SOURCE: North Bay Resources Inc.

October 03, 2011 08:30 ET

North Bay Resources Inc. (NBRI) Issues Ruby Mine Update

SKIPPACK, PA--(Marketwire - Oct 3, 2011) - North Bay Resources Inc. (OTCBB: NBRI) ("North Bay" or the "Company") is pleased to issue the following update on the work ongoing at the Ruby Mine in Sierra County, California.

  • The Company has accepted a bid by CME Services, a qualified mining contractor, to restore proper ventilation to the Ruby Mine underground workings. The work will include clearing the underground workings of extraneous debris and re-timbering as-needed from the Ruby Portal to the secondary exit at the Lawry Shaft. In addition to the production and safety benefits, this work program will also extend the underground workings available for Phase 2 of the previously-announced geological reconnaissance and 3-D digital mapping survey.

  • The amendment to the Reclamation Plan referenced in our September 6, 2011 update has been completed, and will be submitted to the California Department of Conservation's Office of Mining Reclamation ("OMR") in the next few days. Once approved, the Company expects the expanded tailings area will provide enough capacity to support mining operations for at least another 5 to 7 years before another expansion will need to be considered.

  • North Bay CEO Perry Leopold was on-site at the Ruby last week and held meetings with the Ruby Gold Project team, including Gary Clifton, P.Geo, Tom Knoch, P.Eng, and Bill Watters, P.Eng. A full review of the Ruby Mine site was conducted, and recent work to clear and reinforce the settling ponds was inspected, as was work done to stabilize and regulate the water discharge system to comply with California code. The expanded tailings area designated in our amended Reclamation Plan was also inspected and found to be more than adequate for our purposes. The unanimous opinion of everyone attending the meetings is that the condition of the mine and the infrastructure is excellent, and there are no foreseeable problems that will stand in the way of successfully reopening of the Ruby Mine. The ongoing work is being conducted in a workmanlike and professional manner, with full attention to safety issues as the primary consideration. Tests of the mine ventilation system were successful, and will be ready for deployment as the Ruby tunnel work proceeds forward. The overall mining plan was also discussed in great detail.

  • The Company has adopted a recommendation by the Ruby management team to conduct a seismic survey of the Ruby channels. The consensus of opinion is that that there is a high likelihood of multiple layers of overlapping channels that might not be apparent from the 3-D mapping survey currently underway, and the seismic survey is expected to confirm and augment the channel definition.

  • The Company has received an archive of newspaper and magazine accounts of the Ruby Mine that appeared in various publications in the 1970's and 80's. One in particular that we have put on the Ruby Mine page at our website was the cover story from the April 1987 edition of the California Mining Journal that recounts the history and events from the Ruby when it was owned by C.L. Best, co-founder of Caterpillar Tractor. It covers the period from 1936 to 1942, when the Ruby was last in full operation, and when the mine was unexpectedly forced to close by order of the War Board. Extensive interviews with the Ruby mine manager, Lewis Huelsdonk, make it very clear that if it was up to them, they would never have stopped mining, and that the best days of the Ruby are still in front of it. The article states, "And if the war had not interrupted their mining operation, who knows how much gold Huelsdonk and Best could have extracted from the Ruby mine. 'It seemed like we no sooner got onto the gold when the war broke out and the government closed the mine,' Huelsdonk laments. 'We were right in the middle of taking these nuggets, so you can imagine how we felt at the time.' After the war, the cost of operating the mine rose astronomically. 'On top of that, the government froze the price of gold at $35 an ounce, and you had to sell to them, you couldn't go to the free market. So, what the heck, we said to hell with it.' The article concludes by saying, "Like a page left open, the final chapter of the Ruby has yet to be written. But it will take modern-day 49'ers like Lewis Huelsdonk and C.L. Best -- men with the vision, determination and know-how -- to close this saga of the Ruby Mine and her deep buried treasures." A link to the entire article is available at http://www.northbayresources.com/ruby/CA_Mining_Journal_Article.pdf.

  • The Company has also located the original molds used to create replicas of the renowned C.L. Best Collection of nuggets from the Ruby Mine. C.L. Best originally donated the nugget collection to Sierra County, and when the collection was later loaned to the Los Angeles Museum of Natural History, duplicates of the nuggets were made so that the nuggets would also remain on display at the Sierra County Courthouse. The Company has received permission to use these molds to create additional replicas, and will put them on our website when the castings are completed.

North Bay CEO Perry Leopold commented, "We are extremely pleased with the progress we have made this summer as we work towards the reopening of the Ruby. We could begin mining immediately at the head of the Lawry Shaft, but we have decided to start at a deeper section of the mine where C.L. Best was forced to stop mining in 1942, and it is critical that full ventilation be restored to the entire length of the tunnel before mining operations can begin." Mr. Leopold continued, "Opening a mine involves the coordinated effort of many people, and we are determined not to skip any steps along the way simply to meet a timeframe we set for ourselves a year ago. Safety above all is job number one, and we intend to keep it that way. As always, we will continue to provide shareholders with regular progress updates, and we appreciate your patience as we proceed towards production. We are on the verge of reopening one of the jewels of the Motherlode, and we are determined to do it in a careful, deliberate, and cost-effective manner."

About The Ruby Gold Project

The Ruby Mine, a/k/a the Ruby Gold Project, is a fully-permitted underground placer and lode mine located near Downieville in Sierra County, California that is known to have produced over 250,000 ounces of gold since the 1850's, and which is considered to be part of the northern extension of the historic Mother Lode system. The Ruby Property covers approximately 1,755 acres, consisting of the subsurface mineral rights of two patented claims totaling approximately 435 acres and 30 unpatented claims containing approximately 1,320 acres. The equipment, fixed assets, and infrastructure in place include a 1,000 yard per day placer wash plant, 50-ton per day quartz mill, 6,000 feet of tracked haulage, and related support equipment needed for underground mining operations. The property also features an excellent system of roads, is accessible via paved highway from Reno or Sacramento, has abundant water and timber available for mining purposes, and has PG&E power available on-site. For further information about the Ruby Mine, please visit the Ruby page on the North Bay website at http://www.northbayresources.com/ruby/.

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 has acquired the Ruby Gold Mine in Sierra County, California, and is presently looking 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

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