Bayhorse Silver Stock Price, News & Analysis

Bayhorse Silver Inc. (BHSIF) is a mining company focused on exploration and production activities centered on silver and associated critical minerals. According to company disclosures, Bayhorse Silver holds a 100% interest in the historic Bayhorse Silver Mine in Oregon, USA, and the Pegasus Project in Washington County, Idaho. The company describes itself as an exploration and production company with an established flotation processing facility and an offtake agreement for concentrate sales.

The Bayhorse Silver Mine has a National Instrument 43-101 inferred resource reported as 292,300 tons at a grade of 21.65 ounces per ton (673 g/t) for 6.3 million ounces of silver (Turner et al. 2018). Company materials state that the mine is a minimum environmental impact facility capable of processing at a mining rate of up to 200 tons per day. The operation incorporates a Steinert Ore-Sorter with a capacity of 40 tons per hour that, based on company testing, can reduce waste rock entering the processing stream by up to 75–85%, depending on grade, by separating mineralized material from host rock.

Core assets and projects

Bayhorse Silver Mine (Oregon, USA)

The Bayhorse Silver Mine is described as a historic underground silver mine with silver-copper-antimony-zinc rich mineralization. Company disclosures state that the dominant mineralization is primarily tetrahedrite, an antimony sulfide of silver, copper, zinc and iron in veins and stockworks with minor gold present, and that this mineralization is refractory in nature. The mine has been the focus of underground development, metallurgical testing, and permitting work aimed at supporting an up to 200 ton per day underground mining operation.

Bayhorse reports that it has conducted extensive testing using its Steinert Ore-Sorter to upgrade mineralized material. In company testing, ore sorting has been used to reject a large proportion of non-mineralized material and generate a preconcentrate for further processing. Historical information cited by the company from a 1984 mining program by Silver King Mines indicated mined grades in various ranges of silver content, which Bayhorse uses as a guide in its planning.

Pegasus Project (Washington County, Idaho)

The Pegasus Project, held 100% by Bayhorse Silver according to company statements, is described as a highly prospective porphyry copper prospect in Washington County, Idaho. Company disclosures state that the Bayhorse Silver Mine and the Pegasus Project are located approximately 44 km southwest of a porphyry copper discovery reported by Hercules Metals. Bayhorse’s exploration model holds that silver-copper-antimony rich mineralization at the Bayhorse Silver Mine extends across to the adjacent Pegasus porphyry copper prospect and could have its source in an underlying shallow pluton or plutons that may host porphyry copper mineralization.

Processing infrastructure and offtake

Payette, Idaho flotation mill

Bayhorse Silver reports that it has established a flotation processing facility in Payette County, Idaho, USA. Company materials describe this as an up to 60 ton per day (sometimes referenced as 50–60 ton per day) mill and standard flotation processing facility. The facility has been used to process sorted preconcentrate from Bayhorse underground development material into flotation concentrate. The company has also indicated that the Steinert Ore-Sorter has been installed at the Payette mill and may be used both for Bayhorse material and for third-party processing.

According to company testing cited in news releases, flotation of Bayhorse mineralization has produced concentrates with significant contained silver, copper, antimony and zinc. Metallurgical work by external laboratories referenced by Bayhorse has indicated concentrate ranges that include high silver grades and notable percentages of copper, antimony and zinc. The company has also reported XRF field analyses of flotation concentrate samples, showing high levels of these metals, with confirmation by laboratory analysis pending or referenced in technical work.

Offtake agreement

Bayhorse Silver states that it has an offtake agreement in place with Ocean Partners UK Limited for silver/copper concentrate. The company has reported renewing this offtake agreement and increasing the proposed shipping volume to a minimum of 400 tons of silver/copper concentrate. Company disclosures also note that the agreement can be filled with third-party material processed at the Payette flotation facility, and that Bayhorse intends to source third-party mineralized material for processing to meet offtake volumes.

