Escondida Gold Project
- Introduction:
- Commodity:Gold
- Location:Zacatecas, Mexico
- Size:160 km²
- Option:Optioned to Mexigold Corp.
- Status:Advanced drill targeting
The Escondida Gold Project is over 160 km², situated within a long NW trending structural corridor hosting mines such as Castillo, San Sebastian and Miguel Auza, in Zacatecas, Mexico.. The property had exploration work completed by Riverside during the two year tenure of the Kinross Exploration Alliance which was completed at the end of 2010, before being included in an option agreement package with Mexigold Corp.
Riverside has completed an exploration program on the property including detailed mapping, sampling, structural analysis and geophysics. The planned work on the Escondida property will include a targeting program designed to further delineate the proposed drill program on the property. This will include assaying 1,685 soil samples that have already been collected, further rock chip sampling, ground magnetics, and a continuation of the inverse-polarity geophysics survey that has identified a clear east-west striking trend through the main drill target zone. The planned drill testing at Escondida will be carried to the second year of the work program.
Back to top.Two east-west striking mineralized trends were identified at Escondida within a 2.1 km by 1.3 km zone defined as the primary drill target area. These mineralized structures were identified through a geophysical IP survey with the target area remaining wide open in multiple directions. The outcropping, cross cutting mineralized structures and projection undercover show many similarities to the nearby Valenciana and San Jose de Reyes mining districts. Several potential drill targets have been delineated for immediate follow up.
Back to top.Riverside has optioned off the Escondida Gold Project, along with the Catrina Gold Project and the Pedernal Gold Project, to Mexigold Corp. whereby Mexigold can can acquire a seventy-five percent (75%) interest in the properties. To earn-in to the option Mexigold must issue Riverside an aggregate 2.6 million Mexigold shares, making total cash payments of $500,000 to Riverside, and incurring an aggregate $4-million in exploration expenditures on all three properties within 36 months of the agreement. Included in the exploration expenditure requirements is a commitment to drill a minimum of 3,000 metres on the three Durango-Zacatecas properties within 12 months from the date of the agreement.
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