Riley Gold Corp. (RLYG:TSX.V; RLYGF:OTCQB) is planning to advance its gold projects coming off the company’s recent CA$2.6-million capital raise through private placement, in which it issued 6,500,000 units at CA$0.40 per unit for project exploration and general working capital.
The company estimates that the bulk of the funds are for “in-the-ground work” to advance its two ongoing exploration projects: the Tokop Gold project located with the Walker Lane Trend, and the Pipeline West/Clipper project located in the Battle Mountain Eureka Trend.
Riley Gold Corporation is a junior exploration company focused on highly prospective gold assets in Nevada. Nevada is a top-ranked jurisdiction, one of the most gold-endowed states and the sixth largest gold-producing region in the world. The state is said to have a favorable geopolitical climate and a good workforce for mining. The company said it looks for strong indicators of prospects before homing in on a project.
Chief Executive Officer, Todd Hilditch, noted that recent offering was oversubscribed due to “the tight group of investors” who participate, and that “90% of the participants (in the recent private placement) are people we have done business with before…” over the course of the management team’s careers.
The seasoned management team, starting with Executive Chairman of the Board, William Lamb, has a track record of maximizing shareholder value during the exploration, development, and production phases in the mining life cycle. With 32 million shares outstanding, management’s interests are aligned with shareholders, Hilditch said, in that the management group currently owns close to a 20% stake in the tightly structured company.
Tokop Gold Project
Tokop is in late Phase I drilling stage. Tokop is located in the Walker Lane trend near other projects that are either currently in production or have been in the past, indicating a good jurisdiction for Riley’s project, he said. The results of the company’s mapping and sampling program identified high-grade gold.
“We like to use as many tools as possible…We have to check 3 to 4 boxes before we take a project on.” Historical work including favorable rock and chip channel sampling results, as well as previous successful drilling led Riley to acquire the Tokop project.
“We subsequently completed mapping (including veins at surface), initiated a 120-plus rock chip sampling program that returned high-grade gold at surface and then launched a maiden drill program. The first three holes targeted near-surface quartz veins, shears, and mineralized fault zones. The initial highlights indicated high-grade gold at surface and high-grade below surface, confirming that this a good project to further investigate.” The next step is to identify a broader target of opportunity in the Tokop Gold project. “We want to find the deposit and not just the veins,” he said.
Pipeline West/ Clipper Gold Project
Pipeline West, which is approximately 25 square kilometers, is earlier in its development cycle.
In the most gold-endowed regions, the big mining companies believe “the way to find another deposit is to draw a circle around the current one and go look,” says Hilditch. Fortuitously, the company’s second property, Pipeline West, adjoins the Pipeline Gold complex (and by extension the Cortex Complex) owned by Nevada Gold Mines JV, a joint venture of two of the world’s larger producers, Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) and Newmont Corp. (NEM:NYSE).
Riley Gold’s property border is only 1,800 feet from one of Nevada Gold Mines’ deposits, Gold Acres, that has approximately 1 million ounces of 2.6 gpt gold, he said. “We hope by proximity, there could be an extension of the gold zone in which the Nevada Gold Mines is producing from.”
The Pipeline West Project resides in the Battle Mountain Eureka region. “It is a great location for elephant hunting,” for large gold deposits, so a different exploration approach is required than the one used in Tokop. Rather than employing a sampling program, looking for gold traces at surface, the project will start this autumn with geophysics in order for the company to look for areas of structural weakness where fluid containing gold could have traveled.
The results from the geophysics will help identify targets for the starting point for a drilling program, he said. “We expect that our targets for spring/summer 2022 drilling will be 1,000 feet plus.”
Historically high gold prices have been fueling a push in the gold sector that has both pluses and minuses. "Having hundreds and hundreds of companies like us” with projects at the same point of their life cycle makes things more difficult for the company, such as staffing with enough qualified workers and pushing samples through the assay labs and getting timely results.
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1) Gerri Leder compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None. His/her company has a financial relationship with the following companies referred to in this article: None.
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