Riverside Resources Acquires Sonoran Project Portfolio From Millrock Resources
TSX VENTURE: RRI
VANCOUVER, British Columbia, June 26, 2019 (GLOBE NEWSWIRE) -- Riverside Resources Inc. (“Riverside” or the “Company”) (TSX-V: RRI) (OTCQB: RVSDF) (FSE: R99), is pleased to announce that it has entered into a binding Letter Agreement, signed on June 25, 2019 to purchase a 100% undivided right, title and interest in five (5) projects (“the Projects”) from Millrock Resources Inc. (“Millrock”). Multiple Projects in this transaction have been of interest to Riverside for several years and the opportunity to purchase these along with equipment and data for cash and shares provides great upside, diversifying and adding further quality exploration prospects to the Company’s project portfolio. The Projects include gold, silver and copper targets and are all located in Sonora, Mexico (see Figure 1, below), which makes them easy and cost-effective to access from the Company’s Mexico headquarters in Hermosillo. High-level project highlights below:
- Los Cuarentas Project has the potential to host a high-grade low-sulfidation epithermal gold quartz vein system. The Project is located in eastern Sonora, 20 km from Silver Crest’s Las Chispas Silver Project and near Premier Gold’s Mercedes Mine.
- La Union Project is located in western Sonora within the well-known orogenic gold belt and is considered prospective for the discovery of high-grade bodies of replacement-style Au-Ag polymetallic mineralization.
- El Valle Project containing anomalous gold and silver values from rock sampling suggests the possibility that a volcanic hosted epithermal vein system may exist on the Project. This acquisition is near Riverside’s Ariel porphyry Cu project, adding further value as Riverside consolidates a larger land position in the region.
- Llano del Nogal Project is an early stage copper project located within the Laramide porphyry copper belt of eastern Sonora.
- El Pima Project is in the heart of the Santa Gertrudis Mining district with similar geology to Agnico Eagle’s Santa Gertrudis mine, which is located 5.5 km to the north.
The purchase price for the Projects & equipment is 150,000 Riverside common shares and C$35,000 cash. See the Project Descriptions section below for further information on these Projects.
Riverside’s President and CEO, John-Mark Staude, stated: “Riverside has followed some of these Projects for many years now. Acquiring these Projects in one cost-effective transaction is a very nice step for the Company to further expand on years of data compilation and previous work with additional exploration and joint-venture opportunities moving.”
Additional Agreement Details:
Riverside will purchase all historic data and equipment of Millrock’s Mexico subsidiary. The data will be integrated with Riverside’s current 75,000+ mineral location database further expanding the Company’s data infrastructure.
Riverside will purchase 100% right, title and interest in the Projects and equipment for C$35,000 and 150,000 Riverside common shares. Half of the common shares payment is due on signing of the agreement and the balance due at a later date once the mineral titles are transferred. Riverside will grant Millrock the right to receive an NSR of 0.5% on the current tenure position of Santa Rosalia, El Valle, and El Pima Projects. Riverside and Millrock anticipate the closing of a definitive agreement by August 31, 2019, subject to TSX Venture approval. Riverside shares issued to Millrock will have a four-month hold period.
The Projects included in the portfolio acquisition contain gold, silver and copper assets in key districts of Sonora, Mexico. Several of the Projects are located near existing mining operations and have previous exploration and drill data to help guide future exploration efforts. In addition to acquiring the Projects, Riverside has also purchased equipment including vehicles, machinery and data with all historic compilations and files from Millrock’s Mexico Projects. The Company is very pleased to grow its knowledge, mineral databases and portfolio in Sonora.
Los Cuarentas Gold-Silver Project
The Los Cuarentas Project is located 170 km northeast of Hermosillo and nearby Silver Crest Metal’s Las Chispas Project and Premier Gold’s Mercedes mine. Los Cuarentas is a low sulfidation epithermal Au and Ag target characterized by strong argillic and phyllic alteration surrounding low sulfidation epithermal veins that host gold and silver mineralization. Several target zones have been identified and most are ready for drilling such as: Santa Rosalia, Santa Rosalia Sur, El Sombrero and El Chapo.
La Union Gold Project
La Union in western Sonora is part of the orogenic gold belt and has chemistry and geology indicative of high potential new discoveries. The old mining areas have not been drill explored and the broader structures are wide open for further expansion. Riverside has had contact with the surface owners and knows the region from previous work with Alliance partner Hochshild Mining.
El Valle Gold-Silver Project
El Valle is north of Riverside’s Ariel porphyry Cu project and is a volcanic related Au-Ag vein system with a large 2-8 metre wide quartz vein mined during the 1940s (small inlier claim). El Valle is located in northeastern Sonora, 26 km east of the La Caridad Mine operation complex which is Mexico’s second largest copper operation and has been producing for over 100 years. This acquisition grows Riverside’s tenure and progresses the Company’s plan to consolidate the highest quality mineral districts to present to partners for joint-venture.
Llano del Nogal Copper Project
Llano del Nogal is a series of claims that fit within an area where other companies are active. The porphyry Cu prospecting and nearby drilling has intersected geologically permissive rocks and Riverside will look to form a partnership to consolidate the district.
El Pima is a concession inside of the Agnico Eagle owned Santa Gertrudis Mining Complex. Riverside will look to partner or sell the claim. El Pima contains mineralization on the tenement and requires further exploration around the sediment hosted gold mine and many open pits of Agnico Eagle.
Qualified Person & QA/QC:
The scientific and technical data contained in this news release pertaining to the Millrock Projects Acquisition was reviewed and approved by Freeman Smith, P.Geo, a non-independent qualified person to Riverside Resources, who is responsible for ensuring that the geologic information provided in this news release is accurate and who 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 exploration company driven by value generation and discovery. The Company has over $3.5M cash, no debt and fewer than 63M shares outstanding with a strong portfolio of gold-silver and copper assets in North America. Riverside has extensive experience and knowledge operating in Mexico and leverages its large database to generate a portfolio of prospective mineral properties. In addition to Riverside’s own exploration spending, the Company also strives to diversify risk by securing joint-venture and spin-out partnerships to advance multiple assets simultaneously and create more chances for 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:
Riverside Resources Inc.
Phone: (778) 327-6671
Fax: (778) 327-6675
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.
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