Riverside, Centerra see promise at Glor in Sonora

VANCOUVER — Prospect generator Riverside Resources (TSXV: RRI) has launched into a 2,000-metre drill campaign with partner Centerra Gold (TSX: CG; US-OTC: CAGDF) at their Glor gold project, 8 km west of Alamos Gold’s (TSX: AGI; NYSE: AGI) El Chanate gold mine in Sonora, Mexico.

The partners aim to test the shallow depth extensions of the project’s Pitaya target, a zone of stockwork and disseminated oxide gold mineralization that extends at least 500 metres north–south and 160 metres east–west at surface.

The first hole will be drilled between two trenches that returned 105 metres of 0.49 gram gold per tonne and 84 metres of 0.53 gram gold, whereas the other four holes would test the eastern extensions of the zone.

Riverside’s president and CEO John-Mark Staude tells The Northern Miner in an interview that Pitaya is one of five, largely undrilled targets across the 49 sq. km property.

A drill rig at Riverside Resources’ Glor gold property in Sonora, Mexico. Credit: Riverside Resources.

“The claims have been known about for decades, and people have looked at the small historical workings and prospects, but no one has ever trenched before,” Staude says. “With the trenching we’ve found extensive mineralization zones, and widened the small high-grade mine occurrences, so we’re looking forward to seeing what’s at depth.”

He adds the geology is similar to what’s seen at Alamos’ El Chanate mine. Most of the mineralization appears structurally controlled in an orogenic gold-style setting, and occurs at a contact between an iron-rich andesite and an underlying package of deformed sediments.

Staude says the grades across Pitaya are consistent, and the target appears shallow and flat, which would make it more amendable to a heap-leach, open-pit operation similar to El Chanate.

Location and results of trench samples at Riverside, Centerra’s Glor gold project. Credit: Riverside Resources.

Alamos expects El Chanate will produce between 50,000 and 60,000 oz. gold at all-in sustaining costs of US$1,200 per oz. gold this year. The deposit has open-pittable proven and probable reserves of 10.8 million tonnes of 0.56 gram gold for 193,000 oz. gold, and another 100,000 oz. gold in its leach pad.

“We see the opportunity of potentially developing a resource next to a hungry mine,” Staude says, suggesting Alamos may only have a few more years of production left at El Chanate. “We see Glor as being a great fit for the mine next door.”

Riverside has completed 18 trenches totalling 3.4 km long, with most of them over Pitaya. Recent results, delivered on April 17, highlighted 18 metres of 0.45 gram gold and 9 metres of 0.64 gram gold in channels north and south of current drilling and previous trench results.

Centerra joined Riverside at the project  last year, agreeing to spend US$3.5 million over the next four years to earn 70% of the project. Under the agreement, Riverside will operate the project for the next two years.

“Centerra saw us as a competent group that has a skilled team,” Staude says. “We’ve been in Mexico for a decade. We find good geology, we operate safely and we’re cost efficient.”

Riverside shares have traded within a 52-week range of  27¢ to 60¢, and closed at 48¢ at press time. The company has 43.8 million shares outstanding for a $20.5-million market capitalization.