Bayhorse 2013 Spin-Off Silcom Systems Acquires Gunman High Grade Zinc Property.
April 5, 2017 BHS2017-04
Bayhorse Spin-Off Silcom Systems Inc Options Gunman High Grade Zinc-Silver Project in Nevada, USA, from Cypress Development Corp.
Bayhorse Silver Inc. BHS: TSX-V (the “Company” or “Bayhorse“) is pleased to report that Silcom Systems Inc, of Burnaby, BC, a reporting issuer in British Columbia, and a Spin-Off of Bayhorse Silver Inc, has entered into an Option Agreement with Cypress Development Corp to acquire an up to 80% interest in its Gunman High Grade Zinc Silver Property in White Pine County, Nevada USA. Silcom is preparing an updated NI-43-101 Technical Report on the Gunman Property, and is currently completing its required regulatory filings in preparation for a proposed listing on the Canadian Securities Exchange.
The 460 acre Gunman Zinc-Silver Project is located northeast of Eureka, Nevada. Cypress Development Corp., through 2014, conducted 53,400 feet of RC and core drilling, and reported encountering significant zinc and silver grades near surface. In 2014, Cypress completed a NI-43-101 Technical Report, filed on Sedar, which is available at http://www.cypressdevelopmentcorp.com/i/pdf/Gunman-43-101_Report_March_17.pdf.
The agreement consists of two Options. The first Option is to acquire an initial 51% interest in the property upon cash payments of US$300,000, of which a non-refundable US$50,000 payment has been paid, US$1,850,000 in exploration expenditures, and the issuance of 1,500,000 shares of Silcom over three years. Cypress has granted Silcom a second Option to acquire an additional 29% interest by making a cash payment of US$250,000, the issuance of 500,000 shares of Silcom, and incurring additional exploration expenditures totaling US$1,100,000 within a 12-month period following exercise of the first Option.
Upon completion by Silcom of the two Option Agreements and the issuance of all the shares and cash payments and completion of all work commitments set out above, Silcom shall have earned an 80% interest in the Gunman property, subject to an underlying 2% NSR royalty interest.
Cypress also conducted further exploration drilling in 2014, as reported in its news releases of September and October, 2014, the results of which are tabulated below and which can be viewed at http://www.cypressdevelopmentcorp.com/s/Gunman.asp.
Table 1: June 2014 Phase 1 Drill Results for main RH Zinc-Silver Zone
Hole ID From (ft) To (ft) Interval (ft) Ag (g/t) Zn (%)
GMRC-3 55 95 40 60.3 2.00
and 140 155 15 33.5 3.20
GMRC-4 20 175 155 128.0 7.20
including 125 175 50 87.7 17.09
including 135 150 15 83.9 30.64
GMRC-5 5 205 200 63.3 8.90
including 125 180 55 147.0 21.00
including 150 165 15 100.1 32.20
GMRC-8 130 185 55 54.3 6.50
GMRC-9 50 225 175 121.0 12.00
including 130 215 85 209.2 19.70
GMRC-10 55 80 25 24.2 4.60
and 105 120 15 8.0 1.70
and 140 155 15 5.9 1.20
and 170 220 50 20.3 8.70
GMRC-11 0 150 150 18.3 3.10
and 165 215 50 125.6 7.90
Table 3: October 2014 Phase 2 Drill Results for main RH Zinc-Silver Zone
Hole ID From (ft) To (ft) Interval (ft) Ag (g/t) Zn (%)
GMRC-14 290 325 35 5.34 0.08
GMRC-15 75 225 150 74.91 13.64
including 85 185 100 108.00 20.16
and 345 415 70 18.88 1.06
GMRC-16 0 230 230 83.41 13.35
including 125 220 95 164.75 26.84
GMRC-17 165 240 75 5.15 0.25
including 215 225 10 16.45 0.68
GMRC-18 155 240 85 14.08 0.46
including 160 185 25 20.10 0.74
including 215 240 25 17.50 0.25
GMRC-19 0 250 250 NSV NSV
GMRC-20 0 210 210 60.27 6.83
including 55 175 120 90.70 11.28
including 150 170 20 53.32 32.54
including 85 115 30 153.03 9.41
including 125 175 50 94.84 17.25
GMRC-21 0 105 105 4.76 1.42
including 85 95 10 2.50 9.14
and 130 135 5 2.40 3.89
and 190 205 15 4.00 5.33
GMRC-22 90 150 60 34.41 16.21
including 105 145 40 43.82 23.89
including 105 130 25 60.44 25.94
and 180 190 10 73.20 NSV
GMRC-23 0 260 260 NSV NSV
GMRC-24 180 255 75 62.35 4.59
including 195 225 30 132.12 7.99
including 210 225 15 205.30 11.04
* NSV = no significant values.
* g/t = grams per metric tonne.
* True width lengths are estimated to be approximately 95% of downhole intervals.
* NSV = no significant values.
* g/t = grams per metric tonne.
* True width lengths are estimated to be approximately 95% of downhole intervals.
Cypress reported that Mr. Robert Marvin, P.Geo., was present and directed all drilling and other surveys completed on property since 2001 and that a basic aqua-regia-ICP multi-element package was run on 50 gram splits from 250 gram master pulps Intervals assaying >100 g/t silver and/or 1% zinc were rerun using a complete aqua regia digestion followed by ICP-AES analysis. Intervals assaying greater than 30% zinc following complete aqua regia digestion were then re-assayed from a fresh 50 gram pulp using classic titration.
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This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents. Dr. S. A. Jackson, P.Geo., a Qualified Person has prepared, supervised the preparation of, or approved the technical content of this press release.
On Behalf of the Board.
Graeme O’Neill, President
