Bayhorse Silver acquires historical data on Bayhorse
2014-06-10 09:41 ET - News Release
Mr. Graeme O'Neill reports
BAYHORSE SILVER ACQUIRES CORDEX DATA ON BAYHORSE SILVER MINE, OREGON, USA
Bayhorse Silver Inc. has acquired copies of all data developed by Cordex Exploration Co. during the period Cordex was actively exploring the Bayhorse silver mine in 1976.
The data acquired also include all original sampling and assay data collected by Cordex on the intermediate level of the mine, conducted to confirm earlier sampling in the same area. The company believes the data will provide a better understanding of the potential for expansion of the historic mineralized zone that is open along strike and to depth.
According to Casey Research, Cordex is considered by the mining industry to be one of the most successful gold exploration groups in the United States. The principal of Cordex, Dr. Andy Wallace, who received his PhD in geology from the Mackay School of Mines in Reno, Nev., is a certified professional geologist and is an honouree of the Casey Explorers League.
Graeme O'Neill, president and chief executive officer of Bayhorse, comments: "We are pleased to have obtained these data from such a highly regarded exploration source as Cordex. Dr. Wallace was on site at the time the data were developed, and has been in control of the material since that time, which gives us great confidence in the validity of the data when we initiate the process of a National Instrument 43-101 resource calculation from the historic resource."
He also comments, "American Mining and Tunneling (AMT), which is conducting the underground work program at Bayhorse, is led by Brian Morris, PGeo, who has substantial underground mining experience including the Midas, Ivanhoe Hollister and Barrick mines in Nevada, and is supported by AMT's highly experienced team of miners and engineers."
AMT reports that construction activities at the Bayhorse silver mine is progressing as scheduled. The U.S. Mine Safety and Health Administration (MSHA) inspection requirements on the work performed to date have been completed, and retimbering the adit portal has commenced.
In planning for the longer term, the company is evaluating how much of the bonanza-grade mineralization identified at surface (up to 150 kilograms per tonne silver as announced in the company's news release BHS2014-01) can be extracted and direct shipped. The company anticipates the material may be available for shipping as soon as the end of July. Funds received from any sale should act as a non-dilutive financing for continuing operations. Shipping and milling costs for the proposed larger underground bulk sample have now been budgeted, and once the underground rehab meets safety requirements, the company can determine the daily tonnage that can be mined from the up-to-80-foot-wide mineralized stockwork zone. The company has received a positive response from prospective purchasers of the bulk sample material.
Historic information
The company advises that historic production estimates, drill information and grades reported from its Bayhorse project 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.
As stated in the minerals production yearbook (Jacobsen, 1959), total reported historic production from the Bayhorse mine through 1959 was 286,000 ounces of silver from 8,300 tons mined for an average of approximately 34.5 ounces per ton silver (1,183 grams per tonne silver) while Herdrick (1981) estimated remaining shipping material at a 7.5-ounce-per-ton silver cut-off to be 166,208 tons, and on-site mill ore at a three-ounce-per-ton silver cut-off to be 473,350 tons. The highest reported grade from the 1984 drilling, sampling and mining program was from a mined round, containing a tetrahedrite-tennantite-rich vein, that assayed 691 ounces per ton silver (23,691 grams per tonne) and 15.72 per cent copper, while the recent sampling as reported in the company's news release BHS2014-01, identified silver content from a select sample of 150 kilograms per tonne silver (4,835 ounces per ton).
The company announces that subject to TSX Venture Exchange approval, it is amending the terms of the warrants in its previously announced private placement from non-transferrable to transferrable.
We seek Safe Harbor.
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