SOURCE: North Bay Resources Inc.
SKIPPACK, PA--(Marketwired - Feb 14, 2014) - North Bay Resources Inc. (OTCQB: NBRI) ("North Bay" or the "Company") reports that the first bulk material mined from the White Channel in the Ruby Mine has now been processed.
112 tons of material mined from the White Channel has now been run through the Ruby Mill. The material processed has consisted mostly of waste rock and fall material from the opening and advance into the entrance of the White Channel, and which has served as a stress test on the mill to make sure all of the conveyors and other vital systems functioned properly when carrying material of considerable weight for long durations. This first round of mining was not expected to produce meaningful gold recoveries until we intersect a pay streak further up within the channel. Nevertheless, while the exact weight will not be known until the concentrate is fully processed next week, we can estimate that approximately 1 ounce of fine gold has been recovered. The recovery of any anomalous gold from what must be considered background and waste material gives us reason to believe that higher grade gravels are within reach. Past sampling and mapping has identified a potential pay zone we are striving to access and mine in the coming weeks as our operation moves forward and deeper into the channel.
As this is the first time since 1998 that gold-bearing gravels have been put through the wash plant, this first bulk sample is also being used to assess the actual recovery rate of fine gold and to make adjustments if it is determined that a significant amount of fine gold is being lost in the wash process. Further recovery tests will be run and evaluated before the next bulk sample is processed. Going forward we expect a continuing measure of throughput control, adjustments, and fine tuning of the mill as we proceed with the processing of new material and work to maximize the recovery rate.
Our underground crew is presently extracting and stockpiling a second bulk sample and expects to see the gold recovery improve as we reduce the waste component and drive deeper into the channel. We have not yet encountered any of the paystreaks we believe lay ahead, which accounts for the low grade results thus far. This is typical of drift mining, where the gold is found in pockets near bedrock, and it is not unusual to advance through many yards of low grade gravels until a paystreak is revealed and the average overall grade of gold increases as a result. We will continue mining to process at least several more bulk samples before making a determination whether to continue advancing in the White Channel or move on to another mining target upstream. A second underground crew is presently working further upstream on the construction of the Big Bend Bypass Raise, which we hope to complete later this spring.
It must be stressed that the White Channel is not and never has been one of the principal mining targets previously identified by our geological team. Rather, it became a mining target when, during the course of the tunnel rehab it was determined that this readily-accessible section of channel contained virgin gravels that were not previously mined when the tunnel was originally driven, and it was evident that we were able to begin mining it as soon as all necessary preparations to widen the accessway and build a raise into the channel were completed.
We will continue to extract bulk samples as work progresses and until we can make a reliable assessment of the expected average grade of the White Channel. We estimate that at current metal prices it will take less than 10 ounces of gold recovery per week to break even on the cost of mining, and less than 20 ounces to break even on the all-in weekly cost of the project. These numbers are quite modest and should be achievable if the recoverable average grade of gold in the White Channel is sufficient to meet these thresholds. This is what we are presently working to determine. The work is expected to continue throughout the winter, weather-permitting, and we will provide additional updates once the results are known from the next set of bulk samples.
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 350,000 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, only a small portion of which has been explored to date. The property consists 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 on 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. (OTCQB: NBRI) is a fully-reporting junior mining company with current operations in the US and Canada.
In the US, the Company's subsidiary, Ruby Gold, Inc., owns and operates the Ruby Mine in Sierra County, California. The Ruby Mine is a fully-permitted underground placer and lode mine located in the northern extension of the historic Mother Lode system. The Ruby is known to have produced over 350,000 ounces of gold since the 1850's, including some of the most spectacular gold nuggets on record. The Ruby Property covers approximately 1,755 acres, only a small portion of which has been explored to date.
In British Columbia, the Company holds 100% ownership of a multitude of significant mining properties. These include two gold-platinum placers, the Fraser River Project and the Monte Cristo, and lode projects such as the advanced-stage Mount Washington Project on Vancouver Island, the Brett West/Bouleau Creek Gold project near Vernon BC, the Coronation Gold project in the historic Slocan Mining district, and the Tulameen Platinum Project near Princeton, BC. In addition to its many precious metal projects, the Company also owns additional prospective projects that host strategic mineral resources such as Vanadium, Crystalline Flake Graphite, Olivine, and Rare Earth Elements (REE).
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.
Additional information on the Company's many properties and ongoing projects is available at the Company website at http://www.northbayresources.com.
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 Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml