Riverside Resources announces 1.7 g/t gold over 33.5m returned from Penoles

Riverside Resources (CVE:RRI) and its partner, Sierra Madre Developments (CVE:SMG), announced Monday positive drill results from the Main Zone of the El Capitan target on their Penoles project in Durango, Mexico.
Best results from the 18-hole program include 1.69 g/t gold over 33.5 metres, 2.41 g/t gold over 8.1 metres, and 3.1 g/t gold over 4.2 metres, each in a wider interval of 88.4 metres grading 0.82 g/t gold, in hole CDDH-11-17.
Meanwhile, hole CDDH-11-18 intersected 33.9 metres grading 1.4 g/t gold, including 2.1 g/t gold over 15.6 metres.
The holes were completed as part of a total of 2,220 metres of HQ core drilling. Several holes encountered near-surface mineralization in excess of 70 metres, Riverside said.
According to the companies, the mineralization, which was encountered in the central and northwestern parts of the Main Zone, showed improvement in grade and thickness from previous drilling.
The Main Zone has now been traced over a strike length of about 700 metres, and appears to be open for expansion down dip and along strike to the west.
Other notable results from the drill program included 61.3 metres grading 0.7 g/t gold, including 1.52 g/t gold over 14.4 metres and 4.4 metres at 2.43 g/t gold, in hole CDDH-11-16.
Hole CDDH-11-03 returned 90.7 metres grading 0.6 g/t gold, including 6.4 metres of 1.9 g/t gold, while hole CDDH-11-07 returned 108.4 metres of 0.41 g/t gold.
Riverside said its preliminary geological work had indicated the potential for a bulk tonnage, low grade deposit, with recent drill results validating that conceptual model for the El Capitan target.
Based on the assay results from the 2011 drill holes and the reported results from the 2004 and 2008 drill programs, the El Capitan target warrants expanded drill testing
Earlier this year, Riverside agreed to option a 51 percent interest in the Penoles property to Sierre Madre. Sierra Madre is required to issue a total of 4.5 million shares of its common stock, make total cash payments of $2.85 million to Riverside, and incur $4.5 million in exploration expenditures for the stake.
Sierra Madre must also fund the cost of metallurgical studies and drilling required to calculate an initial resource estimate at the El Capitan target.
The Penoles project is located 70 kilometres to the south of Argonaut Gold's Castillo Mine, which is currently producing over 50,000 ounces a year. In addition to El Capitan, the Penoles property hosts two historic silver mines that were operated in the late 1800s, including Jesus Maria, where extensive backhoe trenching was carried out concurrent with drilling at El Capitain, intended to assess the thickness and grades encountered. A single drill hole was completed at the historic site to determine if mineralization continues at depth. Riverside is awaiting these results.