Riverside Acquires 2 Strategic Land Packages in BC; Up to $5.3 Million of Exploration to be Funded by Alliance Partner Antofagasta Minerals
February 21, 2012
February21, 2012 – Vancouver, BC: Riverside Resources Inc. ("Riverside" or the "Company") (TSX-V: RRI) is pleased to announce that Alliance partner Antofagasta Minerals ("Antofagasta") has agreed to fund up to $5,300,000 over two years to advance the Flute and Lennac Projects, located in the productive Stikine Terrane in Central British Columbia (BC). 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. These two projects are the first two formalized Designated Projects (DP) for the BC Strategic Alliance between Riverside and Antofagasta. 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.
"Riverside and Antofagasta's collaboration in BC has led to the rapid identification of potential target areas, and we look forward to exploring new opportunities and open regions to undertake further copper – gold exploration. Flute and Lennac are our first two Designated Projects in Canada and we are pleased with the Company's overall progress and ability to sustainably expand Riverside's reach into new jurisdictions," stated John-Mark Staude, CEO and President of Riverside Resources Inc.
On a regional scale, the Smithers/Houston area, underlain by the prospective Stikine Terrane, hosts two significant clusters of copper porphyry deposits. The first is located west of Houston, comprising porphyries such as the active Huckleberry mine, and the advanced Berg and Poplar deposits. The second is located near Babine Lake east of Smithers, including the historic Bell and Granisle mines, and the advanced Morrison and Big Onion deposits. Riverside is initially working in these areas to generate new potential discovery targets and further delineate known mineralization.
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. For more details and maps of the Flute and Lennac projects please visit www.rivres.com.
Further Agreement Details:
Antofagasta has the option to expend up to $2,500,000 at the Flute Project and $2,800,000 at Lennac, with a minimum of $1,000,000 in Year 1 on each property to maintain its earn-in right. An additional expenditure of $1,000,000 on each property is required by the end of Year 2 in order for Anotfagasta to maintain this earn-in right. Under the terms of the Alliance, Antofagasta now holds 51%, and Riverside 49%, of the Flute and Lennac projects. Antofagasta can earn a 65% interest in each DP by spending $5,000,000 on exploration in each DP within 4 years, at which point Antofagasta can enter into a Joint Venture with Riverside subject to a one-time cash payment of $3,000,000 to Riverside. Should Antofagasta opt to not complete the earn-in up to 65% pursuant to the Agreement, then the property and data revert to Riverside, subject to certain payments to Antofagasta being completed. Riverside will carry out the exploration work for the Alliance through the earn-in period. Should Riverside's interest in any DP be reduced to 10% or less, this interest will be converted to a 2% NSR.
The scientific and technical data contained in this news release relating to the Flute and Lennac projects was prepared and reviewed by Riverside's VP of Exploration, Howard Davies, MAIG, 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.
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 approximately $10,000,000 in the treasury and fewer than 35,000,000 shares issued. Riverside's model of growth through partnerships and exploration looks to use the prospect generation business approach to own resources, while partners share in de-risking projects on route to discovery. Additional property information on the Company's projects can be found on the Riverside Resources Inc. website at www.rivres.com.
About Antofagasta Minerals S.A. ("Antofagasta"):
Antofagasta Minerals SA is the mining division of Antofagasta PLC. Antofagasta PLC is listed on the London Stock Exchange and a constituent of the FTSE-100 Index, with interests also in transport and water distribution. Currently, Antofagasta PLC activities are primarily concentrated in Chile where it owns and operates four copper mines: Los Pelambres, Esperanza, El Tesoro and Michilla. Total production in 2012 is expected to be approximately 700,000 tonnes of copper, 11,000 tonnes of molybdenum and 280,000 ounces of gold. Antofagasta PLC also has exploration, evaluation and/or feasibility programs in North America, Latin America, Europe, Asia, Australia and Africa.
ON BEHALF OF RIVERSIDE RESOURCES INC.
Dr. John-Mark Staude, President & CEO