The AurMac Gold Project (formerly the Aurex-McQuesten Gold Project) (the “Project” or the “Property”) is located in the Mayo Mining district, approximately 56 kilometres northeast from the village of Mayo and 356 kilometres north of Whitehorse, within the traditional territory of the First Nation of Na-Cho Nyak Dun (NND). The Aurex claim block was acquired from Victoria Gold Corp. and the McQuesten claim block Project was acquired from Hecla Mining Company with Banyan having the right to earn up to a 100% interest subject to royalties. (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).
The AurMac Project has a National Instrument 43-101 Technical Report (NI-43-101) indicated inferred mineral resource of 52.6 million tonnes grading 0.535 gram per tonne gold at a 0.2 g/t Au cut-off. This resource is located in located in two zones, the Airstrip and Powerline zones, is open in all directions and at depth, and has the potential to host a multi-million ounce deposit*.
The Project consists of 506 active Yukon registered quartz mineral claims totaling over 9,230 hectares. The Pro is easily road accessible with the all-weather Silver Trail Highway that transects the mineral claims as well as a network of four-wheel drive roads and trails that accesses the Property. Additionally, a three-phase power grid line exists on the Property.
The Project has a rich history of exploration and mining dating back to the beginning of the 1900s. Historically, there has been intense silver exploration, development, and mining for over 100 years at the nearby Keno and Galena Hill. The earliest prospecting activity for gold began as early as 1898, shortly after the Klondike gold rush.
The Property lies in the northern of the Selwyn Basin, and it is underlain by the meta-sedimentary rocks of Devono-Mississippian Earn Group and by the metaclastic rocks of the Late Proterozoic Yusezyu Formation of the Hyland Group, respectively. In the McQuesten area, local narrow granitic dykes commonly intrude the metaclastic rocks and are of probable Cretaceous age, related to the Tombstone Intrusive Suite. Gold mineralization is associated with gold bearing skarns and intrusive granitoid dykes. Regionally, the Tombstone Plutonic suite rocks are spatially and genetically associated with a range of precious and base-metal occurrences including the intrusion-related Eagle Gold Project of Victoria Gold at Dublin Gulch. Since acquiring the Project in early 2016, the Company has identified new target areas to the East based on anomalous gold soil geochemistry and several, significant gold-bearing skarn horizons that have not been previously drill-tested.
- The effective date for the Mineral Resource is May 25, 2020 and was estimated by independent QP Marc Jutras, P. Eng.
- 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
- 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.
- Mineral Resources are reported at a cut-off grade of 0.20 g/t Au, using a US$/CAN$ exchange rate of 0.75 and constrained within an 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$1.5/t mining cost, US$2.00/t processing cost, US$2.50/t G+A, 80% heap leach recoveries, and 45˚ pit slope.