October 5, 2020 BHS2020-22
Bayhorse Silver Inc. (BHS: TSX-V) (the “Company” or “Bayhorse”) reports gold assays from due diligence sampling of the Harrison Gold Project, Harrison, British Columbia, Canada. Subject to TSX Venture Exchange approval, the Company has entered into an Agreement dated Sept. 9, 2020, to acquire a 50% interest from Bear Mountain Gold Mines (“BMGM”) in and to the Project.
Mineralization at Harrison consists of free milling gold, (0.2 to 2.0 mm sized grains) within quartz veins ranging from less than a cm to several tens of cm in width.
Nine chip samples of quartz were taken from the Jenner Adit under the supervision of Bayhorse’s senior consulting geologist, Dr. Clay Conway, P.Geol. The highest grade sampled was 414.2 g/t (12.11 opt) Au. Full results are tabulated below;
(Channel, chip and grab samples are selected samples and may not be representative of the mineralization hosted on the property).
Gold-bearing quartz veins underground at section 36 in the Jenner workings.
The samples were taken from the same wall sections that BKA International and Kerr Adisson Mines (together “BKA”) sampled during their 1984 – 1990 comprehensive underground exploration program. The samples were assayed by Met-Solve Labs of Langley, BC for gold by fire assay and for a suite of trace metals by ICP. The samples were then combined to provide a 5 kg sample that was assayed for metallic gold.
The sample assays received were not only consistent with the earlier BKA sampling but are also consistent with the recent metallurgical work by BMGM designed to confirm historic gold recovery. This included five samples consisting of 10 kg each of vein material collected from the RN adit, that were submitted to Met-Solve Labs. A composite sample of 25.5 kg was made with a calculated head grade of 43.2 g/t Au and an assayed head grade of 46.5 g/t Au. The RN composite responded well to gravity concentration with a recovery of 90.7% with a final concentrate grade of 1,088 g/t Au from a calculated head grade of 43.2 g/t Au. (BMGM, 2020).
Conventional fire assay techniques determine the gold content of the screened material (referred to as the minus fraction) but does not determine the contribution of any gold grains which are too large to pass through the screens used in preparing samples for analysis by conventional fire assay techniques. (referred to as the plus fraction).
Preparations are underway to commence an initial 1,500 – 2,000 meter drilling program with the first drill holes twinning several of the historic drill holes at the Jenner and Portal Zones including the mineralization identified within the RN mine workings.
- Proposed drill site DS-1 will include a minimum of five holes designed to delineate the extent of the RN Vein which was mined intermittently by local prospectors from 1972 to 1982 (refer to section titled RN Mine rehabilitation below)
- Proposed drill site DS-2 will involve twinning DDH 88-121 which reportedly intersected 9.0 meters averaging 13.5 g/t gold – (referred to as the Jenner Deeps Zone)
- Proposed drill site DS-3, will consist of up to 10 drill holes designed to verify and delineate the extent of the mineralized zone reportedly encountered in DDH PT 88-76 (7.0 meters averaging 21.4 g/t – referred to as the Easter Egg Zone)
- Proposed drill site DS-4will consist of 3-5 drill holes designed to verify and delineate the extent of the mineralized zone reportedly encountered in- twinning DDH 86-43 which reportedly 7.0 meters averaging 9.78 g/t .
Drilling is planned to commence in early November on the fully permitted Harrison Gold Project between the RN workings to the Jenner workings. The preliminary phase of drilling is expected to be completed prior to the end of 2020.
The two most significant historic drill holes by BKA at the Harrison Gold Project were reported as DDH JNUG-121 (102 meters averaging 3.54 g/t gold) and DDH 84-28 which averaged 4.12 g/t gold over 63.2 meters that will be targeted in a follow up drill program.
The drill holes are of a historic nature and a qualified person has not done sufficient work to verify the historical results.
RN Mine Workings Rehabilitation
Planning is also underway to commence rehabilitation work and extend the historic gold bearing zone in the RN Mine workings an additional 40m (120ft). Historic smelter reports indicate that a total of 642.82 tonnes (708.58 tons) of ore was shipped with an average reported grade of 47.4 g/t gold. The underground work program will also undertake sufficient underground bulk sampling and offsite processing to confirm the contained gold can be recovered by low impact gravity separation methods and confirm that waste rock from the known mineralized zones is not acid generating.
