VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 23, 2015) - Bayhorse Silver Inc. (TSX VENTURE:BHS) (the "Company" or "Bayhorse") is pleased to announce it has entered into an Option Agreement (the "Agreement") with Blackhawk Exploration L.L.C. ("Blackhawk") to acquire a 75% interest in the past producing Government Gulch patented mining claims in the Coeur d'Alene Mining District, Idaho, USA.
- Claim groups include 6 past producing mines
- Situated between Bunker Hill and Page Mines in Idaho's prolific "Silver Valley"
- Bunker Hill and Page mined up to Government Gulch claim boundaries
- Patented (private) ground. No permitting required in State of Idaho
- Minimizes costly & time consuming permitting for exploration/mining site operations
- Free from environmental liabilities from prior production
- Complete package of digitized underground mine plans/workings of all the mines
Located in Idaho's highly prolific "Silver Valley", the properties lie approximately 1 mile south of the towns of Kellogg and Smelterville off US Interstate I-90. The Government Gulch property consists of approximately 500 acres of patented claims and mineral rights that abut the Bunker Hill Mine to the east and the Page Mine to the west. Mining operations were conducted by both the Bunker Hill Mine and the Page Mine right up to the east and west boundaries respectively of the Government Gulch group of claims.
The Government Gulch property includes ASARCO's prior producing Blackhawk, Crown Point, Curlew, Ranger and Wyoming Mines. In the State of Idaho, no costly and time consuming permitting is required to conduct exploration or mining operations on existing private (patented) mining claims, realizing substantial cost savings in getting on-site operations underway.
Graeme O'Neill, President & CEO of Bayhorse Silver comments, "The acquisition of these world class silver/lead/zinc properties on patented mining claims, strategically located in Idaho's Silver Valley, are a major addition to the Company's prospects. The Government Gulch property is complementary to our near-to-test-production Bayhorse Silver Mine, also on patented mining claims, off Interstate I-84 in Oregon."
To view the maps associated with this press release, please visit the following link: http://media3.marketwire.com/docs/bhs1123maps.pdf.
ASARCO's main production was from the Page Mine with limited production from the Government Gulch mines. According to the U.S. Bureau of Mines production from the Government Gulch group of mines was over 2 million oz of silver, 9.4 million pounds of zinc and 6 million pounds of lead while the Page Mine produced 14.6 million oz of silver, 541.5 million pounds of lead, 543.3 million pounds of zinc and 19 million pounds of copper. To the east, the Bunker Hill Mine produced 156.5 million ounces of silver, 5 billion pounds of lead, 2.4 billion pounds of zinc, 23.6 million pounds of copper and 36,594 oz/gold.
The Silver Valley silver/lead/zinc deposits are known to extend to over 10,000 feet in depth. Hecla's Lucky Friday Mine is currently extending operations to that depth.
Blackhawk has digitized all the Government Gulch underground workings as well as the Page, Bunker Hill and Caledonia Mines from the extensive data and records on file and has identified significant un-mined mineralized zones within the Government Gulch mines.
ASARCO deeded the Government Gulch claims to the U.S. Environmental Protection Agency ("EPA") as part of its settlement with the EPA for the Silver Valley Superfund Cleanup. Blackhawk recently purchased the Government Gulch property from the EPA-established Trust, free and clear of any and all environmental liabilities from the EPA, pursuant to the completion of the Super Fund Cleanup executed by the EPA in the Silver Valley.
The Company is also pleased to announce that Mr. Ron Kruzemark, P.Eng., a mining engineer with substantial underground experience from working in many of the Silver Valley's mines, including Hecla's "Lucky Friday Mine", and who digitized the entire package of Government Gulch underground workings, will join Dr. Clay Conway, P.Geol, Dr. Stewart Jackson, P.Geol, and Dr. Richard Jolk, P.Eng., all qualified persons as defined by NI-43-101, as a consultant to the Company. Dr. G.E. Ray, P.Geol, prepares NI-43-101 Technical Reports for the company.
To earn its 75% interest in and to the Properties, Bayhorse is required to spend US$600,000 per year over five years (inclusive of reimbursing Blackhawk for the US$500,000 acquisition cost of the property), of which US$1,200,000 is a firm commitment.
Bayhorse Silver Inc. is a junior exploration company that is earning an 80% interest in the historic Bayhorse Silver Mine in Oregon, USA that has the potential for a substantial silver discovery. The Company has an experienced management and technical team with extensive exploration expertise. This News Release has been prepared on behalf of the Bayhorse Silver Inc. Board of Directors, which accepts full responsibility for its contents.
The technical content of this press release has been reviewed by Dr. S. A. Jackson, PGeo., a Qualified Person and Technical Advisor to the Company.
On Behalf of the Board
Graeme O'Neill, President
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.