14:24:20 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Banks Island Gold Ltd
Symbol BOZ
Shares Issued 57,218,497
Close 2014-10-30 C$ 0.17
Market Cap C$ 9,727,144
Recent Sedar Documents

Banks Island files Q2 FY 2015 results, no details in NR

2014-10-30 22:20 ET - News Release

Mr. Benjamin Mossman reports

BANKS ISLAND GOLD LTD. PROVIDES UPDATE AND RELEASES SECOND QUARTER FINANCIAL STATEMENTS

Banks Island Gold Ltd. has released the second quarter 2015 financial statements (from the period of June 1, 2014, to Aug. 31, 2014) now available on SEDAR and the company's website.

Second quarter was a transitional period for the company as production shifted to the production of flotation and gravity gold concentrates with the addition of the grinding and flotation circuits. The dense media separation plant was shut down on June 11, 2014, to complete the tie-in between the DMS plant and the grinding and flotation sections. Production of flotation concentrate commenced on Aug. 7, 2014. No production from the property occurred in the period from June 11 to Aug. 7, 2014.

Processing plant update

The company has been ramping up production since full commissioning commenced on Aug. 7, 2014. In August, the company produced 297 dry metric tonnes of flotation concentrate, which graded 74 grams per tonne gold and 185 g/t silver. In August, the flotation plant averaged a throughput of 78 dry metric tonnes per day, and gold recovery in the flotation circuit averaged 91 per cent.

In September, the company produced 584 dry metric tonnes of flotation concentrate, which graded 72 g/t gold and 192 g/t silver. The company also produced 11 dry metric tonnes of gravity concentrate, which graded 1,110 g/t gold and 838 g/t silver. In September, the flotation plant averaged a throughput of 173 dry metric tonnes per day, and gold recovery in the flotation circuit averaged 89 per cent.

In October, up to Oct. 25, 2014, the company produced 457 dry metric tonnes of flotation concentrate, which graded 68 g/t gold and 341 g/t silver. During the month, the company stockpiled all of its gravity gold concentrates for further processing on the newly installed concentrating table once commissioning is complete. In October, up to Oct. 25, 2014, the flotation plant averaged a throughput of 168 dry metric tonnes per day, and gold recovery in the flotation circuit averaged 86 per cent.

The company is currently planning to process all gravity gold-bearing material inventoried in falcon concentrate and in the recirculating load of the grinding section. The company's plan is to process the material using the newly installed concentrating table to produce a high-grade gold concentrate for direct smelting. Results of the production of gravity recoverable gold will be released with a summary of gold production in the month of October, 2014, at the earliest opportunity.

Commercial production update

The company has not yet declared commercial production for the Yellow Giant project. The declaration of commercial production will be based on an evaluation of production criteria, which include mill throughput, gold recovery and gold production. The declaration of commercial production is a matter of judgement and is at the discretion of the board of directors. In general, the criteria being used by the board of directors while assessing whether the criteria for commercial production have been satisfied include, but are not limited to, sustainable production, which approaches mill throughput of 200 tonnes per day, gold recovery of 90 per cent and gold production of 77 ounces gold equivalent per day over a reasonable period of testing. Once all criteria have been met at a sustainable level, the company will declare commercial production for the Yellow Giant project.

Mineralized material

As at Oct. 29, 2014, the company has the following mineralized material in stockpiles or in production.

  • Surface stockpile of 5,000 tonnes from Bob and Tel zones;
  • Underground broken inventory of 7,000 tonnes at the Tel Main zone and 2,000 tonnes at the Bob zone;
  • DMS fines stockpile of 3,000 tonnes, which are composed of material rejected by the spiral concentrator.

The company currently has an additional 24,000 tonnes of mineralized material in the Tel zone fully developed and ready for production mining, of which 5,000 tonnes are drilled and ready to blast. The company continues production mining and mine development at the Tel zone and other zones at Yellow Giant to maintain a healthy inventory of material available for processing.

Jasperoid

During mining of the T30 central level, company geologists noted unusual amounts of microcrystalline quartz breccia within the mineralized vein. This rock type, which has been provisionally named Jasperoid, makes up the eastern third of the central zone between T20 and T30 levels. The majority of Jasperoid samples contain low sulphur, which suggests that gold is present as free grains of electrum or native gold. The company is currently performing testwork before further processing of this minor subsection of the resource to ensure optimum recovery of gold from this area.

Metallica Commodities Corp. loan balance

During second quarter, the company drew the final $1-million (U.S.) drawdown of its advance payment facility with Metallica Commodities and repaid $299,483 (U.S.) in principal and $43,855 in accrued interest. Subsequent to second quarter up to Oct. 23, 2014, the company repaid $509,526 (U.S.) in principal and $113,540 in accrued interest. The balance due of the MCC advance payment facility as at Oct. 29, 2014, was $4,389,290 (U.S.).

The company is not basing its production decision on a feasibility study of mineral reserves with demonstrated economic and technical viability. Banks Island has decided to put the property into production without first establishing mineral reserves supported by an NI 43-101-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.

Benjamin Mossman, PEng, is the qualified person who reviewed and approved the contents of this news release.

We seek Safe Harbor.

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