November 13, 2019 BHS2019-32
- Commenced production of silver concentrates at its Bayhorse Silver Mine
- CEO is a featured speaker at the upcoming Mines & Technology Conference in London on November 25th – 28th
- New working area planned for mining the Big Dog high grade silver zone
Bayhorse Silver Inc. (TSX-V: BHS) (the “Company” or “Bayhorse”) is
pleased to announce that it has completed commissioning and testing of the
milling and concentrate circuit at its Bayhorse Silver Mine, Oregon, USA, and
has commenced production of both gravity and flotation concentrate from the
Ore-Sorter pre-processed stockpile.
The initial processing step creates a pre-concentrate product from the X Ray Transmissive Ore-Sorter that reduces the as-mined tonnage by up to 90%. This feeds a milling system that consists of a crushing circuit, a regrind circuit, a gravity circuit and a frothing circuit, producing a silver concentrate at minus 100 mesh.
The Company has planned a new 85-foot working drift into the South Big Dog high grade silver zone. This will take three weeks from resumption of mining and provide another working face in the near term into high grade mineralization. This zone is 500 feet closer to the portal entrance, where the crushing plant is located, thus reducing transportation costs and time . The new working drift will also provide an additional escapeway from the mine, and will also increase cross flow ventilation throughout the mine workings.
Bayhorse’s CEO, Graeme O’Neill, a featured speaker at the upcoming Mines & Technology Conference in London on November 25th – 28th on reducing mining costs using ore-sorting technology comments, “We have built the Bayhorse Silver Mine into a producer of consistent silver concentrate for a modest US$6.75 million. Initiation of mining in the very high-grade Big Dog South Zone should allow the Company to rapidly recoup its capital investment”.
The Bayhorse Silver Mine can operate on a year-round basis in a low snowfall zone. Winterization at the mine has been completed. Winter conditions are typically of short duration, with the harshest conditions from late November to late January. Located just 14 miles off Interstate I-84, the mine is accessed by all weather State and County roads, constantly plowed and de-iced. Winterization was accomplished by insulating the milling/concentrate circuit zone, settling and dewatering tanks, and flotation equipment, along with heat tracing all the water lines. The Company recycles water from the concentration process and dewaters the tailings before underground disposal.
The Company is not basing any decision to produce on a feasibility study of mineral reserves demonstrating economic and technical viability, and advises there is an increased uncertainty and specific economic and technical risk of failure with any production decision. These risks include, but are not limited to, (i) a drop in price of commodities produced, namely silver, copper, lead and zinc, from the pricing used to make a production decision; (ii) failure of grades of the produced material to fall within the parameters used to make the production decision; (iii) an increase in mining costs due to changes within the mine during development and mining procedures; and (iv) metallurgical recovery changes that cannot be anticipated at the time of production.
Subject to the approval of the TSX Venture Exchange, the Company has settled $60,440 of debt consisting of convertible debenture accrued interest and debt through the issuance of 711,056 common shares of the Company at a price of $0.085 per share, which was the closing price of the Company’s stock on the settlement date of November 12, 2019. Graeme O’Neill, the Company’s CEO and director has converted the debt of $12,252 into 144,146 common shares of the Company. In accordance with the TSX Venture Exchange rules, the shares issued are subject to a four month hold period from the date of issuance.
This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents. 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.
Behalf of the Board,