Bayhorse Silver Signs Letter Agreement To Earn A 50% Interest In The Harrison High Grade Gold Project, British Columbia, Canada.

September 14, 2020                                                                            BHS2020-21

Bayhorse Silver Inc. (BHS: TSX-V) (the “Company” or “Bayhorse”) has entered into an Option Agreement with Bear Mountain Gold Mines Ltd, (BMGM) a British Columbia (BC) private corporation, to earn a 50% interest in its Harrison Gold Project, Harrison, British Columbia, Canada.

The Harrison Gold Property (the “Property”) is an advanced stage gold exploration project focused on a seven kilometer long ridge called Bear Mountain located on the southeast side of Harrison Lake, 130 kilometers east of Vancouver.  BMGM has an option to acquire a 100% interest in the Property from TSX.V listed Omineca Mining and Metals Ltd. (“Omineca”). 

Harrison Gold Project Highlights

  • Historic gold resources of 220,300 ounces contained in 2,458,674 tons was reported by Norman (1989) for two of the known intrusions (referred to as the Jenner and Portal Zones) with  an average grade of 2.79 g/t gold, at  a 2 g/t cutoff grade.
  • The RN Mine was intermittently mined from 1972 until 1982. Historic smelter reports indicate that a total of 642.82 tonnes (708.58 tons) of ore was shipped from the RN Zone. This material contained 30,443 grams of gold (978.89 ounces), and 616 kilograms of copper. The average recovered grade is 47.4 grams of gold per tonne (1.38 ounces of gold per ton) (Allen, 1983)
  • Ministry of Mines Permits approved for surface drilling and lateral development work at the former RN Mine.
  • Gold mineralization consists of free milling 0.2 to 2.0 mm size gold grains within quartz veins ranging from less than a cm to several tens of cm in width.
  • Significant historic mineralized intercepts reported for the Jenner Zone included: DDH 85-36 with 102 meters averaging 3.54 g/t gold; DDH 86-48 which averaged 5.28 g/t over 24 meters; and DDH 84-28 which averaged  4.12 g/t gold over 63.2 meters.
  • For the Portal Zone, located 150 m east of the RN Mine, historic results included DDH 86-43, that averaged 9.78 g/t over 7 meters, and DDH 88-76 that averaged 21.4 g/t over 7 meters.

The Company advises that the above drill intersections, grades and estimates above is of a historic nature. Historic drill intersections, grades and resource estimates reported have not been verified. A qualified person has not done sufficient work to verify the historical estimates nor classify the historic estimates as current mineral resources or mineral reserves, and the Company is not treating the historical estimates as current mineral resources or mineral reserves. Resampling of underground workings, and confirmation drilling by a Qualified Person will be required to designate a resource under National Instrument 43-101 requirements.

The Property is located off paved roads at low elevations, with power, water and services locally available.

Immediate Diamond Drilling and Underground Exploration Program

An initial 1,500 meter drilling program to twin several of the historic drill holes at the Jenner and Portal Zones including the mineralization identified within the RN mine workings (proposed drill site DS-1); the intercept reported in DDH JNUG-121 (proposed drill site DS-2 – referred to as the Jenner Deeps Zone); the mineralization intersected by DDH PT 86-43, (proposed drill site DS-3), and the intercept reported in DDH PT 88-76 (proposed drill site DS-4 (referred to as the Easter Egg Zone).

Rehabilitate and extend the historic RN Mine workings, where historic smelter reports indicate that a total of 642.82 tonnes (708.58 tons) of ore was shipped from with an average reported grade of 47.4 g/t gold. Complete sufficient underground bulk sampling and offsite processing to confirm that waste rock from the known mineralized zones is not acid generating.

Follow up drilling from both surface and underground locations is planned to extend the known mineralized zones.

Recent metallurgical work by BMGM to confirm historic gold recovery included five samples consisting of approximately 10 kg each of vein material collected from the RN adit, which were  submitted to Metsolve Metallurgical Lab, Langley, BC, Canada.  A composite sample of 25.5 kg was made with a calculated head grade of 43.2 g/t Au and an assayed head grade of 46.5 g/t Au.  The RN composite responded well to gravity concentration with a recovery of 90.7% with a final concentrate grade of 1,088 g/t Au from a calculated head grade of 43.2 g/t Au. (BMGM, 2020).

