Banks Island Gold Ltd. Discovers Jasperoid Style of Mineralization at Tel Zone

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Oct. 24, 2014) - Banks Island Gold Ltd. (TSX VENTURE:BOZ) (the "Company") is pleased to report an update on mining and processing at the Yellow Giant Gold Project.

The Company has recently been mining and processing mineralization from the Tel Central Zone. During mining of the T30 Central level, Company geologists noted unusual amounts of micro-crystalline quartz breccia within the mineralized vein. This rock type, which has been provisionally named "Jasperoid" makes up the eastern third of the Central Zone between T20 and T30 levels. Jasperoid encountered is commonly stained red from hematite but can also be stained dark grey to black color from galena and argentite.

Jasperoid has a modest Specific Gravity (~2.75 t/m3), which makes the pre-concentration of this material by Dense Media Separation difficult. Assays from this material ranged from 29gpt gold to 214gpt gold. Jasperoid with black staining shows high silver values, which assayed up to 1490gpt Ag. Assay results from selected samples of Jasperoid are displayed in Table 1. The majority of Jasperoid samples contain low sulphur, which suggests that gold is present as free grains of electrum or native gold.

Table 1 - Assay results from Jasperoid material

Period (2014)	Sample Number	Sample Assays
		Gold (gpt)	Silver (gpt)
Jasperoid - Blood red, copper staining	E5394883	214	374
Jasperoid - With Pyrite and Galena banding	E5394885	29	1490
Jasperoid - black color	E5394886	35	1264
Jasperoid -red color composite from crushed ore	E5396715	29	130

Company engineers are studying the best method to mine and process this material from T30 Central. This material will likely be processed directly through the grinding and flotation sections of the mill with gold recovered by the Falcon Concentrator and by flotation. In this case the Company would process Bob and Tel Main mineralization through the Dense Media Separation plant and Tel Central mineralization direct fed into the grinding circuit.