A few months ago, Riverside Resources (RRI.V) confirmed it had attracted Carlyle Commodities (CCC.C) as a joint venture partner on the Cecilia silver-gold project in Sonora. Riverside still is the operator of the exploration programs and has now released the results of the channel sampling results from the North Breccia and San Jose targets. The assay results of 21 samples have been received from the lab, and Riverside has published the four best results with excellent gold grades.
Of course, these are the four best sample results and the remaining 17 samples will obviously have a much lower grade and some samples may not have been mineralized at all, but the maps included in the press release show some additional assay results which were left out from the table. With additional results of 0.6-0.7 g/t gold around the Cerro Magallanes dome, the company continues to encounter gold mineralization within a 500 by 500 meter block of land. The current interpretation of the sampling results suggests it is possible the North Breccia and San Jose targets may actually intersect each other at depth. In order to further advance this exploration target, Riverside Resources will complete an airborne aeromagnetic survey with a drone and complete an IP survey which could help to refine the targets at depth ahead of a drill program that will be funded by partner Carlyle Commodities.
Meanwhile, Riverside’s Spinco, Capitan Mining (CAPT.V) – which owns the Peñoles asset -has come out of the gate fairly strong and is currently trading at around C$0.35/share. Considering every shareholder of Riverside received 0.2594 shares of Capitan per share of Riverside, the market value of the spinco now represents just over C$0.09 which is only marginally lower than Riverside’s 52 week low in March (C$0.10). The timing worked out to be excellent with a high gold price and renewed interest in precious metals exploration and we are looking forward to see the value Capitan Mining is planning to unlock as a standalone company.
Disclosure: The author has a long position in Riverside Resources and Capitan Mining. Riverside is a sponsor of the website.