23 June 2014 – BHS2014-17
Bayhorse Silver Inc. (“Bayhorse” or the “Company”) BHS: TSX-V, reports that after a review of newly acquired historic data, and a recent property visit to its Red Queen Gold Project on the West Coast of New Zealand’s South Island, the Company has increased the strike length of the Red Queen vein to approximately 2.25 km.
The Red Queen subvertical mesothermal quartz vein contains visible gold, pyrite, arsenopyrite and chalcopyrite yielding historic grades of up to 171 g/t gold (Au) (5.49 oz/t Au) . Two samples taken from the Red Queen Vein in 2010 and 2011 assayed 69.4 g/t and 28.9 g / t Au respectively. Thirty meters east of the Red Queen lies the Swastika vein which historically is generally of lower grade. The highest reported grade from the historic Halcyon, Guiding Star, Morning Star and Swanston Mines along what is now considered the northerly extension of the Red Queen vein was 25oz 18 dwt per ton Au (882 g/t Au) from the Guiding Star mine, which also contained numerous quartz specimens impregnated with visible gold
The parallel Red Queen and Swastika gold bearing veins are thought to be “Blackwater” type characterized by (i) structural simplicity, (ii) confinement of gold to the vein (iii) lacking extensive alteration haloes of sulfides and graphite and (iv) planar nature and continuity to great depth.
The Blackwater mine of Oceana Gold Corporation, (“Oceana”) is located in the Reefton gold field in New Zealand’s West Coast, South Island gold fields. The Reefton gold field has produced in excess of 2 million ounces of lode gold from a number of mines, with majority of production coming from Oceana’s Globe Progress, Big River, Blackwater gold mines and Bayhorse’ Alexander River gold mine.
Deep drilling at Blackwater has identified an inferred resource of 0.9 Mt @ 23 g/t Au for 700,000 ounces of gold (Oceana 2014 Fact Book). The Blackwater mine produced approximately 730,000 ounces of Au down to 2,900 feet until 1951, when a shaft collapse closed the mine. The Fact Book further states that a technical study investigating re-opening the Blackwater mine is underway.
The historic Blackwater mine lies approximately 8 km to the north west of the Bayhorse’s historic Alexander River Gold Project, where a reported 41,000 ounces of gold was recovered from 47,000 tons mined. Bayhorse believes the Alexander River Gold Project has the potential to host a major gold deposit.
The Company advises that historic production estimates and grades reported from its Red Queen and Alexander River projects have not been verified; A qualified person has not done sufficient work to verify the historical estimates nor classify the historical estimates as current mineral resources or mineral reserves and the Company is not treating the historical estimates as current mineral resources or mineral reserves. (ounces/grams conversion is one ounce/short ton = 34.2857 grams/metric ton. Pennyweight “dwt” = 1.56 g)
The Company announces the grant of 175,000 incentive stock options to officers, directors, and consultants. The incentive stock options are exercisable for five years at a price of $0.10 cents per common share.