Silver Bullet Mines Moves Its Ocean Partners Agreement Toward Production

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Silver Bullet Mines has successfully advanced its Ocean Partners Agreement by securing a definitive production plan that will supply 36,000 tons of material annually. To fulfill this commitment, the company is shifting its near-term production focus to the Dominion Gold Queen Complex, a historically significant site formerly owned by Phelps Dodge. This strategic pivot was made possible after resolving logistical challenges and confirming that the complex possesses the necessary capacity to meet the contract requirements. The agreement represents a critical milestone in the company's operational strategy, moving beyond initial announcements to concrete execution plans that address the core logistics required for a mining project's success. The foundation of this achievement lies in Silver Bullet's unique "hub and spoke" model, which was established with the construction of their own mill in Globe, Arizona, serving as the central hub. This approach allows the company to process ore from various external partners on a toll milling basis or through joint sharing arrangements, providing significant cost control and flexibility. To further enhance revenue generation and operational efficiency, the company is acquiring a new crusher to enable Direct Ship Ore (DSO) production at the mine site. This method involves crushing material to gravel size for immediate bagging and shipment without further processing, creating a low-cost revenue stream that complements the concentrate produced at the main mill. Investors should closely monitor upcoming assay results as the primary measurable milestone, which will provide transparency regarding the gold, silver, copper, lead, and zinc grades found in both the mine site material and the concentrate bags. While the company has not yet released official NI 43-101 compliant data or a standardized all-in sustaining cost figure, they have conducted extensive internal testing and are preparing to disclose significant assay results in the near future. Additionally, the recent road construction at the Columbia Gold Queen Complex has uncovered four additional potential high-grade zones and historical mining infrastructure, including old adits and tools, suggesting further exploration opportunities that could enhance the project's long-term value. To support these development efforts and maintain healthy working capital, Silver Bullet Mines is executing a $670,000 convertible debenture raise. These funds will be allocated to general working capital needs and specific development activities at the Columbia Gold Queen Complex, ensuring the company does not run its treasury too low while expanding operations. The management team emphasizes that the delay in production was a deliberate choice to ensure the right logistical setup rather than a lack of capability, and they are confident that the production targets will be met within the next few months. As the company moves forward, the release of sales reports and revenue figures will follow the initial assay disclosures, offering shareholders a clearer picture of the project's financial performance and operational progress.

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[music] >> Today I have the pleasure speaking with Peter Casey from Silver Bullet Mines. Peter, we are here today to discuss the update on your Ocean Partners Agreement. Where would you like to start? >> Well, let's start in March, which is when we announced the Ocean Partners Agreement. By the way, Tracy, thanks for having us. It's always nice to be here. Um, Silver Bullet, as you know, has its own mill and it has a variety of properties on a hub and spoke model. Spokes are good, but they can always be better. Uh, we finally reached an agreement with Ocean Partners in March of 26 to provide them with 36,000 tons of material every year. We then had to figure out from where that material would come. Uh, we also announced the acquisition of the Dominion Gold Queen Complex at the same time, which was historically owned by Phelps Dodge, and that complex, in our opinion, is more than capable of producing the tonnage necessary for Ocean Partners. I know it seems a little uh boring in the mining industry, but these are the logistics and the guts that make a mining project successful. You don't just rush in, you do your science, you figure it out, and we have figured out the production can come from the Dominion. >> Okay, so if if I read this right, um, you're shifting the near-term production to the Columbia Gold Queen Complex. Is that correct? >> That is correct. >> And to support the development, you are doing a $670,000 raise. Is that correct? >> That is correct. Convertible debentures. >> Okay, well, we haven't heard from the Silver Bullet Mines group in a couple of months, so we are very delighted to have you today. And uh, so I just want to back you up for the last couple of months. So, back for those of you out there who may not be familiar with Silver Bullet's uh, spoke and hub model, perhaps you can just give our audience a bit of an overview or reminder, kind of like a recap for a good Netflix TV series. >> Sure. Back in April of 2020, we decided to build the mill first. Um which is confusing to many, many mining people who want to go look for the vein or the edge of the porphyry or whatever it is. We knew where our mineralization was. So, build our mill as the hub of a wheel. And that has given us tremendous cost control power, and it has provided an opportunity for other people, arms length to us, to show up with their ore and ask us if we can process it for them on toll mill, joint sharing, net royalty, uh whatever kind of structure works. Building the mill, in retrospect, was a genius idea that came from our CEO, John Carter. It has worked so that we can continually upgrade the quality of the different projects that we have. And now we're at the Dominion Gold Queen complex. Uh we have four past producers. We have found incredible high grade, as we've mentioned in the last news release. And that material is currently in pro- production, being processed at our mill in Globe, Arizona. So, the hub spoke model, in retrospect, was the right idea. >> So, for those of you reading or reviewing the news release headlines for Silver Bullet for the last year, you also announced an update in mining equipment. This would be part of the obvious formula for success. >> That is correct. We're looking at picking up a crusher to do the direct ship ore. DSO is kind of the holy grail for any miner. It means that at site, all you do is crush it down till it's roughly the size of gravel, put it into a bag or a box or whatever the consumer wants and ship it. There's no other processing, so it's a very low cost form of revenue generation. And we have the crusher on order. When it arrives, we'll be able to uh create the DSO for the customer, get that material out the door and as I mentioned, it's a very low cost way of producing revenue. >> Uh what gold, silver, or copper grades are you seeing in the Columbia material? Can you comment on that? >> In March of 2026, we put out a news release summarizing the historical data that we had found. And as we mentioned at the time, none of it is NI 43-101. We can't tell if a QP is blessed it. We made all the appropriate disclosures in the news release. We have not yet put out our assay results on these materials and it's something we're working towards. Uh we have a lot of assay results as any reasonable producer does. You take assay results from the field, from the truck, from the conveyor belt, uh after it comes out of the ball mill, on the table, in in the bag of concentrate. So, we have internally significant number of assays and we will be disclosing assay results in the near future. >> Uh can you comment or clarify on the product flow? Will material be processed at the Globe Mill uh into concentrate and then how will this material be sent to Ocean uh Ocean Partners? >> Yeah, logistics matter. You're correct. The guts of the thing matter. Part of the delay here was making sure we had the guts right. We're selling two products to Ocean Partners. Concentrate out of the mill and DSO at the mine site. Concentrate at the mill comes in 1-ton or 2-ton bags. They they look like giant shopping bags with big hoops on the corners for a fork truck to be able to go in, pick it up, put it in the truck. The bags for the DSO are quite similar, and they're the ones at the mine site. So, uh we're we have the bags on order. Um the concentrate is being made. We don't want to have too much concentrate on the ground at any time as a safety issue for our team. You don't want anybody to think, "Oh god, they've got concentrate. Let's go get that." So, we are moving the concentrate out the door pretty quickly. >> Can you comment on the measurable milestones that investors should be looking forward to in the company? >> Watch for the next assay results. If we're doing 36,000 tons, which is what the contract calls for per year, and you can look at the assay results of the concentrate, then even a silly lawyer can take a calculator and figure out what the gross revenue target could be. We have not yet released what our cost structure is, and as I mentioned many times, we will never put out an all-in sustaining cost cuz there's no standard definition across the board. It means something different to every investor. So, we will never put out such a meaningless number. But, we know roughly what our internal cost structure is going to be. >> So, speaking of cost structure, can you comment on how these $670,000 will be will be spent and invested? >> Uh helping to do some development at the Columbia Gold Queen and general working capital. You never want your treasury to run too skinny. >> I you know, when I was reading your information, of course, I'm I'm not a geologist, uh but something about how this road construction exposed four additional potential high-grade zones. Can you comment on that? >> Like being in Arizona is kind of like being in northern Ontario. Everywhere you go, there's a hole with mineralization in it, or there's a pile of waste rock, and somebody's been there looking for something. As we were building the road to go from the main highway to the Columbia gold complex, which includes up to the Gold Queen, uh the the field team assayed as they went, as you would expect. And they have found what they believe to be high gold opportunities that we will further explore and uh put assay results out on as soon as we can. They also found the old Steamboat mine. Uh and they found workings, they found railway tracks underground, they found old mule harnesses, they found old tools that probably have been there for 100 years. Somehow somebody pushed dirt over it and plugged up the adits. And we have found that. >> Well, I know you have very supportive shareholders, so I am absolutely certain that they will be delighted by this update. Uh and what should they be looking forward to in the next quarter? >> Assay results. In my mind, the assay results are the next thing that matter. This is what we found in the ground, this is how much gold, silver, copper, lead, uh zinc, lead, whatever. Both at the mine site and from the assays in the concentrate. The next big item after that will be report of sales, uh production that went out and revenue. I understand that some shareholders are skeptical because we announced we were going to be in production from the King Tut. But when you have the opportunity to produce this much or this much, the decision is easy as to which one you do. And the delay that's been incurred is because we have elected to produce this much, and those numbers should be coming out uh next few months. >> Well, for everybody following Silver Bullet Mines, they have a great website, and please go to the following URL. Peter, as always, it's a pleasure to see you. >> Thank you for your time. >> Mhm.