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Enter Symbol
or Name
USA
CA



Banks Island Gold Ltd
Symbol BOZ
Shares Issued 61,701,497
Close 2015-07-07 C$ 0.12
Market Cap C$ 7,404,180
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Banks produces 1,863 oz AuEq in June at Yellow Giant

2015-07-07 17:58 ET - News Release

Mr. Benjamin Mossman reports

BANKS ISLAND GOLD LTD. REPORTS PRODUCTION OF 1,863 OZ GOLD IN JUNE

Banks Island Gold Ltd. has provided an update of operations at the company's 100-per-cent-owned Yellow Giant gold project, located on Banks Island in British Columbia.

Production update

Total estimated gold production in June, 2015, was 1,863 ounces of gold equivalent. The company improved on production from May despite delays in mine development, which impacted the availability of high-quality mill feed for the month.

Gold production data for the 2015 calendar year to date are displayed in the attached gold production table.

                    GOLD PRODUCTION -- 2015 CALENDAR YEAR
                                                                Estimated    
                                            Metal produced      production   
               Average                            in           payable from  
Month         ROM feed           Recovery     concentrate      smelter (ii)  
                   Au      Ag                   Au         Au eq (i) Au eq (i)
2015      tpd    (gpt)   (gpt)   Au     Ag     (oz) Ag (oz)     (oz)  (oz/day)

January   357     5.6      25    81%    66%  1,610   5,998    1,532        49
February  230     6.4      35    83%    75%  1,100   5,018    1,059        38
March     114    13.4      52    90%    76%  1,375   4,838    1,304        42
April     157    11.3      46    90%    78%  1,540   5,382    1,461        49
May       208    10.0      17    92%    74%  1,909   3,410    1,765        57
June      276     8.8      13    87%    70%  2,021   3,200    1,863        62

(i) Gold equivalent is calculated by converting silver to gold at a ratio
of 65 to 1. 
(ii) Gold payable from smelter is an estimate and subject to revisions based 
on final assaying and settlement.

Delays in mine development due to major required maintenance on primary underground equipment impacted the production schedule at the Discovery zone. Low-grade stockpiles were processed in June due to the delay in production mining from underground. Mill feed for the month of June consisted of approximately 40 per cent for Discovery, and 60 per cent for low-grade stockpiles.

Company mining crews have completed the second level in the Discovery zone at the end of June, and production drilling is currently in progress. A significant thickening in the vein was encountered at the end of the second level, which required extra development and production drilling.

Face sample assays from the first and second levels at the Discovery zone are displayed in the attached Discovery levels table.

                DISCOVERY LEVELS 1 AND 2 -- FACE SAMPLES

                Discovery Level 1                      Discovery Level 2          
Round      Width (m) Au (g/t) Ag (g/t) Round    Width (m) Au (g/t)   Ag (g/t)

1               1.4      0.4        4  2             2.1     26.7         27
2               2.4     19.2       21  3             2.1      No sample     
3               3.0      1.0        4  4             1.9     29.0         43
4               4.4      7.5       16  5             1.7      5.7         14
5               3.7     23.6       41  6             2.9     17.2         20
6               2.5     10.0       20  7             3.5     15.2         24
7               3.0     No sample      8             2.5     20.4         35
8               3.0      7.9       24  9             4.1      4.7          6
9               3.0     31.9       40  10            4.2     15.9         15
10              4.1     26.1       51  11            3.9     29.3         22
11              4.3     79.6       68  12            4.0     27.5         25
12              4.9     28.1       25  13            3.7     51.5         46
13              5.1     34.9       62  14            5.2      7.1         15
14              4.4     30.2       31  15            4.3     17.3         13
15              4.2      9.2       22  16            4.3     21.3         10
16              4.5     15.0       37  17            6.9     13.7         12
17              5.0     12.1       30  18            7.8     19.2         12
18              5.0     10.0       27  19            9.7     32.6          6
19              4.4     No sample      20            8.3 Assays outstanding 
20              1.9     14.8      179  21            7.2                    
21              1.9      1.8        4  22            5.0                    

The mine development crew is currently driving the third-level access in Discovery and is expected to reach diamond drill hole DIS-12-03 in mid-July. Drill hole DIS-12-03 assayed 135 grams per tonne gold over 3.7 metres. (See news release dated May 25, 2012.)

The company has not based 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.

Analytical work on concentrates was carried out by ALS Mineral Services in North Vancouver, B.C. Quality assurance and quality control programs include the use of analytical blanks, standards and duplicates in addition to the lab's own internal quality assurance program. Samples are fire assayed with a gravimetric finish to determine gold and silver values.

Analytical work on face samples was carried out by Blue Coast Group in Parksville, B.C. Quality assurance and quality control programs include the use of analytical blanks, standards and duplicates in addition to the lab's own internal quality assurance program. Samples are fire assayed with a gravimetric finish to determine gold and silver values.

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