North Bay Resources Inc (NBRI)

[rarefind]

Nbri some real history on the last time old ruby was mined.Notice the price of the mine went down from more then 10 years ago. I believe nbri deal was 3.5 mill. Hummm gold up 300% from when Brush re-worked it but the price went down for the mine???
http://yahoo.brand.edgar-online.com/EFX_dll/EDGARpro.dll?FetchFilingHTML1?ID=532438&SessionID=6GPqHqfwJU5Uvk7


Pursuant to a leasehold interest acquired in 1989, the Company leases the Ruby Mine with an option to purchase for $4,000,000. The Company pays $13,066 monthly as a minimum lease payment. There are no proven or probable reserves at this time. The Company's original cost for the lease was $200,000. The mine is currently not in operation, has been idle for approximately 1-1/2 years. The Company intends to re-open the mine as soon as practical. The Company has requested a courtesy inspection from California OSHA. The Company believes that all other permits are in place to operate the mine. The Company fully intends to operate this mine. Current cost of repairs and maintenance to render the mine idle is $20,000.

In December of 1989, the Company issued 100,000 shares of its Common Stock which it used to purchase an option to lease the Ruby Mine and to purchase equipment located on the site. In March of 1990, the Company paid $50,000 to extend the option period to April 30, 1990. In April of 1990, the Company issued an additional 125,000 shares of its common stock in order to extend the option period to June 30, 1990. The Company exercised the option on June 30, 1990 by paying the owner $150,000 cash, which represents lease consideration of $50,000 and a $100,000 down payment on the purchase of the equipment. To complete the equipment purchase, the Company agreed to pay an additional $100,000 in cash in three equal semi-annual installments, which have been paid. The Company's investment in this mineral property consists of $1,975,525 of mining equipment. All previously capitalized development costs and land options have been expensed in the Consolidated Statement of Operations for the fiscal year ended June 30, 1997 as a cumulative effect of a change in accounting principle. See "Description of Business" under Part I, Item 1.

Pursuant to the terms of the lease, which was most recently modified on March 27, 1997, the Company must pay a 7-1/2% net smelter royalty on all minerals produced from lode deposits and 10% on minerals produced from placer deposits with a minimum lease payment of $13,066 per month through June 30, 2000, subject to an adjustment based on the Consumer Price Index. The lease may be extended for two additional five-year periods or the mineral property may be purchased for $4,000,000 subject to adjustment based on the Consumer Price Index payable by June 30, 2000. All payments made subsequent to July 1, 1995, to acquire the lease/option and all payments made under the lease subsequent to July 1, 1995, will be credited against the option purchase price. Performance under the lease purchase agreement is secured by the Company's equipment used in the mining operations on the leased premises.

During 1997, the Company negotiated modification agreements for the Ruby Mine and the Rising Sun Mine (see below) to pay, in cash, one month lease payment in arrears, increase the amount of equipment held as collateral pursuant to the Ruby Mine and the Rising Sun Mine lease agreements by filing UCC-1 financing statements listing the additional equipment, all right, title and interest of certain "ore specimens" for which Ruby Development Co., Inc. will credit the value against past due minimum royalty payments and grant Ruby Development Co., Inc. an option to purchase up to 50,000 shares of the Company's common stock at a price of $.25 per share until July 1, 1999. The Company has not made any payments on this lease since June of 1998. The Company owes the lessor approximately $165,000 in past due lease payments and related interest. There is a question as to whether the Company currently has a lease.

The Ruby Mine is an underground placer and lode mine located between Downieville and Forest City, California in Sierra County. The Ruby Mine consists of two patented claims comprising approximately 435 acres and 37 unpatented claims comprising approximately 1,150 acres. The mine encompasses four distinct underground river channels and three known lode gold veins.

All of the unpatented claims in the mineral property package are in good standing with assessment work documents for 1997 filed with both the BLM in Sacramento and Sierra County in Downieville. The patented claims of the Ruby Mine are fully permitted for underground exploration, small scale development and small scale production. However, a waste discharge permit is required and a plan of operation must be filed with the U.S. Department of Forestry before operations can be expanded beyond the current 225 tons-per-day.
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Production began at the Ruby Mine in the late 1870's when approximately 50,000 ounces of gold were extracted from what became known as the Old Ruby Channel. In the 1930's, the Ruby Mine was purchased by Clarence L. Best, who produced gold from the mine until it was closed in 1942 by War Production Board Order L- 208. High labor rates and a gold price freeze kept the Ruby Mine from re-opening. In the 1950's, the Ruby Mine was sold and was subsequently mined by small operators until the mid-1970's. In 1979, the mine was leased to Alhambra Mines, Inc. After limited rehabilitation, Alhambra Mines, Inc. failed to make lease payments and the Ruby Mine reverted to its owner.

The majority of the historical production at the Ruby Mine has come from underground placers. Since 1942 virtually no new ground has been opened and most of the attention has been directed at the Wolf lode vein and the Big Bend area of the Black Channel, a famous underground placer. Due to extensive overburden of up to 700 feet on the mineral property, the only way new reserves will be established is from underground, utilizing mapping, sampling, and drilling techniques and by opening new ground.

The Ruby Mine hosts a gold recovery washing plant with all associated equipment, a mill building, and a separate compressor building in good condition. The Ruby Tunnel has been rehabilitated, retimbered and refitted. The underground workings include 30-pound mine rail and electrical and ventilation equipment. The Ruby Mine has compressors, generators and an electric train with sufficient haulage capacity to feed a 200 ton per-day-mill. There are 21 mine ore cars and a Mancha locomotive in good condition on the mineral property.

The Ruby Mine is accessible via State Highway 49 to Pliocene Road to the Henness Pass paved road then via five miles of paved and gravel road. Power is generated on the site.

The Company filed its plan of operation for the Ruby and Carson Mines with the United States Forestry Department, and has obtained all necessary permits for production and milling at the Ruby Mine of up to 225 tons of material per day. The mine, if operated, however, has been operating at less than 225 tons of material per day. From February 1992 when the Company began limited production at the Ruby Mine to December 1992 when the Company ceased production due to inclement weather, the Company milled approximately 7,300 tons of mineralized material and recovered approximately 200 ounces of gold, an amount which is inconsistent with historical production at the Ruby Mine in the early 1900's, and is insufficient in total quantity to be a reliable representative sample of the expected grade of the mineralized gravel. Consequently, no assurances can be given that future production will result in grades of similar or historical amount. Furthermore, the Company has not completed sufficient geological activities and drilling to establish proven or probable ore reserves at the Ruby Mine. The Company has no present intention of conducting further geological exploration and drilling to establish ore reserves at the Ruby Mine at this time.