Riverside Acquires Sonoran Project Portfolio From Millrock Resources
Riverside Acquires Sonoran Project Portfolio From Millrock Resources
VANCOUVER, British Columbia, June 26, 2019 -- Riverside Resources Inc. (“Riverside” or the “Company”) (TSX-V:
RRI) (OTCQB: RVSDF) (FSE: R99), is pleased to announce that it has entered into a binding Letter Agreement, signed on
June 25, 2019 to purchase a 100% undivided right, title and interest in five (5) projects (“the Projects”) from Millrock Resources
Inc. (“Millrock”). Multiple Projects in this transaction have been of interest to Riverside for several years and the opportunity to
purchase these along with equipment and data for cash and shares provides great upside, diversifying and adding further
quality exploration prospects to the Company’s project portfolio. The Projects include gold, silver and copper targets and are
all located in Sonora, Mexico (see Figure 1 , below), which makes them easy and cost-effective to access from the
Company’s Mexico headquarters in Hermosillo. High-level project highlights below:
• Los Cuarentas Project has the potential to host a high-grade low-sulfidation epithermal gold quartz vein system. The
Project is located in eastern Sonora, 20 km from Silver Crest’s Las Chispas Silver Project and near Premier Gold’s
Mercedes Mine.
• La Union Projec t is located in western Sonora within the well-known orogenic gold belt and is considered prospective
for the discovery of high-grade bodies of replacement-style Au-Ag polymetallic mineralization.
• El Valle Project containing anomalous gold and silver values from rock sampling suggests the possibility that a
volcanic hosted epithermal vein system may exist on the Project. This acquisition is near Riverside’s Ariel porphyry Cu
project, adding further value as Riverside consolidates a larger land position in the region.
• Llano del Nogal Project is an early stage copper project located within the Laramide porphyry copper belt of eastern
Sonora.
• El Pima Project is in the heart of the Santa Gertrudis Mining district with similar geology to Agnico Eagle’s Santa
Gertrudis mine, which is located 5.5 km to the north.
The purchase price for the Projects & equipment is 150,000 Riverside common shares and C$35,000 cash. See the Project
Descriptions section below for further information on these Projects.
Riverside’s President and CEO, John-Mark Staude, stated: “Riverside has followed some of these Projects for many years
now. Acquiring these Projects in one cost-effective transaction is a very nice step for the Company to further expand on years
of data compilation and previous work with additional exploration and joint-venture opportunities moving.”
Additional Agreement Details:
Riverside will purchase all historic data and equipment of Millrock’s Mexico subsidiary. The data will be integrated with
Riverside’s current 75,000+ mineral location database further expanding the Company’s data infrastructure.
Riverside will purchase 100% right, title and interest in the Projects and equipment for C$35,000 and 150,000 Riverside
common shares. Half of the common shares payment is due on signing of the agreement and the balance due at a later date
once the mineral titles are transferred. Riverside will grant Millrock the right to receive an NSR of 0.5% on the current tenure
position of Santa Rosalia, El Valle, and El Pima Projects. Riverside and Millrock anticipate the closing of a definitive
agreement by August 31, 2019 , subject to TSX Venture approval . Riverside shares issued to Millrock will have a four-month
hold period.
Figure 1: Projects of Interest in the Agreement
Project Descriptions:
The Projects included in the portfolio acquisition contain gold, silver and copper assets in key districts of Sonora, Mexico.
Several of the Projects are located near existing mining operations and have previous exploration and drill data to help guide
future exploration efforts. In addition to acquiring the Projects, Riverside has also purchased equipment including vehicles,
machinery and data with all historic compilations and files from Millrock’s Mexico Projects. The Company is very pleased to
grow its knowledge, mineral databases and portfolio in Sonora.
Los Cuarentas Gold-Silver Project
The Los Cuarentas Project is located 170 km northeast of Hermosillo and nearby Silver Crest Metal’s Las Chispas Project and
Premier Gold’s Mercedes mine. Los Cuarentas is a low sulfidation epithermal Au and Ag target characterized by strong argillic
and phyllic alteration surrounding low sulfidation epithermal veins that host gold and silver mineralization. Several target zones
have been identified and most are ready for drilling such as: Santa Rosalia, Santa Rosalia Sur, El Sombrero and El Chapo.
La Union Gold Project
La Union in western Sonora is part of the orogenic gold belt and has chemistry and geology indicative of high potential new
discoveries. The old mining areas have not been drill explored and the broader structures are wide open for further expansion.
Riverside has had contact with the surface owners and knows the region from previous work with Alliance partner Hochshild
Mining.
El Valle Gold-Silver Project
El Valle is north of Riverside’s Ariel porphyry Cu project and is a volcanic related Au-Ag vein system with a large 2-8 metre
wide quartz vein mined during the 1940s (small inlier claim). El Valle is located in northeastern Sonora, 26 km east of the La
Caridad Mine operation complex which is Mexico’s second largest copper operation and has been producing for over 100
years. This acquisition grows Riverside’s tenure and progresses the Company’s plan to consolidate the highest quality mineral
districts to present to partners for joint-venture.
Llano del Nogal Copper Project
Llano del Nogal is a series of claims that fit within an area where other companies are active. The porphyry Cu prospecting and
nearby drilling has intersected geologically permissive rocks and Riverside will look to form a partnership to consolidate the
district.
El Pima
El Pima is a concession inside of the Agnico Eagle owned Santa Gertrudis Mining Complex. Riverside will look to partner or
sell the claim. El Pima contains mineralization on the tenement and requires further exploration around the sediment hosted
gold mine and many open pits of Agnico Eagle.
Qualified Person & QA/QC:
The scientific and technical data contained in this news release pertaining to the Millrock Projects Acquisition was reviewed
and approved by Freeman Smith, P.Geo, 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 who 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 exploration company driven by value generation and discovery. The Company has over $3.5M cash,
no debt and fewer than 63M shares outstanding with a strong portfolio of gold-silver and copper assets in North America.
Riverside has extensive experience and knowledge operating in Mexico and leverages its large database to generate a portfolio
of prospective mineral properties. In addition to Riverside’s own exploration spending, the Company also strives to diversify risk
by securing joint-venture and spin-out partnerships to advance multiple assets simultaneously and create more chances for
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.
"John-Mark Staude"
Dr. John-Mark Staude, President & CEO
For additional information contact:
John-Mark Staude
President, CEO
Riverside Resources Inc.
Phone: (778) 327-6671
Fax: (778) 327-6675
Web: www.rivres.com
Raffi Elmajian
Corporate Communications
Riverside Resources Inc.
Phone: (778) 327-6671
TF: (877) RIV-RES1
Web: www.rivres.com
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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.