17:17:30 EDT Sat 10 Jun 2023
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Silver Bullet Mines Corp
Symbol SBMI
Shares Issued 62,421,962
Close 2022-05-03 C$ 0.385
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Silver Bullet to begin Washington production in July

2022-05-05 12:22 ET - News Release

Mr. John Carter reports

SILVER BULLET MINES CORP. NEAR-TERM PRODUCTION AT WASHINGTON SILVER MINE IN IDAHO

Silver Bullet Mines Corp. has provided an update on operations at its 100-per-cent-owned Washington mine in Idaho. This mine is on patented lands.

"We are pleased to be back at the Washington mine and moving forward to production," said A. John Carter, Silver Bullet's chief executive officer. "The plan is to access the ore zone in June, to commence production in July and to continue to work through the winter of 2022/2023." Silver Bullet is in discussions with an experienced contract miner to commence such work as soon as reasonably possible, subject to a due diligence site visit.

The Washington mine first saw production in the late 1800s with an average gold grade of one ounce per ton. It again produced gold in the 1930s during which time the then-owner lacked the process capability needed to produce silver, so a decision was made to block out the silver mineralization with the intention of returning at a future date to extract it. To the best of Silver Bullet's knowledge, the blocked out volume remains in situ. A historical report indicates the blocked out volume contains an estimated three million ounces of silver with a grade of 30 to 90 ounces per ton and 15,000 ounces of gold at 0.3 ounce per ton (source: "Geological Evaluation," Roger G. Stoker, PG, and Ryne C. Stoker, student geologist, Energy Services Inc., December 1981).

Mr. Stoker also indicated the location of the Berger vein, described as a "gold ore shoot 25 feet wide, 135 feet long and unknown depth." Average grades were given as 0.3 ounce per ton gold with unknown silver content. Additional notes by Mr. Stoker suggest that the Berger vein was intersected in drifting at the 400-foot level.

The references above to data and observations derived from work not carried out by Silver Bullet are of historical nature only and cannot be relied upon at this time. Silver Bullet does not know the methods by which such work was carried out, or whether all or part of it was under the supervision of a qualified person, as that term is defined in National Instrument 43-101. Silver Bullet refers to such data and observations to inform its knowledge of the area.

Based in part on the information from Mr. Stoker, Silver Bullet took a bulk sample from the Washington mine, the results of which were disclosed on Jan. 18, 2022. That bulk sample returned 55.5 ounces silver per ton. It is the company's intention to exploit that mineralization while developing other vein faces.

To that end the company's on-site contractor has cleared small trees that had fallen over the winter, has upgraded the road and, with snowmelt, has cleared access to the main portal.

Silver Bullet has also contracted a portable sawmill to be on site in the near future to start cutting timber for the underground workings. There will be cost savings as Silver Bullet owns the timber rights at the Washington mine, meaning Silver Bullet can provide most of the required timber. The company is also installing a water supply and equipment container.

It is intended that Silver Bullet meet the contract miner at the Washington mine in the next few weeks for a due diligence visit. Some of the items involved in having the contract miner begin removing mineralized material are:

  • Road upgrade permit has been received and the work completed;
  • Mine ID has been applied for and received;
  • A ventilation plan is in progress and should be completed in next few weeks;
  • Mine Safety and Health Administration approval should be received shortly;
  • Contract negotiations are under way with a mine rescue contractor;
  • Metallurgical testing is continuing at Montana Technical University with results anticipated in the next few weeks.

It is anticipated the contract miner will take an initial bulk sample of 1,500 to 3,000 tons in July, for processing at a local mill. Upon completion of the processing of the bulk sample, Silver Bullet intends to start underground development, targeting the parallel zone and the Berger vein.

All the above items are being completed under the on-site supervision of Nick Barr, geologist.

The company is also planning a surface exploration program at the Washington mine this summer to further delineate the parallel structures discovered during last year's field program.

Access to the property can be maintained through the winter as Silver Bullet has contracted a local service provider that has the equipment needed to keep the road open. Decisions on the scope of winter work underground will be determined after the company receives the results of the July bulk sample.

In Arizona at the Buckeye silver mine, work continues to complete the 125-ton-per-day mill. Wiring the Motor Control Centre to the various parts of the ball mill has begun. The estimated timeline for completion is roughly four weeks, although that is largely out of Silver Bullet's control. There continues to be some supply chain risk and pricing risk as to when all equipment will be ready and on site, although Silver Bullet believes it has taken all necessary steps to reduce such risks.

We seek Safe Harbor.

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