Banyan Gold (TSXV:BYN) - 7.6Moz Gold Project Advances Toward 2026 PEA

Banyan Gold: Ormac Project Update - 2025 Review & 2026 Outlook

Key Concepts:

• Ormac Project: Banyan Gold’s primary gold exploration and development project located in the Yukon, Canada.
• Indicated & Inferred Resources: Categories of mineral resources based on geological confidence – 2.2 million ounces indicated and 5.44 million ounces inferred at Ormac.
• PA (Preliminary Assessment): A technical and economic study outlining the viability of a mining project. Expected in the second half of 2026 for Ormac.
• Lithological Model: A geological model focusing on rock types (lithology) to understand ore distribution. A revised model was crucial for Banyan in 2025.
• AirStrip & Power Line Zones: Two key deposit areas within the Ormac project, with AirStrip exhibiting higher grades.
• Heap Leach vs. Mill Project: A shift in Banyan’s strategy from considering heap leaching to developing a mill due to favorable recovery rates (93%).
• Metallurgy: The study of the behavior of metals during extraction processes, crucial for optimizing recovery rates.
• NAV (Net Asset Value): A valuation metric used to assess the worth of a mining project.

1. 2025 Performance & Key Achievements

Terra Christie, President & CEO of Banyan Gold, highlights 2025 as an exceptional year for the company, marked by significant value addition to the Ormac project. The project boasts a substantial resource base: 2.2 million ounces of gold in the indicated category and 5.44 million ounces in the inferred category. A key advantage is the project’s accessibility via road and existing hydro power infrastructure. The share price reflected this progress, demonstrating increased investor confidence. A notable silver discovery was also made, slated for further advancement in 2026.

2. Geological Model Refinement & Impact on Resource Classification

A pivotal development in 2025 was the refinement of the geological model. Institutions and mining investors advocated for a more “lithologically constrained” model, which Banyan successfully delivered. This new model improved understanding of how high-grade domains are distributed within the deposit. The drilling program focused on converting inferred resources to indicated, achieving the target of 2 million ounces of indicated resources. The model’s success bolstered project credibility, demonstrating a consistent deposit with near-surface high-grade zones suitable for starter pits.

3. Drilling Strategy & Focus on Mine Economics

Banyan’s 2025 drilling program was strategically focused on adding value to the project, not just headline grade. 50% of drilling targeted the AirStrip zone (historically 15% higher grade), 40% focused on the Power Line zone, and 10% involved step-out drilling to assess deposit extent. The aim was to optimize pit designs, convert waste material to ore, and identify areas where previously underestimated depth led to artificially high pit estimates. Over 40,000 meters of drilling are planned for 2026, continuing this targeted approach.

4. Shift to Mill Processing & Implications for AirStrip Zone

A significant strategic change in 2024/2025 was the decision to pursue a mill project instead of heap leaching, driven by high gold recovery rates (93%). This shift prompted increased focus on the AirStrip zone, which consistently demonstrated higher grades. Previously, the AirStrip zone received less attention due to the assumption of a heap leach operation. The decision to build a mill is supported by the presence of other gold deposits in the surrounding district, suggesting the potential for regional milling infrastructure.

5. Silver Discovery & Potential Significance

A new silver discovery emerged as a key highlight. Initial results showed high silver grades, including 14 kilograms per ton (14,000 g/t) over 1.22 meters within a broader interval of 1,800 g/t over almost 18 meters, and 100 meters of 300 g/t. Five exploration holes were drilled in 2025, revealing a potentially significant structurally controlled silver deposit. Further exploration is planned in 2026 to delineate the extent and economic viability of this discovery.

6. Operational Learnings & Bottleneck Mitigation for 2026

Key learnings from 2025 included reasonable assay timelines (though results were still pending as of late November drilling) and the importance of proactive planning for personnel and drill contracts. Banyan proactively extended offers to staff and secured drill contracts for 2026 to mitigate potential resource constraints. The addition of a new VP of Exploration enabled internal modeling capabilities, enhancing technical expertise.

7. Valuation & Market Positioning

Banyan’s current valuation is approximately $36-$36 US per ounce, offering significant leverage with a gold price of $2,400-$2,500. The company believes its project’s infrastructure and near-surface mineralization warrant a premium valuation. Compared to peers, Banyan trades at 0.16 of NAV, while others average 0.4, indicating a potential valuation gap. The upcoming PA in 2026 is expected to provide a clearer valuation framework (PNAV – Present Value of Net Assets). The company cites examples like Snowline Gold, which experienced significant re-rating despite initial investor hesitation.

8. Future Resource Growth & Pit Optimization

Drilling in the southwest portion of the Power Line zone revealed potential for converting previously classified waste material into ore, demonstrating continued resource growth potential. Step-out drilling to the west and east of Power Line and AirStrip further supports the belief that the two deposits are part of a larger, continuous mineralized system. While connecting the deposits is a long-term goal, the immediate focus is on optimizing high-grade zones and adding value to the upcoming PA.

9. Metallurgical Considerations & Flowsheet Development

Metallurgical studies are well-advanced, with significant work already completed on different lithologies. Ongoing work focuses on optimizing recovery rates in areas with more challenging metallurgy. The company is leaning towards a gravity-CIL (Carbon-in-Leach) flowsheet due to its superior recovery performance.

10. Key Deliverables for 2026 & Attracting Investment

To be viewed as a credible development asset, Banyan aims to deliver the following by the end of 2026:

• A completed Preliminary Assessment (PA)
• Continued demonstration of resource growth
• Positive external factors (favorable gold and silver prices, supportive regulatory environment)
• Effective communication of the project’s value proposition and the changes that have occurred since 2024.

Conclusion:

Banyan Gold has made significant strides in 2025, refining its geological model, strategically drilling to optimize resource classification and mine economics, and uncovering a promising silver discovery. The shift towards a mill project and the focus on high-grade zones position the company for continued success. The upcoming PA in 2026 is a critical milestone, expected to unlock the project’s full value and attract further investment. Banyan’s strong treasury, experienced team, and favorable project characteristics create a compelling investment opportunity in a rising gold and silver market.