Apr 11 2014
Ruby Gold, Inc. ("RGI", or the "Company"), a wholly-owned subsidiary of North Bay Resources Inc. (OTCQB: NBRI) ("North Bay") is pleased to announce that the Company has acquired the Carson Mine (the "Carson") through the staking of new claims adjacent to the northern border of the Ruby Mine property in Sierra County, California.
The Company has also staked additional claims near the Ruby Adit to cover in its entirety the Discovery Channel, a new previously unknown channel that was identified as a direct result of a recent gravity survey and geological mapping.
The Carson Mine was formerly owned by Brush Creek Mining and Development Company, Inc. ("BCMD"), who purchased the Carson and the nearby City of Six Mine from Golden Lion Mining Corporation in 1990 for $2,299,000. It consists of a group of quartz and placer claims located along the Eastern Melones Fault, the major controlling structure of the Motherlode, and is believed to be an extension of the same mineralized system followed by the Ruby Mine's Cincinnati Channel placer deposit and 4900 Vein quartz vein structure. The Carson was assessed by Keewatin Engineering for BCMD in 1991. A total of 387 samples from 3 veins located in the underground workings yielded assays as high as 31.903 ounces per ton gold, with an average grade of 0.04 opt after the four highest grade samples were removed. No further work had been done at the Carson by the time BCMD folded due to low metal prices. The abandoned claims encompassing the Carson subsequently lapsed, which thus allowed the Company to acquire them by staking new claims over the Carson.
The immediate importance of the new Carson group of claims is seen as being the location at which the Ruby Mine's Cincinnati Channel is believed to outcrop at the surface. The Cincinnati Channel is one of the primary drilling targets recently announced in a North Bay press release on March 27, 2014. The staking of this ground therefore extends our ownership of the Cincinnati Channel to cover what is believed to be its entire length.
The Company has also staked additional claims to entirely cover an area where a recently completed gravity survey has indicated the presence of a new previously unknown channel. Now known as the Discovery Channel, this new channel is indicated to extend for over 4,000 feet near the Ruby Adit.
The Company acquired the mineral rights to the Carson and the Discovery claims through the General Mining Law of 1872 which allows the Company to locate and stake claims on unpatented federal land and registering the claims with the Bureau of Land Management ("BLM"). A total of 25 new claims covering 500 acres were acquired at a total cost of $5,362, consisting of $4,862 in BLM registration fees and Sierra County recording fees of $500. As a result, the overall size of the Ruby Property has now been expanded to 2,255 contiguous acres.