Current exploration summary at East Burns/Intrepid zone

Bayfield will continue to delineate this rapidly expanding East Burns/Intrepid zone with a focus on exploring for higher-grade gold-silver mineralization at depth. Rainy River is delineating the interpreted updip extension of this mineralized zone on its ground adjacent to the east of the Burns block with three diamond drill rigs. Rainy River stated in its Nov. 13, 2012, news release that, thus far, it has drilled 33 drill holes that have intersected the Intrepid zone over a 280-metre strike length and have traced the mineralization downdip for 350 metres.

Jim Pettit, chairman and chief executive officer of Bayfield Ventures, stated: "The mineralized interval encountered in hole RR12-34 is the richest zone of gold and silver encountered to date at this developing East Burns/Intrepid zone as we continue to see the tenor of mineralization increasing at depth. The company will continue exploring for high-quality ounces in this new eastern zone into the new year while Rainy River delineates the interpreted updip extension of this mineralization at their Intrepid zone."

Comments: This is excellent news. It's becoming clearer and clearer that Bayfield not only has high grade mineralization near the edge of Rainy River's proposed pit to the west, it now has a significant zone that appears to continue RR's new discovery to the east. The accompanying cross-section shows how consistent the results from hole RR12-34 are with what the company defined at East Burns previously. All good.

These drill results went out after the market closed today, so we expect a pop in the morning. If there isn't one, it's a great buying opportunity. If there is, don't chase it, but look to taking a tranche after the price pulls back from the spike. And watch for a possible PP, if the shares do head north.