Silver Bullet acquires two past-producing mines

Executive Summary

• Silver Bullet Mines Corp. has acquired two past-producing mines, the Columbia mine and the Gold Queen mine, located in Gila County, Arizona.
• The acquired properties are contiguous, consist of 12 BLM mineral claims previously held by Phelps Dodge Corp., and are located less than 30 miles from the company's mill in Globe, Arizona.
• The acquisition supports the company's "hub and spoke" business model, with the mines serving as additional "spokes" feeding the central mill, aiming for near-term production and future resource development.

Key Details

• Target Assets: Columbia mine and Gold Queen mine.
• Location: Gila County, Arizona; less than 30 miles from Silver Bullet's mill in Globe, Arizona.
• Property Composition: 12 BLM mineral claims previously held by Phelps Dodge Corp.
• Commodities: Copper, gold, and silver.
• Transaction Structure: Small cash payment; no shares or royalties involved.
• Regulatory Status: Company believes no regulatory approval is required.
• Operational Plans:
  • Due diligence completed at the mill; material determined suitable for recovery of gold, silver, and copper.
  • Steps being taken to ensure permits are current.
  • Immediate evaluation of stockpiles planned; potential shipment to mill for recovery.
  • Consideration of rehabilitating an existing crosscut at the 1,300-foot level.
  • Engineering underway to expand mill capacity.
• Production Goals: Produce saleable gold, silver, and/or copper concentrate and direct ship material (DSO) under contract with a major buyer (contract in place subject to final material analysis).
• Strategic Value: Provides historic data to advance resources to NI 43-101 standards; potential for high-grade material and increased tonnage.

Notable Quotes

• "These acquisitions are further validation of the company's hub and spoke business model, with the company's mill being the hub. These two acquisitions are two additional spokes, providing for possible near-term production, future development and possibly for historical resources that might be advanced to National Instrument 43-101 standards."
• "The company believes this is a major stepping stone to continue building a significant mining operation in Arizona."