Banyan Gold (BYN) - Every Drill Hole Mineralised. 15,000m planned 2021

Banyan Gold is an exploration company founded in 2010, headquartered in Calgary, Canada. The company is focused on value-driven acquisition, discovery, and development in the mining industry. The company is currently working on 2 major projects, based in Yukon, Canada, namely the Aurex-McQuesten Gold Project and the Hyland Gold Project.

We met with Tara Christie, CEO, Banyan Gold. Christie has over 2 decades of experience in the mining and exploration industry, working with various industry giants. She has been the CEO at Banyan Gold since 2016. She possesses B.Sc. and M.Sc. degrees from the University of British Columbia.

Christie has also been a founding member of the Yukon Environmental and Socio-Economic Assessment Board. She also dedicates her time to charities and non-profit organizations. She is a large shareholder in Banyan Tree and within 2020, she invested twice her salary into the company, demonstrating her unwavering confidence in the company.

Company Overview

Banyan Gold is currently concentrating all its resources on the ongoing AurMac (Aurex-McQuesten) project based in Mayo, Yukon. This site neighbors Victoria Gold's mining and exploration operations.

Their production capacity at AurMac stood at an impressive 900,000oz in Q1/20. Ever since, Banyan Gold has drilled an additional 10,000m, along with additional drill plans as part of the first phase. It's important to note that the company has already managed to drill 6,000m out of the 15,000m target in 2021.

The Hyland Gold Project

The Hyland Gold Project holds the potential for a multi-million oz deposit. This project is surface heap leach mining ready along that provides up to 85% recoveries from oxide.

This site is known as the "Main Zone" and it has an indicated mineral resource of 8.6Mt with a gold equivalent of 0.85g/t for 236,000oz AuEq along with a projected mineral resource of 10.8Mt at 0.83g/t for 288,000oz.

The Aurex-McQuesten Gold Project

The Aurex-McQuesten Gold Project is spread across an area of 9,230ha and is a structurally controlled gold-silver mineralization. Banyan Gold acquired the property in 2017 and spent 2 years on re-logging core, working on the geological model, running tests, and analyzing results.

The property features several gold targets, and Banyan Gold's target lies near the main Yukon highway. It features a 3-phase power line, a Yukon Energy Corp. switching power station, and cell phone coverage, which greatly facilitates the exploration and planning.

The Powerline area is currently being explored, a blind discovery made possible through the company's geological model. Located near Aurex Hill, this 10km area features gold and arsenic anomalies. The existing 1.2km strip was further extended by 300m, leading to additional 774,000oz deposits.

The results of initial drilling have been promising as it's open in all directions and depth. Through 40m deep RAB drill holes, mineralization was revealed over a 2.5km area. Samples discovered range from 1g/t at 20m, 1g/t at 40m, and 1.36g/t at 41m, along with 0.7g/t at 122m. This opens up the potential to add significant ounces to the existing output.

Snow-covered ground further helps the company with sustainable extraction with minimal disturbance to the natural surroundings. As of May 2021, they have managed to drill 6,000m out of the 15,000, target, outdoing the neighboring competition.

Working Through Unforeseen Challenges

Amidst the Covid-19 restrictions, Banyan Gold managed to keep a single drill in operation between June and December 2020. It was able to drill 10,000m which helped in the development of the geological model. The company resumed drilling operations in February 2021.

Yukon, being a remote jurisdiction had a significantly lower impact on the ongoing movement restrictions due to the pandemic. The company prioritized the safety of its crew and the local community. As the vaccination drive in Yukon continues to grow, the ease of carrying out daily operations is bound to improve.

Association with Victoria Gold

Banyan Gold is looking at a production of 2Moz to consider the Yukon site economically viable. This is based on the feasibility study and economics of Victoria Gold's project located nearby. Victoria Gold is an 8% shareholder in the AurMac project.

Based on Victoria Gold's findings, Banyan Gold is expecting a similar low strip ratio along with an open-pit heap leach mining operation. Banyan Gold plans to run a PEA (Preliminary Economic Assessment) before moving to the next phase of the project. As of now, they have started the baseline environmental work along with the water quality testing.

The benefit of neighboring mines has helped Banyan Gold factor in better estimates of costs, infrastructure, and deposits. Furthermore, the Yukon government has announced $63M towards improving the roads in the area, along with a planned highway in the next year.

Investments, Allocations, and Discoveries

Banyan Gold was able to raise an additional $2.5M in December 2020. The company started 2021 with liquid assets amounting to $5.8M, out of which $4.5M has already been allocated for the 15,000m exploration.

As per their latest press release on the metallurgy, it was revealed that Banyan Gold discovered 90% leachable gold from oxide and sulfide, which is an exceptional mine recovery ratio. The company plans to publish its drill results and 3D models on its website to further support the discovery.

The exploration cost of this resource stands at $2oz. The company aims to deliver resources at a sub-$10 cost with the preferred cost within the $5oz-$6oz range. The company is currently aiming at 2Moz of annual production.

Banyan Gold had a good 2020 and is gearing up for an even better 2021. 

To find out more, got to the Banyan Gold Website