Rimfire Portfolio - Boulevard, Yukon
Property Status
Boulevard Sold to Silver Quest Resources
Prior to the close of the Geoinformatics/Rimfire merger to form Kiska, Rimfire and Northgate sold the Boulevard to Silver Quest Resources. Silverquest can obtain a 100% interest by making staged cash payments totalling $200,000 ($40,000 upon regulatory acceptance), the issuance of an aggregate of 1,000,000 shares (200,000 upon regulatory acceptance) and work commitments of $3,000,000 ($200,000 the first year) over a five year period. Rimfire and Northgate retain a 2% net smelter royalty ("NSR") on the property, with Silver Quest having the right to buyback 0.5% of the NSR for $750,000. In addition, should Silver Quest complete a 43-101 compliant resource estimate on the property in excess of 1,000,000 ounces of gold in an indicated category, they will be required to make a one-time bonus payment of an additional 1,000,000 shares of its capital stock to Rimfire and Northgate. All cash and share payments are to be split between Rimfire and Northgate.
Silver Quest also purchasef from Rimfire and Northgate certain data pertaining to soil, silt and rock sampling completed in areas around or near the property. If Silver Quest acquires open ground by staking within defined areas, it will be required to issue additional common shares, up to a maximum of 500,000, and the additional property, if any, will be further subject to a NSR in favour of the two partners. Silver Quest would be entitled to buyback 1% of the NSR for $1,000,000.
Rimfire and Northgate shared ownership of the Boulevard land package through an Exploration Alliance signed in December, 2005. This alliance targeted "Pogo-style" intrusion-related gold deposits in this area, which is thought to have a geological setting prospective for these deposits and because of the presence of many placer gold deposits without a known bedrock source. The Boulevard area was selected from a much larger regional compilation and reconnaissance silt sampling program that led to the identification of anomalous gold and pathfinder elements in creeks draining the Boulevard. Northgate and Rimfire shared equally the first $330,000 in expenditures that led to the acquisition (by staking) of the property.
Northgate spent an additional $1.35 million of a $1.5 million earn-in to obtain an additional 10% of the property.
