Seafield Resources Ltd.

Seafield Resources Ltd.

March 30, 2006 15:09 ET

Seafield Announces Resource Estimate of 309,000 Ounces Gold Equivalent at La Silla Gold Project, Sinalora, Mexico

TORONTO, ONTARIO--(CCNMatthews - March 30, 2006) - Seafield Resources Ltd. ("Seafield" or, the "Company")(CNQ:SEAF), is pleased to announce that a recent review of all exploration information available on the La Silla gold project has produced an inferred resource estimate on three of the vein structures as follows:

Inferred Mineral Resources - La Silla Property
Deposit Tonnes X 10(6) Au g/t Ag g/t AuEq g/t
Quila 3.97 1.75 21.53 2.08
Guerra 0.49 1.12 10.45 1.28
El Roble 0.31 2.11 13.21 2.31
Total 4.77 1.71 19.85 2.02

From these data, this inferred resource contains some 260,000 ounces of gold and 3,045,000 ounces of silver or 309,000 ounces of gold equivalent.

The estimate is included in the technical report entitled "NI 43-101 Report La Silla Project, Sinaloa, Mexico, prepared for Seafield Resources Ltd." by Cargill Consulting Geologists Limited of Toronto, which also includes a recommended exploration program to advance the project.

Between 2002 and 2004, Meridian Gold Inc. (Meridian) completed a number of exploration programs over the 144 km(2) property, including the completion of 99 reverse circulation drill holes with an aggregate depth of 10,071.6 m on a number of the vein structures. The resource estimate used the drill holes which tested the Quila and part of the Guerra and El Roble Veins. For the estimate in the report, a cut-off grade of 0.5 g/t gold equivalent (AuEq) was used (AuEq equals Au g/t +Ag g/t/65). The cut-off grade was selected based on the cut-off grade in a number of open pit deposits that rely on heap leach recovery techniques. The comparatively high gold price (over US$500) at the present time supports this cut-off grade.

Seafield can earn a 100% interest in the La Silla property by spending US$1,000,000 over four years, subject to Meridian retaining the right to reacquire a 50% interest by payment of US$4 million and an additional 25% interest by funding a feasibility study for development of a mine on the property.

Additionally, Seafield announces that it has entered into an agreement with Greencastle Resources Ltd. ("Greencastle") to sell its 7.5% working interest in the Manitou heavy oil project located in west central Saskatchewan, for $50,000. The sale price represents a 20% premium on expenditures made by Seafield in connection with the project to date. Management was of the view that the project was a non-core asset and the disposition permits Seafield to focus on its gold exploration projects in Canada and Mexico.

Anthony Roodenburg and James Pirie are directors and officers of Greencastle and Seafield, resulting in the sale of the assets being a related party transaction for the purposes of Ontario Securities Commission rule 61-501. The sale of the assets was approved by the independent director of Seafield. The sale of the assets was exempt from the valuation and independent shareholder requirements of the rule as the securities of Seafield trade on the CNQ and the value of the assets is less than 25% of the market capitalization of Seafield.

Further, Seafield announces that a total of 275,000 options to purchase common shares of the Company have been granted to directors, officers, and consultants on March 30, 2006, at an exercise price of $0.30 per share, expiring on March 30, 2011. The grant of options is subject to regulatory approval.

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 mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.

Contact Information

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