Bayhorse Enters Option Agreement In Silver Valley

IDAHO - Bayhorse Silver Inc has entered into an Option Agreement with Blackhawk Exploration L.L.C. to acquire a 75% interest in the past producing Government Gulch patented mining claims in the Coeur D' Alene Mining District, Idaho.

Located in Idaho’s highly prolific Silver Valley, the properties lie approximately 1 mile south of the towns of Kellogg and Smelterville off US Interstate I-90. The Government Gulch property consists of approximately 500 acres of patented claims and mineral rights that abut the Bunker Hill Mine to the east and the Page Mine to the west. Mining operations were conducted by both the Bunker Hill Mine and the Page Mine right up to the east and west boundaries respectively of the Government Gulch group of claims.

The Government Gulch property includes ASARCO's prior producing Blackhawk, Crown Point, Curlew, Ranger and Wyoming Mines. In the State of Idaho, no costly and time consuming permitting is required to conduct exploration or mining operations on existing private (patented) mining claims, realizing substantial cost savings in getting on-site operations underway.

Graeme O’Neill, President & CEO of Bayhorse Silver commented, The acquisition of these world class silver/lead/zinc, properties on patented mining claims, strategically located in Idaho’s Silver Valley, are a major addition to the Company’s prospects. The Government Gulch property is complementary to our near to- production Bayhorse Silver Mine, also on patented mining claims, off Interstate I-84 in Oregon.

Asarco’s main production was from the Page Mine with limited production from the Government Gulch mines. According to the U.S Bureau of Mines production from the Government Gulch group of mines was over 2 million oz of silver, 9.4 million pounds of zinc and 6 million pounds of lead while the Page Mine produced 14.6 million oz of silver, 541.5 million pounds of lead, 543.3 million pounds of zinc and 19 million pounds of copper. To the east, the Bunker Hill Mine produced 156.5 million ounces of silver, 5 billion pounds of lead, 2.4 billion pounds of zinc, 23.6 million pounds of copper and 36,594 oz/gold,

The Silver Valley silver/lead/zinc deposits are known to extend to over 10,000 feet in depth. Hecla’s Lucky Friday Mine is currently extending operations to that depth.

Blackhawk has digitized all the Government Gulch underground workings as well as the Page, Bunker Hill and Caledonia Mines from the extensive data and records on file and has identified significant un-mined mineralized zones within the Government Gulch mines.

ASARCO deeded the Government Gulch claims to the U.S Environmental Protection Agency (EPA) as part of its settlement with the EPA for the Silver Valley Superfund Cleanup. Blackhawk recently purchased the Government Gulch property from the EPA-established Trust, free and clear of any and all environmental liabilities from the EPA, pursuant to the completion of the Super Fund Cleanup executed by the EPA in the Silver Valley.