AUGUST 25, 2014 – BHS2014-20
Bayhorse Silver Inc. (“Bayhorse” or the “Company”) BHS: TSX-V, reports that Oceana Gold Corp, (“Oceana”) which trades on the Toronto Stock Exchange, has received a resource consent to access the historic underground workings at its Blackwater gold mine, which lies approximately 10 km from the Company’s Alexander River gold project in the Reefton Gold District, on the West Coast of New Zealand’s South Island.
The access is reported to be by twin 3.3 km declines to be driven from the vicinity of the nearby Snowy River. (see map at http://www.bayhorsesilver.com/properties/alexander/) The Blackwater mine produced approximately 730,000 ounces of Au down to 2,900 feet until 1951, when a shaft collapse closed the mine. Deep drilling at Blackwater under the historic workings has identified an inferred resource of 0.9 Mt @ 23 g/t Au for 700,000 ounces of gold (Oceana 2014 Fact Book).
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.
The historic Blackwater mine lies approximately 10 km to the north west of 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.