CAUTIONARY NOTE The Company advises that the following presentation includes forward looking statements and contains information that is of a historic nature. Historic production estimates, drill information and grades reported have not been verified; For the historical estimates to be upgraded or verified to qualify as a resource or reserve would require measuring and resampling of the underground workings, and if needed, core drilling to confirm the potential tonnage. The terms probable tonnages, orebody, probable ore and ore are measurement categories other than those required to be used for Canadian securities reporting purposes and do not satisfy the CIM definitions for mineral resources or mineral reserves. The terms probable tonnages, ore, orebody and/or probable ore etc. would constitute mineralized material under Canadian securities reporting requirements. A qualified person has not done sufficient work to verify the historical estimates nor classify the historical estimates as current mineral resources or mineral reserves and the Company is not treating the historical estimates as current mineral resources or mineral reserves. A preliminary economic assessment has not been performed and all numbers presented herein are based upon historic production records and estimates of grades derived from Ore-Sorting and DMS preliminary testing results. All statements herein, other than statements of historical fact, including, without limitation, plans for and intentions with respect to the Company s capitalization, preparation of technical reports, proposed work programs, budgets and proposed expenditures, permitting, construction and production timing are forward looking statements. While the Company believes such statements are reasonable, no assurance can be given that any expectations will prove to be correct and the forward-looking statements are not guarantees of future results or performance and that actual results may differ materially from those in the forward-looking statements. Readers should not place undue reliance upon forward-looking statements and the Company undertakes no obligation to re-issue or update any forward-looking statements as a result of new information or events after the date hereof or as may be required by law. All forward-looking statements and information herein are qualified by this cautionary statement.
TRANSITIONING TO MINER FROM EXPLORER Objectives Acquire and develop historic mining properties to bring them into production. Re-Opening the Bayhorse & Bridging-the-Gap silver mines. Facts Bayhorse s focus on patented claims reduces time consuming and costly permitting. Existing mines with underground infrastructure - reduces development costs. Marrying technology and mining drastically reduces upgrading costs. Ore-sorting and DMS technology reduces need for expensive processing mills. Removing uneconomic waste rock from the processing stream = greater profitability.
PROJECTS Bridging-the-Gap Silver Valley - Idaho Bayhorse Silver Mine Oregon
BAYHORSE MINE Bayhorse Silver Mine - Oregon Bringing a former high grade, primary silver mine, back to life Accessible year round off Interstate-84. Historic estimate 160,000 tons @ 17-20 oz/t silver @ 7.5 oz/t cut-off. Mineralized zone 85 feet Wide, 22 feet thick Known strike, minimum 840 feet. Historic information suggests an exploration/mining target of 500,000-1,000,000 + tons at similar grades with an Estimated strike extension up to 3,000 feet Patented Claims Permitted under Oregon mining exemptions Test mine tonnage - 100 tons/day Estimated test mining cost $127 per ton Upgrade mineralization to direct shipping material using ore-sorting/dense media to 150/160 oz/t silver
BHS: TSX-V BAYHORSE SILVER MINE Graeme O Neill CEO Dr. Stewart Jackson, P.Geol Dr. Clay Conway, P.Geol Troy Blackledge, Geo, Mine Manager Dr. Bill Willoughby, PE, Mining Engineer Dr. G.E. Ray, P.Geol. The Miners PEOPLE MAKE MINES
BAYHORSE MINE BAYHORSE SILVER MINE - OREGON
MAKING PROGRESS BAYHORSE SILVER MINE - OREGON
MAKING PROGRESS BAYHORSE SILVER MINE Opening adits and installing equipment
MINERALIZATION BAYHORSE SILVER MINE Examples of Bayhorse Run-Of-Mine mineralization
MINERALIZATION BAYHORSE SILVER MINE Bonanza Grade Silver Identified Ag 150kg/t (4,835 oz/t) Cu 17.85% (392 lbs/t) Zn 8.67% (191 lbs/t) Sb 3.5% (77 lbs/t) Sample assay received January 2014 Check sampling completed March 2014
BHS: TSX-V HISTORIC PRODUCTION BAYHORSE SILVER MINE Over 2,000 tons mineralized material extracted from the mine to date. Processing equipment in place Mine electrical supply connected Intermediate Level 1984 Mined out Dense media & ore-sorting testing complete Blocked out for mining Projected for mining Historic stopes Ready to commence processing/upgrading mined material
HISTORIC EXPLORATION BAYHORSE SILVER MINE Historic underground workings & 1984 drill results 1984 Drilling Program
PROCESSING/UPGRADING How do we make 160 oz per ton of silver when there is only 20 oz per ton to start with? 3 ton goes into Ore-Sorter. How we create direct shipping material from lower grade mineralization. The following example is based on preliminary tests that show the Ore-Sorter rejecting 63% of the ton as waste. Ore-Sorter selects 37% of the ton or 740 lb, including the silver, 20 oz/ton. Ore-Sorter rejects 63% of the ton, or 1,260 lbs of low grade & waste and sends it to waste pile. Multiply 740 x 2.7 to make a ton and 20 oz x 2.7, or 54 oz silver is grade per ton. A 40 ton truck load at 160 oz per ton silver contains 6,400 oz silver and the gross metal value will be US$108,000 @ $17/oz. DMS can remove up to 90% of the remaining waste rock. The 3 tons we started with is now 1 ton with 54 oz of silver so we send that to the Dense Media Plant (DMS) to remove more waste rock. If we remove 1320 lb from the ton then the grade calculation becomes 54 oz x 3 which is the grade equivalent of 162 oz per ton of silver.
