James Bay Minerals (ASX: JBY) (“James Bay Minerals” or “the Company”) is pleased to announce that it has agreed to acquire the partially permitted, high-grade Shafter Silver Project (“Project”) located in the Presidio County, Texas, USA (“Acquisition”). Positioned just across from the Mexican border, Shafter is considered an eastern extension of the prolific Sierra Madre Belt, offering significant strategic and geological upside.
Highlights:
- Binding agreement to acquire 100% of the Shafter Silver Project, located in Presidio County, Texas, USA – just over the border from Mexico and considered a northern extension of the eastern Sierra Madre Belt.
- Mine and processing facility with an estimated $150m in existing mine and processing infrastructure.
- Foreign Mineral Resource Estimate (NI 43-101, 2015)
Measured: 90,700 tonnes at 299g/t Ag for 888,000 oz Ag
Indicated: 1,007,000 tonnes at 314g/t Ag for 10,171,000 oz Ag
Inferred: 789,000 tonnes at 256g/t Ag for 6,511,000 oz Ag
Total: 1,887,000 tonnes at 289g/t for 17,570,000 oz Ag
Cautionary Statement: The Mineral Resource Estimate at the Shafter Silver Project is a foreign estimate prepared in accordance with Canadian National Instrument 43-101. The competent person has not done sufficient work to classify the foreign estimate as a Mineral Resource in accordance with the JORC Code 2012, and it is uncertain whether further evaluation and exploration will result in an estimate reportable under the JORC Code 2012. - Historical Metallurgical test work silver recoveries of ~85.4%.
- Significant exploration upside surrounding the Foreign Mineral Resource Estimate and regional targets.
- Significant historical production of 35.15 Moz Ag at 521 g/t Ag (1883–1942), plus 134,557 oz Ag produced in 2012–2013
- The transaction will be funded by a A$30m two tranche placement, which was strongly supported by leading offshore and domestic institutions. Canaccord Genuity acted as Lead Manager to the Placement.
- James Bay Minerals to be renamed Black Bear Minerals under the new ASX Code: BKB
James Bay Executive Chairman, Matthew Hayes, commented:
“The Shafter Silver Project represents a rare opportunity to acquire a partially permitted, high-grade silver asset with substantial infrastructure and a rich production history in a premier North American mining jurisdiction. With historic production grades comparable to world-class Mexican silver mines, this ‘Mexican-style silver on American soil’ acquisition compliments James Bay Minerals’ high grade Independence Gold project in Nevada.”
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