There is a huge wildfire burning in the hills of Oregon right down to the Brownlee Reservoir where the Bayhorse (BHS.V) Mine is located. I spoke briefly with Graeme O’Neill who is in the area but unable to get to the mine as the roads are closed and much of the area is closed to travel.
O’Neill did not know the status of the mine when we spoke. “Won’t know anything until I’m able to get to the mine,” said O’Neill. “Working on a press release.”
(The press release is out and you can read it here.)
Now it is reasonable to ask, why put out a release when so little is known? The answer is that in a crisis or a potential crisis there is no such thing as too much communication. Simply telling the market that drilling has been suspended and that the situation at the mine is unknown is, in itself, reassuring. Promising to update when more is known helps too.
The fact is that an underground mine is pretty much the definition of fireproof, it’s a hole in rock after all. Mining equipment, muckers and such like are made of metal and while wiring or hydraulic line may be compromised, they can be replaced. The same is true of the on-site crushers. The pumping system O’Neill had installed to bring water up to the mine for the drill may have a hose compromised, again hoses can be replaced. Fabric bags of crushed material might ignite but the material they contain should be fine. The drill core at the site obviously will not burn, the boxes it is in might which would mean core might get a bit jumbled. But the good news is that there are only a few hundred feet which would have to be sorted out.1
The very good news is that the Bayhorse million dollar Steinert ore sorter is safe at the Bayhorse mill in Payette, Idaho. While the ore sorter is rugged, it has sensitive electronic which would not do well in a fire.
O’Neill has agreed to be interviewed when he is able to access the site and assess the damage, if any. Fingers crossed.
(Disclaimer: I hold Bayhorse shares which I may sell at anytime. This is not investment advice. Do your own due diligence. Call the CEO who might be a bit busy at the moment.)
When I was up at Western Copper and Gold’s Casino project in the Yukon, the geologists showed us literally miles of core stored in stacks of wooden boxes. They also showed us where a wild fire had come within about twenty yards of those boxes. It was a very close run thing.