11:08:44 EDT Wed 12 Jun 2024
Enter Symbol
or Name

Silver Bullet Mines Corp
Symbol SBMI
Shares Issued 66,697,522
Close 2023-09-07 C$ 0.12
Market Cap C$ 8,003,703
Recent Sedar Documents

Silver Bullet continues mining at Buckeye, secures loan

2023-09-07 14:38 ET - News Release

Mr. John Carter reports


Silver Bullet Mines Corp. is continuing mining operations at the Buckeye mine in Arizona and has had a cash infusion.

The aberrant extremely hot weather continued in Arizona throughout most of August, preventing work from then being carried out at the mill or at the Buckeye mine. The temperature on the concrete mill pad during this period on occasion exceeded 150 F. Running the mill in such hot weather would have been a danger to the proper functioning of the equipment. Mining, whether during the day or at night, would have been an unacceptable safety risk to the field team.

The hot weather has finally abated and the company is pleased to announce the continuation of mining operations at the Buckeye mine. Processing material at the mill should continue within roughly one month.

Silver Bullet has been advised by the United States Forest Service that in August, 2023, lightning caused a fire near the Buckeye mine. The USFS graded the road leading to the Buckeye mine to allow it to bring in equipment needed to fight the fire.

The annual taxes on the BLM lands comprising part of the Black Diamond property, which surrounds the Buckeye mine, have been paid.

Silver Bullet has entered into an agreement with an arm's-length third party for the amount of $350,000 (U.S.). This investment is structured as a loan having a five-year term and an interest rate of 0 per cent. The first tranche of this investment is $225,000 (U.S.), which has been received by Silver Bullet, and the second tranche of $125,000 (U.S.) is contemplated to be forwarded to Silver Bullet five days after the first shipment of silver dore has been received by the investor. The loan is secured by two pieces of equipment on site in Arizona.

This relationship with the investor should allow Silver Bullet to better execute its business model, substantially increase its revenue and expand its operations.

The investor carried out an extensive due diligence review on Silver Bullet, including a site visit to the Buckeye mine and the mill, and including metallurgy on sample dore bars from the Buckeye. As a result of such extensive review, the investor has asked Silver Bullet to work with it to advance other projects in which the investor is involved. The first two such projects under consideration are in Arizona and Colorado. It is intended that Silver Bullet will provide mining, metallurgical and processing services to the investor using Silver Bullet's state-of-the-art milling infrastructure and facilities. The Silver Bullet mill should be capable of handling any of the investor's products under consideration and, being modular, can be expanded to increase its capacity as required.

The investor is also a potential purchaser of dore bars to be produced at the mill. As the relationship evolves, it is likely the investor will become Silver Bullet's largest customer.

On July 7, 2023, Silver Bullet announced the extension of the silver purchase agreement with the purchaser, described in its April 27, 2023, and May 4, 2023, news releases. Effective June 30, 2023, the purchaser and Silver Bullet verbally agreed to extend the term of such agreement to Aug. 31, 2023, and worked toward reducing such verbal agreement to writing. The purchaser and Silver Bullet continue in good faith to try to reduce the June 30, 2023, verbal agreement to writing, including a new extension date.

The test run shipment of silver, as described in the company's June 14, 2023, news release, from Silver Bullet to the purchaser was received and tested by the purchaser. The 102 ounces comprising the test run contained dore bars consisting of varying amounts of silver, copper and other materials. The purchaser has tested the dore bars to determine what composition is best suited for its purposes.

As for further detail in the mining activities, the company reached the treasure room in March, 2022. Higher-grade material was found in the wall rock, and the company's intention at the time was to commence mining on the other side of the treasure room, where the vein is clearly visible. Unfortunately, unsafe working conditions due to ceiling instability meant the company could not cross the treasure room and instead had to mine around the treasure room into the diabase. This added roughly 150 feet of drifting through harder host rock. During this time, encouraging values were obtained from samples but were not of sufficient volume to run the mill efficiently.

Until paused by the unusual heat wave, such mining activity had advanced approximately 600 feet from the portal entrance to the treasure room, then around the treasure room and then along the vein. The team now continues to drift along the vein toward a targeted area. The company estimates that it is relatively close to drifting into historical drill holes, which can be traced from the casings on surface. The company's information related to those historical drill holes and the historical assaying of them do not meet National Instrument 43-101 standards and cannot be disclosed.

In furtherance of its understanding of the vein and the host rock, a Lidar survey of the Buckeye mine was recently carried out.

At some time in the future, the company will return to the treasure room (once fully safetied) and will develop the lower levels where the company believes there to be more higher grade material. The cost and timing of such activities have not been determined at this time.

We seek Safe Harbor.

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