Banks Island Gold Ltd.
TSX VENTURE : BOZ

Banks Island Gold Ltd.

March 09, 2012 08:30 ET

Banks Island Gold Ltd. Reports Drill Intersection of 51gpt Gold (1.48oz/ton) Over 3.0m

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 9, 2012) - Banks Island Gold Ltd. (TSX VENTURE:BOZ) -

  • High-grade gold encountered in multiple holes at the Tel Zone.
  • Intersections illustrate potential for expansion of high-grade resource at depth.

Banks Island Gold Ltd. (the "Company") announces that it has received assay results for nine diamond drillholes (1,923m) completed at the Tel Zone in February 2012.

Diamond drilling focused on expansion of the current resource at the Tel Zone. Highlights from the recent drilling include intercepts of 50.8gpt Au, 43gpt Ag over 3.0m in drillhole BIG-12-29 and 26.5gpt Au, 13gpt Ag over 2.5m in drillhole BIG-12-32. Significant mineralized intersections 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)
BIG-12-29 210.00 212.95 2.95 2.09 50.8 43
BIG-12-32 201.00 203.50 2.50 1.78 26.5 13
BIG-12-33 91.50 93.00 1.50 1.07 13.7 39
BIG-12-34 68.08 68.84 0.76 0.54 4.8 5

Drillholes BIG-12-29 and BIG 12-32, drilled at angles of -45°, intersected the mineralized zone below the current resource at the Tel Central Zone at a depth of 145m below surface. At this depth, the mineralized zone was intersected further into the footwall than expected, which may be related to a change in dip of the Tel Zone structure at depth or movement by faulting.

Mr. Mossman, CEO of the Company, stated; "Recent drilling at the Tel Zone illustrates the potential for expansion of the current high-grade resource to depth. The Company plans to drill additional holes to test the Tel Zone at depth after evaluation of the recent drill results is completed."

A 3.5m zone of weak and broken ground was encountered in the immediate hanging-wall of the mineralized zone, from 206.5m to 210.0m in drillhole BIG-12-29, resulting in near total core loss and an inability to sample that portion of the Tel vein.

Drillhole BIG-12-33 was designed as a resource definition hole for the Tel Central Zone at a depth of 60m below surface and BIG-12-34 tested the Tel Main Zone below the current resource at a depth of 40m below surface.

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 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