Seafield options 50% interest in Ring of Fire claims

2008-01-15 18:25 ET - News Release
Shares issued 118,124,582
NOT Close 2008-01-15 C$ 3.70

From News Release (C-SFF) Seafield Resources Ltd

Mr. Anthony Roodenburg of Seafield reports

SEAFIELD ANNOUNCES OPTION AGREEMENT WITH NORONT TO EXPLORE 96 CLAIM UNITS IN "RING OF FIRE", NORTHERN ONTARIO

Seafield Resources Ltd. and Noront Resources Ltd. have entered into an option agreement pursuant to which Seafield has been granted the option to acquire a 50-per-cent legal and beneficial interest in six claim blocks (covering a total of 96 claim units or approximately 3,840 acres). The property is located in the Ring of Fire, McFauld's Lake area, Ontario, about 60 kilometres north of Noront's Eagle One high-grade copper-nickel-platinum group element discovery. In addition to the September, 2007, Noront discovery, exploration in the McFauld's Lake and surrounding area in recent years has identified significant base metal massive sulphide deposits, as well as occurrences of diamonds and gold mineralization.

The Seafield property covers an eight-kilometre stretch of the Ring, which is interpreted to be underlain by metavolcanic and mafic to ultramafic intrusive rocks. Initial exploration over the property will include a state-of-the-art detailed heliborne magnetic and electromagnetic geophysical survey expected to commence later this month, to define targets for follow-up drilling.

In order to acquire its interest in the property, Seafield is required to:

1. Make an initial payment to Noront of $120,000 or issue to Noront a total of 342,857 common shares of Seafield, on both parties receiving all required approvals, including any TSX Venture Exchange approval and board of director approval of the option agreement;
2. Incur total exploration expenditures on the property of $2.1-million over a three-year period (of which $600,000 must be expended in the first year);
3. Make total cash payments to Noront of $240,000 within two years of receiving the above-noted approvals of the option agreement (of which $120,000 must be paid by the first anniversary, and any portion of the total of $240,000 may be satisfied at the option of Noront, by the issuance to Noront of up to 685,714 common shares of Seafield at a deemed price of 35 cents per share).

Upon Seafield earning its 50-per-cent interest in the property, Seafield and Noront shall form a joint management committee to further develop the property as a joint venture, with Noront continuing to act as the operator.

Exploration update

Seafield recently completed $2.4-million in financing for exploration programs scheduled to commence in the first quarter of 2008. In addition to the above-referenced option with Noront, Seafield is advancing three gold exploration properties, two in Mexico and one in Ontario.

In Mexico, assay results are pending at Seafield's Picachos property where NWT Uranium Corp. has completed a drill program as part of the requirements of an option agreement in which NWT can earn a 70-per-cent interest in the property. Earlier work by NWT included surface sampling, which returned some values as high as 145 ounces per ton (4,975 grams per tonne) silver, 0.25 ounce per ton (8.6 g/t) gold.

At Seafield's Tango property in the Rosario precious metal mining district, Sinaloa, Mexico, drilling on a number of targets with anomalous gold-in-soil and rock samples is scheduled to begin later this month.

Elsewhere in Mexico, Seafield has dropped its interest in the La Silla gold-silver property, as it was unable to negotiate new terms with Meridian Gold (now Yamana Gold Inc.) under which it would renew its exploration program on the property.

In Northwestern Ontario, where Seafield is advancing the Elora high-grade gold vein system, south of Dryden, follow-up drilling is tentatively scheduled for late February, subject to drill rig availability. Previous exploration drilling by Seafield encountered encouraging high-grade intercepts with visible gold encountered in four of the holes.

In commenting on recent activities, Anthony Roodenburg, chief executive officer, stated: "Seafield will be extremely active in 2008. With assay results pending at Picachos and drilling about to begin at Tango and Elora, there should be no shortage of news over the next few months. Depending on how quickly the geophysical data from the Ring of Fire claims are processed and interpreted, we may be drilling there too before summer."

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