To our Shareholders and Investors
As President of Bayhorse Silver Inc I want to bring you up to date on our market activities.
Market Awareness.
Trading in Bayhorse Silver (BHS: TSX-V) shares has increased substantially since January, with approximately 1 million shares traded each month, and we expect much more buying to come in as we expand our Investor Awareness Program. This new attention we are getting is because the Company has focused on getting quickly into silver production, and cash flow, from its Bayhorse Silver Mine. As well, silver prices have increased to the US$15 an ounce range, which makes our projects much more attractive to investors.
Now the deepest bear market in the precious metals resource market in over 50 years finally looks like it is easing, investors are now seeing more than ever that with estimated grades of 17-20 oz/ton, Bayhorse Silver is a value proposition. Worldwide, primary silver mine production grades have dropped to an average of 7.5 oz/silver per ton and according to this report,
silver demand is likely to heat up. We still only have 28 million shares outstanding, and that should give investors significant upside once we start pulling silver out of the ground.
Unlike the majority of companies in the Junior Marketplace, we do not need to undergo the costly, and time consuming, permitting process, as both projects are on patented ground. These costs are often a significant barrier in moving projects forward. For Bayhorse, substantial underground workings exist on both Projects, we are in possession of massive quantities of existing, high quality, records. Taken together, the data on the mines and mineralization, should help us lower our ongoing exploration and mining costs. If there are any surprises, they will probably be good ones.
We all know that a company can have the best projects in the world, but must tell the world about them to get the market's attention.
The Awareness Program started with our attendance at the Silver Summit in San Francisco in late November as well as the Capital Market Conference in Napa Valley. We followed this up by attending January's Vancouver Resource Investment Conference, where were
interviewed by David Morgan, the "Silver Guru" as he is known, about the Company and our new Bridging the Gap (BTG) Project in Idaho's highly prolific Silver Valley.
David stated in the interview that he was going to visit Bridging the Gap Project in the very near future and that visit, to not only the BTG Project, but also the Bayhorse Silver Mine, will now take place in early April.
We were also interviewed by SmallCap Power (
view here) as well as Mining Clips (
view here) and most recently, a California financial reporter, Ron Irwin, reporting on Financial News Media has recommended Bayhorse Silver as a buy. (
View here)
We are also reaching out to investors across the United States by participating in smaller venues of fifteen to twenty investors and groups, with presentations to two groups in Los Angeles planned for the last two weeks of March.
Additionally, we anticipate one, or possibly two, research reports on the Company's prospects to be available in the near term.
Above average funding gives above average results.
The last quarter of 2015 was a difficult period for funding, not just for Bayhorse, but for all exploration/mining companies. We closed the third tranche of the Bayhorse Mine Debenture in February of this year. We still have funding commitments to finalize the Debenture, which funding will allow us to complete the underground work and start extracting more mineralized material ready for upgrading so that we will get above average results. Additionally we are discussing funding with other entities.
2016 Exploration/Mining Plans
Work at the Bayhorse Silver Mine has been delayed because we replaced the mining contractor late in 2015. The new mining operator is HRB Mining Services.(HRB) Mr Ron Krusemark, a highly skilled mining engineer with substantial underground mining experience in the Idaho's Silver Valley, manages HRB.
We have completed the Mine's history and preliminary plan for underground work at the BTG Project and we believe it makes for pretty exciting reading.
See Plan Here The Bunker Hill Mine, on the BTG's eastern boundary was worked down to the 5,000 foot level, and the Page Mine on the western boundary was worked down to the 4500 foot level, while the Crescent Point and Silver King Mines on the BTG were only worked down to approximately 500 feet, leaving a downward extent for potential additional mineralization of between 4,000 to 4,500 feet. Hecla's Lucky
Friday Mine is the deepest mine in the Silver Valley, now nearing 10,000 feet, or close to two miles deep.
Our plan at BTG is to access the Crescent Point mineralized zone workings from the Ranger Mine adit and commence installing a ramp/decline downwards through the Crescent Point mineralized zone, as well as conduct some diamond drilling.
With the projected cash flow from the Bayhorse Silver Mine and the upside from the BTG Project, we believe the Company is well positioned for future exciting growth.
Venture Exchange Town Hall Meeting
As readers are aware, I wrote a letter to the TSX Venture Exchange in regards to their White Paper, and as well attended the Town Hall Meeting. The feedback I received from Officers and Directors of other public companies, and other participants in the public markets, really disturbed me, and should disturb all investors.
Since my letter to the Exchange I have done an in depth study of all the regulations and policies, of both the Exchange, and IIROC, and discussed them with the principals of other publicly traded companies. What is not generally known is that "shorting" in all markets is widespread with no apparent checks and balances.
The uptick rule that, was in essence a circuit breaker, was removed in 2010 (
Please see an explanation of eliminating the shorting uptick rule) IIROC, in their most recent analysis, says shorting is not an issue and certainly we have not seen much shorting activity in Bayhorse, however investors should be aware of this issue.
Management works diligently to create and maintain shareholder value and so we are taking the following steps to monitor our share trading activity and the distribution of our outstanding shares, the better to keep track of our market.
Paperwork
1. We are initiating a change from paper share certificates to the Direct Registration System of issuing, and transferring, ownership of shares in Bayhorse Silver Inc to make it easier and cheaper for shareholders with more security. Essentially, no more lost certificates to worry about.(
Read the details here)
2. As we expect to have even more significant trading in our shares in the near future, information on share trading becomes even more important to us, so we are considering engaging Shareholder Intelligence Services LLC (Shareintel) to monitor all trading in Bayhorse Silver shares in all markets in which we trade.
https://www.shareintel.com/ Thanks for your continuing support Graeme O'Neill President, Bayhorse Silver Inc