Piedmont Lithium’s proposed chemical plant shows exceptional economics

Piedmont Lithium Limited [PLL-ASX, NASDAQ] reported the results of its pre-feasibility study (PFS) for its proposed lithium hydroxide chemical plant in Kings Mountain, North Carolina, USA. The PFS assumes a stand-alone merchant chemical plant that would convert spodumene concentrate purchased on the global market to battery-grade lithium hydroxide at a production rate of 22,700 tonnes per year. Spodumene is the hard rock mineral of lithium.

• Merchant Project post-tax NPV8 of US$714 million and post-tax IRR of 26%
• Integrated Project post-tax NPV8 of US$1.1 billion and post-tax IRR of 26%

The Piedmont Lithium Project is located within the world-class Carolina Tin-Spodumene Belt (TSB) and along trend to the Hallman Beam and Kings Mountain mines, historically providing most of the western world’s lithium from the 1950s through the 1980s. The TSB has been described as one of the largest lithium regions in the world and is located approximately 25 miles west of Charlotte, North Carolina.

Concurrently, Piedmont has updated the scoping study for its integrated mine-to-hydroxide project to reflect the updated chemical plant PFS. Both studies confirm that Piedmont will be a strategic and low-cost producer of battery-grade lithium hydroxide. Piedmont benefits from access to the exceptional infrastructure, low operating costs and low corporate taxes enjoyed by American industrial companies.

The chemical plant would create an alternative to the numerous merchant spodumene converters currently operating in China and dominating the world lithium hydroxide market, thus providing US and European automotive companies a secure and independent American source of the lithium hydroxide required for their supply chains.

The chemical plant PFS demonstrates the economic benefit of developing a lithium chemical business in North Carolina with its exceptional infrastructure, low operating costs and competitive tax regime.

A total of 80% of the world’s lithium hydroxide is produced in China, largely by non-integrated ‘merchant’ producers sourcing spodumene concentrate from Western Australia. As global automotive companies electrify their fleets, we expect them to increasingly seek ex-China sources of lithium supply, and North Carolina is ideally-positioned to benefit given its proximity to major auto markets in the US and Europe, and the deep lithium talent pool resident in the region.

Keith D. Phillips, President and CEO, said, “Piedmont will now advance the chemical plant through the permitting and definitive feasibility processes, providing us the option to move aggressively on either a merchant or integrated basis toward first lithium production in 2023 as the transition to electric vehicles begins to seriously take hold.”

Manitou Gold drills 5.0 g/t gold over 4.6 metres at Goudreau

Manitou Gold Inc. [MTU-TSXV; MNTUF-OTC] announced initial drill results from the Rockstar Vein at its 100%-owned Goudreau Project in the Sault Ste. Marie Division, northern Ontario. The drill program was aimed at testing a higher grade mineralized “shoot” down-plunge of previous drilling.

Drill highlights from the first three holes at Rockstar, which intersected 5.0 g/t gold over 4.6 metres (including 11.1 g/t gold over 1.2 metres), demonstrate an increase in both thickness and grade of the vein at depth. The Rockstar Vein is open to the east and additional down-plunge drilling in that direction is ongoing.

Exploration Drilling

The Rock Start Vein drilling is following up on surface channel sampling completed in 2019 which indicated that the vein averages 3.0 g/t gold over an average width of 1.5 metres (apparent width) where it was exposed by mechanical stripping over a strike length of 100 metres.

The first three drill holes at Rockstar tested the down-plunge extension of the vein at a vertical depth of approximately 170 metres. The three most recently completed holes were drilled over a strike length of approximately 100 metres below drilling completed by the previous operators. Two of the drill holes encountered typical Rockstar alteration, mineralization and deformation extending the zone at depth, with hole MTU-20-16 showing an increase in thickness and grade of the mineralized zone relative to the mineralized zone on surface and in previous, shallower drilling.

Hole MTU-20-16 intersected a broad shear zone over 15 metres, which included the mineralized zone that returned 5.0 g/t gold over 4.6 metres, including the 1.2 metres of 11.1 g/t gold noted above. True widths are estimated at 70% to 90% of the drilled thickness.

Hole MTU-20-20, which was drilled 50 metres along strike to the east-southeast, also intersected the mineralized zone, where it returned an assay of 3.78 g/t gold over 0.4 metres. The mineralized zone in this hole is terminated abruptly against a wide lamprophyre dike that has cut off part of the zone at this location.

“We are pleased by the wide gold intercept reported today and are encouraged by the down-plunge continuity of the Rockstar vein confirmed by this drilling. We look forward to the receipt of assays from additional holes testing further down plunge of the holes reported today,” stated Richard Murphy, President and CEO of Manitou.

At the Patents nearby property, part of the Goudreau Project, the company previously completed four drill holes totaling 458 metres that were designed to test a shallow IP and SGH anomaly. The drilling at the Patents property was the first drilling to be conducted on the property and led to the discovery of a wide mineralized shear zone with laminated shear-type quartz veins near its core.

Highlights from this drilling included 12.8 g/t gold over 0.5 metres. The same deformation and mineralization trend was recognized in all four drill holes. Although high-grade in places, the trend is challenging to quantify due to the erratic nature of the gold mineralization. Future exploration will focus on delineating higher-grade and more continuous portions of this deformation and mineralization trend, in addition to drilling other geophysical targets on the property.

G2 Goldfields drills 10.6 g/t gold over 4.8 metres at Oku-Aremu

G2 Goldfields Inc. [GTWO-TSXV; LGDRF-OTC] reported further high-grade drill intercepts from the Oko-Aremu Project in Guyana, South America. The 19,200-acre project hosts multiple shafts, pits and zones of mineralization including the historic past producing Aremu mine. G2 has identified multiple areas of anomalous mineralization over 15 km trending southeast from the Aremu mine, with the Oko deformation zone (ODZ) lying at the southeast end of the trend. Since November, 2019, the company has completed a total of 46 holes (9,350 metres) in the ODZ, establishing an initial 1-km strike length of mineralization. All other drill targets at the Oko-Aremu district remain untested.

