Newmont completes RDN drilling

Vancouver — A second round of drilling by Newmont Mining (NEM-N) over Rimfire Minerals’ (RFM-V) RDN gold-silver property has returned more low-grade polymetallic mineralization from the project in northern British Columbia.

The latest 1,140 metres of drilling comprised 5 holes into the 1.5-km-long Wedge zone conductor where earlier this year hole 17 returned up to 1.5 metres grading 3.8 grams gold per tonne and 0.18% zinc from 111 metres down-hole. Further up the hole in the felsic volcanics a 0.5-metre section ran 4.2 grams gold and 5.7% zinc. Highlights from the new results include:

• Hole 19 — 3.3 metres grading 0.52 gram gold, 0.15% lead and 0.65% zinc from 71 metres down-hole, and
• Hole 20 — 1 metre grading 3.88 gram gold, 0.14% copper, 1.62% lead and 5.6% zinc from 90.3 metres down-hole, and 6.2 metres grading 0.44 gram gold, 0.07% lead and 0.22% zinc from 139.8 metres down-hole.

Located 40 km north of the high-grade Eskay Creek gold-rich massive-sulphide mine, Newmont has been testing the contact between felsic volcanics and overlying mudstones. The 21-km-long property is underlain by early-to-middle Jurassic stratigraphy, which is similar in age, lithology and alteration to that hosting the Eskay Creek deposit.

The major can earn a 51% stake in the project by making cash payments of $140,000 and spending $3.5 million by the end of 2003. The major can then take a 75% interest by completing a feasibility study and paying Rimfire an additional $450,000 by the end of 2009.