Maurice Jackson: Today we will provide an update on Riverside Resources Inc. (RRI:TSX.V), Where Knowledge is Golden, trading on the TSXV, symbol RRI, and on the OTC, symbol RVSDF. Joining us for conversation is Dr. John-Mark Staude, the president, CEO and director or Riverside Resources.
John-Mark, Riverside Resources has some very intriguing news report out of Sinaloa, Mexico, on the 100%-owned La Silla Gold Project in Mexico. Where is La Silla located and historically is this an area known for producing gold mines?
John-Mark Staude: It's in a great part of western Mexico. It's in the state of Sinaloa just to the east of Mazatlan. So from Mazatlan, it's only about an hour and a half on a paved road right to this project. The reason there's a paved road there is it's a mining district. Just to the east of us is Taylotita and San Dimas, which has produced over eight million ounces of gold. It's produced nearly a billion ounces of silver. These are mega districts in Mexico. Riverside is so excited to have gotten in to La Silla, which is a project that Yamana had worked on previously, acquired it from Meridian, and for us to be able to capture such a great asset, put it together, and now begin to do the exploration. Drill targeting is awesome. It's a very mega mining district area of Mexico.
Maurice: You know, John-Mark, Riverside raised some very impressive assay results. Take us here to table 1 and walk us through them, please.
John-Mark S.: Table 1 is exciting because it has gold, silver, and the interval. You can see the gold values go two, three, five, but particularly nine grams. Then we have even 19 gram gold, high grade gold, and on silver 100 and up to 200 gram silver. So very nice values. These values can also be shown on the map view.
Maurice: John-Mark, walk us through Figure 1 of the La Silla.
John-Mark S.: Here on the map, the La Silla, we have the scale bar on the left of the assay values, and we have the lithologies on there. What you're looking at is an east-west vein. This east-west vein is Cireulos vein, is one of four major veins in the La Silla district. We're so excited to be having multiple locations with high grade values. There's a sample with nine grams gold. There are samples with one, two, three, all the way to 2.5. These long veins over two kilometers, east-west, are really the type of veins that have been developed in the Taylotita mine, San Dimas mine, other mines in this region of Mexico. The green is the volcanic andesites. On the pink is actually the dacites, so the volcanic top boundary is the right place to be. These are fault structures. Good feeder structures, and this there is a cross section line from A to A Prime.
Maurice: John-Mark, what are we looking at here on Figure 2?
John-Mark S.: This is actually the cross section from the south A to the north A Prime. It's looking at the fault contact with andesite and dacite. With large amounts of gold mineralization. We have 9 grams hauled on the surface, we have a parallel vein. We have a wide zone here, up to 30, 40, even 50 meter wide potential zones of mineralization. We're very excited by having these vein zones through here, with the main feeder. And then dacite and lithic tests and faults.
These type of cross sections are key for us to be able to figure out where we want to drill. So we see very easily, standing right at the surface, and drilling right into mineralization, a really great drill target at the La Silla project by Riverside.
Maurice: What will be the next step you look to accomplish at La Silla, based on these results?
John-Mark S.: Based on these good results, we can see continuous more sampling, and immediately going to drill permitting. Being able to find 9 gram gold on the surface, 200 gram silver, having these type of assay values, shows us we have good potential for finding something at depth. So the next stage will be drill permitting, and we'll have that ready for our partner. These are the type of projects that a prospect generator would like to partner, for owning catalysts for a big discovery.
Maurice: Switching gears, for our audience. In April, I was in attendance on a site visit in Sonora state, Mexico, at the Cecilia Gold Project. John-Mark, the value proposition before us here can be astounding. Let me repeat that with an underscore, really astounding. Can you remind the audience of some of the assay results that we have there and the value proposition we have before us?
John-Mark S.: So first off, it's a big hill with no people around it. So you have great access, really big scale, and that's key. The grades of up to two ounces, one ounces of gold, having over an ounce of gold in surface on veins is amazing, and right now we're in the field following that up with more sampling, and going ahead and targeting and figuring out the drill permitting. Getting the drills just right to be able to target these.
Second thing is, we have five other domes at this property. So, it's not just the one hill, but it makes Cecilia an amazing project with amazing upside, and multiple shots at discovery for Riverside shareholders.
