Silver Bullet Mines Corp. Commences Processing Operations at Columbia / Gold Queen
Rhea-AI Summary
Silver Bullet Mines (OTCQB: SBMCF) reported that, after about two quarters of field work, it has shifted near‑term processing to the Columbia / Gold Queen Complex in Arizona instead of the King Tut Mine. According to the company, this work indicates the complex can consistently supply the tonnage needed to satisfy its contract to ship up to 36,000 tons per year of product to Ocean Partners USA.
SBMI has built and permitted a new road linking the Columbia Mine to a highway leading to its Globe, Arizona mill and is extending it toward the Gold Queen Mine. The company has shipped the first loads from the complex, with an estimated ~80 tons now at the mill, and has commenced processing into concentrate to optimize recoveries. Initial internal assays and historical data are described as encouraging, and several additional potential high‑grade gold zones were intercepted during road work.
SBMI plans a $670,000 three‑year convertible debenture financing at 12% interest, convertible at $0.12 and including 6.7 million warrants exercisable at $0.16, to fund complex development and working capital, subject to regulatory approval. It also issued 114,815 shares at $0.125 to a consultant under a previously approved agreement.
Positive
- Columbia / Gold Queen selected as primary feed after field work showed it can supply tonnage for up to 36,000 tons per annum contract
- Processing started on approximately 80 tons of mineralized material delivered to the Globe, Arizona mill
- New access road completed and permitted from Columbia Mine to highway, improving logistics to the company’s mill
- Additional mineralized zones intercepted during road work, with initial internal assays indicating high gold, silver, copper and iron values
- $670,000 convertible debenture planned to support Columbia / Gold Queen development and general working capital
Negative
- Other mines not supplying requisite tonnage, so capital investment in them is deferred until Columbia / Gold Queen generates revenue
- Convertible debenture carries 12% annual interest, adding debt service obligations over a three‑year term
- Potential dilution from financing via conversion at $0.12 and 6.7 million warrants exercisable at $0.16
- Additional share issuance of 114,815 shares at $0.125 to a consultant, modestly increasing share count
News Market Reaction – SBMCF
In the Aug 26 session, SBMCF declined 2.92%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Burlington, Ontario--(Newsfile Corp. - August 26, 2026) - Silver Bullet Mines Corp. (TSXV: SBMI) (OTCQB: SBMCF) ("SBMI" or "the Company") is pleased to announce after extensive field work over roughly the past two quarters, it has elected for the near future to process mineralized material from the Columbia / Gold Queen Complex in Arizona rather than from the King Tut Mine. This work has proven to SBMI that the Columbia / Gold Queen Complex has the capability to consistently produce the tonnage necessary to fulfill the desired tonnage ordered by Ocean Partners USA Inc. (As per the news release of March 2, 2026, the commitment is for SBMI to ship to Ocean Partners up to 36,000 tons of product per annum.)
The Columbia / Gold Queen Complex is comprised of the past producing Columbia Mine, the past producing Gold Queen Mine, the past producing Steamboat Mine, and at least four other potential high grade gold zones.
To more efficiently access the Columbia / Gold Queen Complex, the Company built a local road from the Columbia Mine to connect to a highway which in turn leads to the Company's mill in Globe, Arizona. Further construction is underway to link the new local road to the past producing Gold Queen Mine. The Company has all necessary permitting related to the road after encountering certain governmental delays. Other minor and usual weather related delays were also experienced.
The Company is currently further opening an adit into the Columbia / Gold Queen Mine Complex. The material from that adit represents the mineralized material that is intended to be processed as DSO (direct ship ore) further to SBMI's contract with Ocean Partners.
Material from Columbia Mine
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Following that field work and road construction, the Company is very pleased to announce it has shipped the first loads of mineralized material from the Columbia / Gold Queen Complex over the road to its mill for processing. The Company estimates there are roughly eighty tons on the ground at the mill, with further shipments expected in the near future. Processing of these materials into concentrate has commenced (see picture below). The Company believes these initial shipments are representative of the quality of material to be extracted from the Columbia Mine. The initial processing of these materials will aid in optimizing processing and recovery. SBMI is encouraged by the assay values of the material (processed internally) and the previously announced historical values (see the news release of February 26, 2026).
Material from Columbia Mine on Shaker Table, August 20, 2026
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The Company is excited to reach this next step in the development of the Complex and believes it has an incredible opportunity to make significant gold/silver/copper concentrate and dore bars.
Further work on the new road has brought it close to the Gold Queen portion of the Complex, the new road's final destination. Four other potential high grade gold zones were intercepted during that road work. Detailed sampling and analysis of these zones are currently underway. Initial internal assays indicate not only high grade gold and silver but also high copper and iron values. Further work is required to provide a more comprehensive analysis before assay results can be released.
The Columbia / Gold Queen Complex includes the past producing Steamboat Mine where multiple levels of past production were uncovered in an area believed to be over 100 years old. That section of the Steamboat Mine included historical artifacts, rails still in place and old workings. Research indicates all material from the Steamboat Mine was shipped by mule train, which is evidence that high grade material was direct shipped to a refinery.
The Company's geological team is of the opinion the entire Columbia / Gold Queen Complex may be covered by a limestone cap that encapsulated the mineralization underneath, with the vertical veins having been unable to penetrate that cap and thus the potential for multiple high grade zones exists.
The time-consuming field work during this period has led the Company to conclude that its other mines at this time are not capable of delivering the requisite tonnage despite having excellent grades (all as previously disclosed). The Company intends to invest capital into some or all of its other mines after revenue is generated from the Columbia / Gold Queen Complex.
To enable further development of the Columbia/ Gold Queen and for general working capital, the Company intends to complete a convertible debenture financing (the "Debenture") with various parties, including a related party, in the amount of
Finally, SBMI entered into an agreement with a consultant dated December 1, 2023, which agreement did receive regulatory approval. Pursuant to this agreement SBMI issued 114,815 common shares at
For further information:
John Carter
Silver Bullet Mines Corp., CEO
cartera@sympatico.ca
+1 (905) 302-3843
Peter M. Clausi
Silver Bullet Mines Corp., VP Capital Markets
pclausi@brantcapital.ca
+1 (416) 890-1232
Cautionary and Forward-Looking Statements
This news release contains certain statements that may constitute forward-looking statements as they relate to SBMI and its subsidiaries. Forward-looking statements are not historical facts but represent management's current expectation of future events, and can be identified by words such as "believe", "expects", "will", "intends", "plans", "projects", "anticipates", "estimates", "continues" and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.
By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this new release, SBMI will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities laws, SBMI assumes no obligation to update or revise any forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: the impact of SARS CoV-2 or any other global virus; reliance on key personnel; the thoroughness of its QA/QA procedures; the continuity of the global supply chain for materials for SBMI to use in the production and processing of mineralized material; the results of exploration and development activities; shareholder, audit and regulatory approvals; activities and attitudes of communities local to the location of the SBMI's properties; risks of future legal proceedings; income tax matters; fires, floods and other natural phenomena; the rate of inflation; availability and terms of financing; distribution of securities; commodities pricing; currency movements, especially as between the USD and CDN; effect of market interest rates on price of securities; and, potential dilution. SARS CoV-2 and other potential global pathogens create risks that at this time are immeasurable and impossible to define.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311530