Oceana Gold Expands Activity Northward To Acquire Ground Surrounding Bayhorse Silver’s Red Queen Mine, New Zealand
SEPTEMBER 9, 2014 – BHS2014-22
OCEANA GOLD CORP. EXPANDS ACTIVITY NORTHWARD TO ACQUIRE GROUND SURROUNDING BAYHORSE SILVER’S RED QUEEN MINE IN NEW ZEALAND
Bayhorse Silver Inc (“Bayhorse”) BHS-TSX-V, reports that Oceana Gold Corp. (“Oceana”) has expanded its activity 80 km northward from the Reefton Goldfield where it operates the Globe Progress gold mine, to acquire the Lyell tenement, surrounding Bayhorse’s Red Queen gold project. The Red Queen project of Bayhorse consists of the historic Red Queen, Swastika, Halcyon, Guiding Star, Morning Star and Swanston gold mines.
The Red Queen contains veins of “Blackwater” type characterized by (i) structural simplicity, (ii) confinement of gold to the vein (iii) lack of extensive alteration haloes of sulfides and graphite and (iv) planar nature and continuity to depth.
In addition to its two operating mines, Globe Progress and Macraes, Oceana proposes to reopen its Blackwater gold mine, in the Reefton Goldfield on the West Coast of New Zealand’s South Island, 80 km south of the Red Queen mine. The Blackwater historically produced approximately 730,000 oz/t Au, and has a reported NI-43-101 resource of 700,000 oz of gold at a grade of 23 g /t Au. In that district Bayhorse Silver holds the historic high grade Alexander River gold mine,10 km southeast of the Blackwater mine (see June 23, 2014 press release) that historically produced 41,000 oz of gold from 47,000 tons mined.
Subject to acceptable financing, Bayhorse is planning an exploration program for high grade gold at the Red Queen Project lying at the north end of the trend. The historic Halcyon, Guiding Star, Morning Star and Swanston Mines extend along the northerly extension of the Red Queen vein. The Red Queen quartz vein contains visible gold, pyrite, arsenopyrite and chalcopyrite yielding historic grades of up to 171 g/t gold (Au) (5.49 oz/t Au). Two samples taken from the Red Queen Vein in 2010 and 2011 assayed 69.4 g/t and 28.9 g / t Au The highest grade gold sample of 25.9oz per ton Au (885 g/t Au) was from the Guiding Star mine, which contained numerous quartz specimens impregnated with visible gold.
The Company has cancelled the second tranche of its outstanding private placement of 3,500,000 common shares at $0.10 for $350,000 and will seek alternative financing to complete the underground work at its Bayhorse silver mine.
