Blackstone drops Rimfire’s Falcon option

Vancouver — Lack of exploration funds has forced Blackstone Resources (BZZ) to cancel its option on the Falcon gold property, held by Rimfire Minerals (RFM-V), in Alaska. The property is 40 km southeast of the Pogo gold deposit, held jointly by Teck and Sumitomo.

The Falcon claims were staked in November 1998 to cover high-priority geological, geochemical and geophysical targets generated by Rimfire’s regional data compilation. Rimfire intends to carry out initial reconnaissance exploration in 2000.

Option agreements with Rimfire’s other joint-venture partners in the Pogo district remain in good standing. Under these option agreements, Rimfire is carried for more than $6.5 million in exploration expenditures and $1.2 million in cash payments, while retaining a 20-to-30% interest in the properties.

Rimfire’s total land package consists of 1,628 mining claims and 90 prospecting sites covering 124 sq. miles. The company’s remaining joint-venture partners include Western Keltic Mines (WKM-V), Hyder Gold (HGI-V) and privately owned Engineer Mining.