August 15,2017 BHS2017-16
Silver Off-Take Letter Of Intent With Refinery For Bayhorse Production.
Bayhorse Silver Inc., TSX-V: BHS (“Bayhorse” or the “Company”) has signed a Letter of Intent (LOI) with Minerals Solutions LLC (Minerals) of Coeur D Alene Idaho, a Joint Venture between Liberty Refiners LLC (Liberty) of Hayden, Idaho and Irish Metals LLC (Irish) of Coeur D’ Alene, Idaho.
Under the LOI Bayhorse undertakes to provide to Minerals direct shipping material from the Bayhorse Silver Mine, Oregon, USA. Minerals will concentrate, process, refine and sell, or return refined silver to Bayhorse.
Bayhorse has undertaken to provide direct shipping material, at a minimum 3,000 g/t Ag to Minerals, commencing October 1, 2017. Under the terms of the LOI, Bayhorse will provide Minerals with a minimum 1,000 kg direct shipping sample to establish the cost of processing that will form the basis for a formal processing agreement.
Liberty has refined precious metals since 2008 and is currently the exclusive refiner for the Sunshine Mint. Michael Irish, of Irish Metals LLC, has been a consultant to the mining and recycle industries since 2014 and was the principal metallurgist at the development of the “Sunshine Refinery part of Sunshine Mine Complex” in Idaho’s highly prolific “Silver Valley” and as such was instrumental in designing the silver recovery circuit.
Together, they have developed a proven hydro-metallurgical process (the “Process”) that recovers refined silver of .999 fineness from mill flotation, gravity, or direct shipping concentrate, eliminating the need for the smelter step. The process is particularly suited to tetrahedrite, the main silver bearing mineral prominent at the Bayhorse Silver Mine. Minerals is currently expanding its operation to increase the volume of concentrate it can process daily.
Upon installation of the Steinert “Ore-Sorter” at the Bayhorse Mine, the Company will be producing two products. A direct shipping grade material of 3,000 g/t or better, and a lower grade flotation grade material.
Minerals is evaluating processing options for the Bayhorse lesser grade material.
Mr. Rick Hurt, of Liberty Refiners LLC has stated “this process provides producers an alternative processing solution to offset the reduction in smelter capacity in the United States. This reduction has forced many silver mining operations to either export their concentrates offshore, where the high costs of shipping, smelting and refining is at significant cost, reducing profitability, or due to the high costs, making many silver mines uneconomic” He also states that “with the increasing concern about the jurisdictions where metals come from, especially the focus by buyers on avoiding conflict minerals, we can guarantee the source of the refined products we produce”.
Bayhorse CEO, Graeme O’Neill comments “our agreement with Minerals Solutions LLC for processing the Bayhorse direct shipping material allows us refining options that were not formerly available to us, and we look forward to working in close association with Minerals Solutions.”
The Company advises it is not basing any 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 any 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. Dr. Clay Conway, P.Geol., a Qualified Person and Director of Bayhorse has prepared, supervised the preparation of, or approved the technical content of this press release.
On Behalf of the Board.
Graeme O’Neill, President
Bayhorse Silver Inc., a junior exploration company, has earned an 80% interest in the historic Bayhorse Silver Mine, Oregon, USA. Bayhorse is also earning a 75% interest in the past producing Bridging the Gap Project, consisting of ASARCO’s historic Crown Point, Silver King, Ranger, Wyoming, Curlew, and Blackhawk silver/lead/zinc mines in Idaho’s Silver Valley. 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.