Exploration work by previous operators and BMGM has confirmed the presence of multiple diorite stocks which exhibit similar styles of gold mineralization to that in the Jenner Zones. This work also demonstrates that the central and southern parts of Bear Mountain exhibit “gold in soil” anomalies along a structural corridor that extends for over six kilometers through the Property.
Based on surface and underground drilling completed by BKA above the 50 meter ASL level, Norman (1989), using a one gram cut off grade for the Jenner Zone and a 2 gram cut-off grade for the Portal Zone, estimated that the Jenner and Portal Zones contain 2,458,674 tonnes at an average grade of 2.79 g/t gold, for 220,300 ounces. (Please refer to the accompanying illustration of drilling and development work on the Jenner and RN Zones).
|Zone||Category||Resource Tonnes||Grade g/t Au||Grams||Ounces|
|Jenner zone||“Probable and Possible”||1,801,134||2.71||4,876,635||156,710|
|Portal zone||“Probable and Possible”||657,753||3.02||1,984,324||63,766|
The Company advises that the resource estimate by Norman (1989) above is of a historic nature. Historic drill holes, resource estimates and grades reported have not been verified. A qualified person has not done sufficient work to verify the historical estimates nor classify the historic estimates as current mineral resources or mineral reserves, and the Company is not treating the historical estimates as current mineral resources or mineral reserves. Additional resampling and drilling by a Qualified Person will be required to designate a current resource under National Instrument 43-101 standards.
The five samples collected from the RN Mine by BMGM for gravity recovery test work were also tested for metallic gold which essentially involves comparing conventional fire assay results with Total Gold Content results. The results of this metallic gold assay test showed that all five regular fire assays under-reported the amount of gold contained in the submitted samples. Total gold values were under-reported by 19 to 41%. It is important to note that Norman (1989) reported that the results of muck sampling from three underground raises driven along drill holes to assess the accuracy of drill hole assays, showed that the reported drill hole assays appear to under-report gold contents. Rigorous metallic gold assay procedures are being utilized as part of the planned Bayhorse program to ensure accurate determination of gold values.
Bayhorse CEO Graeme O’Neill comments, “We are very pleased that very high to bonanza grades from our due diligence sampling has confirmed the wisdom of acquiring the interest in the Harrison Gold Project. We welcome the addition of John Jewitt, a highly regarded Mining Engineer, who brings his considerable underground knowledge and experience to the Company.” “ John will be a consultant to the Company and he joins with the already considerable geological and engineering talents of Dr. Stewart Jackson, P.Geol., Dr. Clay Conway, P.Geol,, Mining Engineer, Dr. Bill Willoughy, PE, RM SME, and Metallurgical Consultant, Mr. John Fox.” “ Independent consultants Dr. Gerry Ray, P. Geol along with Apex Geoscience, round out the team” “Together they will help guide management as it embarks on growing Bayhorse to ensure a solid future for the Company”. “Adding high grade gold at Harrison to complement the silver rich concentrate currently being produced at the Bayhorse Silver Mine to fill the existing test order of a minimum 50 tons, and the precious metals rich Brandywine VMS property, where drilling is planned for this fall, further strengthens the Company.”
The Company announces, subject to TSX-V approval, a flow-through private placement to fund the Harrison exploration and earn in program and a non-flow though private placement for general corporate purposes and the Bayhorse Mine. The flow-through will consist of 7,000,000 Units, at $0.185 cents per Unit for gross proceeds of $1,295,000. Each Unit will consist of one common share and one half of one transferable common share purchase warrant, with each whole warrant exercisable into one common share of the Company at $0.30 per common share two years from the date of issuance. The non flow-through Units will consist of 5,000,000 Units, at $0.15 cents per unit for gross proceeds of $750,000. Each non flow-through unit consist of one common share and one half of one transferable common share purchase warrant, with each whole warrant exercisable into one common share of the Company at $0.30per common share two years from the date of issuance.
Proceeds from the non flow-through units will be used for working capital and general and administrative purposes
The Company announces the grant of 2,000,000 options to Officers, Directors, Consultants and Employees that vest immediately and are exercisable for five years at $0.20 cents per share.
This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its content. Dr. Stewart Jackson, P.Geo., a Qualified Person and Consultant to the Company has prepared, supervised the preparation of and approved the technical content of this press release.
On Behalf of the Board,
Graeme O’Neill, CEO