Diamond drill holes OKD-34 and -35 were drilled to expand the strike length of the main ODZ zone, with the holes collared 125 metres (OKD-34) and 225 metres (OKD-35) north of previously reported OKD-28 (6.9 metres at 5.1 g/t gold and 2.2 metres at 30.8 g/t gold). Both holes intercepted multiple zones of mineralization with visible gold (VG).

Hole OKD-34:

• 1.3 g/t gold over 4.0 metres (seven to 11);
• 2.8 g/t gold over 5.7 m (136.9 to 142.6) VG;
• 8.1 g/t gold over 0.5 m (166.5 to 167) VG.

Hole OKD-35:

• 2.2 g/t gold over 25.0 m (16.5 to 41.5);
• 10.6 g/t gold over 4.8 m (170.7 to 175.5) VG.

True horizontal widths of mineralization on each hole vary between 58 and 85% of reported core lengths.

Holes OKD-34 and -35 confirm that the main gold zone at the ODZ remains strongly mineralized and open to the north and at depth. Additionally, a new near-surface structure has been discovered in hole OKD-35, where drilling intercepted 25 metres grading 2.2 g/t gold from 16.5 metres downhole.

Dan Noone, CEO, stated: “We continue to be delighted with the predictability, continuity and grade of the Main zone within the ODZ, which we have now intersected in drilling over a strike of 720 metres.

“Also, the broad zone of near-surface mineralization in OKD-35, once again displays the potential for the development of parallel zones of significant mineralization on either side of the Main Zone.

“Further drilling to the north and south, following the trend defined by surface geochemistry, should allow us to continue to expand the current limits of the mineralization as defined by drilling to date.”

Noone added, “As G2 continues to refine the geological model of the 15 km long Oko-Aremu district, we are coming to terms with the scale of the system we are exploring. Much work lies ahead to realize the full potential of this emerging high-grade gold district. The addition of a second drill rig and the expansion of our geological team allows us to double our efforts expanding the known mineralization at the ODZ and hasten the exploration of numerous gold occurrences throughout the district.”

Two drill rigs operational

G2 Goldfields confirms that two rigs are currently drilling 24/7 on the ODZ. One rig is committed to exploring the ODZ at depth while the second is focused on expanding the strike length of mineralization.

G2 Goldfields is focused on the discovery of large gold deposits in the Guiana Shield. The company owns a 100% interest in two past gold producing mines, as well as a regional portfolio of highly prospective projects.

Banyan Announces 903,945 Gold Ounce Initial Mineral Resource Estimate for the Aurmac Property, Yukon, Canada

Banyan Gold Corp. [TSX-V: BYN] is pleased to announce an Initial Mineral Resource Estimate in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition ‎Standards incorporated by reference in National Instrument 43-101 (“NI 43-101”) for the Aurex ‎and McQuesten properties (together, the “AurMac Property”)‎[1] ‎located in the Mayo Mining ‎district, approximately 56 kilometres northeast from the village of Mayo, Yukon and 356 ‎kilometres north of Whitehorse, Yukon. ‎

The Initial Mineral Resource Estimate comprises a total Inferred Mineral Resource of 903,945 ‎ounces of gold on the near surface, road accessible AurMac Property.

This pit constrained Mineral Resource is contained in two near/on-surface deposits: The Airstrip and Powerline deposits. The Mineral Resource is summarized below:

Table 1: Pit-Constrained Inferred Mineral Resources at a 0.2 g/t Au Cut-Off – AurMac Property

Deposit Classification Tonnage

Tonnes

Average Au Grade

g/t

Au Content

oz.

Airstrip Inferred 45,997,911 0.524 774,926
Powerline Inferred 6,578,609 0.610 129,019
Total Combined Inferred 52,576,520 0.535 903,945

Notes to Table 1: ‎

  1. The effective date for the Mineral Resource is May 25, 2020.
  2. 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.
  3. 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.
  4. Mineral Resources are reported at a cut-off grade of 0.2 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$1.50/t mining cost, US$2.00/t processing cost, US$2.50/t G+A, 80% heap leach recoveries, and 45° pit slope[2]

“We are excited with the value this initial Mineral Resource estimate generates for our shareholders, particularly given the modest exploration expenditures by Banyan, generating ounces at less than $2 per ounce.  Both deposits are open, with mineralization known to extend beyond the current block model boundaries.” stated Tara Christie, President and CEO. “Further, examination of the Airstrip Mineral Resource model highlights its robust nature; when the cut-off grade is increased by 50%, to 0.3g/t, less than15% of the ounces are reduced; while, the grade increases by more than 20% to an average of 0.65 g/t. Additionally, the deposit model exercise has identified a series of drill targets, which we are confident will meaningfully build upon this initial Mineral Resource.”

A supporting NI 43-101 Technical Report will be filed on SEDAR at www.sedar.com within 45 ‎days of this release.‎

 Detailed images of the Mineral Resource model, including an interactive 3D model and additional information can be found at:  https://www.banyangold.com/projects/aurex-mcquesten/

About the AurMac Property

The AurMac Property is held by the Company under earn-in option agreements (the “Option ‎Agreements”) with StrataGold Corporation, a 100% owned subsidiary of Victoria Gold Corp. (TSX-V: VIT) ‎‎(“Victoria Gold”) and Alexco Resource Corporation (TSX: AXR) (“Alexco”). The ‎Company has the right to earn up to a 100% interest in the AurMac Property, subject to royalties, ‎pursuant to the terms and conditions of the Option Agreements.[3]‎ ‎ ‎

 The Airstrip and Powerline deposits contained within the AurMac Property are both on and near-surface deposits and potentially open pit mineable, with expected low strip ratios. The AurMac Property is located just 40 km from Victoria Gold’s open pit, heap leach mine and 10 km from Alexco’s mill facility at the High-Grade silver deposits of the Keno Hills District. The AurMac Property lies on existing transportation infrastructure (Main Yukon Government Highway System) and the all-season road to Victoria Gold’s Eagle Mine. The Airstrip and Powerline deposits are within 1 km of each other and both within 50m of year-round access roads, have 3-phase powerlines and benefit from cellular communications.

Airstrip Deposit

The Airstrip deposit is delineated by 102 drill holes. Topographic control was from a detailed LiDAR survey dataset.

