North Bay Resources Inc. (OTCQB: NBRI) ("North Bay" or the "Company") is pleased to announce that it has signed a letter of intent to enter into a toll milling agreement with Lazarus Mining, LLC ("Lazarus"), whereby the excess capacity at North Bay's Ruby Mine Mill complex will be made available to process material from Lazarus' Telegraph Mine (the "Telegraph").
The Telegraph is located near Downieville, California, and within several miles of the Ruby Mill complex. The Telegraph is a drift mine similar in many respects to the Ruby, and as such the material mined from the Telegraph is expected to be fully compatible with the Ruby Mill's processing circuit.
As set forth in the Company's Current Report on Form 8-K filed with the United States Securities and Exchange Commission on March 26, 2013, the terms of the agreement provide that the Company will accept material mined and transported by Lazarus from the Telegraph for processing and gold recovery at the Ruby Mill. In consideration for said processing, Lazarus will pay the Company the greater of $10 per ton of Telegraph material processed at the Ruby Mill, or 10% of the net sales of all gold produced and recovered from the Telegraph material as a result of processing at the Ruby Mill, plus expenses. The parties will endeavor to sign a formal Toll Milling Agreement within 90 days.
The Company notes that the wash plant at the Ruby Mill has a capacity to process up to 1,000 yards of material per day, which is the equivalent of 1,500 tons per day (tpd). When mining operations begin at the Ruby, our current target output is to ramp up gradually and mine up to 375 tons per day by the end of the second year. The Company therefore views this toll milling agreement as a way to monetize our excess capacity and generate an additional revenue stream from the Ruby Mine's existing facilities.
"This is a win-win scenario for both North Bay and Lazarus," explains North Bay CEO Perry Leopold, "and we are very pleased to have entered into this agreement with them. Until the Ruby is in full production, our mill capacity stands by virtually idle waiting to be put to productive use. And as the Telegraph is presently without any on-site processing capability of their own, their ability to move forward with mining operations would otherwise be stalled right out of the gate. Given the close proximity of the two properties, the synergies are self-evident, and we look forward to a very productive and mutually beneficial relationship with Lazarus and the Telegraph Mine."
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 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
Contact:Perry LeopoldCEONorth Bay Resources Inc.215-661-1100http://www.northbayresources.com
SOURCE: North Bay Resources Inc.