We trust everyone is having a great holiday season all things considered !
I thought this would be a good opportunity to give everybody a quick review of the last twelve months and try to show the unbelievable strides we made through a very difficult year. When we started the year we were getting things together we had just closed on our Idaho property. We knew it was a great acquisition with great potential but never imagined how big an asset it could really be.
So let’s just review the then and now of 2021:
When the year started we were confident and encouraged by the interest in Silver Bullet Mines “SBMI” and the potential success of our financing. Little did we know we would blow past our initial raise by the time we finally closed in July. At the time little did we know what lay ahead.
So with cash in hand and a very tight budget we set off to change the way junior mining is done. We wanted to create our own feasibility study by doing it ourselves. We wanted to build our pilot plant based on a bulk sample we had done and take the next steps forward while generating cashflow. Novel approach for a junior mining company to generate free cashflow thus reducing its dependency on a fickle market , reducing the number of financings required, all the while building a resource.
The other thing we wanted actually needed to do was take Silver Bullet Mines public on the TSXV. That turned out to be not only time consuming and expensive, but also one of the most frustrating things I have ever been involved in. What was supposed to be done by the end of the first quarter of 2021 took until the fourth quarter. We faced unbelievable delays and problems that had nothing to do with the company. That said we did get it done and commenced trading on Dec. 6th. Next up, we looking into getting a listing in the United States on the OTCQB .
Meanwhile at both sites, Arizona and Idaho, our team focused on the task at hand. In Arizona that included getting back underground and accessing the ore, building an assay facility to handle all the assays needed to run a successful mining operation. Some said why your own assay facility? We said all good mining companies have their own facilities we can’t wait weeks to get results we need them now. Of course the most important thing was to get started on the pilot plant itself. We chose to build a 125 MTPD state of the art high efficiency gravity mill with the best equipment designed to provide high recoveries.
Step one in the process was to find a site to handle the requirements of a plant that size. We found and bought a 70 acre site with room to expand and started the process. Then reality hit ! All our budgets were based on written quotes with a substantial cushion. Well were we ever surprised when material pricing went up in some cases by 300% and higher. Equipment prices doubled. Supply chain issues are being felt by everyone we are no exception. Transportation of containers went from $16,900.00 to $76,000.00. The US put a 25% tariff on equipment that we could not even buy in the US and of course deliveries went from 8-10 weeks to 16-20 weeks.
We still have one container sitting in Long Beach harbour that we hope will be offloaded by the end of January 2022 ! This really affected our schedule which was realistically set for Quarter 4 but now is Quarter 1 2022.
All that said our team has done an incredible job in facing the challenges and overcoming all the hurdles to build our plant and except for the delays we are managing to keep to our revised budgets and have the money to complete the plant. Check out the Twitter feed @BulletMines. What other junior mining company can tell its shareholders to go there and watch a plant being built?
The Buckeye Mine is faring better our mine team has hit all its targets opened up the underground, has stockpiled approx. 1000 tons of material for feed during commissioning of the mill and is currently waiting to receive our first explosives order ( this week ) so we can start building our stockpiles. Quite a feat! All done to Mine Safety and Health Administration (MSHA) standards we are adamant about safety!!
So on to Idaho I know many of you have heard the story but I think it is worth repeating. We tried to buy the property in 2016 from the previous owner, price tag $5M and a 5% NSR. We knew the property was worth it but you could never raise that much money with that NSR. He would not budge. Fast forward 2020 the gentleman passed away and his family wanted it gone. They called us and gave us a price and we closed in 10 days no NSR and a lot less money. We feel it is a great acquisition. Then we went in to start to confirm up all the history from the documents we had, things like 3 M ounces silver at 30 to 90 ounces per ton. High grade silver zone and high grade gold, also potential parallel structure. So far we have found nothing to indicate these are not true. Just look at the assay numbers in our last press release! We are currently moving towards contract mining and have taken a blended sample that is being analyzed. All indications are pointing toward success.
So here we are the end of 2021 can’t say I am sorry to see it go but through all the trials and tribulations we persevered and I see nothing but great things for this company in 2022!! It is important to note everything you see we own. All equipment currently onsite is paid in full even the equipment waiting to be delivered is paid for, even the tariffs. I know there are guys out there that think we should be doing things differently to them I say watch us grow! To those who have supported us right from the get go I say thank you, you will not be disappointed. To our shareholders your continuing support is what will make our stock move higher and we thank you! To our team I say thank you, your optimism, encouragement, support, hard work, and belief in the plan and the company is what is going to make Silver Bullet Mines a leader in the mining industry.
Enjoy your New Years celebration and again thank you!
John
