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Banyan Gold Corp
Symbol BYN
Shares Issued 149,105,972
Close 2020-11-16 C$ 0.27
Market Cap C$ 40,258,612
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Banyan drills 68.5 m of 1.07 g/t Au at AurMac

2020-11-16 06:48 ET - News Release

Ms. Tara Christie reports

BANYAN DRILLS 1.07 G/T OVER 68.5M AND EXTENDS POWERLINE MINERALIZATION BY OVER 500M, AURMAC PROPERTY, YUKON

Banyan Gold Corp. has released diamond drilling analytical results from the first five diamond drill holes received from the 2020 exploration program at the Powerline zone, AurMac property, Yukon. These holes successfully demonstrate the Powerline mineralization model applies beyond the 2020 Powerline resource extent and, importantly, the expansion potential of Powerline in all directions and at depth.

Highlights of the first five 2020 Powerline drill results include:

  • 0.72 gram per tonne gold over 128.5 metres from 82.0 metres in AX-20-43:
    • Including 1.07 g/t Au over 68.5 metres;
  • 0.80 g/t Au over 29.8 metres from 129.5 metres in AX-20-42;
  • 0.47 g/t Au over 30.5 metres from 43.0 metres in AX-20-41;
  • 0.76 g/t Au over 13.0 metres from 135.0 metres in AX-20-44;
  • 0.46 g/t Au over 27.0 metres from 12.0 metres in AX-20-45.

High-grade intervals within these above intervals include:

  • 3.74 g/t Au over 1.5 metres in AX-20-41;
  • 2.56 g/t Au over 1.5 metres in AX-20-42;
  • 11.5 g/t Au over 0.6 metre in AX-20-42;
  • 6.38 g/t Au over 1.5 metres in AX-20-43;
  • 3.54 g/t Au over 3.0 metres in AX-20-43;
  • 3.04 g/t Au over 3.0 metres in AX-20-43;
  • 5.50 g/t Au over 3.4 metres in AX-20-43;
  • 3.79 g/t Au over 1.5 metres in AX-20-43;
  • 5.15 g/t Au over 1.5 metres in AX-20-45.

"These results demonstrate that the gold mineralization at the Powerline zone is part of a much larger gold system than captured in the 2020 Powerline deposit resource model," stated Tara Christie, president and chief executive officer. "AX-20-41 through to AX-20-45 are 100-metre stepouts south of the 2020 resource, respectively, and together add over 500 metres of mineralized footprint south of the Powerline deposit. The near-surface Powerline deposit grades 0.61 g/t Au, comparable to the resource grade of 0.63 g/t of Victoria Gold's producing Eagle gold mine, which is just 40 kilometres away. Powerline was a 2019 discovery and reinforces the near-surface gold potential of the larger AurMac property."

Powerline is approximately one kilometre south of the Airstrip deposit of the AurMac property and shares all the infrastructure of Airstrip. Importantly, Powerline is open to expansion in all directions and at depth and represents another near-surface bulk-tonnage-minable target at AurMac. At a 0.20 g/t Au cut-off, the pit-constrained, inferred mineral resources are 6.6 million tonnes at an average gold grade of 0.61 g/t for a total of 129,019 ounces of gold.

Diamond drilling at Powerline in 2020 included 1,433 metres from seven holes. The primary objective of the 2020 Powerline zone drilling was to test the expansion potential of gold mineralization to the south of the known deposit. Not only was the mineralization model validated through this season's efforts, but mineralization also remains open to drilling in all directions. The associated table presents highlights from these first five holes of the 2020 Powerline campaign.

       2020 HIGHLIGHTED DIAMOND DRILL ANALYTICAL RESULTS -- POWERLINE 

Hole ID                From               To        Interval*               Au
                        (m)              (m)              (m)            (g/t)

