Riverside and Alliance Partner Hochschild Mining PLC., Acquire Option to Earn 100% Interest in the Cajon Gold Project in Sonora, Mexico
Vancouver, BC: Riverside Resources Inc. (“Riverside” or the “Company”) (TSX-V: RRI), is pleased to announce that it has signed a Definitive Agreement with a private Mexican company to acquire an undivided 100% interest in the Cajon Gold Project (the “Project”). The 94 km² Project is located approximately 7 km east of the Cerro Colorado Mine and approximately 55 km west of the San Francisco Mine, within the Sonora Megashear Gold Belt, and in the source area of the Boludo placer gold fields, one of northern Mexico’s most productive placer districts. Recent exploration work completed by the private company, and its past option partner, demonstrates excellent potential with a number of historically sampled high-grade mineralized systems covering 10 separate target areas.
San Blas is an open-pit style gold target, comprising a N-S-trending zone of numerous high-grade samples over an area ~600 m x ~3 km in extent. Previous exploration work in this area consisted of 336 rock chip and float samples with 96 samples in the range of 0.3 – 175 g/t Au, including 47 samples of 1 – 175 g/t Au. Initial Alliance sampling of the target during due diligence consisted of 39 rock samples, which returned assays up to 9.29 g/t Au. Additional sampling and geologic mapping are now underway. The San Blas target is remarkable for its grade, for the wide extent of high-grade samples over a large area, and for the presence of numerous potentially ore-grade samples in altered wall rock. The target shows excellent potential for discovery of both high-grade and bulk-mineable deposits.
Riverside and its alliance partner (the “Alliance”) can acquire a 100% interest in the Project for:
1) $15,000 payment upon signing a Definitive Agreement;
2) Paying 2013 mineral concession taxes within 30 days of signing the Definitive Agreement;
3) $20,000 in cash or Riverside shares within three (3) years of signing Definitive Agreement;
4) $25,000 in cash or Riverside shares within four (4) years of signing the Definitive Agreement
Once the Option has been exercised, the underlying private owner will hold a 1.5% Net Smelter Return (NSR) royalty, with each 0.5% increment purchasable for $500,000 at any time. All cash figures are in US dollars. Riverside’s alliance partner, Hochschild Mining Plc., will have the opportunity to earn a 65% interest in the Project by incurring $5,000,000 in exploration expenditures over four (4) years. An active and well-funded exploration program is expected at Cajon and other alliance targets during 2014.
President and CEO of Riverside Resources, John-Mark Staude, commented: “We are pleased to have made quick progress in evaluating and acquiring quality, high-potential prospects in the Megashear Gold Belt of Sonora. We believe the strategic alliance with Hochschild Mining provides shareholders with great potential for new precious metal discoveries, as the companies continue to collaborate and uncover opportunity.”
Qualified Person and QA/QC:
The scientific and technical data contained in this news release pertaining to the newly acquired Cajon Project was reviewed and prepared under the supervision of Riverside’s Chief Geologist, David S. Smith, MS, MBA, CPG, 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 acts as a “qualified person” under National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Stock Option Re-pricing:
The Company currently has stock options outstanding on a total of 1,575,000 common shares, with exercise prices ranging from $0.94 to $0.98. As the market price for the Company’s shares is well below the exercise price of any of these stock options, the options no longer provide the incentive and compensation to the Company’s directors and officers that was intended when the options were originally granted. The Company has proposed to re-price the exercise price of the outstanding options to $0.50. The re-pricing of the options is subject to shareholder and TSX Venture Exchange approvals.
About Riverside Resources Inc.:
Riverside is a well-funded prospect generation team of focused, proactive gold discoverers with the breadth of knowledge to dig much deeper. The Company currently has more than $5,000,000 in the treasury and approximately 37,000,000 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