Enthusiasm for Banyan’s AurMac Project on the Rise
Banyan Gold (TSX-V: BYN / OTCQB: BYAGF) is rapidly advancing their resource - in the heart of the New Yukon Gold Rush. Their flagship AurMac property sits right in the heart of the prolific Tombstone Gold Belt, and early estimates indicate a resource of about 4 million ounces. That’s a good initial number, but the Banyan team is aiming even higher.
“This region is very prolific in mineralization,” Tara Christie, President & CEO of Banyan Gold shared. “It’s a really large, intrusive system that stretches from Alaska all the way through the Yukon. It forged Victoria Gold (TSX-VGCX), and helped propel other notable companies like Kinross (TSX: K / NYSE: KGC) that have deposits in the Tombstone intrusive belt. We think AurMac, around the Powerline, Aurex Hill and Airstrip targets has the potential to be another Tier-One asset of six million plus ounces. This is a very large system, and we're in an exceptional location within it.”
Robert Sinn, Senior Analyst for Energy & Gold, also sees the potential of this fertile region.
“The Yukon is a Tier-One jurisdiction for mining. It's rated by the Fraser Institute to be in the top ten in the world. It's a pro mining area that includes a fully permitted gold mine.”
So far, Banyan has drilled over 155 holes and has released results from 45 of them that show continued resource growth. Now the company is positioned to drill an additional 60,000 meters with funding they have already secured.
“Probably less than 5% of this property has had meaningful modern exploration,” Christie estimated. “We know we have 16 ½ kilometers of strike of similar lithology and geophysics and soil anomalies that potentially could show that this deposit is much larger.”
Banyan’s aggressive drill program in the coming months will be made easier due to the existence of infrastructure in and around the project. The AurMac property benefits from exceptional infrastructure. It has a main highway that runs right through it. It has year-round maintained government roads, a recently reconstructed power line that goes to the hydroelectric dam near Mayo and cell phone service on the property. AurMac also benefits from low rolling topography. It doesn’t have any difficult mountains or high relief, which is a huge advantage.
“In some areas of the Yukon, if you don't have the benefit of roads and power, safety becomes an issue if you're working in cold temperatures,” Christie said. “We have roads, power, and cell phone service, so we can safely operate continuously through the winter.”
Another reason behind the quick advancement of the AurMac project is the company’s strong balance sheet and a core group of committed investors, in particular, Victoria Gold, a significant gold producer in the region. They invested in Banyan because they saw real potential. “They’re looking at geology, and that really validates us,” Christie confirmed. “The Franklin Gold and Precious Metals Fund is another shareholder at 9.8%. They’ve been shareholders long-term and really believe in the market. We now have over 18% institutional money, which is good sticky money. And, I’ll add that our management team also has very significant ownership, including myself, at 4%. That's a pretty significant position.”
That fact is music to the ears of analyst Robert Sinn, “As an experienced investor, one of the first things that I look for in any CEO is skin in the game, and Tara Christie has done exactly that. Being a regular buyer of Banyan shares on the open market and participating in every company financing in the last eight years. Christie’s recent investments are a clear sign of her confidence in the company.”
Christie should know a good opportunity when she sees one. She was born and raised in the Yukon and grew up placer mining with her father. She later studied mining in university and is now a technical expert on hard rock mining exploration.
Looking ahead, Banyan’s remaining 2022 exploration will be focused on growing the Powerline and Aurex Hill deposits at the AurMac project. “We were very excited about the resource at Powerline because the mineralization starts right at surface,” Christie said. “It has a very low 1 to 0.34 strip ratio. That's exceptional. This resource is growing so quickly, it's really a unique asset.”
Robert Sinn also sees potential economic benefits to the AurMac project, “Banyan is so close to Victoria Gold that it creates a lot of potential for synergies. One mine could produce 200,000 ounces of gold a year. If they add on another six million ounces, then it could suddenly go to 400,000 or 500,000 ounces a year. With more scale you get the potential for more profit per ounce.”
Add it all up, and Sinn is inclined to believe there is a good possibility that a larger mining company could be interested in acquiring Banyan at some point over the next couple of years. Regardless of what happens, the enthusiasm for the AurMac project should continue to grow.
For more information on Banyan Gold Corp. (TSX.V: BYN, OTCQB: BYAGF) please click the investor request info button.
FULL DISCLOSURE: Banyan Gold Corp. is a client of BTV-Business Television. This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. Any action taken as a result of reading information here is the reader’s sole responsibility.