SOURCE: North Bay Resources Inc.
SKIPPACK, PA--(Marketwire - Jul 16, 2012) - North Bay Resources Inc. (OTCBB: NBRI) ("North Bay" or the "Company") is pleased to announce that it has signed an amendment to the Taber Mine Option Agreement (the "Option"), dated November 1, 2011, whereby the term of the Option giving the Company the exclusive right to lease or acquire the Taber Mine has been extended for one additional year.
The Taber Mine is an underground placer mine located near La Porte in Sierra County, California, and covers approximately 650 acres of unpatented mining claims situated on the western slope of the Sierra Nevada mountain range. The mine is on a northern extension of the historic Mother Lode/Melones fault zone, in the Gibsonville mining district. The property is accessed by a paved county road from La Porte and is 27 miles from Quincy, CA, approximately 100 miles north of Sacramento and 90 miles west of Reno, Nevada.
The property is crossed by two channels of the ancestral Tertiary North Fork of the Yuba River. The Front Channel was exposed at the surface and mined in giant hydraulic open cuts in the late 1800's. The buried Back Channel was discovered around the turn of the century and mined in the adjacent Union and Bellevue underground mines. The Front and Back Channels converge into a single channel west of the Taber tunnel. A third channel comes in from the north. The Back Channel was only partially mined and over 4,000 feet of unmined channel is known to exist on the Taber property. The channels run parallel from east to west and downstream from the Melones Fault, the main structure along which many of the rich gold deposits of the Mother Lode are found. This proximity to the Melones Fault created very rich placer deposits that produced large gold nuggets and heavy pay zones.
In the 1990's, Sunshine Mining Company undertook a large exploration program on the channel system, drilling dozens of reverse circulation holes on the northern channel and reopening the Bellevue Mine property to the west of the Taber, including sinking a raise from the surface near the channel workings. Sunshine reportedly encountered quartz gravels and gold in most of their drill holes. The program was eventually terminated when metal prices fell and Sunshine encountered financial difficulties.
A 100 ton-per-day mill is in place on the Taber property, which at an average historical grade of 0.45 ounces per ton can accommodate production of more than 1,000 ounces of gold per month. The property is fully-permitted, and can be placed into production once the Taber tunnel has been rehabilitated and the permits have been renewed.
The current estimate shows the Taber Mine contains a mineable resource of 86,667 ounces of gold. The Company believes this resource estimate can be significantly expanded by the development of adjacent channels.
The consideration to be paid during the term of the Option is $2,000 per month. Should the Company elect to exercise the Option, the parties will then enter into a definitive lease agreement, with an optional buyout provision.
Mr. C. Gary Clifton, P. Geo. is the Qualified Person as defined by National Instrument 43-101 who has reviewed this news release for technical accuracy.
About North Bay Resources Inc.
North Bay Resources Inc. (OTCBB: 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 planning 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 develop 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 disclosure in our Form S-1 and subsequent Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml.