Banyan Commences 2020 Phase 1 Drill Program at Aurmac Property, Yukon, Canada
BANYAN COMMENCES 2020 PHASE 1 DRILL PROGRAM AT AURMAC
PROPERTY, YUKON, CANADA
June 2, 2020 TSX-V: BYN
VANCOUVER, June 2, 2020, Banyan Gold Corp. (the "Company" or "Banyan") (TSX-V: BYN)
is pleased to announce commencement of its Phase 1 2020 exploration program on the AurMac
Property located in the Mayo Mining district, approximately 56 kilometres northeast from the
village of Mayo, Yukon and 350 kilometres north of Whitehorse, Yukon. The Phase 1 diamond
drilling will continue to add gold ounces on the Company’s AurMac Property and will also include
broader Property wide evaluation programs including the Aurex Hill gold showings.
“Banyan has proven it’s ability to efficiently and cost effectively build gold ounces through the
application of clear geologic principles, and we intend to continue to do just that at AurMac this
season.” stated Tara Christie, President and CEO. “The Resource model s that ha ve been
developed at Airstrip and Powerline both highlight the potential for expansion through systemic
drilling. We feel this drill campaign will meaningfully increase gold ounces and demonstrate the
higher grades that AurMac offers. Moreover, we will further the application of the AurMac Geologic
model throughout this large Project , with our Banyan ‘ boots on the ground ’ style exploration
efforts."
A video version of this press release can be found at:
https://www.youtube.com/watch?v=WPABvlSvH_8.
The 2020 diamond drill program will establish Banyan’s COVID working safety procedures for
further drilling campaigns and planned regional exploration over the 92 km2 AurMac property.
On May 25, 2020, Banyan Gold announced an Initial Mineral Resource Estimate at AurMac
comprised of the Airstrip and Powerline deposits that together, contain a total Inferred Mineral
Resource1 of 903,945 ounces of gold prepared in accordance with NI 43 -101, on these near
surface, road accessible deposits 1
1 The Initial Mineral Resource Estimate for the AurMac Property was prepared by Marc Jutras, P.Eng., M.A.Sc.,
Principal, Ginto Consulting Inc., an independent Qualified Person in accordance with the requirements of NI 43-101.
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 gold 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 reported at a cut-off grade of 0.2 g/t Au, using a US$/CAN$ exchange rate of 0.75 and constrained
within a 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 slope2
Detailed images of the Mineral Resource model, including an interactive 3D model and additional
information can be found at: https://www.banyangold.com/projects/aurex-mcquesten/
About the AurMac Property
The AurMac Property is held by the Company under earn -in option agreements (the “Option
Agreements”) with StrataGold Corporation, a 100% owned subsidiary of Victoria Gold Corp. (TSX:
VGCX) (“Victoria Gold”) and Alexco Resource Corporation (TSX: AXR) (“Alexco”). The Company
has the right to earn up to a 100% interest in the AurMac Property, subject to royalties, pursuant
to the terms and conditions of the Option Agreements.3
The Airstrip and Powerline deposits contained within the AurMac Property are both on and near-
surface deposits and potentially open pit mineable, with expected low strip ratios. The AurMac
Property is located just 40 km from Victoria Gold’s open pit, heap leach mine and 10 km from
Alexco’s mill facility at the High -Grade silver deposits of the Keno Hills District. The AurMac
Property lies on existing transportation infrastructure (Main Yukon Government Highway System)
and the all-season road to Victoria Gold’s Eagle Mine. The Airstrip and Powerline deposits are
2 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.
3 Refer to Press Releases of the Company dated December 13, 2019, July 9, 2019 and May 25, 2017 for further
details regarding the Aurex Option Agreement and McQuesten Option Agreement.
within 1 km of each other and both within 50m of year -round access roads, have 3 -phase
powerlines and benefit from cellular communications.
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.
Issuance of Stock Options
The Board of Directors of the Company announces the issuance of 950,000 stock options to
purchase 950,000 shares at an exercise price of $0.12 cents per share, expiring 5 years from the
date of the grant.
The stock options are being issued to field crew related consultants and officers of the Company.
The options were granted under and are subject to the terms and conditions of the Company's
stock option plan.
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 have existing Mineral Resources that fit this model
and our objective is to increase shareholder value by advancing projects in our pipeline.
The 9,230 ha AurMac Property lies in close proximity to both Victoria Gold's Eagle Project and
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 mineralization 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 powerline, 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.
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. Details in News Release dated May 25, 2020 and technical report pending.
3. 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 gold markets or other relevant issues.
4. 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.
5. Mineral Resources are reported at a cut-off grade of 0.2 g/t Au, using a US$/CAN$ exchange rate
of 0.75 and constrained within a open pit shell optimized with the Lerchs -Grossman algorithm to
constrain the Mi neral 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 slope4
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, intrusion related gold deposit,
with a large land package (over 125 sq. km), with the Mineral Re source 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 open pit mining, with column leach
recoveries of 86%. The project has an existing gravel access road.
The Hyland Main Zone Indicated Mineral Resource Estimate4, prepared in accordance with NI
43-101, at a 0.3 g/t gold equivalent cut-off, contains 8.6 million tonnes 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.
4 NI 43-101 Technical Report for the Hyland Gold Project by Prepared By: Robert C. Carne, M.Sc., P.Geo., Carvest
Holdings Ltd., Allan Armitage, Ph. D., P. Geol., - SGS Canada Inc., Paul D. Gray, P.Geo. - Banyan Gold Corp. dated
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 is 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.
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]
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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,
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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 failur es to obtain required
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of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuat ions in
commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and
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preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on
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