Critical and strategic minerals focus

Company materials emphasize that the silver, antimony, copper and zinc at the Bayhorse Silver Mine are recognized as critical and strategic minerals in the United States. Bayhorse has conducted and reported on metallurgical testing programs aimed at improving recoveries from its refractory tetrahedrite mineralization. This includes work with Allihies Engineering Inc. (AEI) using proprietary Alkaline Selective Leaching (ASL) hydrometallurgical technology to selectively leach antimony from flotation concentrate.

Bayhorse has reported antimony leaching results of about 99.9% antimony removal from Bayhorse concentrate submitted to Allihies Engineering, with metallurgical analysis indicating that leachable antimony was present as Skinnerite (Cu3SbS3), a composite of antimony and copper. Company disclosures state that selective antimony leaching may significantly increase recoveries of silver, copper and zinc for separate processing, and that Bayhorse is investigating whether a pilot-scale antimony leaching facility can be installed at the Bayhorse mill in Payette, Idaho to treat concentrate.

Exploration, resource and development activities

Bayhorse Silver’s reported activities include underground development, bulk sampling, drilling, and geophysical work at the Bayhorse Silver Mine. The company has described an NI 43-101 inferred resource at Bayhorse and has outlined plans to conduct additional drilling and bulk sampling to upgrade the inferred silver resource and incorporate antimony, copper and zinc values, referencing prior antimony leach results.

Company news releases describe:

• Completion and extension of underground workings to access historic mineralized zones and establish working faces.
• Approved “run of mine” metallurgical bulk samples from multiple underground zones, including the Big Dog Zone and Goldilocks Zone, for NI 43-101 standard assay and metallurgical analysis.
• Surface diamond drilling programs to test identified induced polarization (IP) targets near and beyond the existing inferred resource area, including shallow targets intersected by groundwater test wells with reported high-grade silver intersections.
• Groundwater baseline studies and installation of groundwater testing pumps as part of the Full Mine Operating Permit application for re-commencing planned underground mining operations at up to 200 tons per day.

Bayhorse has also reported that it is not basing any production decision on a feasibility study of mineral reserves demonstrating economic and technical viability, and has repeatedly cautioned about the specific economic and technical risks associated with any production decision. These cautions include potential changes in commodity prices, grade variability, changes in mining costs, and metallurgical recovery uncertainties.

Technology and mineral processing approach

According to company disclosures, Bayhorse’s approach to mineral processing combines ore sorting, milling, flotation, and potential hydrometallurgical leaching. The Steinert Ore-Sorter is used to upgrade mineralized material by rejecting a large portion of non-mineralized rock, thereby reducing the volume of material sent to the mill. The preconcentrate is then milled and subjected to flotation to produce a concentrate containing silver, copper, antimony and zinc.

Bayhorse has referenced metallurgical testing by Metsolve Labs and other providers that indicate concentrate ranges with high silver grades and significant base and critical metal content. The company has also researched historical and proprietary leaching processes, including the Sunshine antimony leach process and Allihies Engineering’s ASL technology, to separate antimony and potentially unlock higher recoveries and separate payables for silver, copper, antimony and zinc.

Corporate and capital markets profile

Bayhorse Silver Inc. trades on the TSX Venture Exchange under the symbol BHS, on the OTCQB under the symbol BHSIF, and on the Frankfurt Stock Exchange under the symbol 7KXN, as disclosed in company news releases. The company has used instruments such as private placements, warrants, and incentive warrant programs to raise capital. For example, Bayhorse has announced a warrant exercise incentive program relating to outstanding common share purchase warrants, designed to encourage early exercise within a defined incentive period by offering additional incentive warrants.

Company news releases also describe the use of stock options as part of director, employee and consultant compensation, with grants of incentive stock options exercisable over multi-year periods. Bayhorse’s board and management are described as having extensive mining expertise in both exploration and building mines, and company communications highlight efforts to strengthen the management team and board to support advancement of the Bayhorse and Pegasus projects.

