SKIPPACK, PA -- (
Marketwire - Sep 6, 2011) -
North Bay Resources Inc. (OTCBB: NBRI) ("North Bay" or the "Company") is pleased to announce that pre-production activities have commenced at the Ruby Mine in Sierra County, California. The following is a progress report of the work completed, ongoing, and planned as of this date.
- Extensive survey work to map an expansion of the Ruby tailings areas was completed in August, and an amendment to the Reclamation Plan is in the final stages of completion. Once approved, the Company expects the expanded tailings area will provide enough capacity to support mining operations for at least another 5 to 7 years before another expansion will need to be considered.
- A preliminary inspection of the electric power system has been completed by PG&E, the required deposits have been made by the Company, and PG&E has initiated its further estimation and assessment process to re-energize the powerline to the Lawry Shaft. Once power is restored to the Lawry Shaft, the hoist system will be serviced and inspected to meet MSHA safety compliance requirements.
- The Company has cut down selected hazard trees that had been identified as a possible threat to the electric powerlines on the property. The Company has also repaired the 1,200 feet of the powerline owned by the Company and re-strung the wires on the poles in preparation for PG&E. Some of the wires had been knocked down by trees falling across the lines in prior years during periods of heavy snowfall. Completion of this work by the Company was required by PG&E before they will begin deferred maintenance of the additional one-quarter mile plus of powerline which is PG&E's responsibility. This work has now been completed, and the Company expects PG&E to complete its portion of the work in the near future.
- The first phase of the geological reconnaissance and 3-D digital mapping survey previously announced on June 6, 2011 has been completed. The next phase of the survey project will begin shortly.
- The Company is presently reviewing bids recently received from qualified mining contractors to restore proper ventilation to the Ruby Mine underground workings. The work will include clearing the underground workings of extraneous debris and re-timbering as-needed from the Ruby Portal to the secondary exit at the Lawry Shaft. In addition to the production and safety benefits, this work program will also extend the underground workings available for Phase 2 of the aforementioned geological reconnaissance and 3-D digital mapping survey.
The Company is also pleased to announce that it has received word that its EB-5 funding overseas is proceeding very well. The funding, in the amount of $7.5 million, is expected to be fully-subscribed. Please see Company press release dated July 22, 2011 for more details on the EB-5 funding facility. In the interim, the Company will be using its $5 million equity credit line with Tangiers Investors, LP to fund ongoing pre-production work at the Ruby until the EB-5 funds are released from escrow.
The Company will continue to inform shareholders of all new developments as we proceed forward to the reopening of the Ruby Mine and the start of gold production.
About The Ruby Gold Project
The Ruby Mine, a/k/a the Ruby Gold Project, is a fully-permitted underground placer and lode mine located near Downieville in Sierra County, California that is known to have produced over 250,000 ounces of gold since the 1850's, and which is considered to be part of the northern extension of the historic Mother Lode system. The Ruby Property covers approximately 1,755 acres, consisting of the subsurface mineral rights of two patented claims totaling approximately 435 acres and 30 unpatented claims containing approximately 1,320 acres. The equipment, fixed assets, and infrastructure in place include a 1,000 yard per day placer wash plant, 50-ton per day quartz mill, 6,000 feet of tracked haulage, and related support equipment needed for underground mining operations. The property also features an excellent system of roads, is accessible via paved highway from Reno or Sacramento, has abundant water and timber available for mining purposes, and has PG&E power available on-site. For further information about the Ruby Mine, please visit the Ruby page on the North Bay website at www.northbayresources.com/ruby/.
About North Bay Resources Inc.
North Bay Resources Inc. (OTCBB: NBRI) is a fully-reporting junior mining company with over 150 mineral and placer claims encompassing approximately 60,000 acres throughout British Columbia, Canada.
In the US, the Company has acquired the Ruby Gold Mine in Sierra County, California, and is presently looking to acquire additional operating mines in the western US.
The Company's mission is to build a portfolio of viable mining prospects throughout the world and developing them through subsidiaries and JV partners to their full economic potential. North Bay's business plan is based on the Generative Business Model, which is designed to leverage its properties into near-term revenue streams even during the earliest stages of exploration and development. This provides shareholders with multiple opportunities to profit from discoveries while preserving capital and minimizing the risk involved in exploration and development.
SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS
This press release may contain certain forward-looking statements within the meaning of Section 27A of the Securities and Exchange Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainties. Although North Bay Resources Inc. believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any assumption could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion should not be regarded as a representation by North Bay Resources Inc. or any other person that the objective and plans of North Bay Resources Inc. will be achieved.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms on our website (or press releases), such as "measured," "indicated," and "inferred" "resources," which the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form S-1 and subsequent Form 10-K which may be secured from us, or from our website at www.sec.gov/edgar.shtml
Contact:
Perry Leopold
CEO
North Bay Resources Inc.
215-661-1100
www.northbayresources.com
