Rimfire and Barrick Sign Memorandum of Understanding
VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 26, 2005--Rimfire Minerals Corporation (TSX VENTURE:RFM) - David Caulfield, President and CEO of Rimfire Minerals Corporation is pleased to announce that the Company has signed a memorandum of understanding (MOU) with Barrick Gold Corporation (TSX:ABX) to jointly explore the Kizmet Project, 95 km southeast of Atlin, in northwestern British Columbia.
"Barrick is pleased to be exploring the Kizmet project with Rimfire, and we will continue to explore for opportunities throughout Canada and around the world," states Alex Davidson, Executive Vice President of Exploration, Barrick Gold Corporation.
Rimfire acquired the core holdings of the Kizmet Project in 2003 and early 2004. Recent mapping and age-dating identified a Cretaceous-aged belt of volcanic and associated intrusive rocks distinct in age with coincident strong gold-silver-arsenic geochemical signature as highlighted in regional government geochemical silt sampling (RGS). Based on the Company's knowledge that similar Cretaceous-aged igneous rocks with the same anomalous RGS geochemical signature hosts high sulphidation gold-silver-copper mineralization at its Thorn Property, a joint venture with Cangold Limited, Rimfire acquired key targets totalling 185 sq km. Reconnaissance silt and soil geochemistry, mapping and prospecting was completed on four target areas of the Kizmet in 2004, with positive results.
"We feel the newly recognized belt has excellent potential to host high sulphidation epithermal gold systems like the Thorn, and Barrick are acknowledged world experts on these type of deposits," explained Mr. Caulfield. "We are pleased to be partnered with their exploration team."
Under the MOU, Barrick has agreed to make a CDN$75,000 cash payment to Rimfire, and to add claims totalling 680 sq. km to the property, to form a 50:50 joint venture. Barrick can increase its interest in the Kizmet project to 65% by funding exploration expenditures totalling US$1.2 million over 3 years including a commitment of US$400,000 in the first year. An additional 10% can be earned by funding exploration, at no less than US$500,000 per year, through to a positive decision to mine. At Rimfire's election, Barrick would be required to arrange Rimfire's share of project financing for which Barrick would earn an additional 5% interest.
Rimfire Minerals Corporation is an aggressive, well-financed mineral exploration company with a portfolio of highly prospective gold and silver properties in western North America. Rimfire now includes four gold producers as active partners, including the world's three largest. In addition to Barrick, Rimfire is partnered with AngloGold (USA) Exploration Inc., Newmont Mining Company, Northgate Minerals Corporation, Cangold Limited and Serengeti Resources Inc.
On behalf of Rimfire Minerals Corporation
David A. Caulfield, President
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Rimfire Minerals Corporation (TSX VENTURE:RFM)
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