Banks Island Gold Ltd. reported commissioning of grinding and flotation circuits is nearing completion and production of gold concentrate has continued at the Yellow Giant Gold Property, located on Banks Island, British Columbia. The Company has primarily been processing its stockpiles of DMS fines during this period. This material was a byproduct of earlier production from the DMS processing of the Bob bulk sample.

The first production longhole mining at the Tel Zone will commence in late October 2014. The Falcon Gravity Concentrator in the milling circuit was commissioned in September 2014. This equipment captures gravity recoverable gold in the milling circuit and produces a separate high grade concentrate.

Approximately 22% of gold in concentrate was recovered with this circuit with an average concentrate grade of 1165gpt gold (34oz/ton). The company is currently installing a production sized concentrating table to clean this concentrate to a smeltable grade product which can be sold locally. The company has received provisional terms for sale of this product with gold payable at 99%.

Currently the company sells its flotation concentrate with terms of 90.5% gold payable.