There are several geologic controls on gold mineralization as per the current geologic understanding of the Airstrip deposit. The Airstrip lithological model is made of seven units mainly oriented east-west, with six of the units dipping at approximately 40°. The bulk of the Inferred Mineral Resources are hosted within the calcareous package, a roughly 90-metre-thick zone that strike east west and dips approximately 35° to the south.

The most common sampling length of the Airstrip deposit is 1.5m, with approximately 40% of the sample data; and composites were constructed at this interval.  Capping of high-grade outliers was based on lithological domains and varied from 0.4 g/t Au to 9.0 g/t Au.

The estimation of gold grades into a block model was carried out with the Ordinary Kriging (OK) technique on capped composites and the resultant block model contains a block size of 5m (easting) x 5m (northing) x 5m (elevation). Density was calculated from a total of 418 measurements from the drill core. The average density per lithology type was assigned to the corresponding blocks.

At a 0.20 g/t Au cut-off, the pit-constrained, inferred Mineral Resources are of 46.0 million tonnes at an average gold grade of 0.524 g/t for a total of 774,926 ounces of gold.  Cut-off grade sensitivities for the Airstrip deposit are presented in Table 2.

Table 2: Pit-Constrained Inferred Mineral Resources – Airstrip Deposit

Au Cut-Off

g/t

Tonnage

Tonnes

Average Au Grade

g/t

Au Content

oz.

0.10 61,300,337 0.430 847,466
0.15 53,264,976 0.476 815,154
0.20 45,997,911 0.524 774,926
0.25 38,397,872 0.583 719,725
0.30 31,869,662 0.647 662,938
0.35 26,516,484 0.712 606,998
0.40 21,676,296 0.787 548,467
0.45 18,151,272 0.857 500,125
0.50 15,513,348 0.923 460,361

Notes to Table 2:

  1. The effective date for the Mineral Resource is May 25, 2020.
  2. 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.
  3. The CIM definitions were followed for the classification of inferred 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.
  1. Mineral Resources are reported at a cut-off grade of 0.2 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$1.50/t mining cost, US$2.00/t processing cost, US$2.50/t G+A, 80% heap leach recoveries, and 45° pit slope

 Powerline Deposit

The drill data for the Powerline deposit is comprised of 15 drill holes. The most common sampling length of the Powerline deposit is 1.5m, with approximately 35% of the sample data. 1.5m was selected as the composite length and is based on the most common sampling length as well as on the envisioned block height of 5m. Capping of high-grade outliers was based on grade distribution domains and ranged from 4.0 g/t Au to 6.0 g/t Au.

The estimation of gold grades into a block model was carried out with the inverse distance squared (ID2) technique on capped composites with the resultant block model containing a block size of 5m (easting) x 5m (northing) x 5m (elevation).

At a 0.20 g/t Au cut-off, the pit-constrained, inferred Mineral Resources are of 6.6 million tonnes at an average gold grade of 0.61 g/t for a total of 129,019 ounces of gold. Cut-off grade sensitivities for the Powerline deposit are presented in Table 3.

Table 3. Pit-Constrained Inferred Mineral Resources – Powerline Deposit

Au Cut-Off

g/t

Tonnage

tonnes

Average Au Grade

g/t

Au Content

oz.

0.10 7,281,920 0.565 132,277
0.15 6,930,115 0.588 131,011
0.20 6,578,609 0.610 129,019
0.25 6,084,687 0.641 125,397
0.30 5,457,139 0.683 119,833
0.35 4,939,191 0.720 114,335
0.40 4,420,295 0.761 108,150
0.45 4,083,388 0.789 103,583
0.50 3,654,322 0.826 97,046

Notes to Table 3:

  1. The effective date for the Mineral Resource is May 25, 2020.
  2. 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.
  3. The CIM definitions were followed for the classification of inferred 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.
  4. Mineral Resources are reported at a cut-off grade of 0.2 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$1.50/t mining cost, US$2.00/t processing cost, US$2.50/t G+A, 80% heap leach recoveries, and 45° pit slope

Quality Assurance, Quality Control Measures and Data Verification

The reported work was completed using industry standard procedures, including a quality assurance/quality control (“QA/QC”) program consisting of the insertion of certified standards and blanks into the sample stream and utilizing certified independent analytical laboratories for all assays. Additionally, historic QA/QC data and methodology on the AurMac Property were reviewed and will be summarized in the NI 43-101 Technical Report‎. The qualified persons detected no significant QA/QC issues during review of the data.

A robust system of standards, ¼ core duplicates and analytical blanks, was implemented in all Banyan drilling programs and was monitored as chemical assay data became available. All control samples were within accuracy and precision thresholds required to meet data quality standards. These control samples amounted to approximately 10% of the all samples submitted to analytical laboratories. A verification program of historic core was carried out by re-sampling the entire length of two holes, MQ-00-004 and MQ-03-009. The percent relative difference between the re-assays and the original assays ranged from -1.5% to +2.5%.

All geological data in the resource estimate was verified by Ginto Consulting Inc. (“Ginto”)  as being accurate to the extent possible and to the extent possible all geological information was reviewed and confirmed. Ginto made site visits to the AurMac property in 2018 and 2019 and observed Banyan’s drilling and sampling techniques, as well as viewed AurMac drillcore. Ginto  confirms that the assay sampling and QA/QC sampling of core by Banyan provides adequate and good verification of the data and believes the work to have been done within the guidelines of NI 43-101. Additional discussion on the AurMac Mineral Resource Model Data Verification will be included in the forthcoming NI 43-101 Technical Report to be filed on SEDAR in the near future.

