Banyan Announces $4.3 M Financing, Begins Phase 2 Aurmac Exploration Program
BANYAN ANNOUNCES $4.3 M FINANCING, BEGINS PHASE 2
AURMAC EXPLORATION PROGRAM
July 8, 2020 TSX-V: BYN
VANCOUVER, July 8, 2020, Banyan Gold Corp. (the "Company" or "Banyan") (TSX-V: BYN) is
pleased to announce a private placement financing of up to $4.3M. Alexco Resource Corporation,
Victoria Gold Corporation and Osisko Gold Royalties indicate they will participate pro rata along
with other strategic and current shareholders. This will allow the Company to advance a Phase
2 Exploration Program at AurMac. Phase 2 exploration will include additional diamond drilling,
geotechnical drilling, metallurgical test work , environmental baseline data collection and
community consultation. Further details of the expanded program will be released in the coming
weeks.
The Company proposes to raise up to $4.3 M with a combination of up to 12,500,000 Charity Flow
Through Shares at $0.28, up to 2,000,000 Regular Flow Through Shares at $0.25 and 1,500,000
regular shares at $0.20 (together the “Offering”). The financing is expected to close on or before
July 28, 2020 and the shares issued will be subject to the customary hold period. There will be
no warrants issued with the Offering.
“Our current significant shareholders and new strategic shareholders participating in this financing
are a strong endorsement of the growth potential of AurMac and confidence in our team.” stated
Tara Christie, President and CEO. “With a strong treasury, we are now well positioned to advance
this project to the next level through 2020 and 2021. Banyan is taking this opportunity in finan ce
at a time when there is strong interest in road accessible, near surface gold projects in an enviable
jurisdiction, adjacent to two operating mines."
The flow through gross proceeds component received from the sale of the Shares will be used to
incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act
(Canada) (the “Tax Act”) on the Company’s properties in the Yukon Territory, and renounced to
subscribers in the Offering effective December 31, 2020. Such Canadian exploration expenses
will also qualify as “flow-through mining expenditures” as defined in subsection 127(9) of the Tax
Act. There may be fees up to 6% on a portion of this financing.
Closing of the Offering is expected to occur on or about the week of July 28, 2020, and is subject
to the satisfaction of certain conditions, including receipt of all applicable regulatory approvals
including the approval of the TSX Venture Exchange (the “TSXV”).
The Company is also please to announced that it has received Yukon Government Mineral
Exploration Grants totalling $80,000 for exploration in 2020. Bany an commends the Yukon
Government for their additional investment in the exploration industry to assist with the recovery
of the Yukon economy.
In a May 25, 2020 News Release Banyan Gold announced an Initial Mineral Resource Estimate
prepared in accordance with National Instrument 43-101 (“NI 43-101”) guidelines for the AurMac
Property of 903,945 ounces of gold. It is a near surface, road accessible pit constrained Mineral
Resource contained in two near/on -surface deposits: The Airstrip and Powerline deposit s. The
Mineral Resource is summarized below:
Table 1: Pit-Constrained Inferred Mineral Resources at a 0.2 g/t Au Cut -Off – AurMac
Property
Deposit Classification Tonnage
Tonnes
Average Au
Grade
g/t
Au Content
oz.
Airstrip Inferred 45,997,911 0.524 774,926
Powerline Inferred 6,578,609 0.610 129,019
Total Combined Inferred 52,576,520 0.535 903,945
Notes to Table 1:
1. The effective date for the Mineral Resource is May 25, 2020.
2. Mineral Resources which are not Mineral Reserves do not have demonstrated economic
viability. The estimate of Mineral Resources may be materially affected by environmental,
permitting, legal, title, taxation, sociopolitical, marketing, changes in global go ld markets
or other relevant issues.
3. The CIM definitions were followed for classification of Mineral Resources. The quantity
and grade of reported inferred Mineral Resources in this estimation are uncertain in nature
and there has been insufficient exploration to define these inferred Mineral Resources as
an indicated Mineral Resource and it is uncertain if further exploration will result in
upgrading them to an indicated or measured Mineral Resource category.
4. Mineral Resources are rep orted at a cut -off grade of 0.2 g/t Au, using a US$/CAN$
exchange rate of 0.75 and constrained within an open pit shell optimized with the Lerchs-
Grossman algorithm to constrain the Mineral Resources with the following estimated
parameters: gold price of US$1,500/ounce, US$1.50/t mining cost, US$2.00/t processing
cost, US$2.50/t G+A, 80% heap leach recoveries, and 45° pit slope1
5. Mineral Resource Estimate prepared in accordance with 43 -101 guidelines by Marc
Jutras, P.Eng., M.A.Sc., Principal, Ginto Consulting Inc, with technical report filed July
7,2020.
1 The gold price and cost assumptions are consistent with current pricing assumptions and costs, and in
particular are consistent with those employed for recent technical reports for similar pit-constrained Yukon
gold projects.
Qualified Persons
Paul D. Gray, P.Geo., Vice President of Exploration for the Company, is a “qualified person” as
defined under NI 43-101 and has reviewed and approved the content of this news release.