 The Bayhorse/BMGM Agreement

In order to exercise the Option, Bayhorse shall (i) assume all the outstanding obligations of Bear due to Omineca, (ii) pay $50,000 in cash and issue 500,000 common shares in the capital of Bayhorse (“Shares”) to Bear, and (iii) incur, including the required expenditures under the Omineca Option, not less than C$1,100,000 of expenditures on the Property (subject to the receipt of drilling and exploration work permits for the Property from the BC Ministry of Energy, Mines & Petroleum Resources, or confirmation that surface drilling and underground development work can commence immediately).

The terms of the BMGM option agreement with Omineca require that BMGM incur $2,000,000 in exploration expenditures ($900,000 of which have been incurred to date), pay $500,000 in cash or shares ($100,000 of which has been paid) and issue 3,166,000 shares on or before December 31, 2020 (1,166,000 of which have been issued).  In addition, Omineca is entitled to a 2% NSR (50% of which can be purchased for $1,000,000) and up to $500,000 in annual $100,000 special royalty payments on the occurrence of certain trigger events.

In recognition that Omineca is entitled to an underlying 2% NSR on the Property, the parties agree that the Omineca NSR including the purchase of 1% of the NSR for $1 million, shall be apportioned according to each Party’s interest in the Property.

Property History

Local prospectors discovered gold on Bear Mountain in the early 1970’s.  then explored and mined a high grade quartz vein.(the RN Mine)  Between 1982 and 1990, Bema International (Bema) and Kerr Addison completed extensive drill testing on the Property, (16,000 meters) and constructed 350 meters of underground drifts and raises. Historic drilling identified widespread, sub-horizontal quartz veins associated with finger like diorite intrusions 100 to 500 meters in diameter.  Also discovered were additional multiple intrusions and several potentially economic mineralized zones.

A bulk sampling program was conducted approximately 50 meters below the surface outcrop of the Jenner Zone (referred to as the Jenner 187 Level); and possible mining options for the Jenner Zone were assessed

Dr. Clay Conway, P.Geol and Carl vonEinsiedel, P.Geol examining gold-bearing quartz veins underground

Based on surface and underground drilling completed by Bema above the 50 meter ASL level, Norman (1989), using a one gram cut off grade for the Jenner Zone and a 2 gram cut-off grade for the Portal Zone, estimated that the Jenner and Portal Zones contain 2,458,674 tonnes at an average grade of 2.79 g/t gold, for 220,300 ounces. (Please refer to the accompanying illustration of drilling and development work on the Jenner and RN Zones.)

ZoneCategoryResource TonnesGrade g/t AuGramsOunces
Jenner zone“Probable and Possible”1,801,1342.714,876,635156,710
Portal zone“Probable and Possible”657,7533.021,984,32463,766

The Company advises that the resource estimate by Norman (1989) above is of a historic nature. Historic drill holes, resource estimates and grades reported have not been verified. A qualified person has not done sufficient work to verify the historical estimates nor classify the historic estimates as current mineral resources or mineral reserves, and the Company is not treating the historical estimates as current mineral resources or mineral reserves. Additional resampling and drilling by a Qualified Person will be required to designate a current resource under National Instrument 43-101 standards.

Historic Jenner & RN Gold Workings

In 2010, Omineca compiled available technical data for the Property (Price, 2010) and reported that previous mining companies spent more than seven million dollars exploring the northern part of Bear Mountain after local prospectors mined a high grade quartz vein during the 1970’s  in  the RN Mine. 

Exploration work by BMGM has confirmed the presence of multiple diorite stocks which exhibit similar styles of gold mineralization, and demonstrated that the central and southern parts of Bear Mountain exhibit “gold in soil” anomalies along a structural corridor that extends for over six kilometers through the Property.  

The five samples collected from the RN Mine by BMGM for gravity recovery test work were also tested for metallic gold which essentially involves comparing conventional fire assay results with Total Gold Content results.  The results of this metallic gold assay test showed that all five regular fire assays under-report the amount of gold contained in the submitted samples.  Total gold values were under-reported by 19 to 41%.  It is important to note that Norman (1989) reported that the results of muck sampling from three underground raises driven along drill holes to assess the accuracy of drill hole assays, showed that the reported drill hole assays appear to under-report gold contents.  Rigorous metallic gold assay procedures will be utilized as part of the planned Bayhorse program to ensure accurate  determination of gold values..

