North Bay Resources Inc. (NBRI) Issues Ruby Mine Update
SKIPPACK, PA--(Marketwired - Oct 13, 2014) - North Bay Resources Inc. (OTC Pink: NBRI) (
This action is expected to significantly cut costs and reduce if not eliminate the amount of debt currently being incurred monthly to continue operations. Management believes the recent drop in our share price due to debt conversion is intolerable and overdone. With our market cap now reflecting an extreme discount to our intrinsic asset value, it is time to take steps to reduce our debt and let the market recover before we resume operations.
Management has also concluded that in view of recent operational setbacks it is time to take a pause to re-evaluate the mining plan and personnel prior to the resumption of operations next spring.
North Bay CEO Perry Leopold commented, "Last year when we successfully broke through to reopen the Ruby tunnel, we began to make the transition from what had been a rehab project to a mining operation. We needed to expand our crew and hire more men, our supply and equipment needs dramatically increased, and our monthly operating budget almost tripled. This was funded primarily by convertible debt with the expectation that we would be generating enough revenue by now to no longer rely on loans to finance the operation. We only have to recover 20 or 25 ounces of gold per week to break even, and anything more than that should be profit. This is a very modest amount, and should be achievable, but due to the recent setbacks at the South Terrace and Big Bend, it remains in the future. Had we reached that goal by now, all of what has happened recently to our stock could have been avoided, but now our debts are coming due, and with the approach of winter in the Sierra Nevada mountains, we have made the decision to take our foot off the gas, catch our breath, and take a pause to allow our debt to work its way out. This means not only reducing our debt, but avoiding new loans as much as possible beyond what might be needed to maintain minimal operations over the winter. We remain firm in our belief that the Ruby will be a profitable enterprise, and we hope shareholders will stay the course with us as we take steps to get through this turbulent period and recapitalize the company. We will keep shareholders updated of any new developments as we go forward, as well as to discuss our plans for resuming full operations in the spring."
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 350,000 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 2,312 contiguous acres, only a small portion of which has been explored to date. The property consists of the subsurface mineral rights of two patented claims totaling approximately 435 acres and 59 unpatented claims containing approximately 1,877 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 on the Ruby Mine, please visit the Ruby page on the North Bay website at http://www.northbayresources.com/ruby/.
About North Bay Resources Inc.
North Bay Resources Inc. (OTC Pink: NBRI) is a fully-reporting junior mining company with current operations in the US and Canada.
In the US, the Company's subsidiary, Ruby Gold Inc., owns and operates the Ruby Mine in Sierra County, California. The Ruby Mine is a fully-permitted underground placer and lode mine located in the northern extension of the historic Mother Lode system. The Ruby is known to have produced over 350,000 ounces of gold since the 1850's, including some of the most spectacular gold nuggets on record. The Ruby Property covers approximately 2,312 acres, only a small portion of which has been explored to date.
In British Columbia, the Company holds 100% ownership of a multitude of significant mining properties. These include two gold-platinum placers, the Fraser River Project and the Monte Cristo, and lode projects such as the advanced-stage Mount Washington Project on Vancouver Island, the Brett West/Bouleau Creek Gold project near Vernon BC, the Coronation Gold project in the historic Slocan Mining district, and the Tulameen Platinum Project near Princeton, BC. In addition to its many precious metal projects, the Company also owns additional prospective projects that host strategic mineral resources such as Vanadium, Crystalline Flake Graphite, Olivine, and Rare Earth Elements (REE).
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.
Additional information on the Company's many properties and ongoing projects is available at the Company website at http://www.northbayresources.com.
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 Form 10-K which may be secured from us, or from our website at http://www.sec.gov/edgar.shtml