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Snowfield Development Corp (TSX: SNO) has renegotiated the acquisition of the GTen 16 mineral claim on its Ticho project in the Drybones Bay area, Great Slave Lake, Northwest Territories, and executed a revised option agreement with 644981 B.C. Ltd., a private British Columbia company, whereby Snowfield will hold an option to earn up to a 100-per-cent interest in the GTen 16 mineral claim. This option agreement replaces a letter of intent agreement dated May 28, 2002, between Snowfield and the optionor with respect to the GTen 16 property which was not consummated by way of any cash payments or share issuances as a result of Snowfield awaiting Northwest Territories land use permitting for the property. On Sept. 1, 2004, Snowfield received a five-year Class A land use permit from the MacKenzie Valley Land and Water Board with respect to its Ticho project, including the GTen 16 property. The terms of the current option agreement are, other than payment and share issuance scheduling, identical to the terms of the letter of intent agreement dated May 28, 2002.
The GTen 16 property is located in the Drybones Bay area, Great Slave Lake, approximately 60 kilometres southeast of Yellowknife, NWT, at approximately latitude 62 degrees, 12 minutes north, longitude 113 degrees, 12 minutes west, on map sheet 85 I 3 in the South mining district of the Northwest Territories, and covers approximately 1,033 acres. The GTen 16 property is approximately 15 kilometres northwest of Snowfield's Mud Lake kimberlite discovery. The GTen 16 property is on the South Slave craton and contains three known geophysical kimberlite targets.
Under the terms of the agreement, Snowfield can earn a 100-per-cent interest in the GTen 16 property in consideration for, subject to regulatory acceptance, the payment of a cumulative total of $50,000, the issuances of 300,000 shares of Snowfield's capital stock, and the expenditure of $200,000 on programs of exploration and development on the GTen 16 property as follows:
1. the payment of $10,000 upon execution of the agreement (which moneys have been paid);
2. the payment of a further $40,000 and the issuance of 300,000 common shares of Snowfield's capital stock, within five business days after the agreement is
accepted for filing by the TSX Venture Exchange or Jan. 21, 2005, at the latest;
3. an expenditure of $25,000 on a stage I program of exploration and development on the property on or before March 31, 2005, of which amount,
$19,682 has been expended since May 28, 2002;
4. the expenditure of a further $75,000 on a stage II program of exploration and development work on the property on or before July 31, 2005; and
5. the expenditure of a further $100,000 on a stage III program of exploration and development work on the property on or before Dec. 31, 2005.
A 5-per-cent production royalty on any diamond production from the GTen 16 property is reserved for the optionor with a buyback proviso contained in the production royalty agreement allowing the optionee to purchase back from the optionor up to 3-per-cent of the production royalty at a total cost of $2.5-million. During August, 2002, Snowfield completed a detailed helicopter-borne multifrequency electromagnetic survey of its Drybones Bay area properties, which survey included the GTen 16 property. Snowfield expects to conduct further ground geophysics on the known targets on the GTen 16 property to be followed up with diamond drilling of the known targets during the 2005 exploration season.
The option agreement to acquire the GTen property is subject to regulatory acceptance by the TSX Venture Exchange.
ON BEHALF OF THE BOARD
"Robert T. Paterson"
President
SNOWFIELD DEVELOPMENT CORP.
THE CANADIAN VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENTS HEREOF.