Seafield Resources Ltd.

Seafield Resources Ltd.

March 05, 2010 15:20 ET

Seafield Set to Initiate Gold Exploration Program in Colombia

TORONTO, ONTARIO--(Marketwire - March 5, 2010) - Seafield Resources Ltd. ("Seafield") (TSX VENTURE:SFF) has signed a formal agreement (the "Definitive Agreement") with privately-owned Caribbean Copper and Gold Corp. ("CCGC") whereby CCGC assigns all right, title, and interest in and to the option of one property, and CCGC facilitates the direct option of two other adjacent properties covering an area of 6,874 hectares (the "Property") located in the Quinchia district of Colombia.

Consideration for the assignment and facilitating of the Property by Seafield consists of cash payments to CCGC and issuances to CCGC of common shares of Seafield. Within five days of the binding date of the individual option agreements documented in the Definitive Agreement, Seafield shall pay an aggregate amount totaling 5,000,000 common shares and US$250,000. On the first anniversary of the binding date of two of the option agreements, Seafield may elect to continue the options and make a final payment to CCGC on each property of US$125,000 and an additional 1,000,000 common shares of Seafield. Seafield shall also assume option payments on the underlying properties totaling US$6,250,000 over 30 months.

In addition, Seafield will undertake to make aggregate exploration expenditures of not less than US$650,000 on the Property during the 12 month period following the binding date of the first option payment to certain property owners.

The transaction remains subject to regulatory approvals.

The Quinchia historical gold mining district is known to host historical NI 43-101 non compliant resources and lies within established infrastructure, including easy access to the Pan-American highway, regional power grid and soon to be refurbished railway, and is located at a relatively low altitude of less than 2,000 metres.

Gold in the Quinchia district occurs in altered dioritic intrusions, in diorite-basalt contact zones and within breccia pipes related to the intrusions. Previous exploration on the areas has outlined porphyry style gold mineralization in outcrop, numerous geochemical anomalies and airborne geophysical signatures related to porphyritic intrusions.

The Quinchia Property lies in the same Mid-Cauca porphyry geological belt which hosts the Marmato Mountain deposit, currently being explored by Medoro Resources Ltd. and which is reported to host between 9.5 million ounces of gold, and the La Colosa discovery of AngloGold Ashanti where a gold porphyry system has been discovered with an initial inferred resource of 468.8 million tonnes grading 0.86 g/t Au for a total of 12.9 million ounces gold. Marmato is less than 8 km to the northeast of the Quinchia property and La Colosa is located 130 km southeast of Quinchia.

The Company also announces that a total of 1,250,000 options to purchase common shares of the Company at a price of $0.29, have been granted to consultants of Seafield, expiring on March 5th, 2013. The grant of options is subject to regulatory approval.

James Pirie, Vice President, designated as the Qualified Person under National Instrument 43-101, has reviewed and approved the contents of this news release.

This news release includes certain "forward looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward looking statements.

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.

Contact Information