April 19, 2018 BHS2018-10
Bayhorse Silver Inc. (the “Company” or “Bayhorse”) is pleased to report that Fundamental Research Corp., (Fundamental) has initiated coverage of Bayhorse Silver Inc. Their report can be viewed at Fundamental Research www.researchfrc.com and third party websites.
Bayhorse has a 100% Leasehold Interest in the recently opened Bayhorse Silver Mine, where mining and processing officially commenced in January 2018.
During the past three months the Company has continued underground development both in the historic Big Dog Zone, that was last mined in 1984, and in the newly accessed Legend Zone.
In March, after two months running mineralized material through the Ore-Sorter, and based upon the data developed, the Company and Steinert modified the Ore-Sorting algorithms. The new sorting algorithm has been implemented to ensure the Ore-Sorter captures as much mineralized material as possible between 8mm and 25mm, while still rejecting the maximum amount of waste. The new algorithms are now upgrading the mineralization through the Ore Sorter between 5 and 7 times, in line with the Company’s expectations.
The Company is producing two grades of mineralization from mining and initial processing. One is the targeted direct shipping grade over 100 oz/t Ag and the other a milling grade under 100 oz/t Ag. The milling grade is undergoing secondary upgrading at the mine to direct shipping grade. Ore-Sorted inventory is being held at the Mine.
Due to the fine grained nature of the mineralization, blasting during the mining process creates a substantial amount of mineralized fines that fall below the 8mm lower processing size limit of the Ore Sorter. These fines, constituting 15% of the amount mined, have been stockpiled during the past three months ready for upgrading.
While the mining process has been relatively trouble free, the Company has been identifying and correcting mainly weather related processing bottlenecks.
To process the fines for recovery of metal values, the Company recently installed a Ball-Mill, expected to be fully operational by the end of April. Additionally, the mud and clay content of the mineralization clogged the screens, requiring installation of a washing circuit to clean the mined material for more effective processing. The washing circuit, that will also presort the mineralized material to +/- 8mm, is expected to be complete my mid May to effectively capture all the fines.
With the identification of Scandium values at the Bayhorse Mine, the Company immediately did testing to determine if the Scandium and other minerals could be recovered separately.
Mineralized material was submitted to Metals US, of Missoula, Montana, for leach testing to establish whether the minor minerals (copper, zinc, antimony, lead and scandium) can be recovered more economically than via flotation by using their Total Metals Recovery Process.
Initial results are that recoveries with the Metals US process are comparable to flotation recoveries, at substantially less processing costs. Additionally, the tests have shown the Metals US column process can effectively separate the individual minerals. Recovery tests to date also indicate good recoverability of the Scandium, that is currently priced at $6,600 kg.
Final detailed test results from Metals US will be announced when received.
Bayhorse CEO Graeme O’Neill comments: “As a “Start Up” Mining Company we must make every effort to maximize our projected revenue stream. We will take advantage of both newly available, and proven technologies to make processing more cost effective and reliable to generate revenues not only from Conflict Free silver but also the ancillary metals.”
He also comments that “Over the past months, newsletter writers such as Adam Hamilton, Gronwegen,and Hoye, among others, have expressed their opinion that the silver/gold ratio of over 80 oz/t Ag to 1oz/t Au is too high and will soon correct. We believe that with the recent increase to over $17.20 an ounce, the correction has now started and the ratio should revert to a more normal range of 55-65 to 1. If maintained, increased silver prices should be good for the future of the Company.”
The Company has settled $3,354.85 of debt, being interest incurred on the conversion of US$40,000.00 of the Company’s convertible debentures through the issuance of 15,975 common shares of the Company at a price of 21 cents per share, being the closing price of the Company’s stock on the settlement date of April 18, 2018. The issuance of the debt settlement shares is subject to TSX Venture Exchange approval.
Fundamental Research has been paid a $20,000 fee to issue the report and it will be carried on Fundamental’s website for 12 months from date of issue.
This press release has been prepared by, prepared under the supervision of, or has been approved by Dr. Stewart Jackson, PGeo. , a Qualified Person under National Instrument 43-101.
The Company advises it 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.