SKIPPACK, PA -- (Marketwired) -- 09/10/13 -- North Bay Resources Inc. (OTCQB: NBRI) ("North Bay" or the "Company") is pleased to report that the Company has cleared the last remaining obstacle in the Ruby Tunnel at the 4900 vein and has crossed the Melones Fault to gain access to the Black Channel. This has always been one of the principle goals of the Ruby Tunnel Rehab project, and thus represents another significant milestone in the reopening of the Ruby Mine.
As previously explained in a Company press release dated July 23, 2012, the section of the tunnel that has been undergoing rehabilitation since 2011 is on the west side of the Melones Fault, the principle controlling structure that defines the Motherlode system of Northern California. Having now reached the 4900 vein, we have crossed over to the eastern side of the Melones Fault and into the approach to the Black Channel. It is worth noting that much of the gold produced from vein deposits of the Motherlode has been mined from the eastern side of the Melones Fault, a geological structure that runs through the entire length of the Ruby property.
The economic significance of the Black Channel is documented as being that section of the mine that was in production at the time the Ruby was closed in 1942 by order of the US government pursuant to War Production Board Order L-208. Up to that point, the Black Channel had already produced over 58,000 ounces of gold, including the world-class C.L. Best Collection of Ruby Nuggets currently on display at the Los Angeles County Museum of Natural History. The importance of the Black Channel was highlighted in an April 1987 interview with Lewis Huelsdonk, the Ruby mine manager at the time it was unexpectedly forced to close by the War Board. In the interview Mr. Huelsdonk is quoted as saying, "It seemed like we no sooner got onto the gold when the war broke out and the government closed the mine. We were right in the middle of taking these nuggets, so you can imagine how we felt at the time." The article goes on to explain that after the war the cost of operating the mine rose astronomically, the government froze the price of gold at $35 an ounce to effectively eliminate the free market, and the mine never reopened. A link to the entire article is available at http://www.northbayresources.com/ruby/CA_Mining_Journal_Article.pdf.
The Company notes that additional rehab work to reinforce and retimber the Black Channel workings will need to be done before bulk sampling and test mining can begin in that location. In the meantime, the Company is continuing preparations to begin test mining at the White Channel as previously announced in a Company press release dated August 27, 2013. The initial bulk samples from the White Channel are expected to be extracted and delivered to the mill for processing by the end of the month.
The Company also notes that while the most difficult part of the tunnel rehab has been completed and test mining operations are now beginning, additional rehab work remains to be done further upstream from the Black Channel. There is yet another mile of tunnel leading to the secondary exit at the Lawry Shaft that still needs to be assessed and rehabilitated before the Lawry Shaft can be considered to be reopened. While this continuing rehab is not expected to be nearly as intensive as the work now completed, it is nevertheless just as important. Putting the Lawry back into service opens the mine from stem to stern, and allows access to several more mining targets, including the Pilot Channel, Sally's Alley, and the Mt. Vernon Channel.
As always, the Company will continue to keep shareholders updated as the work continues and our initial mining operations begin to bear fruit.
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 1,755 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 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 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. (OTCQB: NBRI) is a fully-reporting junior mining company with current operations in the US and Canada.
In the US, the Company's 100% owned and royalty-free Ruby Mine is a fully-permitted underground placer and lode mine located in the northern extension of the historic Mother Lode system in Sierra County, California. 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 1,755 acres, only a small portion of which has been explored to date. The Company is presently completing the rehabilitation of the Ruby Tunnel and commencing test mining operations at the mining targets currently accessible.
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
North Bay Resources Inc.
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