COVID-19 Update
Banyan has taken proactive measures to protect the health and safety of our employees and
communities from COVID 19 and exploration activities in 2020 will have additional safety
measures in place, following and exceeding all the recommendations made by the Yukon’s Chief
Medical Officer.
There have been 11 COVID-19 cases confirmed in Yukon to date, with all patients having fully
recovered. No cases have required hospitalization.
About Banyan
Banyan is focused on gold exploration projects that have the geological potential, size of land
package and proximity to infrastructure that is advantageous for a mineral project to have potential
to become a mine. Our Yukon based projects both fit this mo del and our objective is to gain
shareholder value by advancing projects in our pipeline.
The Hyland Gold Project, located 70km NE of Watson Lake, Yukon, along the southeast end of
the Tintina Gold Belt is a sediment hosted, structurally controlled, intr usion related gold deposit,
with a large land package (over 125 sq. km), with the resource contained in the Main Zone area
(900x600m) daylighting at surface and numerous other known surface gold targets. The Main
Zone oxide zone is amenable to heap leach o pen pit mining, with column leach recoveries of
86%. The project has an existing gravel access road.
The Hyland Main Zone Indicated Gold Resource Estimate, prepared in accordance with NI 43 -
101, at a 0.3 g/t gold equivalent cutoff, contains 8.6 million to nnes grading 0.85 g/t AuEq for
236,000 AuEq ounces with an Inferred Mineral Resource of 10.8 million tonnes grading 0.83 g/t
AuEq for 288,000 AuEq ounces. NI 43-101 prepared by Robert Carne, Allan Armitage and Paul
Gray on May 1, 2018.
Cut-off
Grade
(AuEq g/t)
In situ Tonnes
Au Ag AuEq
Grade
(g/t) Ozs Grade
(g/t) Ozs Grade
(g/t) Ozs
Indicated
0.3 8,637,000 0.78 216,000 7.04 1,954,000 0.85 236,000
Inferred
0.3 10,784,000 0.77 266,000 5.32 1,845,000 0.83 288,000
(1) Mineral resources which are not mineral reserves do not have demonstrated
economic viability. All figures are rounded to reflect the relative accuracy of the estimate.
(2) Mineral resources are reported at a cut -off grade of 0.3 g/t AuEq. AuEq grade i s
based on $1,350.00/oz Au, $17.00/oz Ag and assumes a 100% recovery. The AuEq
calculation does not apply any adjustment factors for difference in metallurgical
recoveries of gold and silver. This information can only be derived from definitive
metallurgical testing which has yet to be completed.
The 9,230 ha AurMac Property lies 30km from Victoria Gold's Eagle Project and adjacent to
Alexco 's Keno Hill Silver District and is highly prospective for structurally controlled, intrusion
related gold-silver mineralization in relation to the Tombstone intrusive suite. The property hosts
numerous known gold targets and Banyan has developed a miner alization model at the
McQuesten “Airstrip” and “Powerline” Gold deposits, located adjacent to the main Yukon highway
and just off the main access road to the Victoria Gold open-pit, heap leach Eagle Gold mine. The
AurMac Property benefits from a 3 -phase p owerline, existing Yukon Energy Corp. switching
power station and cell phone coverage. Banyan has optioned the properties from Victoria Gold
and Alexco respectively with a right to earn up to a 100% subject to royalties.
Banyan trades on the TSX -Venture Exchange under the symbol “BYN”. For more information,
please visit the corporate website at www.BanyanGold.com or contact the Company.
ON BEHALF OF BANYAN GOLD CORPORATION
(signed) "Tara Christie"
Tara Christie
President & CEO
For more information, please contact:
Tara Christie David Rutt
Tel: (888) 629-0444 Tel: (888) 629-0444
Email: [email protected] Email: [email protected]
CAUTIONARY STATEMENT: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information
contained herein. This news release contains forward-looking information, which is not comprised of historical facts.
Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results,
performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking
information. Forward looking information in this news release includes, but is not limited to, Banyan’s objectives, goals
or future plans, statements regarding exploration expectations, exploration or development plans and mineral resource
estimates. Factors that could cause actual results to differ materially from such forward-looking information include, but
are not limited to, uncertainties inherent in resource estimates , capital and operating costs varying significantly from
estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required
governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs
of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in
commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and
development industry, enhanced risks inherent to conducting business in any jurisdiction, and those risks set out in
Banyan’s public documents filed on SEDAR. Although Banyan believes that the assumptions and factors used in
preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on
such information, which only applies as of the date of this news release, and no assurance can be given that such
events will occur in the disclosed time frames or at all. Banyan disclaims any intention or obligation to update or revise
any forward-looking information, whether as a result of new information, future events or otherwise, other than as
required by law.
Statements in this news release regarding Banyan which are not historical facts are “forward -looking statements” that
involve risks and uncertainties. Such information can generally be identified by the use of forwarding -looking wording
such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or
similar variations.