BRITISH COLUMBIA – Vancouver’s Banks Island Gold has signed an offtake agreement with Metallica Commodities Corp. (MCC) of New York covering the complete production of gold sulphide concentrate from Banks’ Yellow Giant mine 120 km south of Prince Rupert.
MCC has agreed to loan Banks Island US$6 million for construction and working capital at Yellow Giant. The loan bears an interest rate of 8.5% per annum and will be repaid from the proceeds of concentrate sales.
Gold at Yellow Giant occurs in massive sulphide veins with quartz carbonate gangue. Mineralization is associated with pyrite but is typically non-refractory. Banks has calculated the property contains 31,000 measured tonnes at 23.4 g/t Au, 47,000 indicated tonnes at 22.7 g/t Au, and 81,000 inferred tonnes at 13.7 g/t Au. An underground mine yielding 75,000 tonnes of ore per year using contract labour is anticipated.
Readers might enjoy the photo album posted at BanksIslandGold.com.