Banks Island Gold Ltd. announced the discovery of a new mineralized gold zone near the Quartz Hill area at the Yellow Giant Gold Property, located on Banks Island, British Columbia. The company is diamond drilling near Quartz Hill in an area with a significant Au-Ag-As soil geochemistry anomaly which measures over 600m in length. Company crews succeeded in locating significant mineralization near Quartz Hill with the first drill hole in this area at a depth of 150m below surface.

Company geologists believe this new discovery has the potential to develop into a mineralized zone of significance at Yellow Giant. Plans are being developed to aggressively explore the Quartz Hill area. The mineralization appears associated with a previously unknown dragfold or fault related block of hornblende diorite.

Company geologists believe this block acted as a significant fluid trap in the contact zone with the quartz monzonite to the north-east. Two further untested pyrite-pyrrhotite-gold showings are in close proximity which may be related to the same pyrite-pyrrhotite-gold fluid system. Two holes were drilled near Quartz Hill.

Initial assays from QH-14-01 returned results of 14.0gpt Au over 2.3m inside a larger mineralized intercept of 2.5gpt Au over 14.5m. QH-14-02, was drilled to test the down-dip extension of this mineralization; assay results are pending. Mineralization in drill hole QH-14-01 consists of fine to medium grained disseminated sulphides in sericite altered, sheared quartz monzonite.

Mineralization is zoned with a high grade core and a lower grade halo extending for 14.5 m.