Friday, 29 July 2011

Riverside, Mexigold start drill programs on gold projects in Mexico

Mineral explorer Riverside Resources, Inc. (CVE: RRI) on Thursday said its partner Mexigold Corp. (CVE: MAU) has begun drill targeting programs at the Catrina and Pedernal gold projects in Durango, Mexico.

Vancouver-based Riverside said the exploration program aims to increase discovery potential building-on work finished during the Kinross-Riverside Alliance.

The programs will include soil and rock chip sampling, as well as ground magnetics, inverse-polarity geophysics surveys and trenching to refine targeting for the first phase of drilling on each property.
After the work programs at Catrina and Pedernal a sampling program is expected to begin at the Escondida. All three properties are located in a highly productive Mesa Central Region of Mexico.

Thus far, 827 soil samples were collected and have been sent to the lab for assaying, Riverside said. Further rock sampling and a trenching program will test the degree of alteration and mineralization in areas of shallow cover.

Final drill planning, environmental permitting and mobilization are expected to follow the initial phases of this work program with drill testing expected to start in the fall.

Additionally, an induced polarization program consisting of 16 line kilometres will be completed at the Pedernal project, as well as geochemistry sampling, mapping and trenching work.

Further, planned work on the Escondida property will include a targeting program to delineate the proposed drill program on the property.

This will include assaying 1,685 soil samples already collected, further rock chip sampling, ground magnetics, and a continuation of the inverse-polarity geophysics survey that has identified an east-west striking trend through the main drill target zone.

The planned drill testing at Escondida will be carried in the second year of the work program.
Under the joint venture deal, Mexigold can buy a 75% stake in the Durango properties if it spends $4 million on exploration within 36 months, make cash payments of $500,000 to Riverside and issue 2.6 million shares of Mexigold.

Also included in the exploration commitments, Mexigold must drill a minimum of 3,000 metres on the Durango properties in 12 months from the date of the agreement.

"Riverside continues to unlock value by leveraging the strength of its partnership network to advance projects toward discovery,” said Riverside’s Chief Executive, John-Mark Staude.

“The work programs developed with Mexigold have been designed to increase discovery potential and forward the projects toward near-term drill testing.”

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