North Bay Resources Inc. (NBRI) Completes Earn-In JV Agreement on Fawn Property
SKIPPACK, PA -- (Marketwire) -- 11/17/09 -- North Bay Resources Inc. (PINKSHEETS: NBRI) ("North Bay" or the "Company") is pleased to announce that final approval has been received from the TSX Venture Exchange regarding the terms of the Company's earn-in joint venture agreement with Silver Quest Resources Ltd.
("Silver Quest") on North Bay's Fawn gold-silver property in central British Columbia, Canada. As a result, the agreement is now effective, and the transaction has been consummated.
Under the terms of agreement, Silver Quest may acquire a 75% interest in the Fawn property by making aggregate cash payments of $100,000, issuing 150,000 shares, and incurring $1,500,000 in exploration expenditures over four years. Of the aggregate payments and commitments due, $25,000 in cash and 50,000 shares are due upon receipt of regulatory acceptance (now effective), and $250,000 in exploration expenditures must be expended in the first 12 months. Upon completion of all of the terms of the agreement whereby Silver Quest acquires a 75% interest, a 75/25 joint venture will be formed. If subsequent to the formation of the joint venture the interest of either party is reduced by dilution to less than 10%, such party's interest will automatically be converted to a 2% net smelter return royalty (NSR). The other party may then purchase one half of the NSR at any time up to 90 days following the commencement of commercial production for $1,500,000.
The Fawn property is situated on the Nechako Plateau of central British Columbia, approximately 120 kilometres southwest of Vanderhoof and 180 kilometres west of Quesnel. The property covers 1,005 acres, and includes the Buck claims 6 kilometres to the east.
On the namesake Fawn claim (MINFILE 093F 043), four subparallel, easterly-trending VLF-EM conductors have been defined along strike lengths of 700 to 2,200 metres, with each remaining open along strike in at least one direction. Each of the four VLF conductors is accompanied by silver-zinc-lead-arsenic soil geochemistry. The key area of interest is known as the Giver Zone, where assays up to 12.9 grams (0.42 ounces) per tonne gold and 637 grams (20.48 ounces) per tonne silver have been documented.
Immediately east of the Fawn and included as part of the property, the Buck claims (MINFILE 093F 050) cover a 3,000 metre long zinc-arsenic-lead soil geochemical anomaly overlying Naglico Formation rocks, and referred to as the Rutt Zone. Stratabound sphalerite-pyrrhotite mineralization, grading up to 4.69% zinc, is present in felsic ash tuffs. A primary area of interest immediately south of the Rutt Zone is known as the Christmas Cake showing, where a 45 centimetre chip sample has assayed 542 grams (17.42 ounces) per tonne silver, 7.38% zinc, and 2.25% lead.
About Silver Quest Resources Ltd.
Silver Quest Resources Ltd. is a mineral exploration company listed on the TSX Venture Exchange. With current projects located across Canada, and a portfolio of projects that range from early stage grassroots exploration to advanced-stage resource expansion, the Company is positioned to add shareholder value through systematic project advancement. Silver Quest is currently focused on silver and gold exploration in the Yukon and on the Nechako Plateau of central British Columbia, with its primary assets being the Capoose, Davidson and 3 T's projects.
About North Bay Resources Inc.
North Bay Resources Inc. (PINKSHEETS: NBRI) is a junior mining company with over 150 mineral and placer claims encompassing approximately 60,000 acres throughout British Columbia, Canada. The Company's mission is to build a portfolio of viable mining prospects throughout the world and develop 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.
Contact:
Perry Leopold
CEO
North Bay Resources Inc.
215-661-1100
http://www.northbayresources.com
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