Qualified Persons

The Initial Mineral Resource Estimate for the AurMac Property was prepared by Marc Jutras, P.Eng., M.A.Sc., Principal, Ginto Consulting Inc., an independent Qualified Person in accordance with the requirements of NI 43-101, who has reviewed and approved the contents of this release.‎

Paul D. Gray, P.Geo., Vice President of Exploration for the Company, is a “qualified person” as ‎defined under NI 43-101 and has reviewed and approved the content of this news release.‎

Analytical Method

All drill core and RC splits collected from the 2017 to 2019 Aurex-McQuesten programs were analyzed at Bureau Veritas Minerals of Vancouver, B.C. utilizing the aqua regia digestion ICP-MS 36-element AQ200 analytical package with FA450 50-gram Fire Assay with AAS finish for gold on all samples. All core samples were split on-site at Banyan’s core processing facilities in Elsa, Yukon. Once split, half samples were placed back in the core boxes with the other half of split samples sealed in poly bags with one part of a three-part sample tag inserted within. All RC samples were split in the field with a 3-tier riffle splitter with 87.5% of the sample being stored in a reject poly bag and 12.5% of the sample in a submittal poly bag. Once split, both poly bags were sealed with one part of a three-part sample tag inserted within.  Samples were delivered by Banyan personnel or a dedicated expediter to Bureau Veritas, an independent Whitehorse preparatory laboratory where samples are prepared and then shipped to Bureau Veritas’s Analytical laboratory in Vancouver, B.C. for pulverization and final chemical analysis. A more robust description of historic analytical procedures will be included in the forthcoming AurMac NI 43-101 report to be filed on SEDAR in due course.

Risk Factors

Banyan is unaware of any legal, political, environmental or other risks that could materially affect ‎the potential development of the Mineral Resource estimates described in this news ‎release.‎

COVID-19 Update

Banyan has taken proactive measures to protect the health and safety of our employees and communities from COVID 19 and exploration activities in 2020 will have additional safety measures in place, following and exceeding all the recommendations made by the Yukon’s Chief Medical Officer.

There have been 11 COVID-19 cases confirmed in Yukon to date, with all patients having fully recovered. No cases have required hospitalization.

2020 Exploration Update

The geologic model validated at the Airstrip and Powerline deposits is likely applicable elsewhere on the 92 sq. km property; including other areas such as Aurex Hill where a seven square kilometer gold in soil anomaly has been identified. Banyan spent approximately $1.8 M on exploration to establish the initial Mineral Resources, with an exploration cost of less than $2/ounce.

Banyan is in the process of planning its 2020 exploration programs, which are anticipated to start in June. Details of exploration plans will be released when available.

About Banyan

Banyan is focused on gold exploration projects that have the geological potential, size of land package and proximity to infrastructure that is advantageous for a mineral project to have potential to become a mine. Our Yukon based projects both fit this model and our objective is to gain shareholder value by advancing projects in our pipeline.

The Hyland Gold Project, located 70km NE of Watson Lake, Yukon, along the southeast end of the Tintina Gold Belt is a sediment hosted, structurally controlled, intrusion related gold deposit, with a large land package (over 125 sq. km), with the Mineral Resource contained in the Main Zone area (900x600m) daylighting at surface and numerous other known surface gold targets. The Main Zone oxide zone is amenable to heap leach open pit mining, with column leach recoveries of 86%. The project has an existing gravel access road.

The 9,230 ha AurMac Property lies in close proximity to both Victoria Gold’s Eagle Project and Alexco ‘s Keno Hill Silver District and is highly prospective for structurally controlled, intrusion related gold-silver mineralization in relation to the Tombstone intrusive suite.  The property hosts numerous known gold targets and Banyan has developed a mineralization model at the McQuesten “Airstrip” and “Powerline” Gold deposits, located adjacent to the main Yukon highway and just off the main access road to the Victoria Gold open-pit, heap leach Eagle Gold mine. The AurMac Property benefits from a 3-phase powerline, existing Yukon Energy Corp. switching power station and cell phone coverage. Banyan has optioned the properties from Victoria Gold and Alexco respectively with a right to earn up to a 100% subject to royalties.

Banyan trades on the TSX-Venture Exchange under the symbol “BYN”. For more information, please visit the corporate website at www.BanyanGold.com or contact the Company.

ON BEHALF OF BANYAN GOLD CORPORATION

(signed) “Tara Christie”

Tara Christie

President & CEO

For more information, please contact:

Tara Christie                                                           David Rutt

Tel: (888) 629-0444                                              Tel:  (888) 629-0444

Email: tchristie@banyangold.com                    Email: drutt@banyangold.com

 

CAUTIONARY STATEMENT: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release contains forward-looking information, which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward looking information in this news release includes, but is not limited to, Banyan’s objectives, goals or future plans, statements regarding exploration expectations, exploration or development plans and mineral resource estimates. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, uncertainties inherent in  resource estimates , capital and operating costs varying significantly from estimates, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, political risks, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects and the other risks involved in the mineral exploration and development industry, enhanced risks inherent to conducting business in any jurisdiction, and those risks set out in Banyan’s public documents filed on SEDAR. Although Banyan believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Banyan disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

 Statements in this news release regarding Banyan which are not historical facts are “forward-looking statements” that involve risks and uncertainties. Such information can generally be identified by the use of forwarding-looking wording such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intend”, “believe” and “continue” or the negative thereof or similar variations.

[1] Formerly referred to as the Aurex-McQuesten property in previous Company disclosure. ‎

[2] The gold price and cost assumptions are consistent with current pricing assumptions and costs, and in particular are consistent with those employed for recent technical reports for similar pit-constrained Yukon gold projects.

[3] 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. ‎

Royal Canadian Mint reports increased gold and silver bullion demand

The Royal Canadian Mint has announced financial results for the first quarter of 2020 that provide insight into our activities, the markets influencing our businesses and our expectations for the next 12 months.

“The Mint capitalized on market opportunities in the first quarter. Demand for gold and silver bullion was up, refining volumes were above plan and storage volumes remained steady and healthy,” said Marie Lemay, President and CEO of the Royal Canadian Mint.

“In the final weeks of the quarter, the Mint responded to this unprecedented situation with COVID-19 in a proactive way that prioritizes the health and safety of our employees. We have adapted our production to be able to continue delivering critical services in support of essential sectors of the Canadian economy, while adhering to strict new protocols to ensure our work environment is a safe one,” he added.

All monetary amounts are expressed in Canadian dollars, unless otherwise indicated.

Financial and Operational Highlights

In response to the COVID-19 pandemic, the Mint modified its operations and production to focus on delivering critical services in support of the essential mining and financial sectors, and international supply chains. The resulting reduction in operations and production across all of the Mint’s businesses impacted revenue and profitability in first quarter of 2020.

