Banyan Gold (TSX-V:BNY, OTC: BYAGF) produced superb metallurgical test results from its flagship AurMac Project in the Yukon. The results are pretty self-explanatory and I will quote from the release:
- Gold recoveries from this work demonstrate strong heap leach kinetics and there appears to be no correlation between sulphide content and gold recovery
- Bottle roll test work indicates rapid leach kinetics and favorable recoveries in the oxide and sulfide zones of the AurMac Deposits
- Ultimate extraction recoveries for gold were generally greater than 80%, and as high as 96%
- Ten (10) Airstrip Zone samples achieved extraction for gold that ranged from 80% to 96% and averaged 90%
- Five (5) Powerline Zone samples achieved extraction for gold that ranged from 86% to 92% and averaged 89%
These results are well beyond my expectations and I had been conservatively using an average recovery of 70% in my personal AurMac model. Metallurgy doesn't usually get investors excited, however, it is one of the most critical aspects of any mineral deposit. Metallurgical issues can kill an otherwise exceptional ore body, and straightforward metallurgy with high recoveries can turn what might appear to be an ordinary project into a profitable mine.
"We are very pleased with these metallurgical results from AurMac which have exceeded our expectations with an average recovery of 90%. The results validate the potential for an open-pit, heap leach operation, with high recoveries from oxide and sulphide ore. Drilling is ongoing, rapidly expanding the mineralized footprint at Powerline." ~ Banyan Gold CEO Tara Christie
Banyan is methodically demonstrating that AurMac is well on its way to becoming a large-scale open-pit heap leach mining operation, very much like Victoria Gold's nearby Eagle Gold Mine.
As of May 2, 2021, Banyan has completed over 26 drillholes for more than 5600 meters on the Powerline Zone of the AurMac property with two drills currently operating. News flow will continue to be steady with batches of drill results expected roughly every 2-3 weeks for the next several months.
Banyan is significantly expanding the mineralized footprint of the Powerline Zone and this zone remains open in all directions:
Banyan continues to intersect gold in every hole reported in the current phase of drilling and 100 meter step-outs to to the south and east at Powerline have actually demonstrated improving grades and widths. I believe that Powerline will be expanded to at least a 500,000 ounce gold resource by the end of this phase of drilling, potentially more.
Banyan has explored smaller than a postage stamp size area of its property at AurMac, and the company has already generated considerable success with substantial room for expansion. The Banyan story is just beginning to catch its stride and while the market has been sleeping on it for months, I don't expect this dormancy to last much longer.
I am buying shares at the market open this morning and my 2021 price target for Banyan Gold is a conservative C$.50 per share. The primary risk to my bullish case on Banyan would be a big decline in the gold price and sentiment on gold juniors going into a deep freeze.
Disclosure: Author owns BYN.V shares at the time of publishing and may choose to buy or sell at any time without notice.
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