Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF) has reported significant new findings at its Columbia / Gold Queen Complex in Arizona, including what it believes to be thousands of tons of mineralized surface stockpiles and at least four newly discovered potential high-grade gold zones. The company has also identified a previously unknown past-producing Steamboat Mine on the property. In conjunction with these field updates, SBMI has announced a financing of up to $500,000 to support further development and general working capital, with closing subject to regulatory approval.

Key Points

  • Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF) provided an operational update on its Arizona Columbia / Gold Queen Complex.
  • The company has identified large mineralized surface stockpiles and at least four newly discovered potential high-grade gold zones, plus the previously unknown Steamboat Mine.
  • Six thousand pounds of concentrate have already been produced from a stockpile near the road; assay results from a third-party lab are pending.
  • Investors may be watching for pending assay results and regulatory approval of the proposed $500,000 unit financing.

Field Work at the Columbia / Gold Queen Complex Surpasses Expectations

The company reports walking the Columbia historical adit for over 350 feet, with management stating this supports its belief that historical material extracted from the Columbia contained very high-grade gold, likely exceeding one ounce per tonne, and potentially silver and copper as well. Beyond the Columbia and Gold Queen mines, SBMI confirmed the existence of the past-producing Steamboat Mine — previously unknown to the company — along with at least four other newly discovered prospective high-grade zones. CEO A. John Carter stated field results have exceeded what were already high expectations, though these represent management's current views and are subject to confirmation.

Stockpile Discovery Prompts Revised Mining Strategy for SBMI

Originally, SBMI planned to extract mineralized material underground from the Gold Queen and Columbia mines to fulfil two existing contracts with Ocean Partners — one for 12,000 tons of concentrate and another for 36,000 tons of direct ship ore. The discovery of what the company describes as thousands of tons of surface stockpiles has prompted a revised approach. SBMI now plans to obtain assay results from the stockpiles and, if warranted, harvest from them to complement underground material. The company is also preparing an exploration and mining plan that includes a diamond drill program. Six thousand pounds of concentrate have already been produced from one stockpile near the new road.

SBMI Launches $500,000 Unit Financing to Fund Complex Development

To support further development and general working capital, Silver Bullet Mines intends to offer up to 3,571,428 units at $0.14 per unit, each consisting of one common share and one warrant exercisable at $0.18, for gross proceeds of $500,000. The warrants carry a three-year term with no acceleration clause. A related party has indicated participation, with SBMI relying on exemptions under Multilateral Instrument 61-101 on the basis that the related-party participation is below 25% of current market capitalisation. Closing remains subject to regulatory approval. The immediate share price impact was not clear from available public information.