Following closing of its qualifying transaction and the listing of its common shares on the TSX Venture Exchange, Silver Bullet Mines Corp. [SBMI-TSXV] provided its first operational update.
SBMI’s flagship asset is the Black Diamond Project located in the major mining camp of Globe, Arizona. Black Diamond is a massive project, covering 4,900 acres and hosting five former producing silver mines. SBMI also owns the George Washington Mine, a former silver and gold producer in Idaho on patented lands.
The company’s goals are to place the Buckeye Silver Mine in pilot production in Q1/22, followed by full-scale production; finalize plans to have the McMorris Silver Mine back in production within 24 months; carry out exploration programs elsewhere on Black Diamond to enable a decision on the order in which the remaining former producers will be put back in production; and investigate the waste rock on surface at the George Washington Mine in Idaho.
“The team has made astonishing progress in mining-friendly Arizona,” said A. John Carter, CEO. “In a short period of time we have gone from an empty field to having a mill pad and an assay lab. Having our own lab means we can be nimble underground and not waste time waiting for third party labs to get around to processing our samples. Our goal of positive cash flow is closer every day.”
Some parts for the mill have been installed onsite at the Buckeye Silver Mine after navigating through the port of Long Beach. Other parts are still in the supply chain and are beyond the company’s control for the time being. If those parts are significantly delayed, SBMI can choose to accelerate the program at the George Washington Mine in Idaho. Once finalized, the mill will have the capacity to process 125 tonnes/day.
Concerning the program in Idaho, Carter continued, “We have taken grab samples from the waste rock at surface and expect assay results shortly. If, as we anticipate, the results justify further investigation, we would expect to process a bulk sample to test historical results and to determine ore characteristics including representative grades of silver and gold.”
The company also plans to investigate Black Diamond’s potential to host a copper porphyry, as referenced in the January 8, 2021 Technical Report. The mill is not needed for this task.
Because almost all of Black Diamond consists of BLM claims or patented lands owned by SBMI, SBMI does not have expensive annual payments or advanced royalty payments to make. Relative to the large size of the land package, the annual carrying costs are quite small.
SBMI has roughly 55,000,000 shares outstanding of which approximately 29,000,000 are in escrow. The company has no debt other than normal trade payables.