Seafield Resources Ltd
Mazatlan, Mexico - Dryden, n/w Ontario - Fire project, ROF McFauld’s Lake On
Seafield Resources Ltd., Toronto, On., TSX.V : SFF, is an exploration company that is focused on gold exploration in Mexico and Canada.
Seafield is currently advancing two gold exploration properties near Mazatlan in Mexico and one near Dryden in northwest Ontario, Canada.
In addition, the company has optioned a property to explore for nickel-copper deposits from Noront Resources Ltd. in the “Ring of Fire”, McFauld’s Lake area, Ontario.
Recent Developments
Effective Dec. 29, 2006, Seafield completed the acquisition of Minera Tango SA de CV (“Minera Tango”) from 4355377 Canada Inc. (“4355377”), a wholly owned subsidiary of Yamana Gold Inc. (“Yamana”).
As a result of this transaction, Yamana, through 4355377, has become Seafield’s largest shareholder.
Minera Tango owns a 100 percent interest in the Tango property, covering 17,407 hectares in the Rosario epithermal gold-silver mining district, Sinaloa State, Mexico.
During the first quarter 2007, detailed soil and rock sampling as well as trenching in areas with anomalous gold values in soil were carried out.
Drilling was recommended to follow up several of the anomalous zones and a program of 1,746 metres in 14 holes was completed by reverse circulation drilling in March 2008. Drilling at the El Cobre prospect returned the most encouraging values in the program. Mineralization occurs in coarsely crystalline cockscomb quartz and consists of coarsely crystalline pyrite, galena, sphalerite and chalcopyrite.
The best result was from Hole TAN 10 which intercepted 2 metres ( m) of 80 g/t Ag, 5.0% Pb, 0.7% Zn and 1.0% Cu. Drilling on other targets returned anomalous but not economically significant values of base and precious metals.
Minera Tango also owns a 100 percent interest (currently subject to an option described in Overview of Operations below) in the promising silver-gold Picachos property, covering approximately 7,775 hectares in Durango State in Mexico. NWT Uranium Inc. which is earning a 70% interest in the property has recently reported encouraging results from a December, 2007 drill program.
Subsequent to year-end 2007, the Company and Noront Resources Ltd. (“Noront”) announced on January 15, 2008, that they have entered into an option agreement pursuant to which Seafield has been granted the option to acquire a 50% legal and beneficial interest in 6 claim blocks, (covering a total of 96 claim units or approximately 3,840 acres).
The property, called the Fire project, is located in the “Ring of Fire”, McFauld’s Lake area, Ontario, some 60 kilometres (km) north of Noront’s Eagle One high grade copper-nickel-PGE 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 8 km stretch of the “Ring” which is interpreted to be underlain by metavolcanic and mafic to ultramafic intrusive rocks.
On May 22, 2008, WSR Gold Inc., Metalex Ventures Ltd. and Arctic Star Diamond Corp. announced that the first hole of their exploration program set up to test a coincident electromagnetic - magnetic Noront-style geophysical anomaly had intersected massive sulphides. To date, 5,699 m in 25 holes have been drilled on the mineralized zone with several intersections containing significant zinc, copper, lead and silver.
The anomaly is believed to be within the projected strike of the "Ring of Fire" zone that hosts the Noront discoveries and is located some 4 km west of Seafield’s Fire claims.
During winter 2008, detailed helicopter-borne magnetic and EM surveys were completed over the Company’s Fire project.
In the second quarter, Noront, the operator, delivered the final geophysical data along with a report with interpretation and target selection. Several small grids were established over the airborne EM anomalies and detailed surface geophysical surveys have been completed.
During the third quarter, a diamond drill was mobilized to the property and drilled 875 m in four holes to test separate conductive geophysical anomalies. Core has been sent for assay but no results are currently available.
During May 2008, at the Elora Project in NW Ontario, a core drilling program was initiated on the Jubilee zone and along strike to the northeast to further explore the zone.
The program was completed in July following the drilling of 2,306 m in nine holes. Assay results from the program were encouraging and are detailed in “Overview of Operations”.
Near Term Project Plans
At the Elora project, the Company is encouraged by the recent drill results from 2,306 m drilling program completed on the Jubilee zone and is planning further drilling.
At the Fire Project, further work will depend on the results from the recently completed drill program.
The property is located in the “Ring of Fire”, McFauld’s Lake area, Ontario, some 60 km north of Noront’s Eagle One high grade copper-nickel-PGE discovery and only four km from the massive sulphide discovery made in May 2008 by WSR Gold Inc., Metalex Ventures Ltd. and Arctic Star Diamond Corp.
OVERVIEW OF OPERATIONS
In fiscal 2008, an exploration drill program was carried out at Seafield’s Elora property in NW Ontario.