• Consolidated profit before income tax and other items was $6.5 million for the quarter (2019 – $10.8 million).
• Consolidated profit was $1.7 million for the quarter (2019 – $7.7 million).
• Consolidated revenue increased to $498.4 million in the first quarter of 2020 (2019 – $350.7 million). Overall, global market demand for bullion, due to the economic uncertainty surrounding COVID-19, led to higher bullion volumes.
• Gold volumes were 198.1 thousand ounces (2019 – 123.8 thousand), while silver volumes were 6.6 million ounces (2019 – 5.5 million).
• Sales of numismatic products were behind 2019, having decreased to $21.3 million (2019 – $27.3 million) due to a smaller, more resonant product portfolio in 2020.
• Foreign circulation revenue increased 31% year over year with production and shipment of 265 million foreign coins and blanks, compared to 194 million coins in 2019.
• Canadian circulation coins sold to the Department of Finance were 53 million pieces in the quarter (2019 – 32 million pieces).
• Overall operating expenses remained consistent quarter over quarter at $22 million.
• Cash and cash equivalents increased to $83.1 million at March 28, 2020 (December 31, 2019 – $65.5 million).

The Mint is expecting to return to full production in the second quarter as it implements further safety measures to allow for a higher number of employees in its production facility per shift and it increases the number of shifts to accommodate the entire workforce. As part of its business continuity plan, the Mint is actively monitoring its global supply chain and logistics networks in support of its continued operations.  Despite its best efforts, the Mint expects COVID-19 to continue to affect its performance over the balance of 2020.

Wallbridge Mining and Balmoral Resources complete merger

Wallbridge Mining Company Ltd. [WM-TSX; WC7-FSE] and Balmoral Resources Ltd. [BAR-TSX; BALMF-OTCQX; BOR-FSE] have completed the previously announced plan of arrangement between the parties. With completion of the arrangement, Wallbridge has now acquired 100% of the issued and outstanding common shares of Balmoral in exchange for consideration of 0.71 of a common share of Wallbridge for each Balmoral share.

“With the completion of the arrangement, Wallbridge now controls a district-scale land position along the Detour-Fenelon gold trend, a major structure that hosts the Detour Lake gold mine, the Fenelon gold project, and numerous other gold exploration and development projects,” said Marz Kord, President and CEO of Wallbridge. “The properties acquired from Balmoral dramatically increase our footprint in Quebec to 739 square kilometres of underexplored and highly prospective ground that is clearly complimentary to our rapidly expanding Fenelon gold project. As announced earlier this week, our exploration team has begun evaluating the newly acquired properties and drilling to identify extensions of the Fenelon gold system is planned to begin this summer.”

“The strong drilling results from both companies over the last few weeks and accompanying strong move in the share prices of Wallbridge and Balmoral into today’s completion of the arrangement simply reinforces the rationale for combining the two companies,” said Darin Wagner, former President and CEO of Balmoral. “To the Balmoral shareholders, our team again thanks you for your tremendous support over the last decade and we are excited by what lays ahead for the combined entity.”

Under the arrangement, Balmoral shareholders have received 0.71 of a common share of Wallbridge in exchange for each Balmoral share held immediately prior to completion of the arrangement. In the aggregate, 130,556,944 Wallbridge shares were issued under the arrangement to Balmoral shareholders as consideration for their Balmoral shares. The existing Wallbridge and former Balmoral shareholders now own approximately 82% and 18% of the issued and outstanding Wallbridge shares, respectively.

As a result of the arrangement, Balmoral has become a wholly owned subsidiary of Wallbridge and the Balmoral shares are anticipated to be delisted from the Toronto Stock Exchange following the close of trading on May 25, 2020.

Wallbridge is establishing a pipeline of projects that will support sustainable 100,000-ounce-plus annual gold production, as well as organic growth through exploration and scalability.

Balmoral has a portfolio of gold and base metal properties located within the prolific Abitibi greenstone belt.

LATIN AMERICA: Guyana, Suriname, French Guiana

Resource World continues its project profiles of exploration and mining companies in South America.

GUYANA

Guyana has a long history of gold production. The country currently produces over 600,000 ounces of gold annually. All gold production occurs within the Guiana Shield which is the geological continuity of West Africa. In comparison to West Africa, the Guiana Shield is under-explored.

Guyana Goldfields Inc. [GUY-TSX] and Silvercorp Metals Inc. [SVM-TSX, NYSE American] have entered into an amending agreement to the arrangement agreement entered into previously and announced April 27, 2020, under which Silvercorp agreed to acquire all of the issued and outstanding shares of Guyana Goldfields by way of a court-approved plan of arrangement.

The primary operation of Guyana Goldfields is the 100%-owned Aurora Gold Mine in northwest Guyana which reached commercial production January 2016. Total Proven and Probable Mineral Resources stand at 25,852,000 tonnes grading 2.70 g/t gold, for 2,240,000 ounces.

Production was 28,300 ounces of gold in the fourth quarter of 2019 and 124,200 ounces in full-year 2019.

Guyana Goldfields is also evaluating the Sulphur Rose deposit located approximately 23 km from the Aurora Mine. Discovered in late 2010, the deposit has a total resource of 566,830 ounces (277,580 oz Indicated and 289,250 oz Inferred).

Guyana Goldstrike Inc. [GYA-TSXV; GYNAF-OTC] is exploring and developing the advanced-stage Marudi Gold Project in Guyana. Marudi hosts a January 2018 mineral resource estimate of 259,100 ounces grading 1.8 g/t gold Indicated and 86,200 ounces of 1.6 g/t gold Inferred.

The property remains 85% unexplored. The company has a mining license.

Gold X Mining Corp. [GLDX-TSXV], formerly Sandspring Resources Ltd., reports that following management changes and acquisition of 100% of its flagship Toroparu asset, the company is focused on bringing the project to a production decision. The Toroparu Project is at an advanced stage with a 7.35 million-ounces Measured and Indicated Resource based on 675 diamond drill holes totaling 202,250 metres with several feasibility level engineering studies completed. To date, the company has invested more than US$150 million to discover, develop and classify its gold resources and complete engineering studies required to develop an open pit mining operation producing gold doré and gold-bearing copper concentrates.

