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Riverside Resources (TSXV:RRI) begins drilling in Mexico

Mining
TSXV:RRI
27 October 2020 15:27 (EDT)
Riverside Resources - President and CEO, John-Mark Staude

Source: Mining Clips

Riverside Resources (RRI) has launched a 2,000-metre diamond drill program at its Cuarentas Gold Project in Sonora, Mexico.

The program will consist of an initial 10 holes, focused primarily on the historic Santa Rosalia Mine and Santa Rosalia Sur gold vein target areas, which are located roughly one kilometre apart and form part of a larger epithermal vein system.

This work will seek to test the strike and depth continuity of the gold-bearing veins.

Riverside has contracted Hermosillo-based Globexplore to carry out the drill program, which is being undertaken in partnership with London Stock Exchange-listed Hochschild Mining pursuant to an option agreement dated June 24, 2020.

Under the terms of the agreement, Hochschild may acquire an initial 51 per cent of the Cuarentas Project by assuming roughly C$10.54 million in exploration expenses over a five-year period.

Hochschild may then acquire an additional 24 per cent of the project by assuming a further $3.95 million in exploration expenses and by delivering a completed feasibility study.

This current exploration program represents roughly $922,000 in exploration expenses.

John-Mark Staude, President and CEO of Riverside Resources, said the drilling program will build on already completed channel sampling and trenching work.

“Our team has enjoyed the collaboration and joint technical expertise working with Hochschild Mining as a mining partner, and we look forward to testing these initial discovery targets together.

“This is an exciting time for Riverside and its shareholders, as we enter the final quarter of 2020 with exposure to new discoveries through several different partner-funded drill programs,” he added.

Riverside Resources (RRI) is currently up 19.15 per cent to $0.28 per share at 11:13am EDT.

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