Rimfire acquires Bill property in B.C.

Vancouver — Rimfire Minerals (RFM-V) has inked a deal for an option to acquire the 22-sq.-km Bill property in the Todoggone region of central British Columbia, 290 km north of Smithers.

The property covers a large area of anomalous gold values. Silt samples from a regional geochemical survey are coincident with a distinct magnetic low feature. Rimfire optioned the property as part of its strategy of acquiring quality, early-stage exploration projects in B.C.

The company stands to earn a 100% interest in the property by making staged payments of $90,000 in cash and 200,000 shares by the end of December 2004. During the first year, Rimfire is expected to pay $10,000 in cash and issue 50,000 shares. The vendor will retain a 2.5% net smelter return interest. Rimfire can purchase 1.5% of the royalty for $2 million.

In 1983, a 15-hole drill program totalling 3,022 metres targeted a 500-by-650-metre gold-in-soil anomaly that was in excess of 500 ppb gold. Drilling intersected multiple-vein intersections, including two 1-metre intervals grading 35 grams and 24.8 grams gold per tonne, respectively.

Rimfire says gold mineralization is hosted in quartz-carbonate-sulphide veins associated with quartz-sericite-carbonate-pyrite altered metavolcanic rocks. The junior states that soil geochemical sampling has defined a much larger target area which envelopes the previous drill target. This anomalous area measures roughly 2,800 metres by 1,500 metres.

In order to fund exploration on the property, Rimfire will attempt to raise up to $60,000 by way of a flow-through, non-brokered private placement. The financing will consist of 150,000 units priced at 40 each. Each unit will consist of one flow-through common share and one non-flow-through share purchase warrant exercisable at 40 during the first year and 45 during the second. No flow-through tax provisions will apply to the shares issued upon the exercise of the warrants.