- Commodity: Porphyry Copper
- Location: British Columbia, Canada
- Status: Prepairing Flute and Lennac for 2013 drill season
Riverside signed a three year $1.8M strategic alliance with Antofagasta Minerals S.A. for generative exploration throughout the primary copper belts of British Columbia, Canada. The Alliance focuses on identifying new large copper deposits using Riverside’s extensive technical knowledge of copper systems and generative fieldwork to follow up and delineate a number of prospective target areas. Currently, there are two Designated Projects; the Lennac and Flute Projects. Riverside will be the operator for all exploration activities of the Alliance and all decisions relating to the Alliance will be made jointly through a Technical Committee comprising two representatives from each of Riverside and Antofagasta.
Riverside continues to prepare for the 2013 drilling season on the Flute and Lennac projects. Riverside geologists are reviewing data and exploration results gathered in the successful 2012 exploration season. Follow up to the 93 top-of-bedrock RC holes and 4 diamond holes being drilled on the Lennac (results released November 21, 2012) is being planned for the 2013 season. Also completed was initial geological mapping and geochemical rock sampling being undertaken over prospective areas within the claims. This work has delineated multiple targets for follow up in the 2013 drill season.
An airborne geophysical survey has been flown by Aeroquest Limited over the Flute and Lennac Properties, for a total of 4532.4 line kilometers of airborne magnetics coverage over the full extent of both properties. Preliminary results have been received from Aeroquest, and several key structures and lithological domains not seen in regional geological maps have been delineated. Riverside has retained the services of Mira Geoscience to complete 3D unconstrained magnetic inversions on the data to create a 3D magnetic susceptibility model in MAG 3D from UBC-GIF.
Back to top
Lennac and Flute Projects
Riverside and Antofagasta's first two designated properties are the Lennac and Flute Projects located in the productive Stikine Terrane in Central British Columbia. Riverside recently completed targeting and acquisition for the Flute Project (338 km²) and the Lennac Project (230 km²), both located near the town of Granisle and to the west of Babine Lake. The Alliance intends to conduct a regional and detailed targeting exploration program across both Designated Projects beginning in March, with the aim of generating and drill testing targets by the end of year one. Alliance partner Antofagasta Minerals ("Antofagasta") has agreed to fund up to $5,300,000 over two years to advance the Flute and Lennac Projects (for more payment details view Alliance Agreement below).
Riverside and Antofagasta have identified the west side of Babine Lake as a prospective and underexplored region, and are targeting copper-gold-molybdenum porphyry deposits. The structural setting is dominated by major deep crustal structures, which appear to focus the occurrence of known porphyry deposits in this district. In addition, the structures have formed down-dropped blocks which may have hidden and preserved porphyry systems. Other companies working in Central British Columbia have been successful over the past few years expanding known areas of mineralization and the Riverside-Antofagasta Alliance is looking to carry forward aggressively with this thinking throughout BC, with the Smithers-Houston region as an initial focus.
Exploration in the B.C. Cordillera
The Canadian Cordillera is a recognised world class metallogenic belt, hosting significant economic deposits including Cu, Mo, Au, Pb and Zn. The Cordillera is assembled from various geological terranes running parallel to the coast, which were accreted by plate tectonics onto the Canadian continent. The terranes included island arcs and other subduction related features which generated porphyry deposits, in ancient settings similar to modern day Chile and Indonesia, including copper, copper-moly and copper-gold systems. In addition to the more typical calc-alkaline type of porphyries, BC hosts an unusually high proportion of alkalic porphyries, which tend to be higher grade and more gold rich.
Porphyry deposits in BC stand amongst their global peers in size. Highland Valley has returned almost 6Blb copper concentrate during its lifetime from 1972, and is one of the largest mining operations in the world. A new generation of porphyry deposits are coming online - advanced projects, including Galore Creek (8.93Blbs Cu and 7.27Moz Au), Red Chris (5.14Blbs Cu and 7.16Moz gold), Mt Milligan (2.12Blbs Cu, 6.02Moz Au), and Afton/Ajax (2.89Blb Cu and 2.65Moz Au). Numerous high quality advanced exploration projects testify to the ongoing prospectivity of the Cordillera.
Riverside Resources aims to be part of this success, with guaranteed funding for a 3 year generative exploration program, backed by Chile’s Antofagasta PLC, one of the world’s largest copper mining companies. Riverside has a remit to explore within BC for copper related projects, and Riversides proven success as a prospect generator intends to deliver a significant project to the Alliance partnership.
Qualified Person: The scientific and technical data contained on this page were prepared under the supervision of Paola Chadwick, P.Geo, Riverside’s BC Exploration Manager, a non-independent qualified person to Riverside Resources, who is responsible for ensuring that the geologic information provided in this page is accurate and acts as a "qualified person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Properties that are identified and deemed to be of interest will become Designated Properties whereby Antofagasta will have the opportunity to earn a 65% interest by completing a four year, $5,000,000 work program. Once earn-in on a Designated Property is completed Antofagasta can elect to enter into a JV subject to making a one-time $3,000,000 payment.
Antofagasta will fund $600,000 on an annual basis and Riverside will use the strength of its corporate base in Vancouver to launch the joint exploration and begin evaluating properties from a technical and economic perspective within the defined exploration area in BC.
Key Alliance Terms
The Alliance will target properties containing Cu, Au, Ag, Mo, Pb, Zn, Ni and PGM. All properties identified by Riverside under the Alliance that are not jointly pursued will then be available for either company to pursue on its own. All decisions relating to the Alliance will be made jointly by the Technical Committee with Antofagasta holding a tie-breaking vote while sole funding. Unless otherwise specified, Riverside will be the designated operator for all exploration activities of the Alliance. All property acquisitions will be in the name of Riverside until earn-in is completed.
Projects designated for further advancement will have deemed ownership of 51% and 49% for Antofagasta and Riverside respectively. Antofagasta will spend a minimum of $5,000,000 within four (4) years from the date the Designated Project is chosen, with a minimum expenditure of $1,000,000 in the first year, and $1,000,000 in the second year (the “Milestone”). If Antofagasta fails to meet the Milestone, Riverside would have the right but not the obligation to acquire 100% ownership of the Designated Project. At any time after the completion of the Milestone Antofagasta can elect to enter into a Joint Venture with Riverside (incorporated or unincorporated), provided that it makes a one-time cash payment to Riverside of $3,000,000.
If Riverside’s interest in the Designated Project is reduced to 10% or less, this interest will be converted to a 2% NSR.