Silver Bullet Mines Corp. (TSXV: SBMI | OTCQB: SBMCF) is moving from agreement to execution as it prepares to supply mineralized material and concentrates to Ocean Partners US Inc. In a new InvestorNews interview with Tracy Hughes, Vice President of Capital Markets and Director Peter Clausi explained why the Columbia / Gold Queen Complex has become the company’s near-term production priority.
Silver Bullet Mines entered into its five-year framework agreement with Ocean Partners in March 2026. The agreement contemplates the sale of up to 36,000 tons of product annually from the company’s Arizona operations, with the potential for that volume to increase.
The Ocean Partners agreement itself has not changed. What has changed is Silver Bullet Mines’ decision about which property is best positioned to provide the required tonnage.
“We have figured out that production can come from the Columbia,” Clausi said.
The decision followed months of fieldwork, infrastructure development and operational analysis. Although Silver Bullet Mines continues to report encouraging grades from its other Arizona properties, management concluded that those mines are not presently capable of supplying the volumes required under the Ocean Partners agreement. The company therefore intends to prioritize the Columbia / Gold Queen Complex and return capital to its other properties after revenue is generated from the complex.
For Clausi, the work illustrates a fundamental reality of mine development that can be overlooked amid discussions of grades and geological potential.
“These are the logistics and the guts that make a mining project successful,” he explained. “You don’t just rush in. You do your science, you figure it out.”
From the Columbia Mine to the Globe Mill
The Columbia and Gold Queen mines are contiguous past producing properties in Arizona’s Dripping Springs Mining District, approximately 30 miles from Silver Bullet Mines’ wholly owned mill in Globe. Their proximity supports the company’s hub and spoke operating model, under which the Globe mill serves as the central processing facility for material obtained from multiple nearby properties.
Silver Bullet Mines began developing this model in 2020 when it elected to construct the mill before expanding production across its portfolio. According to Clausi, owning the mill gives the company greater control over costs, processing and the selection of properties capable of providing the most attractive material.
The company announced on August 26th that it had commenced processing material from the Columbia / Gold Queen Complex. Silver Bullet Mines estimated that approximately 80 tons had been delivered to the Globe mill, with additional shipments expected.
The company plans to supply Ocean Partners with two products. Mineralized material transported to the Globe mill will be processed into concentrate, while direct shipping ore will be crushed at the mine site and shipped without going through the mill.
“DSO is kind of the holy grail for any miner,” Clausi said. “There’s no other processing, so it’s a very low-cost form of revenue generation.” Adding that Silver Bullet Mines has ordered a portable crushing plant designed to reduce the material to the specifications required by Ocean Partners.
Financing the Next Stage of Development
To support additional development at the Columbia / Gold Queen Complex and provide general working capital, Silver Bullet Mines intends to complete a C$670,000 convertible debenture financing.
While completing road construction between the Columbia and Gold Queen areas, the company reported encountering four additional potential high grade gold zones. Sampling and analysis are underway, and Silver Bullet Mines intends to disclose assay results when sufficient work has been completed.
The field team also reopened historical workings associated with the past producing Steamboat Mine, where rails, tools and other artifacts were found underground. Management believes these workings could provide further evidence of the complex’s historical direct shipping potential, although the company has emphasized that much of the available historical information is not compliant with NI 43-101 and should not be treated as a current mineral resource.
Assays, Shipments and Revenue Are the Next Tests
Clausi identified assay results as the next important disclosure for shareholders. Silver Bullet Mines collects samples at multiple stages, including at the mine, during transportation and throughout the milling process. Publicly released results will help the market assess both the mineralized material and the concentrate being produced at the Globe mill.
After assays, the next measurable milestones will be the deployment of the crusher, direct shipping ore deliveries, concentrate shipments and reported sales and revenue.
“The next big item after that will be a report of sales, production that went out, and revenue,” Clausi said.
Silver Bullet Mines has assembled the principal elements of its operating strategy: a wholly owned mill, multiple sources of mineralized material and a five-year commercial relationship with Ocean Partners. With processing underway and the Columbia / Gold Queen Complex designated as the principal source of near term tonnage, the company’s hub and spoke model is moving into its next stage.
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