Ms. Tara Christie reports

BANYAN GOLD ANNOUNCES POSITIVE METALLURGICAL TEST RESULTS, AURMAC PROJECT, MAYO, YUKON

Banyan Gold Corp. has released positive results from the phase 1 metallurgical test program conducted on the company's AurMac project in Yukon. Phase 1 metallurgical testing focused on the AurMac project's Powerline deposit as Powerline hosts the majority of the project's 6.2-million-ounce (Moz) gold inferred mineral resource estimate (MRE). Results from the metallurgical test program demonstrate robust recoveries throughout Powerline, identifying multiple conventional mineral processing flowsheets which the company continues to advance and optimize through continuing metallurgical test work.

Highlights:

• Gold recoveries averaged 91 per cent from 75-micron (um) (200-mesh) bottle roll cyanidation tests.
• Gold recoveries estimated to be 91 per cent for the carbon-in-leach (CIL)/carbon--n-pulp (CIP) process.
• Gold recoveries for the combined gravity and flotation process are estimated at 84 per cent.
• Heap leach gold recovery is estimated to range from 64 to 72 per cent based on coarse-size (9.5 millimetres) bottle roll testing, conventional column leach tests and vat leach diffusion extraction testing.
• Flotation recovery into a rougher concentrate recovered on average 89 per cent of the gold with a low mass pull of 3.7 per cent, indicative that a small percentage of material would require further processing.
• Low cyanide consumption at an average of 0.52 kilogram/metric tonne for primary grind of P80 passing 75 um.
• Gravity recovery has shown it may be an effective part of the flowsheet.
• Low sulphide concentration and excess buffering capacity indicates Powerline is non-acid-generating.

"Metallurgical test work highlights robust gold recoveries with multiple conventional mineral processing flowsheets and further optimization has a high likelihood to result in increased overall gold recoveries," Tara Christie, president and chief executive officer, stated. "These results represent a significant step forward at AurMac and continued work will focus on crush and grind sizes, in addition to power and reagent consumption. Work will be focused to support a future economic study using one or more of the identified processes."

Potential mineral processing flowsheets

Three gold recovery process flowsheets have been identified through the phase 1 test program. This includes CIL or CIP gold extraction processes (91-per-cent gold recovery). The CIL/CIP flowsheet is the most commonly used milling gold recovery method worldwide. Canadian examples include Agnico Eagle's Detour Lake and Malartic mines in Ontario and Quebec, respectively. The second process is conventional mill flotation (84-per-cent gold recovery), which is used at Kinross Gold's Paracatu mine in Brazil and Centamin's Sukari mine in Egypt. Test work supportive of gravity-recoverable gold was also carried out that indicates a gravity recovery circuit could be included in either the CIL/CIP or mill flotation flowsheets to enhance gold recoveries and reduce reagent consumption. The third flowsheet is heap leach processing (64-to-72-per-cent gold recovery), a commonly used method for high-volume, low-grade gold deposits; examples include Victoria Gold's nearby Eagle mine in Yukon and Kinross Gold's Fort Knox mine in Alaska. Mines such as Fort Knox utilize both heap leaching and conventional mill processing.

Methodology

The phase 1 metallurgical test program focused on the Powerline deposit as it represents the majority (approximately 62 per cent) of the AurMac project's current 6.2 Moz gold inferred MRE. Banyan submitted 34 individual intervals (approximately 991 kg) of representative drill core from Powerline to Forte Analytical in Fort Collins, Colo. The individual intervals selected were based on gold grade, depth from surface, spatial distribution and lithology. Three master composite samples were prepared from the individual sample intervals and the composites were based on the three dominant lithologies identified within Powerline, which include comp 1 -- calcareous schist (CSCH), comp 2 -- muscovite quartz schist (MQST) and comp 3 -- sericite schist (SSCH).

The phase 1 test program for Powerline included acid-base accounting, mineralogy, comminution, bottle roll cyanidation (9.5 mm and 75 um), flotation, gravity recovery, column leach tests, vat leach diffusion extraction tests and a gravity-flotation-intensive cyanidation process simulation. The program was overseen by Deepak Malhotra (SME-RM of Forte Analytical), who is a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects

Sample assays and 75 um bottle roll testing

Head samples were assayed by both fire assay and metallic screen fire assay (MSFA) with fire assays averaging 0.76 gram per tonne gold for the test intervals and an overall average of 0.66 g/t gold for metallic screen fire assays. The variability in the head assays, calculated head grade assays and MSFAs demonstrate the known nuggetty coarse gold exhibited in Powerline. The total sulphur in the samples ranged from 0.39 per cent to 1.15 per cent with an average of 0.70 per cent, and total carbon ranged from 0.28 per cent to 2.07 per cent predominantly as inorganic carbon (91 per cent). For MSFA analysis, samples were split via metallic screen into plus-140-mesh and minus-140-mesh fractions to split the coarse gold from the fine gold.