Gran Colombia Gold Corp. [GCM-TSX; TPRFF-OTCFF-OTCQX] has signed a definitive agreement to merge with Gold X Mining Corp. In late trading on May 22, shares of Gold X Mining gained $0.09 to $2.73 on a volume of 109,700 shares traded.

Goldsource Mines Inc. [GXS-TSXV GXSFF-OTCQB; G5M-FSE] has released additional drill results from the Friendly prospect located immediately north of the 100%-owned Eagle Mountain gold project 230 km southwest of Georgetown, central Guyana. Results represent 10 core holes over 2,065 metres. Combined with previous drilling by Goldsource and historic drilling totalling 17 core holes (1,670 metres) at the Friendy prospect, this suggests potential for an initial strike of 250 metres long by 500 metres wide which includes numerous near-vertical, closely-spaced, and parallel gold mineralized structures. The prospect remains open along strike, to depth, and appears be connected to the Bottle Bank area, located 500 metres to the south, which is part of Eagle Mountain.

The most significant results for this release are holes EME19-023 which intersected 27.0 metres grading 1.72 g/t gold and EME19-025 which intersected 73.5 metres grading 0.50 g/t gold.

Goldsource is focused on expanding gold resources and delivering subsequent studies for decision-making on a large-scale gold production at Eagle Mountain.

G2 Goldfields Inc. [GTWO-TSXV] has provided assays from high-grade drill intercepts at the Oko-Aremu Project, Guyana.

The property hosts multiple zones of mineralization; however, drilling to date has focused exclusively on the Oko deformation zone (ODZ). To date, 44 drill holes have outlined gold mineralization in excess of 1 km.

Holes OKD-30, 31 and 33 were drilled to further explore gold mineralization encountered in recently reported OKD-27 (1 metre at 8 g/t gold and 4 metres at 19.5 g/t gold). Visible gold (VG) was logged in all three holes and the results are highlighted below (true widths of mineralization are estimated between 85% and 58% of reported width).

Hole OKD-30

• 3.1 g/t gold over 2.0 metres (52 to 54);
• 14.9 g/t gold over 1.8 metres (97.9 to 99.7) VG;
• 10.8 g/t gold over 4.0 metres (188 to 192).

Hole OKD-31

• 12.7 g/t gold over 1.4 metres (132.8 to 134.2) VG;
• 3.0 g/t gold over 1.7 metres (207.1 to 208.8) VG.

Hole OKD- 33

• 10.5 g/t gold over 2.0 metres (180.8 to 182.8) VG;
• 10.8 g/t gold over 0.8 metre (185 to 185.8) VG.
Additionally, hole OKD-32 explored approximately 140 metres south of hole OKD-5 (8.2 metres at 9.1 g/t gold) and hole OKD-24 (2.4 metres at 116 g/t gold).

Hole OKD-32

• 20.1 g/t gold over 1.0 metre (81.5 to 82.5) VG;
• 1.7 g/t gold over 2.0 metres (91 to 93).

Dan Noone, CEO, stated: “I am very pleased to see that step out holes OKD to 30, 31 and 33 fill out the 250-metre zone between shafts 2 and 3 on the Oko trend and highlight the continuous, linear nature of vein corridors 1 and 2.  Hole OKD to 32 which was collared to the west of vein corridor 1, and 140 metres south of OKD to 24 (2.4 metres at 116.6 g/t gold) suggests that high-grade mineralization encountered in vein corridor 2 continues to the south.”

A second rig has been mobilized. This added drilling capacity will enable G2 to greatly expedite its exploration program.

The company owns a 100% interest in two past gold producing mines, as well as a regional portfolio of highly prospective projects.

SURINAME

Newmont Corp. [NGT-TSX] owns and operates the Merian gold mine is located approximately 60 km south of Moengo, Suriname. Newmont Suriname (previously known as Suriname Gold Company) is a fully-owned subsidiary of Newmont that is operated on behalf of Suriname Gold Project CV, a Suriname limited partnership. Construction of Merian began in August 2014 and commercial production was achieved on October 1, 2016, on schedule and US$150 million under budget.

IAMGOLD Corp. [IMG-TSX; IAG-NYSE] has a 95% interest in the Rosebel gold mine (Suriname government 5%) located in the mineral-rich Brokopondo district of northeastern Suriname. Suriname is a former Dutch colony bordering the Atlantic Ocean between French Guiana and Guyana. The road-accessible 170 km2 Rosebel property lies approximately 85 km south of the capital city of Paramaribo.

For Q1 2020, the Rosebel Mine produced 64,000 ounces of gold at an All-in sustaining cost (AISC) of $1,248/oz. As of December 31, 2018, Measured Resources were 35,645,000 tonnes averaging 0.6 g/t gold, for 7,683,000 ounces of gold with Inferred Resources at 64,770,000 tonnes of 0.9 g/t gold, for 1,793,000 ounces.

The company is also working on the 66.5%-owned development-stage Saramacca property located 30 km southwest of the Rosebel mill.

FRENCH GUIANA

Columbus Gold Corp. [CGT-TSX; CGTFF-OTCQX] reports that despite the current situation stemming from the COVID-19 pandemic, the company has been able to adjust and keep moving forward with its objectives for 2020.

Field work in French Guiana was suspended on March 17 and resumed on May 11. At the 44.99%-owned development-stage Montagne d’Or Gold Project 180 km west of the capital of Cayenne, northwest French Guiana, the bulk of the engineering studies for committed project improvements and modifications for mine permitting progressed remotely and are expected to be completed as scheduled by mid-year.

Montagne d’Or has NI 43-101 Proven and Probable Reserves of 2.75 million ounces gold (54.11 million tonnes of 1.58 g/t gold). A March 20, 2017 Bankable Feasibility Study demonstrate an open pit mining operation with average annual gold production of 237,000 ounces over the first 10 years of mine life averaging of 1.73 g/t gold that results in an average AISC of US$749/oz. There is considerable expansion potential on strike and at depth.

