May 10, 2018 BHS2018-13
BAYHORSE SILVER CLARIFIES TECHNICAL DISCLOSURE ON BAYHORSE SILVER MINE, OREGON, USA.
Bayhorse Silver Inc. (the “Company” or “Bayhorse”) reports that as a result of a review by the British Columbia Securities Commission (“BCSC”) it is issuing the following news release to clarify its technical disclosure.
The Company advises that it does not have current mineral resources or mineral reserves for its Bayhorse Silver Mine property.
With respect to the Bayhorse Silver Mine disclosure of a historic estimate by Herdrick (1981) reported in the Company’s past news releases, the disclosure of the historic estimate did not meet the requirements of S. 2.4 and S. 3.4 of National Instrument NI-43-101, in that the disclosure was not accompanied by the required cautionary language as provided for by National Instrument NI-43-101. The Company hereby retracts the disclosure as made in its past news release, as incomplete and potentially misleading.
The Company hereby restates the disclosure of the historic estimate to read:
In his Examination and Compilation Report dated April 1981, Melvin A. Herdrick, Consulting Geologist, estimated tonnages in the main body, based upon geology, to be as follows.
Upper level, 329 ft long x 80 ft wide x 22 ft thick to be 50,688 tons
Intermediate Level 200 ft long x 85 ft wide x 22 ft thick to be 33,660 tons
West projection to fault 525 ft x 85 ft wide x 22 ft thick to be 88,360 tons
Less 6,500 tons mined – 6,500 tons
Total at 7.5 oz/t cutoff at 17-20 oz Ag/t 166,208 tons
While Herdrick’s assumptions, parameters and methods used to calculate the grade and tonnage of the reported historic estimate are unknown, the Company, and its Exploration Manager believe the estimate would have been reliable at the time it was estimated as;
1. The Company has obtained directly from Cordex Exploration (Cordex) of Reno, Nevada full results from its comprehensive 1976 underground exploration program in the Bayhorse Mine underground workings.
2. Silver King Mines conducted a short mining program at the Bayhorse Mine in 1984, based upon Herdrick’s report, before Mine closure due to the significant drop in the silver price at the time to under US$5.00/ounce. Silver King reported production of 5,718 tons of which 23% graded between 21 and 100 oz/ton silver, 71% graded between 6 and 20 oz/ton silver and 6% was below the cut off grade of 6 oz/ton silver. Bayhorse has acquired all the Silver King exploration and mining program data, that detailed the 1984 mining program.
3. The substantial underground work carried out and reported by the Company to date appears to confirm the presence of high silver grades in multiple areas of the underground workings as detailed in both the Cordex and Silver King acquired data. The Silver King data, that included 15,000 feet of underground core drilling, assay data on rounds mined, underground maps and plans, and geologists’ notes and records, supported Herdrick’s conclusion that the mineralized ground extended further along strike in the mine to the West.
The Company is not aware of any work, reports, or assay data, that does not conform to standard geological practices as conducted in North America.
The Company advises however that 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 for the Bayhorse Silver Mine. The Company is not treating the historical estimates as current mineral resources or mineral reserves.
The Company further advises it is not basing any decision to mine or 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 such mining or production decision and it is not basing any decision to mine or produce on these historical estimates.
For the historical resource figures to be upgraded or verified to qualify as National Instrument 43-101 resources or reserves would require measuring and resampling of the underground workings, and if needed, core drilling. The Company is currently preparing a NI 43-101 technical report on the Bayhorse Silver Mine and will file it on SEDAR in due course.
This press release has been prepared under the supervision of and has been approved by Dr. Stewart Jackson, P.Geo., a Qualified Person under National Instrument 43-101. He is a technical advisor to the Company and holds incentive stock options in the Company.