Barrick eyes RDN (April 25, 2002)

Vancouver — Picking up where Newmont Mining (NEM-N) left off, Barrick Gold (ABX-T) has inked a letter of intent to earn a 75% stake in Rimfire Minerals‘ (RFM-V) RDN property some 40 km south southeast of its Eskay Creek gold-silver mine in northwestern British Columbia.

The 21-km-long RDN property is largely underlain by Jurassic stratigraphy similar in age, lithology, alteration and mineralization to that hosting the Eskay Creek precious-metal-rich massive sulphide deposit.

“We are very pleased that Barrick has chosen to remain active in British Columbia, especially the Eskay Creek area,” says Rimfire’s Vice President of Exploration, Mark Baknes. “Their expertise in the region is second to none and I am looking forward to working with Barrick to realize the full potential of the RDN property.”

Barrick can earn a 75% interest in the property by making yearly payments of $25,000 and spending $1.5 million on exploration by the end of 2005. At that time, the major must spend at least $500,000 annually until a positive production decision is reached. Rimfire has the right to have Barrick arrange financing to fund its share of mine development costs for an additional 5% stake in the property.

Earlier this year, disappointing results from a second round of drilling prompted Newmont to drop its option on the property.

The 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. The highest values came from hole 20, which cut 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.

Newmont was earning a 51% stake in the project by making cash payments of $140,000 and spending $3.5 million by the end of 2003.