Bayhorse CEO Graeme O’Neill comments; “Now that the Bayhorse Silver Mine in Oregon has started producing silver concentrate, the acquisition of a 50% interest in Bear Mountain, a known historic producer of free milling gold, is a step forward in precious metals involvement, and development, by Bayhorse.  We look forward to working with Bear Mountain to verify the historic drilling results and extend the existing RN adit to confirm the historic mined grades.  A ZTEM airborne survey is planned at an early date to delineate and evaluate the multiple potentially mineralized diorite stocks along the structural belt that runs the length of the property”.

This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its content. 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.

On Behalf of the Board,

Graeme O’Neill, CEO

company@bayhorsesilver.com

1-866-399-6539

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.

Bayhorse Silver Reports On Brandywine Gold Project Progress

August 27, 2020                                                                                BHS2020-20

Bayhorse Silver Reports On Brandywine Gold Project Progress

Bayhorse Silver Inc. (BHS: TSX-V) (the “Company” or “Bayhorse”) reports on progress at its readily accessible Brandywine, Gold, Silver and Volcanogenic Massive Sulphide (VMS) project, 35km north of Squamish, BC.

Preparation for a minimum 1,500 m (5,000 ft) diamond drill program at the Dave’s Pond high grade gold target, including upgrading access roads to the drill sites have been completed to enable the movement of heavy equipment to the drill site, and to ensure all weather operations can be readily conducted.

The Dave’s Pond high-grade gold-silver zone lies in the center of the 1,450 Ha Brandywine project. Ten (10) diamond drill holes are planned under the supervision of Apex Geoscience.

Significant 2010 gold intersections were re-sampled in drill core at Dave’s Pond, assaying 14.4 g/t over 3.4 m (11 ft) including 1.52 m (5 ft) of 20 g/t (Dunn, 2002, 2010) (Baldys 2019). This drill hole was located 26 meters (85 ft) NW from the 36.9 g/t gold sample from drill hole DP95-14, that was the highest grade intercept reported from the 1995 drill program (Dunn 2011). 

The Company’s senior consulting geologists, Dr. Stewart Jackson, P.Geol, and Dr. Clay Conway, P.Geol, have been reviewing the mineralization and geology of Brandywine where there appears to be several distinct style of gold mineralization. High grade gold in quartz vein systems, at Dave’s Pond,  and gold ,pyrite, sphalerite, galena and chalcopyrite that was bulk sampled VMS type mineralized zones.1.5 km to the north, at the high grade Tedi Pit.

Dr Clay Conway, P.Geol, Dr. Stewart Jackson, P.GEol inspecting one of the numerous mineralized outcrops at Brandywine

A third high grade silver rich mineralization occurs at the Silver Tunnel zone, where several historical resources have been published, including 112,000 tonnes reported to average 10 oz Ag/ton;.0.03 oz Au/ton; 0.19% lead and 0.34% zinc. (Minfile 1985)

Visible gold in core from 2019 resampling of the 2010 drill core (The photo is of a selected interval that is not necessarily representative of the mineralization hosted on the property)

As the coarse free milling nature of the gold at Dave’s Pond has been confirmed, the metallic screen method will be used during the upcoming drill program in addition to standard gold fire assaying plus the standard 43 geochemical element analysis. The screen metallic fire assay is designed to deal with coarse visible gold in samples.

In summary, the historic reports show the nature of mineralization on the property as follows:

  1. A 50 ton bulk sample was sent in 1967 grading 83.1 g/t gold, 354 g/t silver, 9.9% lead, 7.4% zinc, 0.30% copper per ton to the East Helena, Montana, smelter from the Silver Tunnel and Main Zone (Melling, 1994, Walus 2011).
  2. A 500 ton sample grading 14.2% lead, 12.5% zinc, 339 g/t silver, and 2.57 g/t gold per ton was sent to the Cominco Smelter in Trail in 1977 (Walus, 2011, Melling, 1994).
  3. Prior bulk sampling mining at the Tedi Pit reportedly produced 11,045 ounces of gold, from a 10,000 ton bulk sample, (Minfile reports 1977)

Indicative of the presence of high grade silver at the Silver Tunnel zone are the reports identifying Pyrargyrite (Ruby Silver), as well as the rare silver specimen minerals, diasphorite, fizelyite, (rare silver-lead-antimony Sulfosalt) semseyeyite, miargyrite,(silver, antimony sulphide) and prostilpnite (Ag, Sb, S).

The Company advises that the information is of a historic nature. Historic production estimates and grades reported have not been verified.

