Bayhorse Retracts Fundamental Research In Its entirety And Clarifies 3rd Party News Release On Fundamental Research Coverage Of The Company
April 22, 2018 BHS2018-11
Bayhorse Silver Inc. (the “Company” or “Bayhorse” BHS-TSX:V) is retracting in its entirety the Fundamental Research Report dated April 12, 2018 and buy recommendation and is clarifying the disclosure that was presented in a news release by Investment Pitch Media dated April 19, 2018 on the Fundamental Research Report. A $22,000 fee was paid to Fundamental to issue the report. Investment Pitch Media is paid $3,000 quarterly to disseminate the Company’s official news releases in video format.
The disclosure does not comply with the requirements of National Instrument NI 43-101 – Standards of Disclosure for Mineral Projects or National Instrument NI 51-502 – Continuous Disclosure Obligations
The Company advises that disclosure of a target share price and production forecasts in the Fundamental Research Report, without stating underlying assumptions or material risk factors, does not comply with the disclosure requirements of NI 51-502.
The Company advises that as Fundamental Research is not considered independent from the Company, the buy recommendation and target share price as published by Fundamental Research is hereby retracted.
The Company advises that the Investment Pitch news release did not contain the following disclaimer as required by National Instrument NI 51-502. “The Company is not basing any decision to 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 production decision.”
The Company advises that the Investment Pitch Media news release contained a material misstatement that there was a mineral reserve estimate. This statement is incorrect and contrary to the disclosure requirements of S. 2.2 and 2.3 of National Instrument NI 43-101 and did not contain the required disclaimer
The Company advises that it does not have, nor has it stated in its ongoing disclosure that there are mineral resources or mineral reserves at the Bayhorse Silver Mine, but in its ongoing disclosure, has fully disclosed the historical estimate on the Bayhorse Mine as reported by Herdrick (1981) accompanied with the required disclaimer ”
The Company advises that this information is of a historic nature. Historic production estimates, drill information and grades reported 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.”
The Investment Pitch news release contained a statement that the Company had significantly extended the historic reserve estimate along strike. This is a misstatement and is incorrect and contrary to the disclosure requirements of S. 2.2 and 2.3 of National Instrument NI 43-10.
The Company has consistently stated in its ongoing disclosure, accompanied by the required disclaimers, that historic information suggests a potential Exploration Target of between 500,000 and 1,000,000 tonnes grading between 17-20 ounces silver per ton. This potential exploration target is conceptual in nature, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
The Investment Pitch News Release contained a statement that the Company estimated production of between 640,000 to 1,2 million ounces of silver over the next 12 months from the Bayhorse Mine.
The Company advises that production estimates must be supported by a preliminary economic assessment, pre-feasibility study or feasibility study. The Company has not completed or filed a PEA, PFS or FS to support such disclosure.
This press release has been prepared by, prepared under the supervision of, or has been approved by Dr. Stewart Jackson, P.Geo. , a Qualified Person under National Instrument 43-101.