Seafield Resources Ltd.

Seafield Resources Ltd.

January 04, 2007 17:38 ET

Seafield Acquires Minera Tango from Yamana Gold Inc.

TORONTO, ONTARIO--(CCNMatthews - Jan. 4, 2007) - Seafield Resources Ltd. (CNQ:SEAF)("Seafield" or, the "Company"), is pleased to report that, effective December 29, 2006, Seafield has completed the acquisition of Minera Tango S.A de C.V. ("Minera Tango") from Yamana Gold Inc. ("Yamana").

The acquisition of Minera Tango is a significant addition to Seafield's gold exploration portfolio which includes the La Silla property in Mexico, where Seafield is working to expand an inferred resource containing approximately 309,000 ounces of gold equivalent as previously reported on March 30, 2006, and the Elora property near Dryden, Ontario, where assays are pending following a recently completed drill program.

Minera Tango owns a 100% interest in the Tango Property, covering about 17,407 hectares in the Rosario epithermal gold-silver mining district, Sinaloa State, Mexico. Minera Tango also owns a 100% interest (subject to an option described below) in the promising silver-gold Picachos Property, covering some 7,775 hectares in Durango State in Mexico.

Earlier work on the Tango Property defined a large gold anomaly in stream sediments covering about 27 km2 in the tributaries of the El Placer River and follow-up prospecting identified gold mineralization in two separate areas. At La Cocolmeca, a northwest-trending swarm of gold-bearing quartz veins is exposed by a northeast-trending fault scarp more than two hundred meters high. Within the Cocolmeca swarm, 8 samples from Veta Copalquin have yielded average results of 12.9 g/t Au, 55 g/t Ag, 0.5 % Cu, 1.5% Pb and 2.4% Zn across widths ranging from 0.3 to 1 meter. About 350 meters to the west, 8 channel samples across the Urrea Corridor, a stockwork zone hosted in flow-banded rhyolite, yielded an average result of 2.1 g/t Au, 3.6 g/t Ag, 0.14% Pb and 0.12% Zn across 5.4 meters. The Urrea corridor has been mapped on surface for about 450 meters along strike. At El Placer, located about 2 km east of La Cocolmeca, where the vein system also trends northwest, work is currently in progress to evaluate the extent of the mineralization. Initial grab samples from material in old mine dumps at El Placer contain between 20.8 and 6.9 g/t Au.

The Picachos Property is subject to an option whereby Northwestern Mineral Ventures Inc. ("Northwestern") has an exclusive option for a period of three years to acquire a 70% interest in the property by incurring certain expenditures on the Picachos Property, issuing and delivering to Yamana common shares in the capital of Northwestern and paying to Yamana an aggregate amount of US $400,000. The terms of the Picachos Option Agreement remain in effect following the acquisition of Minera Tango.

The Picachos Property is located approximately 50 km southeast of Goldcorp Inc.'s Tayoltita mine, a mine that has production to date upwards of 650 million ounces of silver and 9 million ounces of gold. Preliminary analysis by Northwestern indicates the potential for a near-surface, open-pittable silver rich area with gold-bearing bonanza shoots. Much of the mineralization on the Picachos claim is controlled by easterly striking veins.

The purchase price of $1,350,000 paid by Seafield to Yamana in consideration for the acquisition of Minera Tango will be satisfied by the issuance of up to 4,500,000 common shares of Seafield at a deemed price of $0.30 per share. Initially, Seafield has issued 3,804,177 common shares of Seafield to Yamana, representing 19.9% of the outstanding shares of Seafield on an undiluted basis. In addition, Seafield has agreed to issue to Yamana one common share in the capital of Seafield for every five common shares of Seafield issued to any other person from and after the closing of the transaction until such time as Seafield has issued a total of 4,500,000 common shares to Yamana. Yamana has acquired the Seafield common shares for investment purposes and, other than the additional common shares to be issued to Yamana as specified above, has no present intention to acquire or exercise control or direction over additional securities of Seafield. The address of Yamana for the purposes of National Instrument 62-103 is 150 York Street West, Suite 1102, Toronto, Ontario, M5H 3S5.

Michelle Robinson P.Eng., who has supervised all recent exploration on the Minera Tango properties will continue to manage future field exploration work on the Seafield Mexican projects and is designated as the Qualified Person overseeing all technical work. Planning for Seafield's 2007 field programs in Mexico is currently underway. Ms. Robinson has reviewed and approved the technical contents of this news release.

No Stock Exchange has reviewed nor accepted responsibility for the adequacy or accuracy of this news release. This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. 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. 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. The Company relies on litigation protection for forward looking statements.

Issued & Outstanding: 19,116,467

Contact Information

  • Seafield Resources Ltd.
    Anthony Roodenburg
    (416) 485-1327