Silver Bullet's first batch of KT concentrates received

Executive Summary

• Silver Bullet Mines Corp. announced the receipt of its first commercial shipment of gold/silver concentrate from the KT gold mine in Arizona (approx. 4,000 lbs) and a second shipment (approx. 2,500 lbs) scheduled for pickup.
• The company clarified its milling and concentration processes, emphasizing that value is derived from the grade of the original host material rather than the tonnage of concentrate produced.
• Initial assay results for concentrate from the SC mine were received, showing values exceeding lab detection limits; however, the company will not direct significant resources to the SC mine, focusing instead on the KT mine.
• John MacKenzie rejoined the board of directors and audit committee, and the company issued shares to satisfy interest payments on outstanding debentures.

Key Details

• KT Mine Shipments:
  • First shipment: ~4,000 pounds of gold/silver concentrate processed from surface material, received by buyer on Oct. 29.
  • Second shipment: ~2,500 pounds of concentrate scheduled for pickup at the mill site in Globe, Ariz.
  • Future Schedule: Company intends to process material on a biweekly schedule, with shipments ranging from 2,500 to 4,000 pounds.
  • Payment Terms: Initial shipments paid 60 days from date of receipt at the refinery; subsequent payment terms are under negotiation.
  • Valuation: Company is awaiting buyer's comparative assay results to agree on precise value.
• SC Mine Status:
  • Received initial independent lab assay results for concentrate from the SC mine.
  • All tested samples returned values over the detection limits (higher than the highest numbers in the lab's testing standards).
  • Additional samples required for precision testing.
  • Strategic Decision: Company sees greater value in KT mine concentrate and will not direct significant resources to produce additional concentrate from the SC mine. SC mine remains in good standing for future revisiting.
• Process Clarification:
  • Milling uses gravitational processes to separate gold and silver based on specific gravity.
  • Focus is on maximizing grade to avoid extra refining, smelting, transportation, and handling costs.
  • Concentration ratios vary by mine; insufficient data currently exists for KT mine ratios.
  • Illustrative Example Provided (not representative of actuals): 100 tons of material at 0.3 oz/ton head grade with 90% recovery yields ~27 ounces of gold in ~500 lbs of concentrate (extrapolated to 108 oz/ton concentrate).
• Corporate Actions:
  • Board Appointment: John MacKenzie rejoined the board of directors and the audit committee. He is described as an experienced CEO, CFO, and director in the mining/metal industry, and a chartered accountant.
  • Debt Settlement: Issued 258,675 shares as payment of interest pursuant to previously announced terms of outstanding debentures.

Notable Quotes

• "Extremely positive for the company is that all of the concentrate samples tested returned values over the detection limits, which means the results were higher than the highest numbers in the lab's testing standards."
• "The important factor is not the number of tons of concentrates but the grade of the material in the original host material."