Maurice Jackson: Joining us for a conversation is the CEO of Riverside Resources Inc. (RRI:TSX.V; RVSDF:OTCQB), Dr. John-Mark Staude, along with Bryce Jackson of Proven and Probable.
Pleasure to be speaking with you both. John-Mark, when we last spoke, you stated "how bright the future is for Riverside shareholders," and how fitting that statement is for today's discussion. As I know, you have some very interesting developments coming from Sonora, Mexico, on what is your most active current drill project in the Riverside property bank, which is the Cuarentas Gold Project.
John-Mark, let's lay the foundation for today's discussion. Take us to the Cuarentas Project and walk us through the genetic model and some of the historical work and the high-grade results from that work.
John-Mark Staude: I just returned this week from Mexico and it was bright down there. It is so much fun. The team is drilling, the work is going on, and today's news release highlights the continuation of the exciting progress that we continue provide to the market on the developments on the Los Cuarentas. The work that we are conducting is actually quite exciting! We are having a lot of fun with the team.
Maurice Jackson: John-Mark, what are we looking at here?
John-Mark Staude: In the lower portion, which is multicolor, is a map of western Mexico, the state of Sonora, Mexico. It's about the same size as the state of Nevada. And we do a blowup to look at the location of the Los Cuarentas Project, which is 15 kilometers by dirt road from the mining town of Arizpe. Recently, we've heard the nice news results coming from Las Chispas. We also know there's lots of mining happening at the Mercedes Mine. Also, Agnico Eagle Mines Ltd. (AEM:TSX; AEM:NYSE) is operating up here at Santa Gertrudis. So what we're looking at is the location of Los Cuarentas surrounded by lots of mines in a great location in Sonora, Mexico.
Maurice Jackson: The location is paramount. You're in a great jurisdiction; there are proven mines in the area. And John-Mark, you just returned from Sonora, completing work on the Cuarentas and I understand you have some very, very encouraging news to share with investors.
John-Mark Staude: Riverside is in the right geologic environment, as shown above in the geologic map depicting the Northwest Trans. And so what we can say is we're finding big geology, nice, good opportunities. And this news release, touching upon some of the geophysics, is great. We're hitting good soils, we're having good rock geochemistry, and we've come up with a three-dimensional model that we're now drilling.
The old mines that we have at the Cuarentas, where previously there was mining, we're now able to drill our IP (induced polarization) anomalies. So right now, this news release touches upon the IP, touches upon how we see the old workings and this plan of drilling. The next news release will be the drill results, as we're drilling into these features now.
So for us, it's very exciting times to be exploring, and to be down there in Mexico with the guys. It was excellent to see that the programs are on track and particularly finding high-grade gold continuously along with different structures and finding large footprints from the soil anomalies showing that we have interesting potential for shear zone gold here at the Cuarentas project.
Maurice Jackson: John-Mark, you referenced drill results. When can investors expect those?
John-Mark Staude: We are now sending the samples to the lab. I just had a phone call from our qualified person who's there in Mexico today. He's going to the lab to check and make sure we're following through with all the QA/QC procedures. What we see out of all of that is a chance to have the news release in the next three to five weeks. Looking forward to that.
Maurice Jackson: Dr. Staude, what do you think of the timing for the drill results? As we understand the samples are being sent to the laboratory and the results will be reviewed and interpreted along with your partner Hochschild Mining Plc (HOC:LSE), the Peru-based mining powerhouse.
John-Mark Staude: Working with Hochschild is so great. They have a good technical team and it's been great to have them out in the field. Together, we've been able to do optical mapping and we've been able to do a lot of work with the drill core. We're using an oriented core. It's so exciting to have a sense down deep of what the intersection is of these faults and what the fault structure is really, instead of just trying to have to guess.
And so for us, the timing of between three to five weeks to get the assays back makes sense. And being able to put those together with Hochschild is terrific, and then to go ahead and put out the news about this first phase of what we hope to see multiple different phases.
Overall, this option agreement is over $8 million of spending by Hochschild for them to earn into the project. And if that is not completed and they don't complete the 51% earning, we keep all the data; the project's still a 100% Riverside. We are working together collaboratively, and having Hothschild working in Peru, as well as in Mexico, with us helps us to expand Riverside's footprint as well.
Riverside continues to work with partners in all we do. And in this case with Hochschild, we're very excited by the progress at Los Cuarentas.
Maurice Jackson: Great use of leverage and good business acumen. Speaking of results, before we close, John-Mark, what are some of the other pending news releases you have coming?
Cecilia Gold Project
John-Mark Staude: Riverside shareholders really like the value proposition before us on the Cecilia. We are working with Carlyle Commodities, and the combination of synergies has been working exceptional. Carlyle recently completed financings and moving ahead for the Cecilia Project. That's good, and we're looking forward to that in the new year. Also, the work that we're doing with BHP, where we have five projects moving ahead. Next week, we plan to have a meeting with BHP Billiton Ltd. (BHP:NYSE; BHPLF:OTCPK) regarding those five projects, so we hope to have more encouraging newsflow regarding our work with BHP.
A third one is the La Silla Project. We're working to finalize a deal on that one. And if that comes out, that'd be another step. Right now there's so much happening in Mexico. It's really exciting with companies like Vizsla Resources Corp. (VZLA:TSX) and GR Mining; so many groups working around the region. So for us, the La Silla project is a great place to go.
And lastly, of course, we're working in Canada. Winter has come and we're dealing with the wintertime, but we've had a good fault program. And we're working now to unlock the value for Riverside shareholders. Last year, we unlocked the value here by promising to develop Capitan Mining, and then this year that's happened.
As we look forward to 2021, we want to unlock the value for our shareholders and ourselves. As a large shareholder, recently I picked up more shares myself of Riverside. And so far I've never sold a share of Riverside. I love being a shareholder. And for us, the Canadian assets in Ontario are excellent.
Maurice Jackson: Truly a banner year for Riverside Resources. Ladies and gentlemen, I'd like to introduce my 10-year-old son, Bryce Jackson. As he has some questions for Dr. Staude, Bryce, the floor is yours, son.
Bryce Jackson: Dr. Staude, can you tell us about the capital structure for Riverside?
John-Mark Staude: Well, Bryce, I'm so delighted. You're the youngest person that's ever interviewed me. And it's great that you're a shareholder. It's also so neat that you've talked your twin brother and older brother into becoming shareholders, as my children, too, are shareholders. And the reason why is, we value the shares.
Riverside has fewer than 69 million shares out. We've gone for 14 years and we're focused on capital structure as one of the key strong points.
Bryce Jackson: Dr. Staude, if investors want to learn more about Riverside, please share the website address.
John-Mark Staude: Please come to the website www.rivres.com. Also, you can give us a phone call at (778) 327-6671. Look forward to speaking with any of you, and please come to the website, where we're constantly updating, and we'll have more news coming out for Riverside.
Maurice Jackson: Dr. Staude, thank you for visiting us today. Wishing you and Riverside Resources the absolute best, sir.
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