Feb 14 2011
Riverside Resources Inc. (TSX VENTURE:RRI)(PINK SHEETS:RVSDF)(FRANKFURT:R99) has announced that BCY Resources Inc. (TSX VENTURE:BCY) and Riversides Resources Inc. have entered into an option agreement whereby BCY can acquire a seventy-five percent (75%) interest in Riverside's 100% owned Catrina, Escondida, and Pedernal projects, located in Durango and Zacatecas, Mexico (collectively the "Durango Properties").
In order to exercise the option BCY must issue Riverside an aggregate 2,600,000 BCY shares, make total cash payments of $500,000 to Riverside, and incur an aggregate $4,000,000 in exploration expenditures on the Durango Properties within 36 months of the agreement.
The three properties were generated through the Riverside-Kinross Exploration Alliance during 2009 and 2010. Drill target areas were previously developed and now BCY has made a firm commitment to conduct drill testing on each property in the coming 12 months.
"The Durango Properties option agreement is another positive development for Riverside, as the Company continues to take steps towards unlocking value for its shareholders. Riverside previously stated that it would consider bundling Durango projects into a major asset deal, and with today's announcement the Company has accomplished this goal by delivering a multi-project drilling and exploration deal through its joint venture business model," stated John-Mark Staude, President and CEO of Riverside Resources Inc.
Property Details:
All three of the Durango Properties are located along the prolific and mineral rich Mesa Central Silver-Gold Belt. Extensive groundwork has been completed by Riverside geologists identifying multiple drill ready target areas. The highlights for each property are summarized as follows:
Catrina Gold Project
Catrina is a drill ready target with features similar to major nearby mines and deposits. Riverside recently released information showing a geophysical response at Catrina comparable in scale to the Camino Rojo and Penasquito projects. These projects also have similar trace element geochemistry (gold-silver-zinc-lead). The surface gold values and rock alteration at Catrina are indicative of hot water flow which could have potentially deposited gold and silver.
Escondida Gold Project
Escondida is in northwestern Zacatecas and is surrounded by major deposits owned by Silver Standard, PanAmerican Silver, Penoles and Orko Silver. Escondida is in a gold-silver trend hosting over five million ounces of gold. 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 east-west striking trends likely represent mineralized structures that were identified through a completed geophysical IP survey with the target area remaining wide open in multiple directions.This is a high priority drill target which warrants more extensive geophysics and follow up exploration.
Pedernal Gold-Silver Project
This project has typical characteristics of upper zone high grade silver mines in Mexico. The veins stretch across the surface and peak out from thin young gravel cover. They are exposed for more than 15 kms in total and the network of silica veining associated with breccia zones indicates potential for epithermal upper level porphyry style mineralization. Four principle north-west trending structural zones have been mapped to date. The zones with the highest anomalous geochemistry values range from < 5 ppb to 265 ppb Au with supporting trace element silver, arsenic, antimony and mercury.
Additional Agreement Terms:
The payment of 600,000 shares, $100,000 (6 & 12 month payments), and $1,200,000 in exploration expenditures required by the first anniversary of the Definitive Agreement are firm commitments on the part of BCY. The agreement includes a firm 3,000 metre drilling commitment in year one, and a commitment to drill a minimum of 6,000 total metres within the first 24 months. After the first 12 months, during which Riverside will act as the Operator, BCY shall have the right to act as the Operator or to appoint a third party consultant to act as operator for all exploration programs until the option has been exercised. Upon exercising the option, BCY and Riverside shall be deemed to have formed a joint venture and interests in the Durango Properties will be 75% and 25% respectively. BCY has applied with the TSX Venture Exchange to change its name to "Mexigold" and has announced a share consolidation that will take place prior to the share issuances within this agreement. Further details on the agreement can be obtained by viewing the Material Change Report filing on SEDAR.
Source: Riverside Resources Inc.