May 22, 2018 BHS2018-14
Bayhorse Silver Inc. (the “Company” or “Bayhorse” BHS-TSX:V) updates its progress on the Bayhorse Silver Mine in Oregon, USA.
The company has commenced planning the extraction of higher grade material from:
• the Junction zone, 300 feet inside the mine,
• the Big Dog zone, 600 feet inside the mine,
• and the Westerly Zone, extending a further 300 feet past the Big Dog Zone,
Silver King Mines diamond drilled the Westerly Zone but mined it minimally prior to shutting the mine down in 1984. Mineralization in this zone lies between 16 to 40 feet above the new main haulage way, which skirts the northern edge of the zone.
Processing of stockpiled material continue as well extending the haulage way access into the most westerly area of the mine workings to extract higher grade material. In addition, the Company is evaluating several processing and treatment alternatives to upgrade material with the objective of selling the upgraded material to start generating revenue. Further updates on its operating objectives will be provided as results are obtained.
Expressions of interest, on favourable terms, have been received from several parties to acquire any direct shipping material the Company may produce. Discussions are continuing.
• To date, the Company has been working through stockpiled development material for further processing through the Company’s ore-sorter.
• Assay results on ore-sorter product and reject materials show that the ore sorter typically upgrades the silver in andesite and rhyolite host rock by a factor of 5 times.
• The Company has identified a new type of silver mineralization in a rhyolite host rock, north of the historic workings, which the ore-sorter has upgraded by as much as 25 times.
• The Company is processing and stockpiling lower grade milling material that will require upgrading to a direct shipping grade of 100 oz/t (3,100 g/t) silver or better through either flotation or leaching.
• Excellent silver recoveries of greater than 90% have been reported to the Company by Metals US of Missoula, Montana who have provided their preliminary leaching test results on mineralization with a head grade of 15.7 oz/t silver and have reported silver recoveries of greater than 90%. Final results from those tests are anticipated within 2 weeks that will determine whether a flotation or leaching process is most cost effective for the milling grade material.
• Stockpiled development material continues to be processed through the ore-sorter. Additionally the Company expects to continue stockpiling the ore-sorter upgraded milling grade material until sufficient tonnage has been accumulated for bulk processing.
• The Company is upgrading by gravity methods the 800 plus tons of fines created by blasting and mining that are too small to be sorted through the ore-sorter.
Mining and Exploration
Silver King Mines during its 1984 mining program, extended the mineralized zones an additional 300 feet to the west beyond the Big Dog Zone. The Company has currently extended the new haulage way an additional 150 feet further west into this area. This Westerly Zone forms part of the Company’s suggested exploration target extending for a distance of over 1,000 feet containing between between 500,000 – 1,000,000 tons grading between 17 – 20 oz silver per ton.
This potential exploration target is conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The Company advises that it does not have current mineral resources or mineral reserves for its Bayhorse Silver Mine property.
The Company advises it is not basing any decision to mine or 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 any such mining or production decision and it is not basing any decision to mine or produce on these historical estimates.
In light of weak silver and gold prices, as well as the recent trading halt caused by an unauthorized news release, the Company’s share price has been under significant pressure. Therefore, the Company has elected to close its previously announced 18 cent financing. The Company’s CEO, Graeme O’Neill, has sold shares in arranged sales both privately and through the facilities of the TSX Venture Exchange to participate in the current financing. These sales of free trading shares and their replacement with mandatory hold period shares are known in the industry as “gypsy swaps” and offer liquidity without significant dilution.
The Company has engaged Apex Geoscience and Dr. G. E. Ray, P.Geol, to conduct a NI 43-101 technical report on the Bayhorse Silver Mine and will file it on SEDAR in due course. An underground drilling program will accompany the preparation of the report.
This press release has been prepared under the supervision of and has been approved by Dr. Clay Conway, P.Geo., a Qualified Person under National Instrument 43-101and a Director of the Company.
This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents.
On Behalf of the Board.
Graeme O’Neill, CEO
Bayhorse Silver Inc., a junior exploration company, has earned a 100% interest in the historic Bayhorse Silver Mine, Oregon, USA. The Company has an experienced management and technical team with extensive exploration and mining expertise.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.