancouver, B.C., utilizing the aqua regia digestion ICP-MS (inductively coupled plasma mass spectrometry) 36-element AQ200 analytical package with FA450 50-gram fire assay with AAS (atomic absorption spectroscopy) finish for gold on all samples. All core samples were split on site at Banyan's core processing facilities in Elsa, Yukon. Once split, half samples were placed back in the core boxes with the other half of split samples sealed in poly bags with one part of a three-part sample tag inserted within. Samples were delivered by Banyan personnel or a dedicated expediter to the Bureau Veritas, Whitehorse, preparatory laboratory where samples are prepared and then shipped to Bureau Veritas's analytical laboratory in Vancouver, B.C., for pulverization and final chemical analysis. A robust system of standards, one-fourth core duplicates and blanks was implemented in the 2018 exploration drilling program and was monitored as chemical assay data became available.

* Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues.

The CIM definitions were followed for the classification of indicated and inferred mineral resources. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred mineral resources as an indicated mineral resource and it is uncertain if further exploration will result in upgrading them to an indicated mineral resource category.

The updated resource was constrained in the 2016 FS resource pit.

Technical information

The technical information in this news release has been reviewed and approved by Paul D. Gray, PGeo, a qualified person as defined by NI 43-101.

About Banyan Gold

Banyan is a growth-stage gold exploration company whose flagship property, the Hyland gold project, lies 70 kilometres northeast of Watson Lake, Yukon, along the southeast end of the Tintina gold belt.

The Hyland main zone indicated gold resource estimate, prepared in accordance with NI 43-101, at a 0.3-gram-per-tonne-gold-equivalent cut-off, contains 8.6 million tonnes grading 0.85 g/t gold equivalent for 236,000 AuEq ounces with an inferred mineral resource of 10.8 million tonnes grading 0.83 g/t AuEq for 288,000 AuEq ounces.


Cut-off grade       In situ            Au                  Ag                AuEq              
(g/t AuEq)           tonnes     Grade     Ounces    Grade      Ounces   Grade     Ounces   
                                 (g/t)               (g/t)               (g/t)
Indicated            
0.3               8,637,000      0.78    216,000     7.04   1,954,000    0.85    236,000
Inferred             
0.3              10,784,000      0.77    266,000     5.32   1,845,000    0.83    288,000

Notes:
(1) Mineral resources, which are not mineral reserves, do not have demonstrated 
economic viability. All figures are rounded to reflect the relative 
accuracy of the estimate. 
(2) Mineral resources are reported at a cut-off grade of 0.3 gram per tonne 
gold equivalent. Gold equivalent grade is based on $1,350 per ounce gold and  
$17 per ounce silver and assumes a 100-per-cent recovery. The gold equivalent 
calculation does not apply any adjustment factors for difference in 
metallurgical recoveries of gold and silver. This information can only be 
derived from definitive metallurgical testing, which has yet to be completed.

We seek Safe Harbor.

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