Large gold deposits often come with difficult trade-offs.

Some offer scale but require years of road building, power development, and seasonal exploration before they can be seriously considered as mines. Others contain attractive grades but lack enough ounces to support long-term production.

Banyan Gold Corp. (TSXV: BYN | OTCQB: BYAGF) is seeking to avoid that compromise at its AurMac Project, which combines a large and growing resource with higher-grade zones, year-round road access, and grid power already in place.

AurMac contains 3.64 million ounces of indicated gold at an average grade of 0.68 grams per tonne and 4.98 million inferred ounces at 0.58 grams per tonne.

The resource is divided between the Airstrip and Powerline deposits, which extend across a mineralized corridor about five kilometres long. Both deposits remain open, leaving room for expansion beyond the current pit-constrained estimate. Less than 2% of Banyan’s wider land position has been explored by drilling.

AurMac lies about 40 kilometres from Mayo, a small community in central Yukon and is crossed by the government-maintained Silver Trail Highway. Other roads connect the property to neighbouring mining operations. A powerline runs through the project and connects to the broader Yukon grid.

“We have existing roads on the property that are maintained year-round and hydro powerlines that go to the hydro dam and the broader grid in the Yukon,” said Christie. “It means that our exploration can be done year-round, which makes us pretty unique.”

That infrastructure advantage is being matched by growth in the resource itself as Banyan’s May 2026 mineral resource update increased AurMac’s total gold inventory by 12%.

More importantly, the update improved the size, grade and confidence of the resource. Indicated ounces rose by 60%, including a 68% increase at Powerline to about 2.8 million ounces.

At a higher [0.55 g/t] cut-off grade, AurMac contains 2.45 million indicated ounces averaging 1.05 grams per tonne, and 2.72 million inferred ounces averaging 0.96 grams per tonne.

Those higher-grade ounces could shape the early years of a future mine by allowing Banyan to examine starter pits that process stronger material first. That could support higher initial production and cash flow, although the mine plan and its economics still need to be tested through formal studies.

Recent drilling has strengthened that possibility.

A hole drilled southwest of the current Powerline resource returned 5.58 grams per tonne gold over 21.7 metres. The intercept sits outside the existing resource pit and indicates that higher-grade mineralization extends beyond the area included in the estimate.

“We haven’t found the edges yet, and it’s getting bigger,” stated Christie.

The next major catalyst is Banyan’s maiden Preliminary Economic Assessment, expected in the second half of 2026.

“The PEA is what puts a framework around this project, it moves the conversation from ounces in the grounds to economics,” Christie said.

Management believes the study could show that AurMac has the scale to become a Tier 1 asset capable of attracting institutional and strategic interest and expects it to evaluate a conventional milling scenario at a throughput consistent with a large-tonnage, long-life operation. 

Analysts covering Banyan say recent drilling is strengthening that case and view the upcoming PEA as the key re-rating event, the point at which scale, grade, and existing infrastructure could translate into competitive economics.

They conclude Banyan continues to trade at a discount to comparable gold developers, leaving room for a re-rating if the PEA meets expectations and drilling continues to expand the higher-grade zones.

That puts added weight on Banyan’s current 70,000-metre drill program, which is testing both the AurMac deposits and regional targets across its expanded Yukon land package.

The company began drilling in February and plans to continue through December, with as many as six rigs operating during the program. By late July, close to 40,000 metres had been completed.

“We are firing on all cylinders,” said Christie.

The pace is being supported by a $46.5-million financing completed in May, which allowed Banyan to secure drill contractors early, deploy as many as six rigs, and shave about a year off its advancement schedule.

“This recent financing was above market, with no warrants, as were my previous financings,” Christie said. “That is a testament to the calibre of investors backing Banyan and their understanding of the long-term value we're creating.”

The stronger treasury has also allowed Banyan to broaden its Yukon footprint. In June, the company completed its acquisition of Generic Gold’s exploration portfolio, adding 2,158 mineral claims and expanding its district-scale land position to about 720 square kilometres.

Banyan also holds the Hyland Gold Project in southern Yukon. Its 2025 resource estimate includes 337,000 indicated ounces of gold and 2.63 million ounces of silver, along with 118,000 inferred ounces of gold and 863,000 inferred ounces of silver.

Hyland remains secondary to AurMac but provides another potential development or corporate option.

With AurMac growing in size and confidence, a fully funded drill program underway and a broader Yukon land position now in hand, Banyan is moving from resource expansion toward a more defined development story.

For investors at Kelowna, Banyan’s appeal rested on a record of setting targets and beating them. The company now has the capital, technical work, and drilling momentum to prove that the same record can carry AurMac into its next stage.

Following Banyan Gold’s Top Pick at CEM’s 100th Capital Event in Kelowna, president and CEO Tara Christie discussed AurMac’s expanding resource, the coming PEA, and the company’s development strategy.

“Our presentation included a report card showing what we said we would do and what we delivered.

We delivered on everything. We drilled more metres, delivered more catalysts, and exceeded expectations in the higher-grade core.

Over several years of attending CEM events, through some very difficult markets, we have continued to do what we said we would do. That has built credibility.

Your word matters in this business. Investors see that the geology has delivered as well.”

“I think we’re a little bit of both.

You have to advance the project as though you’re going to develop it yourself. That means continuing to de-risk it, adding value at every stage, and building the team needed to take it forward.

That is also what larger mining companies look for. There has been relatively little discovery success in stable jurisdictions where projects can be permitted and are not exposed to nationalization risk. AurMac’s scale, infrastructure, and location make it pretty unique.

Consolidation is a realistic outcome in this sector. But our job now is to keep drilling, complete the PEA, and preserve every development option.”

“The drill results will provide steady news flow as we build momentum toward the PEA.

We have a 70,000-metre program testing the AurMac deposits and regional targets, with the ability to expand it if we have success. We’re looking to add ounces, improve grade, and continue de-risking the project.

The PEA, expected in the second half of the year, will give the market its first look at the economics — mining grade, production profile, footprint, and processing approach. 

That will allow investors to look at the project and decide what it should be worth.

We have clear milestones and the capital to deliver them. We can continue drilling, advance the engineering work, and test regional targets that I have wanted to drill for years.

It’s been my baby for a long time, and we’re finally getting real momentum.”

CEM’s next gathering will be the 14th Annual Muskoka Capital Event, taking place September 25–27, 2026, at the JW Marriott Rosseau Muskoka Resort in Ontario.

The event will bring growth-stage companies together with active capital markets professionals through pre-scheduled one-on-one meetings, informal discussions, and focused networking.

Warm Regards and Happy Investing,

Fabian Dawson

Each week, CEM Partner and Portfolio Manager, Ryan Iverson, spotlights the ideas and companies sparking investor interest from emerging growth stories to the Top Pick featured across CEM’s Capital Events. This series brings real insights from the annotators shaping tomorrow’s markets and reveals where investors are finding the next breakout opportunities.