Banks Island Gold Ltd.
TSX VENTURE : BOZ

Banks Island Gold Ltd.

January 24, 2012 17:00 ET

Banks Island Gold Ltd. Announces Closing of Flow-Through Common Share Financing and Reports Drill Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 24, 2012) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Banks Island Gold Ltd. (the "Company") (TSX VENTURE:BOZ) announces that further to its news releases of January 18, 2012 it has closed a non-brokered private placement of 471,000 flow through common shares at a price of $0.55 per share for gross proceeds of $259,050. The Shares are subject to a hold period expiring at midnight on May19, 2012.

The Company intends to use the net proceeds of the Non-Brokered Offering to continue exploration and development activities on its Yellow Giant Gold Property located on Banks Island in British Columbia.

The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "1933 Act"), or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from the registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.

The Company announces that it has terminated its Investor Relations Agreement with Advanture Capital Partners Inc. effective January 17, 2012.

The Company also announces that it has received the remaining assays from diamond drilling completed in December 2011. Drillhole BIG-11-09 was drilled in the Tel Central Zone and Drillholes BIG-11-18 to BIG-11-21 were focused near surface on the periphery of the Tel Main Zone. Significant assays are displayed in Table 1.

Table 1 - Significant Mineralized Intersections

Hole From (m) To (m) Core
Interval (m)
Estimated
True
Width (m)
Au (gpt) Ag (gpt) Zn (%)
BIG-11-09 87.00 88.89 1.89 1.43 9.1 57 1.0
BIG-11-18 24.16 25.12 0.96 0.73 16.0 48 3.0
BIG-11-19 24.35 24.75 0.40 0.30 5.2 19 1.3
BIG-11-20 29.08 29.53 0.45 0.34 19.0 27 0.1
BIG-11-21 28.23 29.9 1.67 1.27 8.5 10 0.3

Dr. Dirk Meckert, PhD, P.Geo., is the qualified person who reviewed and approved the contents of this news release.

Analytical work was carried out by AGAT Laboratories Ltd. in Mississauga, Ontario. Quality assurance and quality control programs include the use of analytical blanks, standards, and duplicates in addition to the lab's own internal quality assurance program. Samples are fire assayed with an ICP-EOS finish to determine gold values. Samples containing greater than 10 g/t gold are fire assayed with a gravimetric finish.

The Company is a junior mining resource exploration company focused on exploring for and developing economically viable mineral resources. The Company's mineral property is located on Banks Island in British Columbia. For more information, please refer to the Company's website at www.banksislandgold.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Benjamin W. Mossman, P.Eng., President, Director, & Chief Executive Officer

This press release contains forward-looking statements. All statements, other than statements of historical fact, constitute "forward-looking statements" and include any information that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future including the Company's strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance.

Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology. These statements, however, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed, implied by or projected in the forward-looking information or statements. Important factors that could cause actual results to differ from these forward-looking statements include but are not limited to: risks related to the exploration and potential development of the Company's project, the actual results of current exploration activities, conclusions of economic evaluations, changes in project parameters as plans continue to be refined, future prices of gold, as well as those factors discussed in the sections relating to risk factors of the Company prospectus dated September 30, 2011 filed on SEDAR.

There can be no assurance that any forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. Except as required by law, the Company does not intend to revise or update these forward-looking statements after the date of this document or to revise them to reflect the occurrence of future unanticipated events.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this release. Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Banks Island Gold Ltd.
    Benjamin W. Mossman, P.Eng.
    President, Director, & Chief Executive Officer
    604-245-0066
    www.banksislandgold.com