Rimfire Minerals Corporation

Rimfire Minerals Corporation

March 27, 2007 09:51 ET

Rimfire Minerals Corporation: Drilling Resumes at Poncho Property, Nevada

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 27, 2007) - David Caulfield, President and CEO of Rimfire Minerals Corporation (TSX VENTURE:RFM) reports that drilling has resumed at the Poncho Property, located in the Walker Lane Mineral Belt 56 kilometres (35 miles) northwest of Tonopah, Nevada. Eklund Drilling has been contracted to finish the program announced on January 18, 2007 and subsequently suspended by management on February 28, 2007. Exploration at Poncho is targeting high grade gold-silver epithermal mineralization.

The focus of the current program is to test, at depth, at least three strong vein structures that underlie a series of silica caps up to 600 metres in diameter. The silica caps reflect the uppermost portions of the epithermal system at Poncho, indicating that the most favourable targets for high grade gold and silver mineralization may be preserved at depth.

The Poncho Property is one of 35 target areas identified in a data mining study conducted with Newmont Mining Company 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. The Poncho program is operated under the supervision of Mark Baknes, P.Geo., a Qualified Person as outlined by National Instrument 43-101.

The Poncho Property is comprised of the Poncho and Gila24 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

  • Rimfire Minerals Corporation
    David Caulfield
    Rimfire Minerals Corporation
    Jason Weber
    (604)669-0898 (FAX)
    Rimfire Minerals Corporation
    Suite 700 - 700 West Pender St.
    Vancouver, B.C. Canada V6C 1G8
    Email: info@rimfire.bc.ca
    Website: www.rimfireminerals.com