Riverside Resources Signs Option to Acquire a Historic 1.2 Million Ounce, Open Pit Gold Resource at Sugarloaf Peak, Arizona
April 16, 2008
April 17, 2008 - Vancouver, British Columbia: Riverside Resources Inc. (TSX-V: RRI) has signed an option agreement to acquire a 100% interest in the Sugarloaf Peak Gold Deposit located west of Quartzsite, Arizona, USA from a private Arizona based company. The property covers over 14 km2 and has been the object of intermittent drilling and small scale mining during the 1950's through 1990's resulting in a historic, non 43-101 compliant, estimated resource of more than 1.2 million ounces of 0.6 g/t gold average grade with higher grade zones to be delineated. This is an historic resource and the company has not yet completed sufficient work to confirm it and it therefore cannot be relied upon.
"The acquisition of a large, shallow, open pit gold non-NI 43-101 compliant resource with extensive upside laterally and with depth adds significant value to our company and for our shareholders. We will work with the historic data combined with our exploration to confirm, refine, and expand the value," said John-Mark Staude, Ph.D., President and Chief Executive Officer, Riverside Resources. "The Sugarloaf Peak Gold Deposit is a great addition to our growing portfolio of quality projects and our exploration team is continuing to deliver valuable new projects as well as announcing joint venture partnerships."
Previous operators of the property include Kerr McGee, Westworld, Ameselco and Cominco who completed a number of wide spaced drill campaigns while initially exploring for porphyry copper and later for epithermal gold targets. The property has more than 30 reverse circulation drill holes and 2 core holes which intersected broad intervals of gold bearing Jurassic age volcanic and intrusive rocks. There is an historical, non-Canadian National Instrument 43-101 compliant, estimated resource of 60 million metric tonnes at 0.6 g/t gold average grade (Dausingher, 1992) with mineralization open to depth and along strike.
Sugarloaf Peak is in the same region of Arizona as the formerly open pit gold producing mines of the American Girl, Mesquite, Picacho and Copperstone gold mines. The Sugarloaf Peak project has favorable infrastructure and can be worked on year round.
Riverside will promptly initiate an exploration program to assess the full potential of the property and has commissioned an independent 43-101 Technical Report to summarize the historic information. The property's hydrothermal system has extensive quartz-sericite-pyrite alteration consistent with a large mineralized system. The historic drilling tested less than half the area exposed at surface and generally only to 100m depth thus leaving large volumes to further drill test. The wide spaced drilling did not focus on finding high grade zones but instead began outlining a bulk tonnage, large body of shallow mineralization with possible high grade zones which could positively impact the economics of a potential mine.
Pursuant to the option agreement Riverside Resources (the company) may acquire a 100% interest in the property for a commitment to incur minimum exploration expenditures of $100,000 (U.S.) in the first year, and $200,000, $400,000 and $800,000 in the three subsequent years, and a total cash payment of $300,000 (U.S.) payable to the optionors as follows:
The technical content of this news release has been approved and field review completed by Mr. Locke Goldsmith, P Eng. and P. Geo, an independent qualified person as defined in National Instrument 43-101. For more details on the mineralization and previous exploration of the Sugarloaf Peak Property please visit: www.rivres.com.
Riverside operates with a generative exploration business model using experienced local prospectors, explorers and geologists to identify and acquire high quality mineral opportunities. Riverside looks for the most cost effective ways to build share value. To date, Riverside has announced four property acquisitions in Mexico which are summarized at www.rivres.com, and continues building and joint-venturing a diverse mineral property portfolio.
Certain statements in this press release may be considered forward-looking information, which statements can be identified by the use of forward looking terminology (e.g., "expect" or "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. Riverside disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For additional information contact:
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.