05:54:14 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Banks Island Gold Ltd
Symbol BOZ
Shares Issued 61,701,497
Close 2015-07-28 C$ 0.09
Market Cap C$ 5,553,135
Recent Sedar Documents

Banks Island refutes Yellow Giant closure reports

2015-07-28 20:45 ET - News Release

Mr. Benjamin Mossman reports

BANKS ISLAND GOLD LTD. PROVIDES FURTHER UPDATE AND COMMENTS ON MEDIA REPORTS

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

Further to the press release issued by the company on July 24, 2015, the company provides further information on permitted activities on site.

The company is authorized to operate under the existing M-241 authorization mine plan/management plan, which covers the Tel mine, process plant and associated facilities. Areas outside of the mineral lease, such as Discovery zone, are permitted under exploration permit MX-1-862.

An application for an amendment to permit M-241 is required before any departures from the existing authorization. Such an amendment is required to bring the Bob, Kim and Discovery zones into the M-241 permit for commercial mining in those areas. The company has been advancing plans for these amendments over the past months, which include rock characterization, tailings and water management plans, and legal surveys required for applications to expand the area of the mineral lease.

The company has been providing additional information to regulators in regard to permit MX-1-862, which has resulted in a delay to the processing of mineralization from the Discovery zone. The company expects that this delay will have a significant impact in production and gold sales for July. The company will provide further information on production scheduling in subsequent releases. At present, the company is processing mineralization from the Tel zone.

There have been several media reports published in recent days by Global News, Vancouver Sun and other outlets. In response to these reports, the company provides the following:

  • Media is reporting that the Yellow Giant mine is closed and/or shut down. These statements are incorrect. The company is continuing processing of Tel mineralization, but production has been significantly impacted by the events previous disclosed in the company's news releases.
  • Media is displaying photos of the Bob underground mine and labelling it as a tailings pond. The photo shows the Bob mining stope which has failed to surface. The company does not have any tailings dams or tailings ponds at Yellow Giant mine, and is one of the only operations in Canada, to the company's knowledge, which is able to dispose of all tailings underground due to the use of preconcentration as part of its processing.
  • Media is reporting a spill of "toxic" tailings. Information regarding this spill was disclosed by the company via new release on July 24. Toxicity testing of the water spilled at Bob indicated 100-per-cent survival of rainbow trout and Daphnia magna. This testing is an industry standard test which shows this water is non-toxic to aquatic life.

The company announces the resignation of Saurabh Handa as director and chief financial officer, effective immediately. Based on other commitments Mr. Handa currently has, it was mutually decided that it would be in the best interest of the company for Mr. Handa to resign at this time. The company would like to thank Mr. Handa for his service as a director providing guidance on corporate governance and financial reporting matters, and wish him the best in his future endeavours.

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