Kent Exploration Enters Into Letter Agreement on Bayhorse Silver Mine
08 November 2013 - 7:57AM
Marketwired Canada
Kent Exploration Inc (TSX VENTURE:KEX) ("Kent" or the "Company") announces that
it has entered into a Letter of Agreement (the "Agreement") with American Mining
Corporation ("AMCOR") whereby it can acquire an Option, subject to the approval
of the TSX Venture Exchange, ("TSX-V"), (the "Option") to earn an 80% interest
in the historic Bayhorse Silver Mine ("Bayhorse") in east-central Oregon State.
The Bayhorse property consists of 3 patented claims and 10 lode claims totaling
approximately 250 acres. The property is readily accessible, being approximately
7 miles by County road from Huntington, Oregon, on the BN rail line, with road
access and power at the property boundary, approximately 500 feet from the main
adit entrance.
Mining has been conducted intermittently at Bayhorse since the early 1920's and
the mine last closed after the price of silver dropped to under US$6/oz in late
1984. The property has remained dormant since. The Bayhorse mine has two
existing accessible adits, the upper extending about 800 feet westward into the
hill and the lower extending about 500 feet into the hill. A middle level is
reached only by raises from the lower level and winzes from the upper level.
Three areas have been stopped in the ground between the upper and middle level.
The terms of the Agreement call for the payment of US$5,000 on execution of the
Agreement (paid) and a further US$20,000 on execution of the Option Agreement.
To earn the 80% interest the Company is required to conduct US$100,000 per year
on exploration expenditures on the property on or before each of the first two
anniversaries of the Agreement, US$300,000 on or before the third anniversary of
the Agreement and expend US$500,000 on or before the fourth and fifth
anniversaries respectively of the Agreement. In addition, the Company will issue
500,000 shares on execution of the Option Agreement, 500,000 shares on the third
anniversary of the Agreement and 500,000 shares on the fifth anniversary of the
Agreement.
Assays from a surface and underground sampling program recently conducted by the
Company are tabulated below. Further assay results are pending.
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Ag Ag Cu Zn
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Sample Type ppm oz/tonne % %
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178627 Stockpile grab 1,815 58.36 1.5 1.9
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178628 grab, upper adit entrance 3.53 0.11
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178629 1m Chip, 0.5 mi s. of Bayhorse adit 57 1.83 0.44
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178630 0.5m Chip, same 5.10 0.16
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178631 1m Channel, vein, main adit 1.25 0.04
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178632 1m Channel, wall rock 52.6 1.69
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178633 Grab 52 1.67
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178634 Grab 10.3 0.33 7.71
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178635 Grab, near main adit 172 5.53 0.82
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178636 Grab 6.94 0.22
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Historic Information:
The Company advises that information of a historic nature is presented in this
news release and historic production, estimates, drill information and grades
reported have not been verified; A qualified person has not done sufficient work
to verify the historical estimates nor classify the historical estimates as
current mineral resources or mineral reserves and the Company is not treating
the historical estimates as current mineral resources or mineral reserves.
(ounces/grams conversion is one ounce/short ton = 34.2857 grams/metric ton)
As "stated in the minerals production yearbook" (Jacobsen, 1959), total reported
historic production from the Bayhorse Mine through 1959 was 286,000 ounces of
silver from 8,300 tons of ore for an average of approximately 35.5 opt Ag (1,217
g/t Ag) while Herdrick (1981) estimated remaining shipping ore at a 7.5 opt Ag
cutoff to be 166,208 tons, and on-site mill ore at a 3 opt Ag cutoff to be
473,350 tons. Historic records do not identify whether any of this ore was
produced between 1981 and 1984.
According to other more recent reports in 1984, 90 underground drill holes
totaling approximately 15,000 feet reportedly delineated approximately 26,000
tons of silver bearing mineralization of which 5,718 tons were reported being
produced at an average grade of 16.7 opt Ag (572.5 g/t Ag) while approximately
20,000 tons at an average of 15 opt Ag reportedly remained unmined. The historic
records also indicate that of the 5,718 tons produced, approximately 23%
reportedly graded between 21 - 100 opt Ag, 71% reportedly graded between 6 opt -
20 opt Ag and 6% reportedly graded less than 6 opt Ag. Ancilliary copper
produced reportedly averaged 1% Cu. The highest reported grade from the 1984
drilling, sampling and mining program was a round that reportedly assayed 691
opt Ag (23,691 g/t Ag) and 15.72% Cu from a tetrahedrite-tennantite rich vein.
Both adits on the property are open, but the workings are not entirely
accessible at present due to safety issues. Historic reports indicate that the
mineralization, consisting mainly of tehrahedrite/tennantite, occurs in a 60-80
feet wide in a zone along an andesite and rhyolite contact. Minor copper,
arsenic, and vanadium are associated with the silver. Azurite and malachite
coatings are common in oxidized parts of mineralized ground on the walls of the
excavated stopes. Additional minerals include enargite, dufrenoysite and
cuprodesclosite. Gold values of up to 10 g/t Au have also been reported in the
mineralization.
Kent Exploration Inc. is a junior exploration company with a 100% interest in
all its major projects, and is planning on building shareholder value through
establishing cash flow from its Flagstaff Mountain, WA, barite mine. Any
positive cash flow is intended to reduce dilution and fund exploration on its
three major high grade gold prospects (Alexander River, Paparoa and Lyell), in
the highly prolific West Coast South Island gold fields of New Zealand.
Additional shareholder value has been established through its approximately 13%
interest (9,981,416 shares) in Archean Star Resources Inc, ("Archean") which is
listed on the TSX Venture Exchange under the symbol ASP.
The Company has an experienced management and technical team with extensive
exploration expertise and offers investors the potential for a major gold
discovery on its New Zealand gold projects.
This News Release has been prepared on behalf of the Kent Exploration Inc. Board
of Directors, which accepts full responsibility for its contents. The contents
of this news release has been reviewed and approved by Dr. Clay Conway, P.
Geol., a Qualified Person as recognized by National Instrument NI-43-101 and a
director of the Company.
ON BEHALF OF THE BOARD
Graeme O'Neill, President
Neither the TSX Venture Exchange, nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange), has reviewed, nor
do they accept responsibility for, the adequacy or accuracy of this news
release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Kent Exploration Inc.
Graeme O'Neill
President
604-684-3394 or Toll free: 1-866-399-6539
1-888-282-7763 (FAX)
www.kent-exploration.com
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