The three representative master composites returned an average of 90.6-per-cent gold recovery using 75 um bottle roll testing. Overall gold extraction percentages ranged from 56.7 per cent to 96.4 per cent. These 75 um bottle roll tests show that gold recovery does not significantly change across variations in grade, depth from surface, sulphide content and lithology, and that no organic carbon or other materials present preclude or reduce leach extraction rates (commonly referred to as non-preg-robbing). The 75 um bottle roll tests had an average of 65-per-cent gold recovery within the first two hours and over 80-per-cent average gold recovery in the first eight hours, showing rapid gold recovery kinetics. Average cyanide consumption for the 75 um bottle rolls was low at 0.52 kg/t.

Industry standard comminution testing was completed on the composite samples to determine crusher work index (CWi), Bond's ball mill work index (BWi) and abrasion work index (Ai) parameters. The average CWi for the composites was 15.2 kilowatt-hours/t and the BWi was 14.6 kWh/t, indicating Powerline is classified as medium to hard.

Gravity recovery

Coarse gold is evident across Powerline and, therefore, gravity recovery was assessed as part of the phase 1 program. Initial gravity recovery testing was completed on the three master composite samples and subsequently assayed as either rougher concentrate or cleaner concentrate. The Knelson concentrate produced the rougher concentrate, which was then further cleaned using a Gemeni table to produce the cleaner concentrate. Two grind sizes, 150 um (100 mesh) and 212 um (65 mesh), were tested throughout the gravity campaign, and the average gold recovery from rougher gravity concentrate was 53 per cent.

Flotation

Flotation testing was conducted on all three composites across three different grind sizes: 150 um (100 mesh), 75 um (200 mesh) and 44 um (325 mesh). The tailings from the gravity recovery tests completed on the three composites were also assessed for flotation response at the 100-mesh particle size. All composites demonstrated high gold recovery in rougher concentrate with an average gold recovery of 89 per cent from the composite samples. Of significance is the overall low mass pull of approximately 3.7 per cent on average. The high rougher flotation concentrate recovery along with the low mass pull suggests a small intensive cyanidation circuit leaching a flotation rougher concentrate as a process flowsheet option to be further investigated.

Gravity-flotation-intensive cyanidation

Based on the individual flotation and gravity results, a non-optimized process simulation test was completed on remaining composite 2 material and incorporated grinding, gravity recovery, rougher flotation and intensive cyanidation of the concentrate products (gravity plus float concentrate). Gravity and flotation recovery of composite 2 resulted in 95-per-cent recovery and intensive cyanidation of the flotation and gravity concentrate returned 88 per cent for a total recovery of 84.2 per cent.

Heap leaching test work

The response of Powerline to heap leach was assessed through a combination of coarse 9.5 mm bottle roll tests, standard column (10 cm) leach tests and vat leach diffusion extraction tests. Coarse bottle roll tests at a crush size of P80 passing 9.5 mm were completed over a 264-hour test duration using standard bottle roll testing parameters. The average gold recovery for the composite weighted intervals was consistent and ranged from 33.7 per cent to 35.6 per cent. Conventional 10-centimetre-diameter column leach tests at a crush size of P80 passing 9.5 mm were completed in duplicate on the three master composites. The overall gold recovery of all the column leach tests was 52.3 per cent and ranged from 34.5 per cent to 62.6 per cent over a 76-to-78-day leach duration. The decrease in gold recovery with the coarse 9.5 mm crush size compared with the 75 um particle size shows that gold recovery is likely size dependent.

