Trading Symbol: SFR: TSX-Venture
VANCOUVER, March 20 /CNW/ - Starfire Minerals Inc. and Starfire Precious
Metals Inc., a division of Starfire Minerals Inc., have formally signed an
option agreement with Mr. Arne Birkeland to earn a 100% interest in the
Porphyry Pearl property.
The property, which is situated in the Toodoggone mining district in
northern British Columbia, consists of 6000 hectares between 6 and 14
kilometres north of Toodoggone River some 300 kilometres north of Smithers and
55 km northwest of the Kemess South Mine.
The Porphyry Pearl property consists of a large mineral claim holding
located 45 km north of the Kemess Mine in the heart of the prolific Toodoggone
Mining District in north-central British Columbia. Several exploration
programs, including six generations of diamond drilling, have been conducted
on the property during the early 1970's to early 1990's. Despite encouraging
results, the property was not developed due to low metal prices and a
depressed mining exploration environment in British Columbia during the
1990's. With the recognition of the economic significance of the Kemess Mine,
coupled with the improving infrastructure that now exists in the region,
combined with a favourable climate for exploration in British Columbia and
high metal prices, the Porphyry Pearl property is now poised for development.
A modern day GIS database and 3D model have been compiled for the most
significant mineralized zones found so far on the property. Using the Kemess
Mine analogue, Starfire management and engineering consultants have identified
several target areas prospective for the discovery of large-tonnage gold
bearing copper porphyry deposits. An extensive exploration program, including
a sophisticated 3D IP survey, is planned for the 2006 field season. A large
scale diamond drill program, including deep drilling, is planned on the
highest priority targets identified by the 2006 program.
Terms of the option agreement include:
1. The issuance of 400,000 common shares on regulatory approval and
800,000 shares on the anniversary of the signing of the agreement for
the subsequent 4 years (for a total of 3,600,000 shares);
2. Cash payments of $15,000 on signing, $65,000 on August 15, 2006,
$50,000 on October 15, 2007, $150,000 on October 15, 2008, and
$250,000 on October 15, 2009 (for a total of $530,000 in cash
payments);
3. Work commitments of $400,000 for year 1; $750,000 for year 2;
$1,100,000 for year 3; $1,000,000 for year 4, and $1,500,000 for year
5 (for a total of $4,750,000 in work commitments); and
4. A 3% Net Smelter Royalty (NSR) applies in favour of the Vendor.
Starfire Minerals Inc. has been granted an option to buy out half of
the NSR for 3 million dollars.
Starfire Minerals Inc. has received regulatory approval to this
transaction and has accordingly issued the initial tranche of 400,000 shares
pursuant to this option agreement. These shares are subject to a 4 month hold
period, expiring July 10, 2006.
Starfire Minerals Inc. has also entered into a Mineral Exploration
Services agreement with Arnex Resources Ltd. to oversee and manage the work
commitment for the project for 2006.
For further details on the property, including past exploration work,
please refer to our News Release of January 17, 2006, available on our website
at www.starfireminerals.ca.
Starfire Minerals Inc. includes uranium, nickel and precious & base metal
divisions with properties in Ontario, Quebec and British Columbia.
ON BEHALF OF THE BOARD OF DIRECTORS OF
STARFIRE MINERALS INC.
"Dan Mosher"
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Dan Mosher
President/CEO
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RESPONSIBILITY FOR ITS CONTENTS. THE TSX VENTURE EXCHANGE DOES NOT
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