|By Marketwired .||
|October 3, 2013 11:05 AM EDT||
SKIPPACK, PA -- (Marketwired) -- 10/03/13 -- North Bay Resources Inc. (OTCQB: NBRI) ("North Bay" or the "Company") has issued the following update on the status of operations at the Ruby Gold Project.
Mining operations to prepare the White Channel for bulk sampling began the week of September 9, 2013. The initial zone to be mined has been blocked out and is ready for extraction. We note that the start of mining introduces the element of blasting for the first time, as the transition from a rehabilitation project to a mining operation brings with it a new layer of complexity from the use of explosives as an integral part of the mining process. Since the mine has not had an active explosives permit since prior to 9/11 and the subsequent passage of the Homeland Security Act of 2002, we began the process of securing the permits needed to incorporate explosives into our operations several months ago. In early July we notified all relevant government agencies of our planned use of explosives this summer, and we expected that by the time we were ready to begin mining there would be no regulatory delays. In late August we learned that our blasting permit was ready for issuance pending the final regulatory requirement to have a team from the federal Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF") visit the property to inspect the mine site. Without ATF clearance, we were prohibited from bringing explosives on to the property much less store and use them. We anticipated that this inspection would have been completed weeks ago and would not still be pending by the time we were ready to begin extracting the first bulk sample from the White Channel, but due to the ongoing federal budget sequestration the ATF was not able to schedule a visit to the Ruby until this week.
We can now report that the ATF field inspection has been completed, and we have now received verbal ATF clearance to use explosives as part of our planned mining operations. However, due to the government shutdown on October 1st, the paperwork to issue our formal Federal Explosives Permit cannot be processed until after the ATF office staff returns to work. As we cannot order blasting supplies without having our Federal Explosives Permit number in hand, the bulk sampling of the White Channel is on hold until Congress acts to get the government funded and back into operation.
North Bay CEO Perry Leopold commented, "We understand and appreciate that shareholders are anxiously awaiting news of the first ounces of gold to come out from the Ruby. We have said all year that we expect to begin initial mining operations by the end of summer, and we have done that. Production will soon follow, as day follows night. But as we've seen all too often, various factors that have absolutely nothing to do with mining or geology sometimes conspire to frustrate our plans and force us to adjust our expectations forward. This itself must be expected, as it is part of the process of mining in the 21st century". Mr. Leopold continued, "We have achieved a great deal in two years. We are now literally on the doorstep of realizing our goal of putting the Ruby Mine back into production for the first time in decades. However, we must continue to respect the regulatory environment in which we operate. We are moving forward as safely and as efficiently as possible, and in spite of this current ill-timed regulatory delay we hope shareholders continue to be patient as the work continues towards the start of production."
In other news, while preparations to begin mining the White Channel have been proceeding forward, the rehab work in the Ruby Tunnel has continued to advance and has made good progress. Over the past two weeks the crew has been able to traverse the remaining extent of the tunnel and assess what is required to complete that phase of the project. Our engineering team has recommended that the Company should undertake the construction of a raise near the eastern end of the tracked haulageway of the Ruby Tunnel that will bypass the Big Bend area of the Black Channel. This raise is planned to consist of three compartments, two of which will allow easy access of men and materials into the work area, and a third to provide an ore chute where the ore cars can be efficiently filled for transport to the Ruby Mill. It is expected that this construction will take several months to complete. In addition to improving and protecting the flow of ventilation from the 2nd exit which are essential to all operations within the mine, and to improving access to and the haulage of material from the upstream portion of the Black Channel, this planned "Big Bend Bypass Raise" will open the upstream portion of the Black Channel for mining. It will also provide direct access to the Big Bend itself and the areas around it which are all important target areas for mining. We also note with reference to the 2nd exit that over the summer we completed the construction and provisioning of a mine refuge chamber near the Wolf Turn. Until the 2nd exit is more easily accessible from underground, the availability of a refuge chamber is a critical safety requirement that allows mining to begin and continue while the 2nd exit rehab continues.
We are also pleased to report that considerable work has been undertaken on the property's surface infrastructure this summer as the underground rehab work has been moving forward. At the Ruby Mill we have replaced all wooden stairways with steel fabrication to provide longevity and safer working conditions and to reinforce the structures in advance of the winter season. The wash plant's nugget trap, a critical component in the gold recovery process, has been redesigned and improved for greater efficiency. As well, the conveyor system that transports waste rock from the wash plant to the tailings dump has been straightened and reconditioned, and the conveyor's concrete supports have been reanchored and reinforced. In addition, the Company has purchased new equipment in the past few weeks to facilitate the handling of ore as it comes from the mine to the mill, and to help keep the roads clear of snow in the winter months.
The Company will provide an update on plans to continue working through the winter months as the autumn season progresses.
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 100% owned and royalty-free Ruby Mine is a fully-permitted underground placer and lode mine located in the northern extension of the historic Mother Lode system in Sierra County, California. 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. The Company is presently completing the rehabilitation of the Ruby Tunnel and commencing test mining operations at the mining targets currently accessible.
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
North Bay Resources Inc.