Risk disclosures and cautionary statements

Bayhorse Silver’s public communications consistently include cautionary statements regarding the risks of proceeding without a feasibility study of mineral reserves. The company notes that any production decision involves increased uncertainty and specific risks, including potential declines in commodity prices (silver, copper, lead, zinc), grades failing to meet expectations, increases in mining costs, and metallurgical recovery changes that cannot be anticipated at the time of production. These statements underline that the company’s plans and intentions regarding work programs, expenditures, permitting, construction and production timing are forward-looking and subject to change.

FAQs about Bayhorse Silver Inc. (BHSIF)

• What does Bayhorse Silver Inc. do?
  

  Bayhorse Silver Inc. is described by the company as an exploration and production company. It holds a 100% interest in the historic Bayhorse Silver Mine in Oregon, USA, and the Pegasus Project in Washington County, Idaho, and has established a flotation processing facility in Payette County, Idaho to process mineralized material into concentrate.

• Where are Bayhorse Silver’s main projects located?
  

  According to company disclosures, Bayhorse’s key assets are the Bayhorse Silver Mine in Oregon, USA, and the Pegasus Project in Washington County, Idaho. The company also operates an up to 60 ton per day flotation mill in Payette County, Idaho, USA.

• What minerals are associated with the Bayhorse Silver Mine?
  

  Company materials state that the dominant mineralization at the Bayhorse Silver Mine is primarily tetrahedrite, an antimony sulfide of silver, copper, zinc and iron in veins and stockworks with minor gold present. Bayhorse emphasizes silver, antimony, copper and zinc as critical and strategic minerals associated with the project.

• What resource has been reported at the Bayhorse Silver Mine?
  

  Bayhorse reports a National Instrument 43-101 inferred resource at the Bayhorse Silver Mine of 292,300 tons at a grade of 21.65 ounces per ton (673 g/t) for 6.3 million ounces of silver (Turner et al. 2018). This is characterized as an inferred resource rather than a reserve.

• How does Bayhorse process its mineralized material?
  

  According to company disclosures, mineralized material from the Bayhorse Silver Mine is planned to be crushed and processed through a Steinert Ore-Sorter to reject non-mineralized rock and produce a preconcentrate. This preconcentrate is then milled and floated at the company’s Payette, Idaho flotation mill to produce a silver-copper-antimony-zinc concentrate.

• What is the role of the Steinert Ore-Sorter in Bayhorse’s operations?
  

  Bayhorse reports that its Steinert Ore-Sorter can reduce waste rock entering the processing stream by up to approximately 75–85% depending on grade, upgrading the silver content of mined material. The sorter has been used both at the Bayhorse Silver Mine and at the Payette mill, and has also been rented to a third party for processing stockpiled material.

• Does Bayhorse have an offtake agreement for its concentrate?
  

  Yes. Company news releases state that Bayhorse has an offtake agreement with Ocean Partners UK Limited for silver/copper concentrate. The agreement has been renewed and the proposed shipping volume increased to a minimum of 400 tons of concentrate, which can include third-party material processed at the Payette flotation facility.

• How is Bayhorse addressing the refractory nature of its mineralization?
  

  Bayhorse reports that its tetrahedrite mineralization is refractory, making silver extraction more challenging. The company has engaged Allihies Engineering Inc. to test proprietary Alkaline Selective Leaching technology and has reported high antimony leaching rates from Bayhorse concentrate. Bayhorse is evaluating whether a pilot antimony leach facility can be installed at its Payette mill to improve recoveries and separate payables for silver, copper, antimony and zinc.

• What is the status of permitting at the Bayhorse Silver Mine?
  

  Company disclosures describe ongoing work toward a Full Mine Operating Permit for re-commencing planned underground mining operations at up to 200 tons per day. This includes completing a groundwater baseline study, installing groundwater testing pumps, conducting tests, and submitting samples for geochemical analysis as part of a baseline study report.

• What risks does Bayhorse highlight regarding potential production?
  

  Bayhorse states that it is not basing any decision to produce on a feasibility study of mineral reserves demonstrating economic and technical viability. The company cautions that there is increased uncertainty and specific economic and technical risk with any production decision, including risks related to commodity prices, grade variability, mining costs, and metallurgical recoveries.