SHARE STRUCTURE Top 15 Shareholders SHARES ISSUED 37,740,821 OUTSTANDING WARRANTS 1,422,000 @ $0.15 5,005,000 @ $0.20 5,145,000 @ $0.25 MAJOR SHAREHOLDERS HOLD +/- 50% OF OUTSTANDING SHARES AND 60 % OF OUTSTANDING WARRANTS BAYHORSE CEO GRAEME O NEILL HOLDS 6,150,000 SHARES OR 16.5% OF ISSUED SHARES
CONSULTANTS Advisory Board Dr. Stewart A. Jackson, P.Geo. Advisory board Dr. Jackson is a Professional Geologist in the Province of Ontario, Canada. He holds a B.Sc, in Geology from the University of Western Ontario, an M.Sc. in Stratigraphy and Mineral Deposits from the University of Toronto, and a Ph.D in Stratigraphy and Economic Geology from the University of Alberta. He is a member of several scientific and professional organizations and has authored several geological papers. Dr. Richard Jolk P.Geo. Advisory Board Dr Jolk holds a B.Sc. Metallurgical Engineering, EM, Mineral Economics/Mine Valuation, M.Sc. Environmental Engineering, and Ph.D. in Mining and Earth Systems Engineering, all from the Colorado School of Mines. He is a registered professional minerals engineer and certified minerals appraiser with more than 35 years of experience, both domestically and internationally. He is a qualified person as defined by National Instrument 43-101. Independent NI-43-101 Consultant Dr. G.E. Ray. P. Geol. Dr G. E. Ray has worked as a field and economic geologist for 44 years with major and junior exploration companies, including Rio Tinto Zinc, Falconbridge and Billiton Minerals in exploration for Archean and Proterozoic greenstone-hosted gold, Cu-Au skarns, IOCG's, Cu porphyries and Au- Ag epithermal and mesothermal deposits. He is a member of the Association of Professional Geoscientists of British Columbia and the Association of Professional Engineers of Saskatchewan. Mining Consultant Dr. William Willoughby, PE, Dr. Willoughby is a highly experienced Mining Engineer with 35 years of experience in all aspects of mining projects, including: planning and evaluations, exploration, drilling, underground and surface development, technical studies, permitting and financing.
MANAGEMENT Management Graeme O Neill President, CEO & Director Mr. O Neill established the Company and has been President & CEO since its inception. He has been involved in managing junior exploration companies in the minerals sector for a number of years and is experienced in logistics, planning, and operations development. Rick Low, CA, B.Comm, CFO Mr. Low has over ten years senior management experience including as CFO and board director in the mining industry. Mr. Low is a qualified Chartered Professional Accountant (CA) with the Chartered Professional Accountants of B.C. and graduated with a B. Comm. degree from the University of British Columbia. Donna Moroney - Corporate Secretary Ms. Moroney has over 30 years of experience in regulatory and corporate compliance in both Canada and the United States, and as a senior officer of various public companies. As President of Wiklow Corporate Services Inc., she assists companies in the resource, financial and technology sectors in maintaining the securities and exchange demands on public companies. Directors Dr. Clay Conway, Ph.D., P.Geol. - Director & Qualified Person Dr. Conway graduated from Brigham Young University in 1966 with a B.Sc. Geology and obtained his Ph.D. in Geology from the California Institute of Technology. He is a Fellow of the Geological Society of America, a Fellow of the Society of Economic Geologists, and is a Registered Geologist in both Utah and Arizona. Dr. Clay Conway, Ph.D., P.Geol, is a qualified person as defined by National Instrument 43-101. John Cerenzia - Director Mr. Cerenzia has years of experience with small capitalization companies and junior resource companies. He has served as a consultant to other public companies and is a former Systems Business Analyst with the Ontario Ministry of Transportation, where he worked for 32 years. Mr. Cerenzia is a graduate of the Canadian Institute of Management (CIM). Corey Klassen - Director Mr. Klassen has a strong financial background and has been a director of Bayhorse for a number years. He has considerable experience with junior resource companies and is currently a director of two public companies.
MARRYING TECHNOLOGY AND MINING 137 Ranelagh Ave Burnaby, BC V5B 3N2 T: +1 (604) 684-3394 F: 1-888-684-0586 company@bayhorsesilver.com www.bayhorsesilver.com