QUESNEL, BC, March 29 /PRNewswire-FirstCall/ -
Richfield Ventures Corp. (TSXV: RVC) ("Richfield" or the "Company")
is pleased to announce signing of a formal joint venture agreement
with Silver Quest Resources Ltd. (TSXV: SQI) ("Silver Quest") in
regard to the Davidson property. The Davidson property forms
the northern portion of the Blackwater Gold Project.
Richfield owns a 100% interest in the southern portion of the
project. Blackwater is located 100 km south of Vanderhoof in
central British Columbia, Canada.
Under the terms of the joint venture agreement,
the ownership of the Davidson property is shared 75% for Richfield,
25% for Silver Quest, and Richfield is the operator of the joint
venture. Direct expenditures on the Davidson property are
shared on this pro-rata basis. Direct expenditures on the
southern portion owned 100% by Richfield are solely for Richfield's
account. Work expenditures, such as certain engineering,
metallurgical test work, environmental baseline studies, etc. for
the benefit of the overall project, will be initially shared 87.5%
for Richfield and 12.5% for Silver Quest.
The joint venture parties have approved an
initial work program of $8.6 million for the Davidson
property. This will include approximately 20,000 meters of
diamond drilling and Silver Quest's share of various studies
related to the overall development of the project. Richfield
also intends to complete an additional 10,000 meters of diamond
drilling on its 100% owned southern portion of the property this
year.
Peter Bernier, President of Richfield,
commented; "We are pleased to have completed the formal joint
venture agreement and look forward to working with Silver Quest to
the benefit of all shareholders. The Davidson property is an
important piece of the overall Blackwater Gold Project. We have
begun drilling with three drills on the Davidson and a fourth will
be added by early summer."
As the Blackwater project advances to a
Preliminary Economic Assessment (PEA), planned for completion in Q4
of 2011, work expenditures not directly on the Davidson property
but considered for the benefit of the project overall, will be
shared on a pro-rata basis as reflected by the relative
distribution of mineral resources on the respective properties as
determined by the PEA. This relative distribution of mineral
resources will continually be updated by subsequent studies. Once
the project construction capital budget is established, the joint
venture operator will recommend a formula for sharing the capital
cost of project development reflecting each partner's economic
interest.
If Silver Quest elects not to participate in a
work program, its percentage interest in the Davidson property will
dilute. Dilution to a 10% interest will result in an
automatic conversion of Silver Quest's interest to a 1.0% net
smelter return.
The Blackwater project is an important new gold
discovery in Canada. The initial NI43-101 resource contains
an estimated Indicated Resource of 53.46 million tonnes at an
average grade of 1.06 g/t Au containing 1.83 million ounces gold. A
further 75.45 million tonnes at an average grade of 0.96 g/t Au
containing 2.34 million ounces gold is estimated in the Inferred
category. These estimates encompass the entire Blackwater deposit
(see NR March 2, 2011). Initial metallurgical test work has
indicated an average of 92% gold recovery using conventional whole
ore direct cyanidation (see NR Nov 22, 2010). The Company has
contracted a series of consultants to prepare the PEA, planned for
completion in Q4 of 2011. This study will consider the
potential for a large-scale open pit mine and ore processing
facility. With a current cash balance of $17 million the
company is well funded to undertake the planned 2011 drilling and
the PEA study.
The scientific and technical information
contained in this news release was prepared under the supervision
of Rob Pease P.Geo., who is a "Qualified Person" as defined under
National Instrument 43-101.
Richfield Ventures Corp. is a public mineral
exploration company trading on the TSX Venture Exchange under the
symbol RVC. Richfield has been actively acquiring and exploring
mineral tenures in the Quesnel Trough and Nechako Plateau regions
of British Columbia.
On behalf of the Board of Directors of Richfield
Ventures Corp.
"Peter Bernier"
Peter Bernier, President
This news release contains forward-looking
information, which involves known and unknown risks, uncertainties
and other factors that may cause actual events to differ materially
from current expectation. Important factors - including the
availability of funds, the results of financing and exploration
activities, the interpretation of drilling results and other
geological and metallurgical data, risks associated with the
estimation of mineral resources and the geology, grade and
continuity of mineral deposits, project cost overruns or
unanticipated costs and expenses -- that could cause actual results
to differ materially from the Company's expectations are more fully
discussed in the Company's documents filed from time to time on
SEDAR (see www.sedar.com). Forward-looking statements
can often be identified by the use of words such as "plans",
"expects", "is expected", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "believes" or variations (including
negative variations) of such words and phrases. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date of this press
release. The company disclaims any intention or obligation,
except to the extent required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
The TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this
release.
SOURCE Richfield Ventures Corp.