James Bay Minerals reports promising high-grade gold-silver drill results at its Independence Gold Project in Nevada and announces a strategic acquisition of the Shafter Silver Project in Texas, backed by a $30 million capital raise.
- High-grade gold-silver mineralisation confirmed outside existing resource at Independence Gold Project
- Completed oxidation categorisation enables refined gold equivalent calculations
- Binding agreement to acquire Shafter Silver Project with significant infrastructure and 17.6Moz silver resource
- Acquisition funded by a strongly supported $30 million two-tranche placement
- Leadership changes including appointment of new CEO to drive growth in US precious metals market
Strong Drill Results at Independence Gold Project
James Bay Minerals Limited (ASX, JBY) has delivered encouraging exploration results from its Independence Gold Project in Nevada. Recent reverse circulation drilling at North Hill, an area previously untested between known mineral resource zones, has intercepted multiple stacked lodes with high-grade gold and silver mineralisation. Notable intercepts include 27.4 metres at 1.0 grams per tonne gold and 73 grams per tonne silver from 125 metres depth, and other intervals showing grades exceeding those in the current near-surface resource estimate.
This drilling success extends the known mineralisation footprint northwards and highlights the potential for resource growth beyond the existing Mineral Resource Estimate (MRE). The thick mineralised zones within the Pumpernickel Chert host rock are amenable to heap-leach extraction, a cost-effective processing method widely used in Nevada’s epithermal deposits.
Refined Resource Metrics Through Oxidation Categorisation
During the quarter, James Bay Minerals completed oxidation state categorisation for all historic drillholes outside the current MRE. This work has enabled the calculation of gold equivalent (AuEq) values by integrating gold and silver assay results with recovery factors. The refined data suggest further shallow mineralisation extensions may be discovered with additional drilling, particularly below the southern optimised pit area.
Strategic Acquisition of Shafter Silver Project in Texas
Post quarter-end, the company announced a binding agreement to acquire 100% of the Shafter Silver Project in Presidio County, Texas. The project is notable for its substantial existing mine and processing infrastructure, valued at approximately A$150 million, and a significant foreign NI 43-101 compliant silver resource totaling 17.57 million ounces at an average grade of 289 grams per tonne.
Historically, the Shafter Project produced over 35 million ounces of silver with underground workings and surface infrastructure including a mill, refinery, and assay laboratory. The acquisition positions James Bay Minerals to capitalize on the strategic location near the prolific Sierra Madre Belt and the growing US focus on domestic critical mineral supply chains.
Capital Raising and Leadership Changes to Support Growth
The acquisition will be funded through a two-tranche placement to raise A$30 million, with the first tranche of A$8.05 million already completed and strong institutional support secured. The second tranche, subject to shareholder approval at the upcoming AGM, will raise an additional A$21.95 million.
In parallel, the company has appointed Dennis Lindgren as full-time CEO to lead the next phase of growth, focusing on leveraging favourable US market dynamics and government policies supporting domestic precious metals production. Executive Chair Andrew Dornan has transitioned to a corporate consultant role, with Executive Director Matthew Hayes stepping up as Executive Chair, signaling a refreshed leadership team aligned with the company’s strategic ambitions.
Financial Position and Outlook
At quarter-end, James Bay Minerals held cash reserves of approximately A$2.2 million. Exploration expenditure during the quarter totaled A$1.715 million, reflecting active advancement of the Independence Gold Project. The company’s diversified asset base now spans gold-silver projects in Nevada and Texas, alongside lithium exploration assets in Quebec, positioning it to navigate commodity cycles and capitalize on multiple growth avenues.
Bottom Line?
James Bay Minerals is poised for a transformative phase, with promising Nevada drilling results and a major Texas silver acquisition backed by fresh capital and leadership renewal.
Questions in the middle?
- How will James Bay Minerals integrate and update the Shafter Silver Project resource under JORC standards?
- What are the timelines and key milestones for completing the second tranche placement and acquisition?
- How will the new CEO’s strategy leverage US government policies to accelerate project development?