Beaufield Resources Inc. (“Beaufield”) is pleased to announce the purchase of 100% of 16 claims (558-hectare) (the “Property”) from Hinterland Metals Inc. (TSX VENTURE:HMI) (“Hinterland”). The claims are located 4 kilometres east of the Windfall gold deposit currently being actively drilled and explored. The claims now form part of Beaufield’s Macho block as depicted on the attached map.
The property hosts the Panache gold zone initially discovered by Hinterland in 2007. Exploration to date has concentrated on this one kilometre long gold-bearing structure. Historical drilling highlights include intersections of up to 5.9 g/t Au over 3.0m within a wider zone of 1.9 g/t Au over 14.1m, with the best assay within this intersection being 15.8 g/t Au over 1.0m (see Hinterland news release dated June 16, 2010).
The Panache gold zone remains open along strike and down dip. It is projected to continue southwest onto Beaufield’s Urban property where winter drilling will be undertaken. A significant portion of the new claims remain to be explored.
Under the terms of the agreement, Beaufield has purchased a 100% interest in the Property by paying $50,000 cash and issuing 250,000 of its common shares to Hinterland. Hinterland will retain a 2.0% Net Smelter Returns royalty (the “Royalty”) on all mineral production from the Property. Beaufield will have the right to purchase one half (i.e., 1.0%) of the royalty interest for $1 million cash and will have a right of first refusal on the remaining 1.0%. The agreement is subject to approval by regulatory authorities in compliance with applicable securities legislation.
With this acquisition, Beaufield 100% owned Urban property now totals 12,915 hectares. The property is centrally located within the Urban-Barry camp, near infrastructure and is easily accessible by road. The Urban area is an active area with many companies operating in the area including Oban Mining, Bonterra Resources, Urbana Corporation and Metanor Resources. Please refer to the attached map indicating the principal stakeholders for the Urban region.
This news release has been prepared by Mathieu Stephens, P.Geo., Vice President of Exploration and Corporate Development for Beaufield the Qualified Person, as defined by National Instrument 43-101.
Beaufield is a mineral exploration company with its exploration activity focused in Quebec. Beaufield is well positioned to advance its portfolio of exploration properties and identify other potential opportunities in the mineral exploration or development stage. The Corporation is actively exploring, well financed with approximately $2.7 million in cash, has no debt and has excess work credits on its properties.
The information set forth in this press release includes certain forward-looking statements. Such statements are based on assumptions exposed to major risks and uncertainties. Although Beaufield deems the expectations reflected in these forward-looking statements to be reasonable, the Corporation cannot provide any guarantee as to the materialization of the expectations reflected in these forward-looking statements. The Corporation expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this Release.