OTTAWA, ONTARIO–(April 29, 2009) – Beaufield Resources Inc. (TSX VENTURE:BFD), is pleased to announce that it executed a Letter of Intent Agreement (“LOI”) with Jiminex Inc. (“Jiminex”), a Capital Pool Corporation (“CPC”) of Pass Lake Ontario. Jiminex will have an option (the “Option”) to acquire an undivided 50% of Beaufield’s undivided 100% interest in the Northern Eagle gold property (the “Property”), earlier referred to as the Hemlo Highway 17 property, located in the Hemlo gold mining area situated east of Marathon, Ontario, Canada. The definitive agreement incorporating the LOI terms is to be completed and executed within 45 days of the date of execution of the LOI. Pending regulatory approval, this acquisition will be the qualifying transaction through which Jiminex will evolve from a CPC into a junior natural resource exploration company. The proposed transaction is arm’s length.
The LOI sets out that Jiminex can acquire the 50% interest in the Property by paying a non refundable cash deposit of $10,000 to Beaufield on signing the LOI and a further $90,000 cash or Jiminex common share equivalent after approval of the Option by the TSX Venture Exchange. In addition, Jiminex must make exploration expenditures of $1,300,000 over a three year period all subject to an up to 2 % net smelter royalty to outside non-related parties. Jiminex will be operator during the Option earn-in period. When Jiminex fulfills the preceding terms, earning its 50% interest in the Property, exploration will proceed pursuant to a joint venture with Beaufield acting as operator.
The Northern Eagle Gold Property consists of 207 non-patented claim units occupying a total area of 3,280 hectares or 32.80 km2 located about 15 km west of the world class Hemlo gold deposit (containing roughly 20.8 million troy ounces gold as calculated from total production and reserves at December 31, 2007). The Property is bisected by the Trans-Canada highway, a Canadian Pacific railway line and a high voltage power transmission line. The Williams Operating Corporation, now wholly-owned by Barrick Gold Corporation, is currently producing gold at the Hemlo deposit. Infrastructure is excellent for low cost exploration and, for lower cost possible future gold mining project development.
The Northern Eagle Gold Property covers 10 km of Hemlo gold deposit stratigraphy including a barite alteration/shear zone and the Hemlo-Heron Bay regional fault, both geological features similar to that occurring at the Hemlo gold deposit. A second less distinct alteration zone called the Melgund Sericite Zone is suggested to exist on the Property and is interpreted to be closely associated with the Hemlo-Heron Bay regional fault. The Barite Zone is associated with a northern splay of this regional fault. Both alteration zones have geochemically elevated levels of a number of the trace elements which are found in and surrounding the Hemlo Deposit. Geochemically-anomalous gold values are noted from time to time in historical surface trench samples and drill core samples on the Northern Eagle Gold Property.
The Hemlo deposit discovery in 1981 caused a few years of intense exploration activity, but since the late 1980’s exploration has been sporadic over different parts of the Northern Eagle Gold Property. However, Geoscience research on the Hemlo gold deposit and the local and regional geology is now much more advanced than back in 1981. Exploration techniques are also much advanced especially with deeper penetrating geophysical methods.
It is important to note that about 90% of the Hemlo gold deposit is deeper than 500 metres and considerably less than 5% of the Northern Eagle Gold Property target alteration zones have been tested (if tested at all) below this possibly critical depth. Jiminex plans to complete a geological compilation of historical data followed by conducting deep penetrating geophysical surveys over selected target areas. Deep (greater that 500 metres vertical depth) diamond drilling of the target areas is anticipated pending raising the necessary funding.
Beaufield will continue to explore on a priority basis its 100% owned gold properties at Opinaca Quebec and Urban Township Quebec. Exploration will also be undertaken on its Troilus base metals properties.
Jens E. Hansen P. Eng is the Qualified Person within the meaning of National Instrument 43-101 having approved the contents of this News Release.
This press release may contain forward-looking statements that are subject to known and unknown risks and uncertainties that could cause actual results to vary materially from targeted results. Such risks and uncertainties include those described in the Company’ periodic reports including the annual report or in the filings made by the Company from time to time with securities regulations. The Company undertake no obligation to publicly release the result of any revision of these forward-looking statements to reflect events or circumstances after the date they are made or to reflect the occurrence of unanticipated event.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.