AX-20-41               43.0             73.5             30.5             0.47
including              49.8             50.7              0.9             1.62
including              70.5             72.0              1.5             3.05
and                    97.1            126.0             28.9             0.35
including             111.3            112.5              1.2             1.46
and                   145.0            199.5             54.5             0.24
including             145.0            145.3              0.3             1.12
including             167.5            169.0              1.5             3.74
including             198.0            199.5              1.5             1.09
AX-20-42               13.3            184.0            170.7             0.35
Or                     13.3             22.9              9.6             0.69
including              22.5             22.9              0.4             14.0
and                    34.5             38.5              4.0             0.70
including              34.5             36.0              1.5             1.50
and                    54.0             62.5              8.5             0.40
and                    89.5            115.0             25.5             0.40
including              95.5             97.0              1.5             2.56
and                   129.5            159.3             29.8             0.80
including             140.4            141.9              1.5             1.97
including             148.2            148.5              0.3             18.2
including             157.5            158.7              1.2             1.82
including             158.7            159.3              0.6             11.5
and                   172.5            184.0             11.5             0.59
including             182.5            184.0              1.5             2.38
AX-20-43               82.0            210.5            128.5             0.72
including              82.0            150.5             68.5             1.07
including              87.0             88.5              1.5             1.64
including              97.5             99.9              2.4             2.26
including             117.0            118.5              1.5             6.38
including             124.5            127.5              3.0             3.54
including             129.0            132.0              3.0             3.04
including             135.1            138.5              3.4             5.50
including             141.5            143.0              1.5             1.72
including             186.0            187.5              1.5             1.07
including             198.5            200.0              1.5             1.29
including             205.5            207.0              1.5             3.79
AX-20-44               14.0             17.0              3.0             0.50
and                    47.5             56.0              8.5             0.36
and                    64.1             79.8             15.7             0.31
and                    85.5             93.0              7.5             0.23
and                   108.0            117.2              9.2             0.45
including             116.0            117.2              1.2             2.29
and                   135.0            148.0             13.0             0.76
including             143.5            145.0              1.5             2.93
including             147.3            148.0              0.7             1.72
and                   168.5            175.5              7.0             0.88
including             174.0            175.5              1.5             2.98
AX-20-45               12.0            177.7            165.7             0.21
Or                     12.0             39.0             27.0             0.46
including              12.0             13.5              1.5             5.15
including              37.5             39.0              1.5             1.28
and                    90.0             99.0              9.0             0.32
and                   136.6            141.2              4.6             0.66
including             136.6            138.1              1.5             1.62
and                   161.0            177.7             16.7             0.43
including             161.0            162.5              1.5             1.43
including             173.1            176.2              3.1             1.25

* True widths are estimated to be greater than 90 per cent of the reported 
intervals.

Aurex Hill zone

Upon completion of the first pass Powerline drill holes, drilling commenced at the Aurex Hill zone; this program included 1,800 metres of diamond drill core from 10 holes. Aurex Hill zone objectives included the first-ever test of a Banyan-defined coincident gold-arsenic-in-soils anomaly, within an area on strike and between the Aurex Hill soil anomaly and the Powerline zone -- a prime candidate for the discovery of additional near-surface gold resources.

Diamond drilling activities continue at AurMac and are planned to continue into mid-December. Drilling is currently focused on the Airstrip zone and will be followed by follow-up drilling on the Powerline zone based on the strength of the 2020 Powerline assays received to date. Two thousand twenty drilling at AurMac has thus far achieved over 8,900 metres of drilling from 45 drill holes.

Analytical method

All drill core splits collected from the 2020 AurMac 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. 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-quarter core duplicates and blanks was implemented in the 2020 exploration drilling program and was monitored as chemical assay data became available.

Qualified person

Paul D. Gray, PGeo, vice-president of exploration for the company, is a qualified person as defined under National Instrument 43-101 and has reviewed and approved the content of this news release.

COVID-19 update

Banyan has taken pro-active measures to protect the health and safety of its employees and communities from COVID-19 and exploration activities in 2020 have additional safety measures in place, following and exceeding all the recommendations made by Yukon's chief medical officer.

About Banyan Gold Corp.

Banyan's primary asset, AurMac, is adjacent to Victoria Gold Corp.'s new Eagle gold mine in Canada's Yukon, which announced commercial production on July 1, 2020. The AurMac initial resource of 903,945 ounces Au was announced in May, 2020. Banyan's major strategic shareholders include Osisko Gold Royalties, Sprott Funds, Alexco Resource Corp. and Victoria Gold. Banyan is focused on gold exploration projects that have the geological potential, size of land package and proximity to infrastructure that are advantageous for a mineral project to have potential to become a mine. Its Yukon-based projects both fit this model and its objective is to gain shareholder value by advancing projects in its pipeline.

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