February 8, 2018 BHS2018-02
Bayhorse Silver Inc Commences Mining The Legend Zone At The Bayhorse Silver Mine, Ships First Ore-Sorted Upgraded Mineralization, Oregon, USA.
Bayhorse Silver Inc., TSX-V: BHS (“Bayhorse” or the “Company”) has shipped the first upgraded mineralization from the Ore-Sorter at the Bayhorse Mine, Oregon, USA, to Mineral Solutions of Coeur D’Alene, Idaho, USA for further processing.
The Company has initiated mining on the promising newly discovered and developed Legend Zone at the Bayhorse Silver Mine. The Legend Zone lies 50 feet beneath the Sunshine Zone and extends the thickness of mineralization to 70 feet from the previous 20 feet. Chip, channel and grab samples from recent development in this unit have been submitted for assay.
The Legend zone has been mapped by XRF gun testing to be a 50 – 60 foot wide structure. Mining of the Legend zone will be by the slusher method from four to five foot wide headings to allow development work to continue concurrently in other parts of the mine. Chip and channel sampling taken from all working faces will guide mining.
Processing of the Legend Zone mined material will be separate from the currently stockpiled development material.
Bayhorse CEO Graeme O’Neill states: “commencing mining the newly identified Legend Zone, that has extended the vertical extent of the mineralization, will provide the ability to increase the daily tonnage mined, and is another big step for the Company.”
Development work continues on the westerly reaches of the historically mined Big Dog zone. Sampling has also been conducted on the bottom of the Big Dog zone.
The crusher Ore-Sorter circuit was initiated at 25 to 50 tons per day during January to identify potential material flow restrictions before commencing processing at 100 tons per day. As of February 7th, the Company has increased throughput to 100 tons per day. Approximately 15 tons per day of minus 8mm (5/16th inch) is screened off prior to entering the crushing circuit. This material together with minus 8mm material from the crusher circuit, is being stockpiled for further processing.
To establish grades of the product flow from the Ore-Sorter, three samples are taken from the flow to each super sack. Samples are split with half placed into a pulverizer, homogenized, dried, and submitted to XRF analysis. The other half is retained as a reference. This style of sampling for grade control and to establish grades was demonstrated to be an effective method by Perth based metallurgist Stewart Cole to senior Company management while they were developing the Gnaweeda Gold Project in Western Australia, an earn-in from Teck Australia.
The Company will initially be producing three products, classifying them as direct shipping material of over 100 ounces/ton silver, milling grade under 100 ounces per ton, and under 20 ounces per ton.
The Oregon Department of Geology, Mineral Industries (DOGAMI) has issued an Exclusion Certificate to the Bayhorse Silver Mine.(01-0206)
Due to recent market conditions, the Company has extended the closing of its previously announced $1,500,000 financing to the end of February.
The Company advises it is not basing its decision to produce on a feasibility study of mineral reserves demonstrating economic and technical viability and also advises there is increased uncertainty and specific economic and technical risks of failure associated with its production decision.
This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents. This release has been prepared by, prepared under the supervision of, or approved by Dr Stewart Jackson, a Qualified Person under National Instrument 43-101.
On Behalf of the Board.
Graeme O’Neill, CEO