North Bay Completes Joint-Venture Agreement on the Gold Hill Project
North Bay Resources Inc. announce that it has finalized and signed a contract with Hidalgo Mining International Inc. to engage in a joint-venture for the development of North Bay’s Gold Hill Project in British Columbia, Canada.
Terms of the agreement call for Hidalgo to commit up to $1.25 million USD over three years for developmental drilling and surface ore recovery. North Bay and Hidalgo will each own 50% of the Gold Hill Project and will equally share any and all net revenue, including any near-term profits generated from surface ore recovery operations. It is expected that a portion of any profits will be re-invested in ongoing development work on the Gold Hill’s underground assets. In addition, North Bay will receive an initial payment of $50,000 USD.
The Gold Hill Project covers 5,887 acres near the village of Salmo in southeastern British Columbia. The property includes the former Gold Hill mine, and the area surrounding the Silver Dollar-Lucky Boy mines. The Gold Hill mine’s past production averaged over 29.47 grams (0.95 ounces) per tonne gold and 54.11 grams (1.74 ounces) per tonne silver, while production figures from the Silver Dollar and the Lucky Boy workings averaged 9.39 grams per tonne gold and 335 grams (10.78 ounces) per tonne silver. More recent exploration has outlined an extended strike length of over 2600 metres, with reported assays from underground workings grading as high as 57.81 grams (1.85 ounces) per tonne gold and 3790 grams (121 ounces) per tonne silver (BC Assessment Report 18766).
In addition, recent drilling programs on properties immediately adjacent to the north and the west of Gold Hill in the 2007-2008 exploration season intersected significant levels of tungsten and molybdenum. Ascertaining the extent to which this mineralization is also present on the Gold Hill claims will be a high focus of attention during the course of the upcoming work program.
The property also encompasses the historic Erie-Arlington mine, from which previous operations produced a total of 1,700,339 grams of gold, 4,334,578 grams of silver, 1,147,330 pounds of lead, and 1,007,336 pounds of zinc. Of particular interest is a surface ore dump adjacent to the mine that is documented in MINFILE 082FSW205 as hosting 113,000 tonnes of dump material, and from which samples assayed between 3 and 53.5 grams of gold per tonne.
Perry Leopold, CEO of North Bay Resources Inc., commented, “We are excited by the expansion of our relationship with Hidalgo Mining to include a joint-venture on the Gold Hill Project. Given the relative close proximity of the Gold Hill Project with the recently-announced Silver Leaf JV, we expect to be able to create synergies in the ongoing development of both properties, which should result in significant cost efficiencies going forward.”