North Bay Resources Inc. (OTC:NBRI) CEO Jared Lazerson talked with Proactive about the company's exciting advancements, including a significant increase in its ownership of the Bishop Gold Mill in California.
Lazerson explained that the company's stake has grown from 55.5% to 70%, following a fair-value deal structured primarily with shares.
Proactive: Welcome back inside our Proactive newsroom. Joining me now is Jared Lazerson, the CEO of North Bay Resources. Jared, it's always great to have you back. How are you?
Jared Lazerson: Doing great. Thanks.
Good to have you on. The company is out with news today that you've increased your stake in the Bishop Gold Mill. This is significant and important to the company. Can you tell everyone what it’s used for and why you decided to take a bigger stake in it?
Well, we're already at 55.5% ownership, and we had the opportunity to work with the minority owner to make the last tranche of payments. This will end the security interest of the note holder, effectively the mortgage holder, and take us up to 70%. Now, the majority of the profits will go to North Bay. The deal seemed right valuation-wise, as it was structured primarily in shares, representing less than 2% of the company’s outstanding shares. So, while it’s not nominal, it’s a fair deal. With this structure, we went from 55.5% to 70% ownership.
You’ve also made commitments to new equipment. Can you tell us how you’re optimizing the mill?
Things are moving very fast in a positive way. In mid-December, we received a metallurgy report showing a 97% recovery rate using gravity concentration and flotation methods. Based on that, we acquired equipment, including a centrifuge and an additional table, from our partners who own the Ruby mine. We’ve shifted the mill to a gravity-based system, as two-thirds of the recovery, about 67%, came from simple gravity methods. The equipment is already installed and operational. We’ve stockpiled 130 tons, with grades close to one ounce per ton. Based on current gold prices, this is substantial.
Are you planning to increase yield with this optimization?
Optimization focuses on quality over quantity. The mill is rated at 100 tons per day, but logistically, we’re not there yet. Right now, our focus is achieving smooth operations and hitting a concentrate grade that meets refinery requirements, which is three ounces per ton. The met lab results indicated we could achieve 11 ounces per ton, so we’re confident about producing a salable grade concentrate. We’re also optimizing recovery to exceed 90%.
What are your next steps?
We’re aiming for a refinery shipment next week. Additionally, we have significant feedstock—about 5,000 tons—stockpiled at the Ruby mine. This summer, we plan to begin mining operations there.
Sounds exciting. Any additional equipment purchases?
Yes, we’re considering acquiring two more centrifuges. We currently have one operating successfully and see value in adding more to enhance our recovery process.
Quotes have been lightly edited for clarity and style