RE:RE:RE:RE:RE:RE:RE:RE:BHS trading over 23 cents in Germany this morning.. Let me try to explain this to you mate. The production capacity of Bayhorse, right now, is to mine, and then feed into their ore-sorter, 150 tons of raw material, every day. Their ore sorter then produces 10 tons-per-day (tpd) of silver from those 150 tons of raw material. This is a necessary piece of ingenuity, because their Oregon small-producer permit prevents them from removing more than such a quantity of material from the mine each day. Bayhorse then grind the silver, float it, and make concentrate. Hence Bayhorse are able to produce 10 tpd of silver concentrate. That silver concentrate itself contains 10,000 grams-per-ton (gpt) of silver (about 321 troy ounces). 321 ounces x 10 tons = 3,210. So that’s 3,210 silver ounces a-day. Bayhorse are able to work 350 days a-year, so that’s about 1.2 million ounces a-year. As for the deal with Ocean, what it stipulates is “15 full container-loads of silver/copper concentrate, or 300 metric tons.” The 300 metric tons have to do with the concentrate, not the amount of ounces contained therein.
Of course, to speak more specifically of ounces, as Gknight has pointed out, 10,000 gpt in the concentrate is simply “the lower limit of the silver content that was negotiated in the delivery contract between Bayhorse and Ocean.” According to Graeme’s tests, the silver content in Bayhorse’s concentrate is more likely to be about 600 ounces per ton. So Bayhorse is really capable of producing 2 million ounces a-year, objectively speaking. We can also expect an upgrade to 200 tpd of production in the near future; and, if they can get some new permits, an upgrade to 400 tpd. So potentially Bayhorse can produce 4 million ounces a-year (nearly 8x more production than Impact Silver, which has nearly 4x our market cap).