Riverside Signs New Partnership Agreement to Advance La Silla and Provides Glor Project Update
Riverside Signs New Partnership Agreement to Advance La Silla and Provides
Glor Project Update
VANCOUVER, British Columbia, July 11, 2018 -- Riverside Resources Inc. ("Riverside" or the "Company") (TSX-V:RRI),
and Sinaloa Resources Inc. (“Sinaloa”) is pleased to jointly announce that they have signed a letter of intent (the “LOI”)
whereby Sinaloa can earn up to 100% interest in Riverside’s La Silla Project (the “Project”) located in Sinaloa, Mexico. The
Project includes 2,071 hectares situated along the same regional trend and with the mineralization style as First Majestic’s
San Dimas mine. Historic production along this trend has been estimated to total 11 million ounces of gold and 582 million oz.
of silver, placing the district fourth in Mexico for precious metal production after Pachuca, Fresnillo and Guanajuato1.
Riverside’s President and CEO, John-Mark Staude, stated: “We are pleased to have this new option partnership with
Sinaloa Resources who will progress the exploration and move toward drilling several of the targets our 2018 generative
exploration program has developed. We applied our property and technical databases to select, acquire, and work up the La
Silla Project to now a joint venture option level with firm work commitments and payments in shares and cash back to
Riverside. We are excited to help operationally by working with Sinaloa Resources on rapidly progressing the testing of targets
and expanding on the recently sampled extensions of high-grade gold and silver veins. We look forward to being a
shareholder and creating significant shareholder value together by applying our combined technical and operational expertise.”
Under the terms of the LOI, Sinaloa has the option to earn up to 100% interest in the La Silla Project. The initial option to earn
70% is predicated upon the issuance of Sinaloa shares at a value of $1,000,000, $60,000 in cash payments and exploration
work commitments of $3,000,000 over 36 months. To earn an additional 30%, Sinaloa must incur a further $1,000,000 in
exploration and issue Riverside additional Sinaloa shares at a value of $500,000. Riverside will retain a 2.5% NSR on the
Project should Sinaloa complete 100% earn-in or Riverside’s interest dilutes to less than 10%.
Sinaloa Resources CEO, Jonathan Denesovych, stated: “When we looked at opportunities in the region, La Silla stood out
for its prime location and encouraging exploration findings. The La Silla Project is well situated between the San Dimas and El
Gallo vein systems currently mined to the north and south, and investigations produced high-grade samples which suggest La
Silla could host a high-grade vein system with large strike possibilities in the northwest section of the property that seem
extremely promising.”
La Silla concessions form an integral part of the historic La Silla district. Six drill-holes completed on the El Roble vein system
by Meridian Gold in 2004 confirmed the presence of high-grade disseminated mineralization with highlighted intercepts
including 15 metres of 6.9 g/t Au (DDH001). In addition, historic rock chip samples of up to 58 g/t gold and up to 426 g/t silver
suggest the presence of a second major vein system. These findings are further bolstered by recent Riverside mapping and
sampling programs, which confirm the presence of high-grade gold and silver mineralization at surface with results ranging
from <0.05 up to 7.24 g/t gold and from <0.05 up to 148 g/t silver (see Riverside’s press release, June 29, 2016). For the most
recent rock chip samples, please see Riverside latest press release dated June 19, 2018 (TSX.V | RRI.V - www.rivres.com).
Riverside geologists recently collected 52 chip, channel and grab samples as part of a focused exploration program, with
assay results ranging from <0.05 up to 19.9 g/t gold and from <0.05 up to 200 g/t silver. Five of the samples returned greater
than 1 g/t gold, and the new sampling program appears to have extended the strike length of known veins, while also
identifying new vein structures.
The recent work focused both on known areas of mineralization and further exploring the concessions for new showings,
abandoned workings and potential structures that might host additional gold mineralization. Numerous shallow, old workings
are found on this structure where local gambosinos (prospector miners) have accessed and processed small amounts of high-
grade gold mineralization over the past decade. Riverside is finding these areas among others as regions that could be drill
tested with partner, Sinaloa Resources.
Sinaloa Resources Director & Chief Geologist, William Cronk, stated: “We’re very pleased to have formed such an
excellent working relationship with Riverside. Leveraging their quality exploration work presents a great opportunity for both
companies’ shareholders. This agreement is also a major step towards Sinaloa’s objective to becoming a leader in high-grade
gold exploration and development.”
Glor Gold Project Update:
Riverside and Centerra Gold Inc. (“Centerra”) will not be continuing with further exploration at the Glor Gold Project. Riverside
and Centerra had worked up targets and managed the completion of two rounds of exploration drilling. The drill campaigns
successfully intercepted targeted zones at depth after positive surface exploration results, but assays returned insufficient
mineralized thickness and continuity to justify further exploration funding from Centerra. Riverside believes the best targets
have been adequately tested and therefore has terminated the underlying option earn-in agreement with Argonaut Gold and will
focus its own efforts on advancing other more prospective projects within the Company’s portfolio.
Riverside’s President and CEO, John-Mark Staude, stated: “Testing and turning over projects is all a part of the process
for a Project Generator like Riverside. Our shared-risk exploration model allows the Company to deliver drilling at projects like
Glor and expose shareholders to new discovery potential without taking on significant financial and share structure dilution.
We have gone over a decade and have fewer than 45M shares issued and believe this commitment to protecting the
Company’s share structure will help deliver more value to shareholders when a major exploration success is achieved.”
Qualified Person and QA/QC:
The scientific and technical data contained in this news release was reviewed and/or prepared under the supervision of
Freeman Smith, P.Geo., with Riverside Resources Inc. is a non-independent qualified person to Riverside Resources Inc. 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 an exploration company driven by value generation and discovery. The company has approximately $2,500,000 in
cash, fewer than 45M shares issued and 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:
Raffi Elmajian
Corporate Communications
Riverside Resources Inc.
Phone: (778) 327-6671 ext. 312
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.
1 https://www.firstmajestic.com/projects/producing-mines/san-dimas-silver-gold-mine/