Silver Bullet Mines Corp. (SBMI) (TSXV: SBMI) (OTCQB: SBMCF) completed the mine identification process and put a Mine Safety and Health Administration consultant on the payroll as part of its ongoing preparations for mining at the Washington Mine Property in Idaho.
The company anticipates production to start at 50 tons of gold per day sometime over the next few months, according to a Friday press release.
The Washington Mine, a historically high-grade gold and silver mine, is privately owned by SBMI on patented lands near Idaho City and Boise. According to SBMI’s previous disclosures, the Washington Mine first produced gold in the late 1800s, averaging one ounce of gold per ton.
It resumed production in the 1930s, but the owner at the time lacked the processing capability for silver. Consequently, they decided to block out the silver mineralization for future extraction. To SBMI’s knowledge, the blocked-out volume remains in situ. A historical report estimates this volume contains 3 million ounces of silver, graded at 30 to 90 ounces per ton, and 15,000 ounces of gold at 0.3 ounces per ton.
The company reported that one particular vein is an underground gold ore shoot measuring 25 feet wide, 135 feet long, and of unknown depth. Silver Bullet reported average grades of 0.3 oz/ton of gold with an unknown silver content.
In the 1980s, a previous owner of the Washington Mine reopened the underground section and produced a bulk sample. It claimed it represented a mineralized body. The company sent the sample to Hecla Smelting for processing. It returned as 44 ounces of silver per ton.
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SBMI’s 2021 samples showed high silver grades
In 2021, SBMI took its own bulk sample, which averaged 55.5 oz/t of silver. This equated to over 1,902 g/t silver at a conversion rate of 34.285.
SBMI will access the material through a new adit located approximately 80 feet from the believed location of high-grade mineralization. The company will immediately rockbolt the area as it begins the new adit. It will also need to continue this process as the adit is lengthened.
Initially, SBMI plans to extract roughly 2500 tons of high-grade material to stockpile at the minesite until there are sufficient quantities for economical shipping to a mill. The company is evaluating several mills to determine their capabilities for processing the material from the Washington Mine economically. Montana Technical Institute (CAMP) completed relevant metallurgical test work in 2022.
Surrounding the Washington Mine, there are numerous other mining claims and properties, reflecting the area’s longstanding association with gold and silver production since the late 1800s. This region, part of the larger Boise Basin, hosts several historical mines and active exploration sites, indicating its continued significance in mineral extraction.
Several companies are actively engaged in mining and exploration activities around the Washington Mine. One notable company is US Gold Corp. (NASDAQ: USAU), which operates the Challis Property in central Idaho, known for its potential in gold exploration within the Challis Volcanic Field. Another company is Integra Resources (TSXV: ITR), which is developing the DeLamar Project, located in southwestern Idaho. DeLamar also focuses on silver and gold.
Additionally, Revival Gold Inc. (TSXV: RVG) (OTCQX: RVLGF) operates the Beartrack-Arnett Gold Project near Salmon, Idaho, which is advancing through exploration and development stages.
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