Bayhorse Silver backtracks on disclosure

Bayhorse Silver (TSXV: BHS; US-OTC: KXPLF) has reported high-grade silver samples taken from the newly accessible Big Dog mineralized zone at the past producing Bayhorse silver mine in east-central Oregon.

The Bayhorse silver mine was mined intermittently from the early 1920s until falling silver prices forced its closure by then-operator Silver King Mining in 1984.

These days, Bayhorse Silver is trying to delineate the silver mineralized zones identified in a report written in 1981 by Melvin Herdrick, a geological consultant to Silver King. His report suggests the mine has a resource of between 2.8 and 3.3 million oz. silver. Bayhorse Silver says Silver King had been targeting a number of mineralized zones­ based on that report before it shut the mine down.

The new grab sample taken by Bayhorse from the eastern end of the newly opened 170-metre portion of the historic workings at the Big Dog zone assayed 2,271 grams silver per tonne. Chip samples ranged from 164 grams silver per tonne to 1,748 grams silver per tonne.

The company says it also found gold in the Big Dog zone, but released no details.

The recent news follows some months questionable disclosures from Bayhorse Silver.

On April 19, Investment Pitch Media released a report and accompanying video recommending investors buy Bayhorse Silver’s stock. Investment Pitch stated that Bayhorse Silver had significantly expanded the historic reserve estimate along strike and depth and that the aspiring junior miner estimated it would produce between 640,000 and 1.2 million oz. silver in the next 12 months (based entirely on the aforementioned 1981 report and an estimated 350 days of mining in the next year). Investment Pitch said the stock’s fundamental value was 62¢ per share, well above the 21¢ per share it was trading at the time.

Three days later, Bayhorse Silver put out a press release admitting it paid Investment Pitch Media $22,000 to produce the report, and that the aforementioned claims were unsubstantiated.

On May 10, the company reported the British Columbia Securities Commission had been looking into its recent disclosures. The junior clarified that its Bayhorse silver mine has no current resource or reserve estimate, and that it is unaware of the assumptions, parameters or methods used by the author of the 1981 report.

On May 22, the company closed a previously planned capital raise.

Bayhorse Silver has yet to produce a technical report for the Bayhorse silver mine, though the company says it is in the final stages of producing one.

Shares of Bayhorse Silver are currently valued at 10¢ with a 52-week range of 10¢ to 25¢. The company has a $7.8 million market capitalization.


1 Comment on "Bayhorse Silver backtracks on disclosure"

  1. Investment pitch did not produce the report. Fundamental research did. Basic DD.

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