Rimfire Minerals Corporation

Rimfire Minerals Corporation

January 18, 2007 18:44 ET

Rimfire Minerals Corporation: Drilling Underway at the Poncho Property, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 18, 2007) - David Caulfield, President and CEO of Rimfire Minerals Corporation (TSX VENTURE:RFM), reports that drilling is underway at the Poncho Property, located in the Walker Lane Mineral Belt 56 kilometres (35 miles) northwest of Tonopah, Nevada. Exploration at Poncho is targeting high grade gold-silver epithermal mineralization.

The Poncho Property is one of 35 target areas identified in a data mining study conducted for Newmont covering a 7,920 square kilometre (3,060 square mile) "Area of Interest" (AOI). Under the terms of a Strategic Alliance with Newmont (announced December 15, 2004) Rimfire has access to Newmont technical personnel, technical databases and targeting maps generated from the data mining study for the entire AOI.

Prior work on the Poncho property was focused on shallow bulk-tonnage style gold deposits; however, evidence suggests that the uppermost portions of the epithermal system are exposed at surface, implying that the most favourable zones for high grade gold-silver mineralization are likely preserved at depth.

The current exploration program is targeting vein structures underlying a series of silica caps, up to 600 metres in diameter, that occur at the contact between Mesozoic sedimentary rocks and Tertiary volcanic rocks near the intersection of the regional, northwest-trending Walker Lane fault and smaller, second-order northeast-trending faults. Three strong vein structures, some with at least three kilometres of strike potential will be tested. Approximately 1500 metres (5000 feet) of drilling is planned with at least two holes testing each target area.

The Poncho Property is comprised of the Poncho and Gila Claims. Rimfire acquired the Poncho through staking, and the Gila under a lease agreement with Silverthorn Exploration Inc. Silverthorn granted Rimfire the option to purchase the Gila claims by making staged cash payments amounting to US$390,000 over a nine year period and US$100,000 per year thereafter. Under the terms of Rimfire's agreement with Newmont, after expenditures by Rimfire totalling US$300,000 on the Poncho Property, Newmont will have a one-time right to form a 50%/50% joint venture by funding the next US$1 million in exploration expenditures. Should the right to participate be waived, Newmont will retain a sliding-scale net smelter royalty.

About Rimfire

Rimfire Minerals Corporation is an aggressive, well-financed mineral exploration company with a portfolio of highly prospective gold and silver properties in western North America. Rimfire is partnered with Newmont Mining Company, Northgate Minerals Corporation, Fronteer Development Group, Cangold Limited, American Creek Resources Ltd., McEwen Capital Corporation, Arcus Development Group Inc. and BWG Mining.

On behalf of Rimfire Minerals Corporation

David A. Caulfield, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information