Bayfield Strikes Deal with Rainy River
Next to Discovery Zone
By Mel Pistilli
Earlier this week, Bayfield Ventures [TSXV:BYV] and Rainy River Resources [TSXV: RR] announced that they have entered into an option agreement on Bayfield’s Burns Block property, which easterly adjoins Rainy River’s 17/ODM gold zones. Bayfield could not be more fortuitously placed in the gold hosting Rainy River District of northwestern Ontario. It seems the newly formed alliance between Bayfield and its ore-finding neighbour is a clear indication of the promising potential of Bayfield’s Rainy River Gold Properties.
A relatively new acquisition for Bayfield, the Burns Block is ideally located on the eastern boundary of what Rainy River calls the 17 Zone, which the company is now drilling to delineate an ore body and prove tonnage. The Burns Block lies 120 metres east-northeast of a drill hole (NR0&-189) with intersects of 9.0m grading 6.64 g/t Au between a depth of 439.50 and 448.50m.
“There’s three rules in my business,” says Bayfield President, Donald Huston, “Location, Location, Location.” One need only look at the aerial photo of the region on the company’s website to understand the importance of the Burns Block’s location: its proximity to the noteworthy discovery on the 17/ODM gold zone makes it an undeniably attractive target to Rainy River.
Last month, River Rainy announced that drilling on 17/ODM zones intersected strong gold intervals of 11.5 m grading 5.37 g/t Au (ODM Zone) and 8.0m grading 5.50 g/t Au (17 Zone).
Early in 2006, Rainy River’s exciting drill results on the 17, 433, and ODM gold zones –with intercepts of 23.5 meters of 10.6 g/t Au and 22.6 meters of 17.0 g/t Au – proved promising and helpful for Bayfield’s other three properties in the Rainy River District, Claim Blocks A, B, and C. The results, says Huston, provided them with evidence of the potential of their own properties, and saved the company time and money by helping Bayfield interpret exploration data and determine new drill targets.
The company believes the geophysical properties associated with the mafic/ultramafic rock sequences* identified on the Claim Blocks are similar to those discovered in Rainy River’s adjoining zones.
Bayfield first entered into an agreement to acquire the three blocks in November of 2006 and since then has carried out substantial exploration work. During that winter, the company embarked on an early exploration program that consisted of establishing line-cut grids, overburden drilling, till sampling, and conducting very detailed geophysical studies including electromagnetic and magnetometer surveys.
This summer, the company completed a 3,000 metre drill program with five holes on Claim Block A and 8 holes on Claim Block B. Bayfield is awaiting assay results, which are still pending, according to Huston, and will be released when all assays have been received from the lab. Drill work was not conducted on Claim Block C because a good portion of the property is swampland. The company is waiting for the winter freeze, which will enable drilling. For winter 2008, Bayfield is planning an additional 3,000 metres of drilling on the Claim Blocks.
The recently announced three-year term agreement gives Rainy River Resources the option to obtain a 60% interest in the Burns Block after the completion of a $3 million work program, $200,000 in cash payments, and issuance of 60,000 Rainy River shares.
The crucial aspect of the agreement is neither the cash nor the shares – it’s the $3 million in exploration expenditures that has really got Bayfield’s management excited.
“The alliance we’re forming with Rainy River is very important,” says Huston, “and bodes well for Bayfield Ventures in the Rainy River District.”
The deal should have investors excited as well. Not only will Bayfield not be out of pocket for exploration expenses on the property, but the very fact Rainy River is willing to spend $3 million aggressively exploring a mere 80 acres to gain only a 60% interest hints at the tremendous potential of the property. It leads one to believe that the overriding assumption is that the same gold vein that flows the 17 Zone must continue on through the Burns Block.
If this current agreement between the company and Rainy River Resources proves its potential, it is foreseeable that future partnerships may be put into play in regards to Bayfield’s three other properties. Clearly, there is a great potential for lucrative takeover proceedings, too.
But for now, the focus is on the Burns Block. Rainy River Resources has recently drafted a linecut grid with plans to initiate a diamond drill program on the property. A detailed ground magnetic survey is also currently being conducted and it’s anticipated that Rainy River will start the first drill hole before Christmas.
*Ultramafic and Mafic: A term used to describe igneous rocks or magmas that are rich in iron and magnesium and poor in silica. These rocks are associated with numerous metals worldwide, including platinum-group elements, nickel, cobalt, and gold, among others.
This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.