Vat leach diffusion extraction testing

Vat leach diffusion testing was conducted on both composite 1 and composite 2 material at size fractions of 12.7 mm, 9.5 mm and 6.4 mm. The vat leach diffusion test is used in the early stages of metallurgical testing to optimize the crush size for a heap leach process flowsheet. Discrete particle sizes are loaded into a 15 to 30 kg charged vat with cyanide solution, then a cycle of flooding/draining cyanide solution on a 24-hour basis in the early stages of testing, then to a weekly basis and continues until extraction is diminished, normally completed over 100 to 200 days depending on the particle size. Utilizing the vat data of discrete particles measuring diffusion rates of the material, diffusion modelling was performed to represent a P80 9.5 mm particle size distribution, with recovery curves generated for estimating heap leach recoveries over an extended leach period. Long-term gold recovery is estimated at 64 per cent for composite 1 and 72 per cent for composite 2. The higher recovery from the vats compared with the 10 cm column (P80 9.5 mm crush) tests also demonstrates a potential influence by coarse gold.

Environmental

Mineralogy and acid-base accounting were performed on the three master composite samples and the results indicate that Powerline is not acid-generating and has excess buffering capacity. The samples were mainly composed of quartz (greater than 70 per cent) and minor quantities of plagioclase, orthoclase, muscovite, biotite, clinochlore, epidote and calcite, with pyrite being the primary sulphide mineral present. The non-acid-generating nature and excess buffering capacity of Powerline is an important consideration in future permitting and waste management designs.

Summary and next steps

The results of the phase 1 metallurgical testing program demonstrate gold recoveries ranging from 84 per cent to 91 per cent in multiple conventional process flowsheets inclusive of grinding followed by CIL/CIP cyanide leaching, flotation and leaching of a rougher concentrate, and as well as flotation, gravity recovery and intensive cyanide leaching of the concentrates. Heap leach recoveries range from 64 per cent to 72 per cent. Environmental testing is positive showing excess buffering capacity coupled with low sulphide content meaning that Powerline is non-acid-generating.

The test work results are supportive of all these processing options being carried forward with additional samples from Powerline, as well as expansion of the program to test samples from Aurex Hill and Airstrip deposits. Continuing test work will endeavour to enhance understanding of:

• Gold deportment;
• Grind sizes for flotation, flotation concentrate and CIP/CIL;
• Gravity separation;
• Additional work on heap leaching including crush size sensitivity.

The focus will remain on flowsheet optimization and minimizing operating costs to maximize value in future economic studies.

Qualified persons

Mr. Malhotra SME-RM, Director of metallurgy, and Barry Carlson, PE, PEng, QP, president of Forte Dynamics, are both qualified persons as defined by National Instrument 43-101, independent of the company, and have reviewed and approved the content of this news release. Mr. Malhotra and Mr. Carlson have verified the data disclosed in this news release, including the sampling, analytical and test data underlying the information.

Paul D. Gray, PGeo, is a qualified person as defined under NI 43-101 and has reviewed and approved the content of this news release. Mr. Gray is Banyan's geological consultant and has verified the data disclosed in this news release, including the sampling, analytical and test data underlying the information.

Upcoming events:

• CEM Whistler Capital Event, Feb. 9 to 11, 2024;
• Adelaide Capital Webinar -- Feb. 15, 2024 -- 11 a.m. PST/2 p.m. EST;
• BMO 33rd Global Metals, Mining & Critical Minerals Conference, Feb. 25 to 28, 2024;
• Tombstone Gold Rush Breakfast -- Fireside Chat -- Toronto, March 5, 2024:
  • 7 a.m. to 9 a.m. EST.
• Red Cloud Pre-PDAC Mining Showcase, Toronto, March 1;
• PDAC, March 3 to 6, 2023:
  • Exhibitor booth No. 2213, March 3 to 4;
  • PDAC 2024 one-on-one meeting program, March 4 to 5;
  • Core Shack exhibitor booth No. 3106, March 5 to 6.

About Banyan Gold Corp.

Banyan's primary asset, the AurMac project, is adjacent to Victoria Gold's Eagle gold mine, in Canada's Yukon. The current inferred MRE for the AurMac project of 6.2 million ounces has an effective date of May 18, 2023.

The 173-square-kilometre AurMac project lies 30 km from Victoria Gold's Eagle project and adjacent to Hecla Mining's high-grade Keno Hill silver mine. The AurMac project is transected by the main Yukon highway and access road to the Victoria Gold open-pit, heap-leach Eagle gold mine. The AurMac project benefits from a three-phase power line, existing power station and cellphone coverage. Banyan has a right to earn up to a 100-per-cent interest in both the Aurex and McQuesten properties, subject to certain royalties.

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