Banyan Gold (BYN) - $16M; Additional Drills & Planning Long Drill Season

We recently caught up with Tara Christie, President and CEO of Banyan Gold, in a most unusual setting: the core shed at the company’s flagship Aurex-McQuesten (AurMac) Project in the Canadian Yukon. She shared with us some news about the project. 

Overview of Banyan Gold

Banyan Gold, established in 2010, is a junior gold explorer based in Whitehorse, Yukon Territory, Canada. They are currently focused on two projects, AurMac, as well as the Hyland Gold Project, also in Yukon Territory.

The company has a market capitalization of over $63,000,000. There are 181,447,339 shares outstanding.

Management Team

In addition to Tara Christie, management also includes David M. Rutt as CFO, and Paul D. Gray as Vice President of Exploration. Management is assisted by a four-person board of directors. 

Recent Corporate Financing

In late July 2021, Banyan announced the closing of an $11.9 M financing in the form of a private placement. This funding represents the first tranche of a total of $16 M. The company intends to use a large part of this funding to advance additional diamond drilling, geotechnical drilling, metallurgical test work, and environmental baseline data collection in preparation of a planned preliminary economic assessment (PEA) study at AurMac. 

Christie indicated that they got a fairly large amount because these private investors wanted a big chuck of the project. Most of the money will actually be spent in the ground, working up the ounces. The current 2021 program is targeting 2 M oz. 

AurMac at a Glance

The AurMac Project consists of 506 mineral claims totaling an area of approximately 9,230 hectares and is located in the Mayo Mining District of Yukon Territory, within the traditional territory of the First Nation of Na-Cho Nyak Dun. The area has a rich mining history, some of which dates back as far as the Klondike Gold Rush in the late 1800s. Banyan acquired the AurMac property in 2017 and holds a 100% interest. 

Gold is associated with skarn rocks and intrusive granitic dikes that are related to an intrusive emplacement during the Cretaceous. The gold is associated with pyrite, arsenopyrite, and pyrrhotite mineralization. There are several main areas within the aggregate landholdings on which the company is focused: the Powerline Zone, the Airstrip Zone and Aurex Hill.

At last estimate, The AurMac Project had an indicated and inferred (NI-43-101) mineral resource of 52.6 million tonnes grading 0.535 g/t gold at a 0.2 g/t Au cut-off.  This resource is located in the Airstrip and Powerline zones, is open in all directions and at depth. 

Christie believes that the AurMac Project as a whole has the potential to reach 3 to 5 M oz. of gold. At the moment, they are envisioning a conventional open-pit and heap-leach mine. Synergy is likely with two working gold projects on adjacent acreage. 

What’s Going On in the Core Shack?

It’s a very busy time on site. The CEO was speaking to us while examining the freshly cut core. The team was busy describing and logging the core. They can see visible gold in the cores, which is quite exciting. Some in the precious metal exploration business don’t get to see visible gold in the rocks that they are exploring. 

What’s even more important than seeing visible gold is the quality of the intercepts they have been acquiring. Every hole has been hitting mineralization. One core has recently come in at 186 m at 0.75 g/t.  Any value above 0.15 is economically mineable in this area.

Drilling at AurMac

Banyan is rapidly advancing the AurMac project and has two rigs working now.  They work 24 hours a day, divided into 2 twelve-hour shifts, barring any mechanical issues. There is tremendous competition now for experienced drill hands in Yukon Territory. In addition, COVID has had a big impact on their operations and costs. 

If it’s anything like last year, drilling will be possible well into December. The core shacks are insulated and they’ll be working late into the season even when winter comes on.

Banyan, Alexco and Victoria: A Tale of Three Companies

The AurMac Gold Project was optioned in 2017 from Victoria Gold Corp. and Alexco Resource Corp., respectively. Banyan holds the right to earn a 100% interest in the properties subject to royalties. When Christie acquired the AurMac properties, everybody knew there was likely mineralization right around the property boundary. Banyan has now confirmed that. 

All three companies share a common, science-based exploration philosophy. They have a mutually collaborative business relationship. For example, they shared core loggers, geologists, and, until COVID hit, site accommodations.  

In order for Banyan to earn into the option, they have a few items that they still need to do. They must make another payment of either cash or shares to both Alexco and Victoria and they have to complete a PEA or PFS to earn 100% on the property. Banyan has five years to complete all of that. Christie believes that the company is well ahead on that earn-in.

Looking Ahead

Christie asks that investors stay tuned. There should be quite a bit of news flow coming in the fall.

To find out more, go to the Banyan Gold Website