|By Marketwired .||
|January 3, 2013 08:16 AM EST||
SKIPPACK, PA -- (Marketwire) -- 01/03/13 -- North Bay Resources Inc. (OTCQB: NBRI) ("North Bay" or the "Company") has issued the following shareholder update on the status of current operations at the Ruby Gold Project.
In reviewing the past year, we have made tremendous progress in preparing the Ruby Mine for the start of production. Almost one mile of underground tunnel has been completely refurbished with new timber supports, new ventilation duct, and a redesigned transport system. Infrastructure improvements include a new fire suppression system at the Ruby portal, electrical system upgrades at the Ruby Portal and Mill Site in compliance with Cal-OSHA specifications, reinforcement of berms and access roads, and the expansion of the designated tailings area to accommodate at least five to seven years of continuous mining. Our reclamation plan was updated to comply with California SMARA regulations and approved by the Sierra County Planning Commission and the California Department of Conservation Office of Mine Reclamation ("OMR"). In addition, our Alternative Mine Rescue Plan and Miner Safety Training Plans were approved by the federal Mine Safety and Health Administration ("MSHA"). Including the cost of regulatory compliance, the Company has spent over $500,000 since work began one year ago to prepare the Ruby Mine for the start of production.
With several feet of snow now on the ground from a recent series of storms in the high Sierras, the Company has decided to temporarily suspend operations at the Ruby. Until the mine is in full production and better able to allocate manpower and equipment to snow removal activities, the Company believes it will be best to conserve resources for the time being and wait until weather conditions improve before resuming operations.
During the upcoming winter months the Company will be working with our mine engineering team to block out the first target zones where we expect to begin mining operations. The initial mining activity is expected to include the extraction of bulk samples that can be used to help determine an estimate of proven and probable reserves as those terms are legally defined in SEC Industry Guide 7 and National Instrument 43-101. The very nature of the Ruby gold deposits explains why there has been no IG7 or NI43-101 compliant resource estimate prior to this point in time. The Ruby gold deposits are contained within the Tertiary gravels found at the bottom of ancient river channels, and which were buried in lava millions of years ago when the Sierra Nevada mountains were formed. Since these Tertiary gold deposits follow the channels of these ancient rivers, they extend horizontally for miles from intercepts several hundred feet underground rather than vertically from outcrops above ground. Thus reliable data is extremely difficult to obtain by drilling vertically down from the surface. Drilling is therefore best initiated several hundred feet underground to access and follow the lateral course of the ancient river channels in which the gold is deposited. To reach these locations, it was therefore essential to first rehabilitate the Ruby Tunnel to allow safe access to the auriferous channels, which is precisely what we have been doing for the past year. Once the rehab work is completed, bulk sampling and mining operations can then begin simultaneously.
This method of mining and sampling simultaneously, while somewhat unorthodox by current practices, has historically been the standard in California's drift mines such as the Ruby Mine. To further illustrate this point, the Department of the Interior Bureau of Land Management ("BLM") Technical Bulletin 4 entitled "Placer Examination Principles and Practice" explains, "Not all placers lend themselves to the usual forms of sampling and there are some which cannot be sampled by any means short of mining the entire deposit. Excellent examples of the latter condition can be found in California's drift mines. The point to be made here is that the physical characteristics of such deposits, when combined with an almost complete absence of surface guides to their underground location, makes sampling in the normal sense impracticable." BLM Technical Bulletin 4 goes on to state, "Parts of California's Tertiary channel system remain buried and unexplored; these are believed to contain a large gold reserve, available for mining at some future date."
Despite the aforementioned challenge in assessing proven and probable reserves at the Ruby, the Company believes that an underground bulk sampling program, combined with the data that has been accumulated and verified from previous operations, will allow for a preliminary reserve estimate to be established that is compliant with SEC Industry Guide 7 and NI 43-101. To help achieve this goal, the Company is pleased to announce that it has engaged the services of Mr. Randy Henkle, CPG, of Henkle & Associates, to assist in updating the Ruby maps of known resources. Mr. Henkle's work at the Ruby for Alhambra Mines Inc. in the 1980s identified reserves and resources from no less than ten different target zones within the current Ruby Mine underworkings. Subsequent assessment work by Keewatin Engineering (Ron Nichols, P.Eng, and Art Freeze, B.Sc., FGAC) for Brush Creek Mining during a one year period from 1991-1992 relied heavily on Mr. Henkle's authoritative resource maps, as did the follow up evaluation work by Mr. Gary Clifton, CPG, in July 2010 which significantly expanded these estimates.
The Company believes that once the Ruby channel system is fully exploited, the potential life-of-mine hypothetical estimate will eventually prove out to be over 500,000 ounces. This is entirely consistent with the documented past-production from the Ruby and other drift mines in the district that are known to have produced an average of 100,000 ounces for every mile of channel mined. The Company notes that references to estimated, potential, possible, hypothetical, and/or "inferred" reserves or resources contained herein do not represent proven (measured) or probable (indicated) reserves as those terms are defined by SEC Industry Guide 7 or NI 43-101 and should not be relied upon by any person in evaluating the Company's prospects at the Ruby Mine project.
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 1850s, 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. (OTCQB: 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 owns 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 disclosures 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
North Bay Resources Inc.