In late December 2006, the Company completed the acquisition of Minera Tango SA de CV from 4355377. Minera Tango owns the Tango gold-silver property and the promising silver-gold Picachos property, both near Mazatlan, Mexico.
Both of these properties were explored for precious metals in the past year. In early January, 2008, the Company optioned six claim blocks called the Fire property, in the “Ring of Fire”, McFauld’s Lake area, Ontario, some 60 km north of Noront’s Eagle One high grade copper-nickel-PGE discovery.
During the current year, geophysical surveys and drilling have been completed on the Fire property.
Elora Gold Project, Ontario, Canada
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Classic Archean shear hosted gold deposit
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Seafield can earn 80% for $200K cash and $1 million expenditures over 5 years
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12 patented claims and 1 LO
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2 small past producers on the property in historic Gold Rock Camp south of Dryden
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2006 drilling extended Jubilee vein to 200 m depth
- best intersection 13.7 g/t Au over 2 m
The Elora property is located in the former Goldrock mining camp approximately 40 km south of Dryden in northwest Ontario and contains the workings of two small gold mines, the Jubilee and the Laurentian, which produced modest amounts of gold in the 1930’s and 1900’s respectively.
The Jubilee mine was originally explored by surface drilling and developed by a shaft and drift sampling at the 50 metre level in the 1930’s.
Seafield has earned an 80% interest from Elora Gold Mines Limited by making cash payments of $200,000 and exploration expenditures of $1,000,000 by October 1, 2008.
During May 2008, a core drilling program was initiated on the Jubilee zone and along strike to the northeast to further explore the zone.
The program which was completed in July following thedrilling of 2,306 m in nine holes, was designed to test down plunge from previous high grade intercepts on the Jubilee zone as well as to explore the zone and an adjacent structure along striketo the north.
In addition, most of the holes intersected narrow, mineralized structures with lowergrade gold values in both the hanging-wall and footwall to the Jubilee zone. Those with values over 1 g/t Au are also listed in the table below to demonstrate that the Jubilee zone is part of abroader gold mineralized system.
Minera Tango Properties, Mexico
In early May, 2008, results from the 2007 drill program conducted by NWT on the Picachos project were released. Highlights include a 47.1 metre intercept of 83 g/t silver and 0.84% combined zinc-lead, which starts at surface.
The richest silver intercept returned 509 g/t silver and 0.56% zinc-lead over 3.0 m. Significant gold and zinc-lead results included a 1.52 metre interval of 6.2 g/t gold, 348 g/t silver and 19.9% zinc-lead. The mineralized zone has been evaluated to a minimum strike length of 500 m.
Gold in Mexico - Picachos
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Tango
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Fire Project, McFaulds Lake Area, Ontario
On January 15, 2008, Seafield and Noront Resources Ltd. (“Noront”) announced that they have entered into an option agreement pursuant to which Seafield has been granted the option to acquire a 50% interest in 6 claim blocks, (covering a total of 96 claim units or approximately 3,840 acres).
The property, called the Fire project, is located in the “Ring of Fire”, McFauld’s Lake area, Ontario, some 60 km north of Noront’s Eagle One high grade copper-nickel-PGE 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.
On May 22, 2008, WSR Gold Inc., Metalex Ventures Ltd. and Arctic Star Diamond Corp. announced that the first hole of their exploration program set up to test a coincident electromagnetic - magnetic Noront-style geophysical anomaly had intersected massive sulphides.
To date, 5,699 m in 25 holes have been drilled on the mineralized zone with several intersections containing significant zinc, copper, lead and silver.
The anomaly is believed to be within the projected trend of the "Ring of Fire" zone that hosts the Noront discoveries and is located some 4 km west of Seafield’s Fire claims.
The Seafield property covers an 8 km stretch of the “Ring” which is interpreted to be underlain by metavolcanic and mafic to ultramafic intrusive rocks.
During winter 2008, detailed helicopter-borne magnetic and EM surveys were completed over the Company’s Fire project. In the second quarter, Noront, the operator, delivered the final geophysical data along with a report with interpretation and target selection.
Several small grids were established over the airborne EM anomalies and detailed surface geophysical surveys were completed. During the third quarter, a diamond drill was mobilized to the property and drilled 875 m in four holes to test separate conductive geophysical anomalies. Core has been sent for assay but no results are currently available.
In order to acquire its interest in the property, Seafield has:
- made an initial payment to Noront of 342,857 common shares of Seafield;
- to incur aggregate exploration expenditures on the property of $2,100,000 over a three year period (of which $600,000 must be expended in the first year);
- to make total cash payments to Noront of $240,000 within two years (of which $120,000 must be paid by the first anniversary, and any portion of the aggregate of $240,000 may be satisfied at the option of Seafield, by the issuance to Noront of up to 685,714 common shares of Seafield at a deemed price of $0.35 per share).
Upon Seafield earning its 50% 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
Financial statements and technical reports are available Here