Riverside Resources Signs TWO Agreements and Consolidates Ground at the LA Cecilia GOLD Project IN Sonora, Mexico
1110 – 1111 West Georgia Street, Vancouver, BC, V6E 4M3 Tel: (778) 327-6671
TSX-V: RRI
PRESS RELEASE Pink Sheets: RVSDF
Frankfurt: R99
RIVERSIDE RESOURCES SIGNS TWO AGREEMENTS AND CONSOLIDATES
GROUND AT THE LA CECILIA GOLD PROJECT IN SONORA, MEXICO
Jan 31, 2017 – Vancouver, BC: Riverside Resources Inc. (“Riverside” or the “Company”)
(TSX-V: RRI), is pleased to announce that the Company has signed agreements with Gunpoint
Exploration Ltd. (“Gunpoint”) and Millrock Resources Inc. (“Millrock”) to consolidate the
former company’s three La Cecilia Margarita concessions with the Violeta concession into a
unified Cecilia Gold Project (the “Project”). The Cecilia Project, located in northeastern Sonora,
Mexico, is targeting epithermal gold -silver mineralization in a rhyolite dome setting with
potential for open-pit mining.
The 778.3 -hectare Cecilia -Margarita concession covers four gold target zones. Previous work
focused on only a portion of the Project within an area of less than one square kilometre where
more than thirty underground workings and twenty-three drill-holes have tested predominantly
gold-bearing quartz vein let stockworks and hydrothermal breccias hosted by siliceous volcanic
rocks. Previous exploration completed by the predecessor to the Geologic Survey of Mexico and
Cambior includes geological mapping, extensive surface and undergrou nd rock -chip sampling
and two diamond drilling programs, one comprising 19 boreholes drilled in 1995 and a n earlier
campaign of four drill-holes. Highlights of exploration results reported by the previous operators
include:
137 of 683 (20%) surface rock -chip samples assaying greater than 0.5 grams gold/tonne
(g/t Au), with 72 of the 683 samples (approx.11%) having assays of greater than 1 g/t Au.
A semi-continuous series of surface chip-channel rock samples across 119.0 metres (m)
of altered volcanic rock that average 0.86 g/t Au, including 25 m grading 2.19 g/t Au.
This sampling tested the North Breccia gold target.
A drill-hole intersection of the North Breccia zone that averaged 1.41 g/t Au across 30.0
metres starting at 4.0 m in Cambior hole 138-95-08. A second interpreted intersection of
the North Breccia zone averaged 0.39 g/t Au across 20.0 m starting at 48.0 m in hole 138-
95-19.
A 127 m intersection of altered polylithic breccia conglomerate in borehole 88-03, also
drilled in the area of the North Breccia target, that produced nineteen samples which were
shown to contain 1 -2 g/t Au and 12 -28 g/t silver (Ag) by rudimentary fire assay ing
apparently without atomic adsorption being done on the samples.
An approximately 118 m in tersection of altered silicic volcanic rocks in drill -hole 88-04
on the Central Zone target produced seventy -seven core samples which were found to
contain 1-2 g/t Au and 12-136 g/t Ag by the same assay ing method as was used on the
samples from drill-hole 88-03.
Disclosure Note: The above-described exploration work programs and the analytical results that
were reported by previous operators on the Cecilia property are considered to be historical . The
reliability of the historical data is uncertain but is c onsidered to be relevant by Company
management. It is the Company’s intention to verify, wherever reasonably possible, the most
significant historical data ; however, there is a risk that the Company’s confirmation work or
future drill testing may produce results that substantially differ from the historical results.
Riverside is working on compiling historical sampling and drill-hole data and has begun defining
future drilling targets . Fieldwork will begin shortly to confirm and enhance existing
interpretations of the geology that was previously mapped on the property . Additional rock-chip
sampling will also be done on surface to confirm certain existing assay results and to expand
known zones of higher grade gold mineralization . Historical drill -hole and underground
sampling data will then be integrated with Riverside’s surface geology and geochemical database
to produce a 3D model of the litho-structural setting and the controls on the Cecilia mineral
system. This model, along with Riverside’s strong unde rstanding of rhyolite dome -related
polymetallic ore systems, will significantly assist the Company in defining high-potential drill
targets at various levels in the gold-silver mineral system, including targets that are not readily
apparent in bedrock exposures found at surface.
Riverside’s VP of Exploration, Ron Burk , stated: “We look forward to integrating the
valuable historical information into an exploration model that will present us with a number of
drill targets to test for deposits of epithermal gold mineralization of the type s that formed the
multi-million ounce Sleeper gold deposit in Nevada , where the genesis of th at deposit is also
believed to be associated with a rhyolite flow -dome complex.” Riverside’s VP of Corporate
Development, Joness Lang, added: “We are excited to add the consolidated Cecilia property
package to our portfolio. The acquisition terms are manageable and allow Riverside the
opportunity to advance this prospective precious metals project without any major cash
payments for the next 24 months.”
