Riverside Resources (CVE:RRI) reported Thursday that partner Choice Gold has started an initial 5,000 metre diamond drilling program at the Sugarloaf Peak Gold project outside of Quartz site, Arizona, United States.
The first phase of drilling plans to target gold-bearing alteration zones and major structures recognized during the recent surface sampling campaign.
The Sugarloaf Peak Gold project covers over 24 kilometres and has been the object of intermittent drilling and small scale mining during the 1950s through the 1990s.
Riverside said the program is also designed to include deeper holes to test the 2.5 kilometre long chargeability anomaly identified at depth during April's Titan 24 ground survey.
The 5,000 metre program at Sugarloaf Peak has the potential of hitting high-grade feeder structures near surface, Riverside said in a statement.
"This is the third partner funded drill program concurrently underway and Riverside shareholders can look forward to a steady stream of news flow and results ahead,” said Riverside’s John-Mark Staude, chief executive.
In February this year, Riverside signed an option deal with Choice Gold Corp, whereby Choice Gold could acquire a 100% stake in the Sugarloaf property.
In exchange for the stake, it must issue Riverside a sum of 13.6 million shares, of which Riverside has received 8.6 million shares thus far, in addition to cash payments worth $1.7 million. Choice must also incur $5.5 million in exploration expenditures on the property within 36 months of the deal.
Vancouver, B.C.-based Riverside has properties in Mexico and the United States. Currently, the company is jointly advancing eight gold and silver projects with partners, and operating a $1.5 million exploration alliance with Cliffs Natural Resources.
Shares in Riverside were up one cent, or 0.89% to $1.13 Thursday as of 3:18 p.m.