In July 2018, Columbus entered into an agreement with IAMGOLD to acquire up to a 70% interest in the Maripa Gold Project located in eastern French Guiana along a paved national road, about 60 km south of Cayenne. Prospecting in the northern half of the exploration-stage Maripa Gold Project continued during the first quarter. Resampling of an old trench returned a cut averaging 2.57 g/t gold over 25 metres. A new quartz-gold vein system exposed by artisanal mine workings was identified approximately 500 metres west of the Filon Dron gold zone. A best assay of 38.87 g/t gold was obtained from samples of the quartz vein material.

Line-cutting for ground geophysical surveying is in progress at Maripa in preparation for a diamond drilling program scheduled for the third quarter.

The priority for 2020 remains the acquisition of an additional advanced-stage gold project in South America. Several opportunities have been identified and are under evaluation.

Reunion Gold Corp. [RGD-TSXV; RGDFF-OTC], following the reporting of high-grade gold intersections at the Crique Filon discovery (within the 100%-optioned Boulanger Project) in 2019, the company has since carried out extensive outcrop sampling, mapping and geological interpretive analysis of this discovery and surrounding areas.

Based on this work, Reunion Gold has developed a new geological model for the Crique Filon discovery, which is similar in style to the orogenic gold systems found in the Abitibi belt, Canada.

Reunion has other projects in French Guiana, including the Haute Mana gold project and the Dorlin gold project, both 80%-optioned, as well as the 100%-optioned CMB properties in north-central French Guiana. The company also has the 100%-optioned Wairamu gold project in Guyana.

Reunion has a strategic alliance agreement with Barrick Gold Corp. [ABX-TSX; GOLD-NYSE] to explore Guyana, Suriname, French Guiana and northeast Brazil.

Silver to outperform gold

by Peter Kennedy

Economic concerns tied to the COVID-19 pandemic have put silver back in favour with investors who are once again seeking safety in the precious metals sector

Following the recent surge in the price of gold, silver jumped from US$12.34 an ounce on March 21, 2020 to US$18.02 on May 20, 2020, a move that was welcomed by investment newsletter writers like David Morgan, who expects prices to go much higher from here.

“In a long-term precious metals bull market, silver almost always out performs gold,” said the Spokane, Washington-based Morgan Report editor during an interview with Resource World Magazine.

Morgan believes that will prove to be the case during a new bull market for precious metals that he says is being fueled by economic fears that are related to the impact of the COVID-19 pandemic. COVID-19 has prompted miners and metal recyclers to shut down their operations in order to safeguard the health of employees.

“The pandemic has been a catalyst for an already collapsing financial system,” said Morgan. Unless a vaccine is found quickly, he expects the pandemic to accelerate the flight to precious metals and other safe havens, eventually prompting gold silver trading ratios to retest the levels reached in April 2011, when silver hit US$48.59 an ounce.

“I think we are in the early innings of the final leg up on precious metals, which means we have a long way to go over the next two or three years,” he said. “Gold will lead the way, but there will be more and more of a spill-over effect in the silver market because it does provide a safe haven.’’

Silver is one of the oldest forms of money known to man.  However, the white metal is widely viewed as a more speculative type of investment than gold. It helps to explain why silver has been locked in a bear market for roughly the past eight years. In recent years, Morgan said investors seeking quick returns have poured their money into marijuana stocks and cryptocurrencies, sucking money out of precious metals in the process.

However, silver is one of the most electrically conductive of all the metals. It is a vital ingredient in the production of electric gadgets such as cell phones, laptops and car batteries. The majority of the world’s silver supply is used for industrial fabrication, accounting for 59% of demand. Currently 26% of supply is used to make jewelry and silverware. The balance of roughly 15% is used in the production of coins and silver bars.

In recent weeks, Morgan says silver has been riding on the coat-tails of gold, which jumped from US$1,477.90 on March 18, 2020 to US$1,768.90 on April 14, 2020.

The rally has been good news for top tier producers such as Pan American Silver Corp. [PAAS-TSX, NASDAQ], and Wheaton Precious Metals Corp. [WPM-TSX, NYSE]. Both have seen a substantial increase in their share price valuations.

The junior silver stock ETF [SILJ-TSX] hit $11.91 on May 20, 2020, after rallying from $5.58 in early March, 2020.

Morgan estimates that the major miners are producing silver at an average all-in-sustaining cost of US$16.50 an ounce. He believes Pan American is slightly overvalued at current levels, but says that hardly matters if the price of silver continues to rise.

He said the upside could be potentially greater for more junior companies like Minaurum Gold Inc. [MGG-TSXV; MMRGF-OTC; 78M FSE], a Mexico-focused explorer which is currently focused on the high-grade Alamos Silver Project in southern Sonora.

Minaurum recently announced plans to raise up to $9.2 million from a marketed offering and non-brokered private placement offering of units priced at 40 cents each. On May 21, the shares were trading at 50 cents, leaving the company with a market cap of 157.2 million based on 314.3 million shares outstanding.

In 2019, total global mine production amounted to 847.8 million ounces, marking a 1% decline from the previous year. Silver produced from recycling operations in 2019 was also down 1% from the previous year to 169.4 million ounces, according to a global silver survey produced for the Silver Institute by Metals Focus, a London-based independent precious metals consultancy

Global silver demand pushed higher in 2019, with a 12% increase in investment demand as retail and institutional investors focused their attention on the long-term investment appeal of the metal.

If there is no resolution to the COVID-19 pandemic, Morgan says the silver supply could get “pretty tight.” He believes that key areas of demand will fall off this year due to difficulties associated with the COVID-19 pandemic, but not as much as global supply. “That will put more pressure on the industrial side as well as the safe haven side,” he said.

Some of the price optimism is based on the view that a decline in global equities will help to drive up the price of gold and silver.

“I think we could easily see silver trading at US$20 an ounce before the end of the year,” he said.

Silver to outperform gold

by Peter Kennedy

Economic concerns tied to the COVID-19 pandemic have put silver back in favour with investors who are once again seeking safety in the precious metals sector

Following the recent surge in the price of gold, silver jumped from US$12.34 an ounce on March 21, 2020 to US$18.02 on May 20, 2020, a move that was welcomed by investment newsletter writers like David Morgan, who expects prices to go much higher from here.

“In a long-term precious metals bull market, silver almost always out performs gold,” said the Spokane, Washington-based Morgan Report editor during an interview with Resource World Magazine.

