Silver Bullet Mines Corp. (TSX-V:SBMI, OTC:SBMCF) has announced details of a third potential revenue stream to add to precious metals production in Idaho and Washington.
The new revenue stream flows from a relationship with a lender announced earlier this year.
Silver Bullet entered into an agreement with an arm's length third party that is termed the ‘Investor/Client’ for the amount of US$350,000.
This investment was structured as a loan having a five-year term and a zero per cent interest rate.
Following extensive due diligence of Silver Bullet's operations, the Investor/Client asked SBMI to work with it to advance other projects in which the Investor/Client is involved. The first two such projects under consideration are in Arizona and Colorado.
The Investor/Client and Silver Bullet have entered into a verbal agreement whereby the Investor/Client will ship approximately 900 pounds of what it advises to be high-grade gold concentrate to Silver Bullet's mill in Globe, Arizona from an Investor/Client mine in Colorado, to be processed through Silver Bullet's modular processing facility.
Silver Bullet expects to receive the material in early November, following which it intends to run the material through its system to determine recovery, develop a process flowsheet, and ultimately pour gold dore bars.
The design of Silver Bullet's 100%-owned mill affords the flexibility to process many different types of material and optimize the resulting output with its state of the art gravity circuit. The Investor/Client has indicated the facility that produced the concentrate is not capable of processing the material to a purity desired by the Investor/Client. This concentrate may be well suited for SBMI's circuit to yield a higher purity gold product than the other facility could provide.
Remuneration for this work being done for the Investor/Client will be determined after Silver Bullet's receipt of the material and initial evaluation.
The Investor/Client has advised it has a substantial stockpile of similar material to be processed by Silver Bullet's mill, assuming this test run is successful.
If this run is successful, processing material for the Investor/Client is a third potential near-term revenue stream for Silver Bullet, with the other two being silver production out of the Buckeye silver mine and silver-gold production from the Washington Mine in Idaho.
Production at Idaho will not commence until stable production is achieved in Arizona.