Banks Island Gold Ltd. reported an update on the Bob Zone bulk sample program at the Yellow Giant Gold Property, located on Banks Island, British Columbia. The company reports that it has received a provisional payment of USD 560,000 (CAD 615,000) for the first shipment of gold concentrate from the Yellow Giant project. The provisional payment represents 90% of the total invoice for the shipment and final settlement is expected to occur in approximately 2 months.

The first shipment was processed from approximately 500 tonnes of mineralized material mined from the B10 level (1(st) level) at the Bob Zone. The first shipment was comprised of two lots. Lot 1 (129 dry tonnes of concentrate grading 62.9gpt Au) was concentrate produced from the DMS Plant.

Lot 2 (294 dry tonnes of concentrate grading 38.8gpt Au) was fines material (-1mm) that bypassed the DMS plant and was bagged and shipped at insitu grade. The high grade material processed from the B10 level was composed of massive sulphide mineralization. During crushing, a high proportion of material (60%) was pulverized to a sizing below 1mm (fines).

These fines are screened out of the crushed feed material and consequently a substantial portion of Mill Feed was not concentrated by the DMS Plant. This level of fines generation is not typical and should normally be less than 25%. The company has replaced its (rented) crushing plant to reduce fines generation in future processing.

The Lot 2 fines material was essentially pulverized mineralization with very similar grades to those expected from diamond drill intersections in the area. The company was able to negotiate and sell this material even though it did not meet the contracted minimum grade of 50gpt Au.