Bayhorse CEO Graeme O’Neill comments “with the off-take interest in our silver concentrate from the Bayhorse, Silver Mine, and now the drilling for high grade gold at Brandywine, when gold and silver prices are increasing, I believe we are starting to see the benefits for shareholders of everyone’s hard work and dedication ”

The VMS portion of the Brandywine deposit conceptually falls within a class of high gold-silver volcanogenic massive sulphide deposits that include the Eskay Creek deposit of northern British Columbia; the Green’s Creek deposit on Admiralty Island near Juneau, Alaska; the Bawdwin deposit in Myanmar; and the Rosebery deposit of Tasmania.  This family of deposits is particularly silver and lead rich with important gold, zinc, copper and other metal values (the comparisons noted are strictly for deposit model comparisons and are not necessarily indicative of the mineralization hosted on the property).

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.

On Behalf of the Board,

Graeme O’Neill, CEO

company@bayhorsesilver.com

1-866-399-6539

Bayhorse Recommences Operations At Its Relocated Flotation Circuit For Mineralization From Its Bayhorse Silver Mine

August 10, 2020                                                                                  BHS2020-18

Bayhorse Silver Inc, BHS: TSX-V (the “Company” or “Bayhorse”) has relocated its milling and silver flotation circuit to Fruitland, Idaho, from the Bayhorse Mine site, in Oregon and increased the capacity of the circuit to allow for processing at an “as mined” tonnage of 200 tons per day from the Bayhorse Silver Mine. The Company has added trained flotation operators to its Mine staff in Idaho to recommence flotation operations and recommissioning.

As disclosed in the Company’s news release BHS2020-12, metallurgical testing has achieved 87% silver recovery, with the expectation the recoveries will reach 90%. The Company is planning to produce a silver concentrate averaging 10,000 g/dmt.  The concentrate is expected to contain 11% copper. The concentrate will be placed in supersacks and shipped in 25 ton containers. The Company is preparing two sample 50 ton shipments of concentrate to prospective purchasers.

Initial processing will treat the 400 tons of Ore-Sorted mineralization currently stored at the Bayhorse Mine. This will be followed by a further 300-400 tons of already mined mineralization stored inside the Mine after it is processed through the Ore-Sorter.

The Company reduces the “as mined” tonnage through pre-concentration using its state of the art Steinert X-Ray Transmissive (XRT) Ore-Sorter, that is capable of sorting the Bayhorse mineralization at a rate of 40 tons per hour. “the references to “Ore-Sorter” do not imply the property hosts “mineral reserves supported by a PFS or FS”

Fines from 8 mm up to 25 mm, produced from mining operations, are screened off prior to crushing the over size material down to 25 mm which are then passed through the Ore-Sorter. The highly selective Ore-Sorter selects 5% – 7% of the mineralization and rejects everything under a Specific Gravity (SG) of 2.8, or 93% to 95% of the input. From an “as mined” rate of 200 tons per day, only a maximum of 40 – 50 tons per day of pre-concentrate is selected to be transported to the flotation circuit. The fines at minus 8 mm mineralization goes direct to the milling and flotation circuit.

As reported from the historic  Silver King Mines  1984 mining program,  mineralization was characterized as  23% at between 20 and 100 oz/t (622 – 3,210 g/t) ; 71% between 6 – 20 oz/t (186 – 622 g/t);  and 6% under 6 oz/t, (186 g/t). The established cut-off grade at the time was 6 oz/t. Recent Steinert XRT Ore-Sorter rejection grades are as low as 15 g/t, as reported in the Company’s news release, (BHS2020-02)

The Covid-19 lockdowns slowed the completion of the relocation and capacity increase of the mill, as well as the comprehensive metallurgical work conducted over the past number of months. The metallurgical work was in part to provide additional data to potential purchasers of the Bayhorse Silver Concentrate, and partly for the reconfiguration of the resized flotation circuit.

Bayhorse CEO, Graeme O’Neill comments, “I congratulate the Company’s consultants, miners and other operations personnel for their perseverance in achieving the recommencement of Mine operations in a safe manner and under the difficult circumstances of the Coviid-19 shutdowns. I also thank our many loyal shareholders for their patience during these past trying times.”

The Company is planning on recycling the majority of the water and tailings used in the flotation process to maintain the Bayhorse Silver Mine as a minimum impact mine.

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.

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.

On Behalf of the Board,

Graeme O’Neill, CEO

company@bayhorsesilver.com

1-866-399-6539