Riverside Resources (CVE:RRI) announced Wednesday drilling has commenced on its Peñoles gold-silver project in Durango State, Mexico, making it the fourth partner-funding drill program the company has underway.
The 2,000-metre drill program will evaluate the grade and size potential of the El Capitan gold target, as well as the potential at the San Rafael and Jesus Maria vein targets.
Located in the Peñoles mining district in Durango State, the Peñoles property covers a 350-square kilometre area. In March 2011, Riverside and Sierra Madre Developments (CVE:SMG) agreed to jointly develop the property.
In consideration for a 51% interest in the property, Sierra Madre must issue 3.0 million shares of its common stock at a minimum value of $0.50 each, make total cash payments of $2.58 million, and incur $3.0 million in exploration expenditures within two years of the agreement.
Previous drilling at the El Capitan target has defined a geologically consistent gold zone, which Sierra Madre will be delineating, extending and studying.
Trench assays at the Jesus Maria target returned 22.0 metres grading 1.08 grams per tonne (g/t) gold, 224 g/t silver, 2.5% lead, and 1.7% zinc, while results from trench assays at San Rafael indicated the presence of several shallow zones of gold mineralizations, and exposed at least three separate vein systems.
In addition to the Peñoles project, Riverside has a 1,200-metre drilling campaign underway at the Libertad gold-silver property located 250 kilometres northwest of the city of Hermosillo, in Sonora State, Mexico, funded by Geolix Exploration (CVE:GIX), a 2,000-metre program at its Chapalota gold-copper property, on the western side of the Sierra Madre occidental region of Mexico, funded by Guerro Exploration (CVE:GEX), and a 5,000-metre drill program, funded by Choice Gold (CSNX:CHF), at the Sugarloaf Peak gold property in Arizona.
Riverside shares were flat from Tuesday's close on the TSX-Venture, trading at $0.95 as at 10:36 am EDT.
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