Maurice: We often overlook the intangibles that make an issuer successful. So I want to diverge here slightly. Give us some background on John-Mark Staude and your team there. How long have you been in Mexico?
John-Mark S.: Riverside is a team. Myself, I was lucky enough to go to Mexico as a younger person, over 29 years ago, and have been involved in doing geology and exploration, including working at the Mulatos project. I did my doctorate there. We have a great team of people; Ron Burk has been involved in many discoveries, Pedro Herrera is our Mexico manager. We've been working together, on and off together, for over 20 years. Riverside's been going for 11 years, and we've been able to progress, and find partnerships. Owning multiple assets, royalties on all of these projects, makes Riverside really poised for great success in the future, too.
Maurice: Looking at Riverside's portfolio, the predominant position of it is in Mexico. Tell us why.
John-Mark S.: The key thing is, you can do things quickly. You can develop things into production. Secondly is, there are lots of transactions. People know having projects in Mexico, you can turn them into mines, they create value, you can consolidate. I think the third thing is it is part of North America, close to the United States. Easily accessible for capital for people to float, so it's a great place to work. We work in the northern parts, right up along the Arizona, New Mexico borders. Great place to be able to develop discoveries into mines. It's a great mining country, Mexico.
Maurice: I have to tell you, I was thoroughly impressed in how fluent you are in Spanish. You could have conducted today's questions in Spanish for the entire interview. But also, unbeknownst to me as well, you are a subject matter expert on geology and mining in Mexico. You know we drove around about, what 10 hours round trip and we didn't use the same highway on our return, and you intimately knew every crack and crevasse, outcrop, fault, and mine that was in production that we passed. Tell us more about your team in Mexico. Is this an all Mexican staff, is that correct?
John-Mark S.: It is. We've worked with some of the best people from the best universities in Mexico, and we're delighted. There are a lot of great geologists in Mexico, we're honored to have many of them working with Riverside. Secondly, they've been on the roads. We've been traveling these roads, leading tours, been out in the fields. We know these properties, and we also know the local people. We try to work with them by using all Mexican staff. We try to be one, with the people, for the people, to make a difference for Mexico. I think it's great for Riverside shareholders to realize, we can operate all in Spanish. Operating there, taking our capital and turning it into great appreciation of value. Riverside's about value, and working with the local Mexican people is a wonderful way to develop value.
Maurice: With any industry, it's very relationship based, and you hit the nail right there on the head. The intangibles that your team bring, they're local, they know the people, the people know them, it's a great relationship. I was there, I saw it firsthand. This is just a phenomenal team that you have there with Riverside Resources. Now I want to make sure that the audience clearly understands, those intangibles do not show up on the balance sheet. You have to be there to realize it.
Allow me to congratulate Riverside Resources on once again being hand selected by Rick Rule to be an attendee at the Sprott Natural Resource Symposium, which will be held the 17th through the 20th July, in Vancouver, British Columbia. Truly speaks volumes and merit, when the most recognized name in the natural resource base has full confidence in Riverside Resources, and realizes the value proposition as a shareholder.
John-Mark S.: We're really lucky to have them as shareholders. I'm a big shareholder, and we're fully committed to making a difference and being a part of the Sprott Conference. Being able to do an event the day before the Sprott Conference, so we can take some of the invitees and attendees up to visit and get an overview of some of British Columbia's beauty as part of our outreach, and what we really appreciate is at the Sprott Conference, be able to meet with shareholders. For those shareholders who can't attend the Sprott Conference, we're always available to contact us, and reach out and talk to us. We're lucky to have them. Rick Rule, Sprott, and all the shareholders really take that seriously, and work hard to make sure we deliver value.
Maurice: For someone listening that wants to get more information on Riverside Resources, please share the contact details.
John-Mark S.: Please give us a call at 778-327-6671, or go to our website, rivres.com. We'd love to speak to people, and we always try to be available.
Maurice Jackson: And last but not least, please visit our website www.provenandprobable.com where we interview the most respected names in the natural resource space. You may reach us at [email protected].
Dr. John-Mark Staude of Riverside Resources. Thank you for joining us today on Proven and Probable.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
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Disclosure:
1) John-Mark Staide: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Riverside Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: Riverside Resources.
2) Maurice Jackson: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Riverside Resources. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: Riverside Resources is a sponsor of Proven and Probable. Proven and Probable disclosures are listed below.
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