Terms of the Agreements:
The Company has purchased the Violeta concession from Millrock for C$10,000, 100,000
Riverside shares and by granting Millrock a 0.5% Net Smelter Return roya lty. Riverside
concurrently agreed to terms with Gunpoint and signed an option to purchase agreement to
acquire a 100% interest in the three Cecilia-Margarita concessions (the “Option”) by making the
following cash payments and share issuances:
the paymen t to the Optionor of a non -refundable deposit of $10,000 (the “ Deposit”)
concurrent with the execution of the Letter Agreement;
the payment to the Optionor of $15,000 and the issuance to the Optionor of 100,000
common shares of Riverside concurrent with the execution of the Mexican Agreement* (the
“Effective Date”);
the payment to the Optionor of $25,000 and the issuance to the Optionor of 200,000
common shares of Riverside on or before the first anniversary of the Effective Date;
the payment to the Optionor of $75,000 and the issuance to the Optionor of 300,000
common shares of Riverside on or before the second anniversary of the Effective Date;
the payment to the Optionor of $125,000 and the issuance to the Optionor of 400,000
common shares of Riverside on or before the third anniversary of the Effective Date.
*The Mexican Agreement is a subsequent Option Agreement in the Spanish and English languages,
suitable for registration with the Direccion General de Minas in Mexico. The Cecilia-Margarita
concessions are subject to a 1% NSR royalty in favour of the Servicio Geologico Mexicano
(formerly Consejo de Recursos Minerales). Both agreements are subject to approval by the TSX
Venture Exchange.
Additional Project Details & History:
The Cecilia gold system at Cerro Magallanes was systematically explored for the first time by the
Consejo de Recursos Minerales (“CRM”), which has been replaced by the present Mexican
geological survey, the Servicio Geologico Mexica no. A 1981 regional stream sediment survey
identified the area centered on Cerro Magallanes as being a significant gold target and in 1983 CRM
carried out a program of detailed mapping and channel sampling in nearly thirty underground
workings that date back to the 1940’s and which are mainly found on the eastern flank of the Cerro
Magallanes hill. This work was followed up with a program of extensive outcrop sampling (635
samples). In 1988, CRM diamond drilled four boreholes with a combined length of 732.3 meters.
As reported above, drill-holes 88-03 and 88-04 returned +100 meter-long intersections of gold and
silver mineralization, as determined by fire assaying.
In 1993, the Mexican subsidiary of former Canadian gold miner Cambior Inc. optioned the
Magallanes Project, today’s Cecilia Project, from CRM . In the following two years Cambior
Exploración S.A.de C.V. (“Cambior”) completed a ground magnetometer survey and 19 line -
kilometers of induced polarization survey over the volcanic dome complex, channel sampled six of
the larger underground workings, collected 666 rock -chip samples on surface and then diamond
drilled 3,811.6 meters in nineteen holes. The best result of the drilling was obtained by drill -hole
138-95-08, which intersected from close to surface 30 meters grading an average of 1.41 g Au/t .
Cambior terminated the option in 1997 when the company exited Mexico. Relatively little
exploration work has been done on the Cecilia property since the Cambior option period. In 2004,
Chesapeake Gold Corp. optioned the project from CRM and eventually acquired it outright, subject
to a 1% NSR that was retained by the Servicio Geologico Mexicano. Chesapeake conducted rock
sampling, mostly in areas surrounding Cerro Magallanes, and completed three lines of IP survey
over zones of previously identified mineralization . Gunpoint Exploration Ltd. acquired the three
Cecilia-Margarita concessions from Chesapeake in November of 2010 , as part of a broader
transaction with Chesapeake, but has conducted only minor fieldwork on t he concessions since
obtaining them.
The consolidated Cecilia property covers a volcanic dome complex of Tertiary age that forms a
prominent topographic feature locally known as Cerro Magallanes. The complex comprises
extrusive and intrusive rhyolite lith ologies that were deposited on , and intruded into a folded
sequence of older, mainly Cretaceous sedimentary rocks at the intersection of regional
northwest- and northeast -striking fault structures. Gold mineralization at Cecilia is associated
with intense fracturing of the silicic host rocks, extensive disseminated iron oxide alteration and
minor but widespread fluorite that generally occurs with quartz in veinlets. The precious metal
mineralization that has been sampled on surface and in underground workin gs by previous
workers is interpreted by Riverside to be forming the oxidized, high -level portion of an
epithermal mineral system. In addition to having potential to yield a near -surface gold deposit of
stockwork- and breccia-hosted low-grade mineralization , the geological setting of the Project is
considered to be prospective for ‘bonanza’ veins of high -grade gold mineralization as well as
deeper deposits of silver-rich lead-zinc(-copper)_mineralization in the form of large sulphide -
bearing veins and stratabound replacement bodies such as those that have been mined in central
and northern Mexico since the late 16th Century.
For more information on the Project, please visit the Cecilia Project page on the Company’s
website.
Qualified Person & QA/QC:
The scientific and technical data contained in this news release pertaining to the Cecilia Project
was reviewed a nd approved by Locke Goldsmith , P.Geo, P. Eng, 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 team of focused, proactive gold discoverers. T he
Company currently has approximately $3,350,000 in the treasury and less than 37,500,000 shares
outstanding. The Company’s model of growth through partnerships and exploration use s the
prospect generation bus iness approach to own resources, while partners share in de -risking
projects on route to 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
Joness Lang
VP, Corporate Development
Riverside Resources Inc.
Phone: (778) 327-6671
Fax: (778) 327-6675
Web: www.rivres.com
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 othe r 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.