Rimfire, Northgate set $1-million budget for ‘Eskay Creek-type’ target

Vancouver Partners Rimfire Minerals (RFM-V) and Northgate Minerals (NGX-T, NXG-X) plan to spend $1 million next year to further explore the Arctic Grid target at the RDN property situated about 50 km northwest of the Eskay Creek gold-silver mine in northwestern British Columbia.

Recent drilling at the Arctic Grid prospect confirmed the presence of ‘Eskay Creek-equivalent’ stratigraphy previously exposed on surface. The partners say results from the limited drill program show that rhyolite within the stratigraphy is similar geochemically and in age to rhyolites intimately associated with mineralization at Eskay Creek.

Two stratigraphic holes drilled about 1.5 km apart intersected a geologic environment conducive to the formation of massive sulphide deposits (specifically, inter-bedded mafic volcaniclastic fragmentals and mudstones occurring above a thick package of sericitie-altered rhyolite flows and black matric beccia).

A third hole drilled 1,000 metres east to test a geochemical soil anomaly intersected anomalous mercury-arsenic-gold interpreted to be the source of the anomalous surface geochemistry.

Three holes tested a second target, the Blind Fault area, where native silver was discovered in 2004. Continuous channel sampling in 2005 returned 24.7 metres averaging 24.9 grams silver per tonne. The best hole intersected three silver-bearing intervals, with the best interval returning 30.7 grams silver over 21 metres.

Carl Edmunds, Northgate’s exploration manager, stated he was “confident that the Arctic Grid area is prospective for Eskay Creek-style precious metals-rich massive sulphide deposits.” He noted that such deposits have a small footprint, which means that the 5-km-long Arctic Grid area requires comprehensive drill-testing over its extent.

Northgate funded the 2005 exploration program under the terms of an option to earn a 51% interest in the RDN property from Rimfire by spending $5 million on exploration by the end of 2007. This can be increased to 60% by funding a feasibility study.

Next year’s program will consist of airborne geophysical surveys, groundwork and diamond drilling, with the bulk of work focused at the Arctic Grid prospect. Buoyed by results to date, the partners acquired a 22-sq-km claim block contiguous with the RDN property, and included the property in the expanded option agreement.

The newly acquired LL property covers the northern extent of the favorable rhyolite stratigraphy. It also hosts the Grizzly Creek showing, where 14 trenches returned an average of 0.55% copper and 0.76 gram gold over 4.8 metres. The best trench returned 5.4 metres of 1.65% copper, 2.46 grams gold and 10.2 grams silver. Mineralization is hosted in andesites adjacent to syenite porphyry dykes.