Morgan believes that will prove to be the case during a new bull market for precious metals that he says is being fueled by economic fears that are related to the impact of the COVID-19 pandemic. COVID-19 has prompted miners and metal recyclers to shut down their operations in order to safeguard the health of employees.

“The pandemic has been a catalyst for an already collapsing financial system,” said Morgan. Unless a vaccine is found quickly, he expects the pandemic to accelerate the flight to precious metals and other safe havens, eventually prompting gold silver trading ratios to retest the levels reached in April 2011, when silver hit US$48.59 an ounce.

“I think we are in the early innings of the final leg up on precious metals, which means we have a long way to go over the next two or three years,” he said. “Gold will lead the way, but there will be more and more of a spill-over effect in the silver market because it does provide a safe haven.’’

Silver is one of the oldest forms of money known to man.  However, the white metal is widely viewed as a more speculative type of investment than gold. It helps to explain why silver has been locked in a bear market for roughly the past eight years. In recent years, Morgan said investors seeking quick returns have poured their money into marijuana stocks and cryptocurrencies, sucking money out of precious metals in the process.

However, silver is one of the most electrically conductive of all the metals. It is a vital ingredient in the production of electric gadgets such as cell phones, laptops and car batteries. The majority of the world’s silver supply is used for industrial fabrication, accounting for 59% of demand. Currently 26% of supply is used to make jewelry and silverware. The balance of roughly 15% is used in the production of coins and silver bars.

In recent weeks, Morgan says silver has been riding on the coat-tails of gold, which jumped from US$1,477.90 on March 18, 2020 to US$1,768.90 on April 14, 2020.

The rally has been good news for top tier producers such as Pan American Silver Corp. [PAAS-TSX, NASDAQ], and Wheaton Precious Metals Corp. [WPM-TSX, NYSE]. Both have seen a substantial increase in their share price valuations.

The junior silver stock ETF [SILJ-TSX] hit $11.91 on May 20, 2020, after rallying from $5.58 in early March, 2020.

Morgan estimates that the major miners are producing silver at an average all-in-sustaining cost of US$16.50 an ounce. He believes Pan American is slightly overvalued at current levels, but says that hardly matters if the price of silver continues to rise.

He said the upside could be potentially greater for more junior companies like Minaurum Gold Inc. [MGG-TSXV; MMRGF-OTC; 78M FSE], a Mexico-focused explorer which is currently focused on the high-grade Alamos Silver Project in southern Sonora.

Minaurum recently announced plans to raise up to $9.2 million from a marketed offering and non-brokered private placement offering of units priced at 40 cents each. On May 21, the shares were trading at 50 cents, leaving the company with a market cap of 157.2 million based on 314.3 million shares outstanding.

In 2019, total global mine production amounted to 847.8 million ounces, marking a 1% decline from the previous year. Silver produced from recycling operations in 2019 was also down 1% from the previous year to 169.4 million ounces, according to a global silver survey produced for the Silver Institute by Metals Focus, a London-based independent precious metals consultancy

Global silver demand pushed higher in 2019, with a 12% increase in investment demand as retail and institutional investors focused their attention on the long-term investment appeal of the metal.

If there is no resolution to the COVID-19 pandemic, Morgan says the silver supply could get “pretty tight.” He believes that key areas of demand will fall off this year due to difficulties associated with the COVID-19 pandemic, but not as much as global supply. “That will put more pressure on the industrial side as well as the safe haven side,” he said.

Some of the price optimism is based on the view that a decline in global equities will help to drive up the price of gold and silver.

“I think we could easily see silver trading at US$20 an ounce before the end of the year,” he said.

Ximen achieves 99% gold recovery at Kenville Mine

Ximen Mining Corp. [XIM-TSXV; XXMMF-OTCQB; 1XM-FSE] has received metallurgical test results for its Kenville gold mine in the Nelson mining camp in Southern British Columbia.

The testwork started with a sample composited from the Kenville mineralization. Material was sorted on the basis of visible sulphide mineralization and separate lots were assayed. Portions of high-grade and low-grade material were then combined to give a weight average grade approaching the expected grade of material to be mined from Kenville, 0.5 Oz/ton gold (17.1 grams/tonne), when the project proceeds to a bulk sample. The resultant composite assayed 16.27 g/t gold and 35.60 g/t silver (0.475 oz/ton gold; 1.0 oz/ton silver).

The material was then subjected to gravity gold recovery and flotation testing aimed at approximating the process at the target processing plant. The test process involved the following steps: Grind to P80 of 150 microns. Conduct PSA; concentrate panned to extinction for gold. Pan tails returned to gravity tailings; rougher scavenger flotation test on gravity tailings to recover gold. Assay for gold, silver and multi-element inductively coupled plasma; and three stages of cleaner flotation. Assay for gold, silver and multi-element ICP.

Test results indicate the material responded exceptionally well to both gravity and flotation. The GRG (gravity gold recovery) test achieved an overall gold recovery of 51% in a mass yield of just 0.06% at a gravity concentrate grade of 11,225 g/t gold. Flotation was able to recover 98% of the remaining gold, resulting in a combined overall gold recovery of 99% at a final grind P80 of 147 micrometres.

Ximen has an option to acquire the Kenville Mine. The previous Kenville workings have an estimated 360,000+ troy ounces of gold based upon a historical NI 43-­‐101 report. Past drill programs give evidence the extension of the high‐grade vein structures to substantially higher quantities of Gold on the adjacent claims.

Ximen is confident with over half the property unexplored, that the current trend likely extends throughout the area. The company’s mission is to exploit the high-grade vein structures with current technology, and become a high-grade producing gold mine while concurrently exploring the limits of the reserve. The estimated life expectancy of the mine is 20+ years.

Ximen Mining will begin the 2020 exploration season with exploration work on its Providence property in the Greenwood mining camp in Southern British Columbia. Exploration is scheduled to start next week and will include rock sampling, trenching and diamond drilling.

Ximen Mining owns 100% interest in three of its precious metal projects located in Southern British Columbia. Ximen has two gold projects, the Amelia gold mine and the Brett epithermal gold project. Ximen also owns the Treasure Mountain silver project adjacent to the past producing Huldra silver mine. Currently, the Treasure Mountain silver project is under an option agreement.