- Created on 26 July, 2016
July 26, 2016 – Vancouver, BC: Riverside Resources Inc. (“Riverside” or the “Company”) (TSX-V: RRI), is pleased to announce that it has signed an option agreement (the “Option”) with Centerra Gold Inc. (“Centerra”) for the Glor Gold Project (the “Project”), located approximately 8 km west of Alamos’ El Chanate Gold Mine in Sonora, Mexico. Centerra will have the opportunity to earn a 70% interest in the Project by funding US$3,500,000 in exploration work over the next four years. Riverside has completed mapping and sampling work on the project and will continue as the project manager for at least the first two years of the agreement with Centerra.
Mineralization on the Glor Project is widespread with indications of gold mineralization in shear zones, favorable host-rock lithologies and high-grade gold-bearing quartz veins, as evidenced by initial field sampling and mapping, which returned assays from <0.005 g/t Au up to 18.9 g/t Au. A total of 155 rock chip samples have been collected to-date, returning an average grade of 0.51 g/t Au. There appears to be good potential for high-grade and bulk tonnage type gold discoveries, with geologic similarities to the nearby El Chanate Mine. Six prospective targets have already been identified on the Project through Riverside’s generative exploration work and now can be built upon with an initial joint program of US$250,000 in work planned during the final months of 2016. The Project is accessed by paved highway and a network of gravel roads that make reaching the various targets highly cost-effective to explore in the easy to access rolling hills of the western Sonora desert region of Mexico.
Riverside’s President and CEO, John-Mark Staude, stated: “We are pleased to have Centerra as a partner and we look forward to continuing our joint exploration efforts to make a discovery in the Sonora Mega-shear Gold Belt. Riverside’s prospect generation has taken advantage of the downturn in the market to acquire and develop excellent new gold, silver and copper targets and we look to the near future to push these ahead with additional joint venture option agreements.”
The Glor Project was previously owned by Pediment Gold, which completed geologic mapping, rock sampling, and soil sampling. Pediment’s soil sampling showed several gold and trace-element anomalies coincident with surface alteration, with rock chip samples returning assays from lower detection limits up to 15.3 g/t gold. In 2011, Argonaut Gold bought Pediment Gold, acquiring Glor in the process. Riverside will now look to build on past work and refine the target areas to focus in on the best discovery opportunities on the Project.
Thrust faults, shear zones, vein orientations, and magnetic lineaments that run parallel with the documented regional controls on mineralization have been observed during initial visits to the Project. Field work has identified at least one NNW-striking, previously unmapped thrust fault that appears to be parallel to the El Chanate Fault that controls mineralization at the El Chanate Mine. Riverside’s field work to date has also identified several large-scale shear zones, up to 300 metres in thickness, which appear to be part of the complex structural framework hosting mineralization on the Project.
Centerra can acquire a 70% interest in the Project by completing $3,500,000 USD in total exploration expenditures on the Project by November 24, 2020 as outlined below:
|Time/Date||Aggregate Exploration Expenditures|
|By Nov 24, 2016||$250,000|
|By Nov 24, 2017||$750,000|
|By Nov 24, 2018||$1,500,000|
|By Nov 24, 2019||$2,350,000|
|By Nov 24, 2020||$3,500,000|
Once Centerra completes earn-in and exercises the Option, both parties would enter into a joint-venture agreement at their respective project interest (70/30). In the event Riverside’s 30% is ever diluted to less than 10%, its interest would convert to a 2.5% net smelter returns royalty (NSR). Riverside will still be responsible for the underlying commitments to Argonaut Gold Inc., which include a 1% NSR with 0.5% buyback (see Riverside’s press release March 25, 2015).
Qualified Person and QA/QC:
The scientific and technical data contained in this news release pertaining to the Glor Project was reviewed and prepared under the supervision of Locke Goldsmith, P. Eng., P. Geo., an independent qualified person to Riverside Resources who is responsible for ensuring that the geologic information provided in this news release is accurate and acts as a “qualified person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
About Riverside Resources Inc.:
Riverside is a well-funded prospect generation team of focused, proactive gold discoverers. The Company currently approximately $3,500,000 in the treasury and approximately 37,300,000 shares outstanding. The Company’s model of growth through partnerships and exploration uses the prospect generation business approach to own resources, while partners share in de-risking projects on route to discovery. Riverside has additional properties available for option with more information available on the Company’s website at www.rivres.com.
ON BEHALF OF RIVERSIDE RESOURCES INC.
Dr. John-Mark Staude, President & CEO
For additional information contact:
|John-Mark Staude||Joness Lang|
VP, Corporate Development
Riverside Resources Inc.
Phone: (778) 327-6671
TF: (877) RIV-RES1
Certain statements in this press release may be considered forward-looking information. These statements can be identified by the use of forward looking terminology (e.g., “expect”,” estimates”, “intends”, “anticipates”, “believes”, “plans”). Such information involves known and unknown risks — including the availability of funds, the results of financing and exploration activities, the interpretation of exploration results and other geological data, or unanticipated costs and expenses and other risks identified by Riverside in its public securities filings that may cause actual events to differ materially from current expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.