Riverside Resources to Receive Additional Funding to Extend Strategic Alliance and Drill IOCG Targets in Jalisco, Mexico
July 31, 2012
July 31, 2012 – Vancouver, BC: Riverside Resources Inc. ("Riverside" or the "Company") (TSX-V: RRI) is pleased to announce that Cliffs Natural Resources Exploration Inc., a wholly-owned subsidiary of Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) (“Cliffs”), has extended the generative phase of the Cliffs-Riverside IOCG Exploration Alliance for an additional year, with a further funding commitment of $750,000. Cliffs has also agreed to fund an additional $330,000 (approximate) for drilling the previously acquired Huerta target in Jalisco, Mexico. (News Release, September 19, 2011).
The Huerta property has been classified as a Designated Property, although the Huerta property will not be advanced as a joint venture project. A 5-hole drill program (1,086 m) was recently completed at Huerta. Primary targets did not return significant assay results, and Riverside will now complete a geologic review of the drill data and determine whether other targets at Huerta merit further drilling and exploration.
The previously acquired Naranjo target in Jalisco, Mexico (News Release, September 19, 2011) is now being evaluated for Designated Property status. Drill testing of Naranjo is expected to follow in the coming months.
“Riverside has been working hard, exploring the prospective IOCG belts of western Mexico and coming up with numerous targets. We are very pleased to move ahead with Cliffs and look forward to advancing and drilling multiple IOCG targets over the coming 12 months through this Alliance,” stated John-Mark Staude, President and CEO of Riverside Resources Inc. Staude added, “We believe the Riverside-Cliffs Alliance has major growth potential and the Company expects to continue delivering large IOCG targets in the coming months. We are actively exploring near producing iron mines, known large copper resources and numerous gold-copper centers within the Alliance area in Mexico.”
Jalisco Drill Targets and Property Details:
Riverside managed the flying of aeromagnetic surveys over the Jalisco properties of Huerta, Naranjo and Robleda in the fall of 2011, which helped refine IOCG drill targeting during the first half of 2012. The properties are located near active iron mines that form part of Mexico’s major iron producing region. The aeromagnetic survey data defined anomalous magnetic targets at Huerta and Naranjo which have signatures that are interpreted to represent shallow buried magnetite-hematite bodies. Riverside geologists followed up by collecting surface information at each of the major target areas. The Naranjo Project anomaly is 1,000 meters (m) long by +400 m wide, with additional anomalous zones in the >500 m range. The anomalies at Naranjo are slightly lower amplitude than those associated with the nearby El Encino mine (51 M tons @ 62.5 % Fe). However, they are larger and thus excite the Company as a strong drill target to test. Please visit the Riverside website for magnetic maps and images from the recent aeromagnetic survey at www.rivres.com.
The Alliance has now entered a third year, extending to June 15, 2013. Riverside is also conducting an aggressive exploration program for IOCG deposits in Baja California Norte, where several advanced targets have been identified. There has been limited IOCG drill testing through the Baja region even though the area was known for iron production dating back to World War II. Riverside believes that the area is significantly underexplored in comparison to other parts of Mexico, especially for IOCG deposits. Riverside has already identified several detailed exploration targets and the aim is to move through field work and toward drill testing those properties that have positive indications for the potential discovery of economic iron oxide, copper and gold deposits.
Under the Alliance Agreement, once a project has been accepted by Cliffs as a Designated Property, Cliffs can elect to earn a 70% interest in each project by incurring Exploration Expenditures of US $4,000,000 and completing 3,000 metres of drilling over a four year period, for each project. Cliffs can increase its interest in the project to 90% by funding and completing a bankable feasibility study within four years after earning its 70% interest, and the Company’s 10% interest would then be converted into a 2.0% net smelter returns royalty, which would give Cliffs a 100% interest. If Cliffs elects not to complete a bankable feasible study after earning its 70% interest, then Cliffs would be required to make a one-time payment to Riverside of $2,000,000 within sixty days of making such election, and all future development costs for the project will be divided relative to each company’s interest in the project. If Cliffs chooses not to earn a 70% interest in a property it will no longer be subject to the Alliance terms and from that point forward will be included in Riverside’s property portfolio, subject to Cliffs retaining a net smelter returns royalty interest if Cliffs achieves certain minimum expenditure levels. (Full Alliance terms are available in Riverside’s News Release on June 17, 2010).
The scientific and technical data contained in this news release relating to the Jalisco properties 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 $9,000,000 in the treasury and only 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.
ON BEHALF OF RIVERSIDE RESOURCES INC.
Dr. John-Mark Staude, President & CEO
For additional information please contact:
President & CEO
Manager, Corporate Development
Riverside Resources Inc.
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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