SKIPPACK, PA--(Marketwire - Oct 29, 2012) - North Bay Resources Inc. (OTCBB: NBRI) (OTCQB: NBRI) ("North Bay" or the "Company") is pleased to announce that it has entered into a mineral property option agreement (the "Agreement") with Caribou King Resources Ltd. ("Caribou") pursuant to which Caribou may earn up to a 100% interest in North Bay's "Willa 5" and "Silver Jen" mineral claims (the "Willa Claims") in southeastern British Columbia.
The Willa Claims include the southeast extension of the Willa Mine, an advanced-stage gold-copper-silver deposit located in the Slocan Valley near the village of Silverton in southeastern British Columbia. Over $16 million dollars (CDN) has been spent by various operators over the past 20 years to develop the Willa Mine to its present status, which includes an extensive underground network of workings to access the mineralization. Any additional development to extend the mine along trend to the southeast is expected to also go through the North Bay claim area.
A feasibility study completed in August 2005 documents the Willa's total mineral resource estimate within the measured, indicated, and inferred categories, as specified by National Instrument 43-101 and based on a 1.5-gram gold per tonne cutoff, as 3,989,494 tonnes grading 3.23 grams gold, 7.16 grams silver, and 0.53% copper. This equates to a known resource of 414,343 ounces of gold, 918,482 ounces of silver, and 46,602,077 pounds of copper. These estimates are based upon a database including data from 556 core holes totaling 50,890 metres, 2,570 metres of underground workings and 17,150 laboratory analyses for gold, silver, and copper.
As set forth in the Company's Current Report on Form 8-K filed with the United States Securities and Exchange Commission ("SEC") on October 25, 2012, Caribou may earn up to a 100% interest in the Willa Claims by making aggregate payments to North Bay of USD $232,500 in cash and issuing 1,000,000 shares of Caribou common stock. Of the aggregate payments, $7,500 in cash and 500,000 shares are due upon receipt of regulatory acceptance of the Agreement by the TSX Venture Exchange, $50,000 cash and 500,000 shares are due upon the first anniversary of the Agreement, and a $175,000 cash payment is due upon the second anniversary of the Agreement.
In addition to the consideration received, North Bay shall be granted a royalty equal to 2% of net smelter returns ("NSR"). At any time up to the commencement of commercial production, Caribou may purchase one-half of the royalty (being 1%) in consideration of USD $1,000,000 payable to North Bay, such that North Bay will then retain a 1% royalty.
About Caribou King Resources Ltd.
Caribou King Resources Ltd. is a mineral exploration company listed on the TSX Venture Exchange. Caribou King's mission is to identify, acquire, and advance high potential base and precious metal prospects. For more information please visit the website at www.caribouking.com.
About North Bay Resources Inc.
North Bay Resources Inc. (OTCBB: NBRI) is a fully-reporting junior mining company with over 150 mineral and placer claims encompassing approximately 60,000 acres throughout British Columbia, Canada.
In the US, the Company owns the Ruby Gold Mine in Sierra County, California, and is presently planning to acquire additional operating mines in the western US.
The Company's mission is to build a portfolio of viable mining prospects throughout the world and developing them through subsidiaries and JV partners to their full economic potential. North Bay's business plan is based on the Generative Business Model, which is designed to leverage its properties into near-term revenue streams even during the earliest stages of exploration and development. This provides shareholders with multiple opportunities to profit from discoveries while preserving capital and minimizing the risk involved in exploration and development.
SAFE HARBOR FOR FORWARD LOOKING STATEMENTS
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although North Bay Resources Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by North Bay Resources Inc. or any other person that the objective and plans of North Bay Resources Inc. will be achieved.
Cautionary Note to U.S. Investors - The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on our website (or press releases), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form S-1 and subsequent Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml