NI 43-101 Technical Report

Transcription

43-101 Technical Report on the
Clemente Silver-Gold Project
Municipality of Pitiquito
Sonora, Mexico
Prepared for
Prepared by
Riverside Resources Inc.
Suite 1110, 1111 W. Georgia St.
Vancouver B.C. Canada V6E 4M3
David S. Smith, MS, MBA, CPG
3803 NE 120th St.
Seattle WA USA 98125
February, 28 2014
43-101 TECHNICAL REPORT, CLEMENTE SILVER-GOLD PROJECT, SONORA, MEXICO
RIVERSIDE RESOURCES INC.
Table of Contents
1
2
Summary ..........................................................................................................................................................................................1
Introduction ....................................................................................................................................................................................3
2.1 Sources of Information..........................................................................................................................................................3
2.2 Current Personal Inspection .................................................................................................................................................4
2.3 Independent Qualified Person .............................................................................................................................................4
3 Reliance on Other Experts............................................................................................................................................................4
4 Property Description and Location.............................................................................................................................................4
4.1 Land Title.................................................................................................................................................................................4
4.2 Mexican Mining Law..............................................................................................................................................................5
4.3 Nature and Extent of Title....................................................................................................................................................7
4.4 Environmental Liabilities ......................................................................................................................................................7
4.5 Permitting ................................................................................................................................................................................8
4.6 Map Projection........................................................................................................................................................................8
5 Accessibility, Climate, Local Resources, Infrastructure, and Physiography ..........................................................................8
5.1 Accessibility .............................................................................................................................................................................8
5.2 Climate and Vegetation..........................................................................................................................................................8
5.3 Surface Rights..........................................................................................................................................................................8
5.4 Physiography ........................................................................................................................................................................ 10
5.5 Local Resources ................................................................................................................................................................... 10
5.6 Infrastructure........................................................................................................................................................................ 10
5.7 Potential Facilities Sites....................................................................................................................................................... 10
6 History........................................................................................................................................................................................... 11
7 Geological Setting and Mineralization ..................................................................................................................................... 11
7.1 Regional Geology ................................................................................................................................................................ 11
7.2 Property Geology ................................................................................................................................................................ 12
7.3 Mineralization....................................................................................................................................................................... 17
8 Deposit Types .............................................................................................................................................................................. 24
8.1 Orogenic Gold Deposits .................................................................................................................................................... 24
8.2 Low-Sulfidation Epithermal Gold-Silver Deposits........................................................................................................ 25
8.3 Exploration Model .............................................................................................................................................................. 26
9 Exploration................................................................................................................................................................................... 27
9.1 Extent of Sampling.............................................................................................................................................................. 28
9.2 Mapping, Sampling, and ASTER Results ........................................................................................................................ 28
9.3 Exploration Targets............................................................................................................................................................. 31
10 Drilling........................................................................................................................................................................................ 34
11 Sample Preparation, Analysis, and Security .......................................................................................................................... 34
11.1
Quality Control.................................................................................................................................................................. 35
12 Data Verification....................................................................................................................................................................... 35
13 Adjacent Properties .................................................................................................................................................................. 36
14 Mineral Processing and Metallurgical Testing ...................................................................................................................... 36
15 Mineral Resource & Mineral Reserve Estimates.................................................................................................................. 36
16 Other Relevant Data and Information .................................................................................................................................. 36
17 Interpretation and Conclusions .............................................................................................................................................. 36
17.1
Interpretation and Conclusions ...................................................................................................................................... 36
17.2
Significant Risks and Uncertainties ................................................................................................................................ 37
18 Recommendations .................................................................................................................................................................... 37
18.1
Exploration Program........................................................................................................................................................ 37
18.2
Drill Program..................................................................................................................................................................... 38
19 References .................................................................................................................................................................................. 41
20 Certificate of Qualified Person ............................................................................................................................................... 42
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Figures
Figure 4-1. Clemente property location, Sonora, Mexico. ...............................................................................................................6
Figure 4-2. Clemente property boundary, late 2013..........................................................................................................................7
Figure 5-1. Access and general road network. ...................................................................................................................................9
Figure 5-2. Vegetation and landscape at the Clemente project .......................................................................................................9
Figure 7-1. Regional geologic map.................................................................................................................................................... 13
Figure 7-2 Generalized property geologic map. ............................................................................................................................. 14
Figure 7-3. Hematite-specularite-quartz vein in hematite-altered granite, Nuevo Mundo target area................................... 19
Figure 7-4. Hematite-specularite-quartz veins and hematitic vein envelopes in dolomite, Nuevo Mundo target area...... 19
Figure 7-5. Hematite-specularite-matrix breccia with fragments of quartz-sulfide vein, Nuevo Mundo target area. ........ 20
Figure 7-6. Quartz-sulfide vein, Santa Elena target area. Site of sample RRI-10396: 347 ppb Au, 2,933 ppm Ag............ 20
Figure 7-7. Quartz-sulfide vein, Mundo target area. ...................................................................................................................... 21
Figure 7-8. Coarse-grained vein dolomite, Santa Elena target area. ............................................................................................ 21
Figure 7-9. Lead oxides, Nuevo Mundo target area....................................................................................................................... 22
Figure 7-10. Dolomite alteration in dolomite, Mundo target area............................................................................................... 23
Figure 7-11. Hematite and clay alteration in granite, Nuevo Mundo target area. .................................................................... 23
Figure 8-1. Structural model for mineralization at the Cerro Colorado mine, 5 km southeast of Clemente........................ 27
Figure 9-1. Map of reduced-to-pole magnetic field strength. Regional data from the Mexican Geological Survey........... 30
Figure 9-2. Target map. ...................................................................................................................................................................... 31
Figure 18-1. Proposed drill holes at the Mundo target.................................................................................................................. 39
Figure 18-2. Proposed drill holes at the Nuevo Mundo target..................................................................................................... 39
Figure 18-3. Proposed drill holes at the Nuevo Mundo target..................................................................................................... 40
Figure 18-4. Proposed drill holes at the Santa Elena North target.............................................................................................. 40
Tables
Table 4-1: Clemente project mining concessions ..............................................................................................................................5
Table 12-1: Rock sample summary................................................................................................................................................... 29
Table 12-2: Stream-sediment sample summary .............................................................................................................................. 29
Table 18-1. Proposed drill program.................................................................................................................................................. 38
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1 Summary
The Clemente property is located in northwestern Sonora, 52 km by road south of Caborca in the
Caborca-Trincheras region of Mexico and within the Pitiquito municipality. The Cerro Colorado
mine is approximately 5 km southeast of the property. Access is over good dirt roads to the project,
which has low topographic relief and a maximum elevation change of approximately 200 meters. The
property covers an area of 14,073 hectares in two concessions owned 100% by Riverside Resources,
with one third-party inlier claim of 100 hectares not covering the current target areas.
The Clemente project shows good exploration potential over a 10-km strike length along a structural
trend in line with a producing gold mine, within a corridor of major, structurally controlled, orogenicstyle gold deposits. Exploration to date has consisted of mapping, collection of 164 rock chip
samples and 103 stream sediment samples, a ground magnetic survey, and ASTER data analysis.
Results indicate extremely high values of silver with good gold and base-metal grades.
Host rocks to mineralization consist of Proterozoic plutonic and metamorphic basement overlain by
Proterozoic and Cambrian metasediments. Mineralization occurs mainly in the Proterozoic granite of
the Bamori Metamorphic Complex (1,600 – 1,750 Ma) and in the unconformably overlying dolomitic
Caborca Formation, also of Proterozoic age. Structure on the project consists of two phases of
Laramide thrust faulting, and one phase each of Laramide folding and Tertiary extensional faulting.
Mineralization is intimately tied to faults on the project, occurring within fault zones, and showing
evidence of post-mineral faulting along many veins.
Mineralization on the project consists of hematite-specularite-quartz veins and breccia, and quartzsulfide veins. High-grade silver mineralization occurs with both types of veins and is accompanied by
elevated levels of gold, copper, lead, and zinc. Silver shows extremely high values, with peaks of
2,933 g/t Ag and 2,108 g/t Ag, and 36 samples greater than 50 g/t Ag. It is notable that the two
highest Ag assays are almost 10 km apart, attesting to a very large mineralizing system. Gold attains
values up to 5.2 g/t Au, with 36samples above 200 ppb Au, and 28 assays over 500 ppb Au. Lead
values range between 0.1 to 8.82 % Pb, and Zn results are between 0.1 to 8.52 % Zn.
The style of mineralization on the Clement project is not yet well defined nor definitively classified by
ore-deposit type, but displays characteristics of both orogenic gold deposits and low-sulfidation
epithermal gold-silver deposits. The dominant style of mineralization is sub-millimeter to 2-cm-wide
veins filled with variable amounts of red hematite, specular hematite, and quartz, the majority
occurring as sub-millimeter fractures, either as individual veinlets, zones of parallel sheeted veinlets,
networks of cross-cutting veinlets, and stockworks. Vein attitudes group into a northwest strike and a
northeast strike with dips dominantly steep in all directions. All hematite-specularite-quartz veins are
surrounded by hematite alteration, and in some places hematite-altered wall rock contains up to 30%
remnant disseminated sulfide minerals. Hematite-specularite breccia is composed of 0.1-3-cm angular
fragments of white quartz in a red hematite and specularite matrix, accompanied by vugs filled with
euhedral and botryoidal quartz and calcite.
Quartz-sulfide veins are up to 1 meter thick, composed of milky to grayish white banded quartz with
bands and clots of sulfide minerals, dominantly galena. At the Santa Elena showings this vein type
includes coarse-grained dolomite in clots surrounding euhedral quartz crystals. Copper and zinc
oxides are common in these veins, as is probable plattnerite, a lead oxide mineral. In almost all cases,
these veins are accompanied and cut by hematite-specularite-quartz veins. At the Santa Elena target,
1
quartz-sulfide veins occupy a Phase 1 bedding-plane thrust fault, and in all quartz-sulfide veins
observed some degree of post-vein faulting has occurred.
The dominant types of alteration on the project are hematite alteration and recrystalization of
dolomite. Hematite alteration consists of hematite staining surrounding hematite-specularite-quartz
veins accompanied in some places by silicification and rare jasper. Recrystallization of dolomite at
vein margins is widespread in the three target areas, and most prominent at the Mundo target. Minor
clay alteration occurs in the Bamori granite at the Nuevo Mundo target area, and minor silicification
is also present.
Mineralization shows generally elevated values of Ag, Au, Cu, Pb, Zn, As, Sb, Ba, Cd, Cr, and Mg,
and inconsistently high Bi, P, Sr, and W. The mineralogy and geochemistry of the veins and
surrounding alteration points to a neutral to basic oxidized fluid.
The exploration model for the Clemente project is that of the nearby and geologically similar Cerro
Colorado and El Chanate deposits. In both of these deposits, ore-grade mineralization is
concentrated at the intersections of relatively lower-angle and higher-angle structures. The Clemente
project contains the same structural components as both of these deposits: moderate to low-angle
structures (the granite-sediment contact and two generations of thrust faults) cut by steeply dipping
NW-striking veins and faults. Both types of structure are mineralized. Exploration at Clemente
should focus on identifying intersections between these structural elements using a combination of
geologic mapping, sampling, and geophysics.
Seven targets have currently been identified.
1. The Santa Elena mineralized area is located in the southwestern portion of the Clemente
property, where mineralization consists dominantly of quartz-sulfide veins occupying a Phase 1
bedding-plane thrust fault with very high Ag values and accompanying Au and base metals over
a strike length of 1.4 km. Sante Elena hosts two targets, North and South. The Santa Elena
North area is a complex series of three stacked mineralized thrust zones accompanied by
intervening brecciated damage zones and cross-cut by several steep, east-west faults. The stacked
mineralized thrust planes repeat stratigraphy, indicating potential for a larger system, up to 700
m thick and over a 1km2 area, that has significant bulk-tonnage potential.
2. Santa Elena South is also a high-grade silver target and as noted above, and includes silver grades
at 514 ppm, 286 ppm, 211 ppm, and several more over 100 ppm Ag. The Santa Elena South
mineralized system comprises a wide mineralized shallow thrust zone, intercepted by multiple
mineralized, steep east-west faults over a 700x500 m wide area.
3. The Nuevo Mundo target displays significant silver-lead-zinc mineralization in an area measuring
approximately 575 m x 1400 m in a series of prospects and abandoned mines containing veins
and stockwork zones. The dimensions of the mineralized structures are up to 10-100 m long, 1
m thick, and have been exposed to a depth of 80 m.
4. The Mundo target consists of an abandoned mine with very high silver values and the best gold
values on the project. This high-potential area contains a 3.5-m-thick vein-fault striking 355° and
dipping 65° SW exposed over a strike length of 70 m.
5. The Dos Kilos target shows two settings where high-grade structures have good continuity
potential, show fault intersection potential, and trend under alluvial cover. This target has
structurally-controlled, high-grade silver vein potential; silver values include 2000 ppm Ag, 510
2
ppm Ag, and four other samples above 100 ppm Ag, with notable gold values including one
sample at 563 ppb Au and three samples between 250 and 350 ppb Au.
6. The Intrusive Working target is a newly identified target located in the south-west corner of the
Clemente license, which shows a mineralized steep, cross-cutting north-south fault and a
previously unknown porphyry host rock. High copper values (35.2% and 14% Cu) are a good
indication of the potential silver and gold grades that were being targeted in the historic Intrusive
mine workings, which follow a steep fault to depths of over 30 m. More sampling is needed to
define the mineralization.
7. The Central Thrust target is major east-west striking thrust fault that has a thick, 5-m-wide
damage zone and a 20+m wide alteration halo of strongly silicified, manganese-iron black oxide
matrix and the alteration halo being strongly hematized and silicified. The effects of the fluids
can be traced over a 700m+ length and suggests a thrust zone with excellent ground preparation
for mineralizing fluids down dip and along the shallow thrust plane for a distance of
approximately 2 km.
The following exploration program is recommended:
1.
2.
3.
4.
5.
Detailed geologic mapping and rock sampling.
Soil sampling.
Ground IP/resistivity survey.
Terraspec alteration determination, thin sections, and petrographic reports for selected samples.
A core drilling program of 3,900 meters in 16 holes focused on known showings in the three
target areas.
6. Permitting and carrying out the proposed diamond drilling program.
The strong similarities between Clemente and the El Chanate and Cerro Colorado gold deposits,
coupled with the extremely high Ag assays, the favorable structural components of the project, and
the ~10-km strike length of known mineralization, give the Clemente project good exploration and
discovery potential.
2 Introduction
This 43-101 technical report was prepared by David S. Smith for Riverside Resources Inc., a
company incorporated in British Columbia, Canada, and listed on the Toronto Venture Stock
Exchange under the symbol RRI. This report has been prepared in compliance with Canadian
National Instrument 43-101: Standards of Disclosure for Mineral Projects. The purpose of the report
is to support investment efforts to fund additional exploration work on the project.
2.1 Sources of Information
The principal sources of information used in preparing this report are given in the references section
at the end of this report. These include published research articles, geologic and regional magnetic
maps produced by the Servicio Geológico Mexicano (Mexican Geological Survey), and two academic
theses performed on the project. In addition, I have used unpublished Riverside company reports
and data, information gathered from conversations with Riverside geologists, and my own
3
observations in the field. Recent field studies by geologists Shelley Oliver (Oliver, 2014) and David
Brown (Brown, 2013) have also been incorporated.
2.2 Current Personal Inspection
I have examined the Clemente project and surrounding areas on numerous occasions over the last
three years. These visits included six days during November 16-21, 2011, and property visits in March
and July, 2013. My most recent personal inspection on the project was November 27 , 2013. During
these visits I examined the areas of principal mineralization, reviewed previous work, verified sample
and check-sample locations, took additional samples, reviewed the stratigraphy and character of the
host rocks, made detailed observations of the mineralization, and made preliminary maps of structure
and mineralization on selected portions of the project. There has been no further exploration work
on the project since my last personal inspection.
2.3 Independent Qualified Person
The author of this report is David S. Smith, MS, MBA, CPG, who is a Qualified Person as defined
under National Instrument 43-101. For the purposes of this report, I am not an independent
Qualified Person, by virtue of holding stock options in Riverside Resources.
3 Reliance on Other Experts
This report has been prepared by David S. Smith. I have relied on information developed by project
owner Riverside Resources, including project reports, sample descriptions, assay certificates, and
conversations with Riverside geologists. I relied on a previous draft of this report prepared by
independent consulting geologist Mark J. Pryor. I also drew from two recent geologic reports by
Shelley Oliver (Oliver, 2014) and David Brown (Brown, 2013). This information, in both written and
verbal forms, created the basis for this report. I have relied on ownership information as provided by
Riverside; apart from viewing the mineral concession certificates, I have not researched property title
or mineral rights for the Clemente project. As the Qualified Person for this report, I am responsible
for all items in the report.
4 Property Description and Location
The Clemente project consists of 3 mining concessions totaling 14,073 hectares with an internal
third-party claim (DK I, 100 hectares) owned by RM Esperanza de Mexico S.A. de C.V. (Figures 4-1,
4-2). The center of the project area is located at approximately 407,503 m E and 3,354,070 m N
(UTM Zone 12N, NAD 27 Mexico Datum).
4.1 Land Title
The Clemente Property consists of 2 concessions (Figure 4-2, Error! Reference source not found.).
One inlier claim—DK I—is not owned by Riverside. The total land area held by Riverside is 14,073
ha. The property was originally acquired Riverside by staking open ground in March 2010. Property
4
details are shown in Error! Reference source not found.. The claims were officially titled to
Riverside's Mexican Subsidiary (Riverside Resources Mexico S.A de C.V) on July 2, 2010 (Clemente)
and November 19, 2010 (Clement 2).
As of the date of this report, Riverside is in the process of reducing the concession areas by about
40% but this work has not been finalized through the Mexican Direccion General de Minas.
Table 4-1: Clemente project mining concessions
Concession
Owner
Title Number
Area (ha)
Exp.
Clemente
Riverside Resources México S.A. de C.V.
236463
6575
082/33699
Clemente 2
Riverside Resources Mexico S.A. de C.V.
237158
7498
082/34096
4.2 Mexican Mining Law
Mineral exploration and mining in Mexico is regulated by the Mining Law of 1992 as amended in
December 1996, which establishes that all minerals found in the Mexican territory are owned by the
Mexican nation, and that private parties may exploit such minerals (except oil and nuclear fuel
minerals) through mining licenses, or concessions, granted by the Federal Government.
On April 29, 2005 the Mexican Congress published several amendments to the Mining Law of 1992.
According to these amendments, the exploration and exploitation concessions were replaced by a
single concession type, the mining concession, which gives the holder both exploration and
exploitation rights, subject to the payment of relevant taxes. Old exploration and exploitation
concessions were automatically transformed into mining concessions with a single term of 50 years
from the date the concession was first registered at the Public Registry of Mines. Accordingly,
exploration concessions that were originally issued for a term of 6 years now have a term of 50 years
from the date the exploration concession was originally registered. Under the new amendments, the
concession holder has all the rights previously granted for an exploitation concession under the old
law.
Concessions may be granted to (or acquired, since they are freely transferable) Mexican individuals,
local communities with collective ownership of the land known as ejidos, and companies
incorporated pursuant to Mexican law, with no foreign ownership restrictions for such companies.
Although the Mexican Constitution makes it possible for foreign individuals to hold mining
concessions, the Mining Law does not allow it. This means that foreigners wishing to engage in
mining in Mexico must establish a Mexican corporation for that purpose, or enter into joint ventures
with Mexican individuals or corporations.
To keep mining concessions current and avoid their cancellation, owners must pay annual mining
taxes, perform annual assessment work on the concessions, and comply with environmental laws.
The Regulations of the Mining Law establish the minimum amount of assessment work that must be
performed on a yearly basis (http://www.smvr.com.mx/art3.htm).
5
Figure 4-1. Clemente property location, Sonora, Mexico.
6
Figure 4-2. Clemente property boundary, late 2013. As of February 2014 a ~40% reduction of the
concession area is underway, largely in areas of alluvial cover to the west and northwest.
4.3 Nature and Extent of Title
Both the Clemente and Clemente 2 claims are owned 100% by Riverside with no outstanding
payments, royalties, or deal terms to any third party. The DK-1 claim is the only internal claim not
owned by Riverside.
4.4 Environmental Liabilities
No environmental liabilities are known to exist on the Clemente project. Numerous tunnels, shafts,
and prospect pits; an old leach pad; and several concrete structures are present on the project, but
none pose any known environmental liabilities.
7
4.5 Permitting
All taxes and work commitments necessary for maintaining mining concession titles is currently the
sole responsibility of Riverside. Permits will be required for drilling. Riverside is responsible for all
drilling, environmental, municipal, and state approvals for the exploration activity proposed.
4.6 Map Projection
Local Mexican topographic and geologic maps and Riverside’s project data to date use the NAD27
Mexico datum for UTM coordinates, but the company is switching to WGS 84. As a result, all
workers on the project should verify the datum for maps and data being used.
5 Accessibility, Climate, Local Resources,
Infrastructure, and Physiography
5.1 Accessibility
The Clemente property is accessible year-round. Access to the project is via Federal Highway 2
between Caborca and Altar to the kilometer 8 marker in Pitiquito city, then 44 km south by dirt road.
This road is well maintained (the local municipality currently takes responsibility for grading this road
as needed) with no drainage impediments. Travel time from Pitiquito to the northern portion of the
project is about 1 hour. The nearest major airports are in Hermosillo, the capital of Sonora, or in
Tucson, Arizona, USA. Travel time from either of these airports to the property is approximately
4-5 hours (Figure 5-1).
5.2 Climate and Vegetation
The Clemente property is located in the Sonoran Desert west of the Sierra Madre Occidental
mountain range. The climate is typified by mild winters and hot summers. Temperatures in the
summer can vary up to 40°C with high humidity while winter temperatures are cooler reaching a low
of 5°C at night. A primary rainy season occurs from July to October, with a second rainy season
occurring during the winter months. Average annual precipitation is 550 mm. Although
uncomfortably hot in the summer, field work, exploration, and mining activity can continue yearround.
Vegetation in the area consists of saguaro, choya, barrel, and other cactus; ocotillo plants; mesquite
and palo verde trees; and abundant desert shrubs. Vegetation is sparse in the mountains and in the
surrounding desert and poses no obstacle to field work.
5.3 Surface Rights
Surface rights on the Clemente concessions are held by private owners with written agreements for
Riverside to conduct exploration within the property.
8
Figure 5-1. Access and general road network.
Figure 5-2. Vegetation and landscape at the Clemente project
9
5.4 Physiography
The project area lies within the physiographic province referred to as the Sierras Sepultadas and more
specifically, the subprovince Desierto de Sonora. It is characterized by flat desert lands with relatively
small mountain ranges, the latter generally consisting of Precambrian metamorphic rocks. The
Clemente project covers a large portion of a three elevated mountains (Cerro Clemente, Cerro
Tecolote, and Cerro Llano Verde) that rise abruptly out of the surrounding desert. Elevations range
from 480 meters on the desert floor to a peak of approximately 760 meters. Drainage begins in the
hills as steep arroyos (dry creek beds) that often disappear into the surrounding flat topography.
Overburden is generally shallow to absent on the mountain slopes but very deep in the gullies and
surrounding flat lands.
5.5 Local Resources
Skilled and unskilled workers are available from the local villages such as La Cienega, Trincheras, or
Pitiquito (communities with a population approximately 350-800) and other towns throughout the
area. The availability of heavy construction equipment and specialized labor has to be sourced from
either Hermosillo (4 hours) or Caborca (2 hours). Mining personnel are available throughout Sonora
and northern Mexico, in particular from Hermosillo, which is a major exploration and mining hub.
5.6 Infrastructure
The State of Sonora is located in the northwest portion of Mexico and is bounded by Arizona and
New Mexico, USA, on the north, Chihuahua, Mexico on the east, Sinaloa, Mexico on the south and,
the Sea of Cortez and Baja California Norte on the west. The state has approximately 10,000 km of
paved roads in a total road system of about 25,000 km. Additions to the paved portions of the system
are in progress. Rail lines totaling 1,800 km link the major cities in the state. Numerous ports are
found along the coast. International airlines serve Hermosillo, the state capital, several times daily.
Infrastructure for the movement of either plant equipment or raw products to or from the mine is
excellent. Sonora has an electrical generating capacity of 1,500 MW and a reasonably well developed
power distribution system. Telecommunications in the state are linked to the country’s federal
microwave network which runs throughout the Pacific Coast, connecting all main cities and towns.
Water for farming and city use is primarily provided by reservoirs with groundwater being used in
rural areas.
All services including rail are available at Caborca and Pitiquito. Electricity, satellite communications,
and water are available at the Cerro Colorado mine site, about 5 km to the southeast of the project.
Federal Highway 2 is paved and serves as a major transportation route in Sonora.
5.7 Potential Facilities Sites
The topography and land holdings of the Clemente project are such that ample flat-lying areas are
available for potential sites to host processing facilities (including heap-leach pads if necessary),
tailings, and waste disposal.
10
6 History
The Clemente property was acquired by staking over open ground by Riverside in March 2010. The
project area was originally targeted through the use of an exploration targeting model using a
combination of publicly available mineral databases, a confidential Riverside internal database,
ASTER remote sensing analysis, regional geologic interpretation, and a site visit to the area.
Following staking of the Clemente claim, Riverside began a systematic exploration program that
included rock-chip and stream-sediment sample geochemistry and geologic mapping. The results of
this systematic exploration led to the definition of seven priority targets, described in Section 9,
Exploration.
Abundant evidence of past mining work is visible on the project, although the previous workers,
results, and time of their work are not known. Judging by the artifacts remaining (plastic tubing, truck
parts, cinder blocks, evidence of pneumatic drilling) the operations were probably around the mid20th century. Numerous tunnels, adits, shafts, and prospect pits pepper the project, especially in the
principal target areas. A defunct leach pad or stockpile about 60 meters long is present at the Nuevo
Mundo location, along with several cinder-block structures.
The project contains no current nor historical mineral resources, and has not generated any historical
production of record.
7 Geological Setting and Mineralization
7.1 Regional Geology
Sonora is composed of three main physiographic provinces. These provinces trend approximately
north-south, parallel to the Sierra Madre Occidental, and include the Basin and Range province, the
Transitional zone, and the High Plateau (Sierra Madre Occidental). The Clemente project lies in the
Basin and Range province of Sonora, which occupies the western portion of the state (west of
Federal Highway 15). The Basin and Range province consists of widely spaced mountain ranges, the
result of mid-to late-Tertiary high-angle listric faults or earlier low-angle/detachment faulting. These
ranges contain a majority of the older Precambrian and Mesozoic rocks found in the state. The
majority of the gold systems in this province have a structural component involving a combination of
high and low-angle faulting (e.g., La Choya, Cerro Colorado, and Quitovac).
The western half of Sonora contains a diverse suite of rock types spanning various ages. The
Precambrian of Sonora is divided by the Mojave-Sonora mega-shear. Mineral deposits related to this
tectonic event are La Choya, La Herradura and San Francisco. North of this shear, the Precambrian
consists of schists overlain by weakly metamorphosed dolomites and sandstones. To the south,
basement rocks consist of coarse-grained granitic rocks and lesser lower-grade metamorphic rocks.
Paleozoic rocks are less widespread in Sonora and consist mainly of quartzite, limestone, shale, and
dolomite.
11
The Mesozoic era was the most important from the standpoint of economic geology. During the
Triassic and Jurassic periods a relatively thick pile of sediments was deposited. Following the
deposition of these sediments large granitic batholiths were emplaced. By the early Cretaceous,
tectonic plate movement produced the Mojave-Sonora megashear. Chemically reactive carbonate
units, especially the Cretaceous Bisbee Group, were deposited during middle Cretaceous time. Late
Cretaceous marks the onset of the Laramide tectonic-igneous event. This orogenic event resulted in
the intrusion of igneous rocks, development of volcanic piles, structural preparation of host rocks,
and provided structural heat sources for the formation of major metallic deposits. The Cenozoic saw
the continuation of Laramide volcanism and intrusions and the formation of the major copper
porphyries at Cananea and Nacozari. During the mid-Tertiary large-scale ash flow tuff eruptions
created the High Plateau Province. The final igneous event took place in the far western portion of
the state and consists of basaltic volcanism.
7.2 Property Geology
Sedimentary rocks formed during the Precambrian and Paleozoic in the Clemente area. The
stratigraphy here has been well studied, and proves to be conformable, apparently as part of the
allochthonous metamorphic Bamori complex at Cerro El Tecolote. In this area, this sequence of
metasediments is cut by a number of thrust fault that are part of the structural control within the area
and an exploration guide for deposits. The sedimentary sequence is composed of dolomite, siltstone,
sandstone, quartzite, and conglomerate. These host rocks have seen two periods of thrust faulting, an
episode of folding, and extensional faulting.
7.2.1 Host Rocks
Host rocks to mineralization on the project consist of Proterozoic plutonic and metamorphic
basement overlain by Proterozoic and Cambrian metasediments. Mineralization occurs mainly in the
Proterozoic granite of the Bamori Metamorphic Complex and in the unconformably overlying
dolomitic Caborca Formation, also of Proterozoic age (Table 7-1).
The rocks in the project area have been described in general in the text accompanying the El Prieto
geologic map that covers the project area (SGM, 2007), and in detail in two academic theses,
Westerfield (1988), and Maytorena and Durazo (1982). The descriptions below are taken largely from
Westerfield (1988) and augmented by the author’s field observations. Understanding the stratigraphy
on the project is crucial to locating the faults that may host and offset mineralization; a number of
distinctive sedimentary horizons provide marker beds for mapping and drilling.
12
Figure 7-1. Regional geologic map.
13
Figure 7-2 Generalized property geologic map.
14
Bamori Metamorphic Complex
The oldest rocks on the project are a suite of Proterozoic plutonic and metamorphic rocks named the
Bamori Metamorphic Complex, dated at 1,600 – 1,750 Ma (Longoria, 1981). Regionally, the Bamori
complex consists of greenschist- to amphibolite-grade metasedimentary and igneous rocks (Anderson
and Silver, 2005; Westerfield, 1988). In the project area, the Bamori rocks consist dominantly of
layered granite with subordinate gneiss and schist (SGM, 2007). The granite is one of the two
principal host rocks for mineralization on the project.
The granite is reddish-brown to greenish-gray and medium grained, containing K-feldspar (40-60%)
and quartz (~30%) with minor plagioclase (5-25%) and mafic minerals (mildly chloritized biotite and
hornblende; 5-10%) and accessory magnetite (1-2%). The magnetite content accounts for the strong
magnetic signature given by the granite (see Exploration, below) in both regional air and ground
magnetic surveys. Plagioclase weathers light gray to white, giving the rock a spotted texture. Generally
medium-grained, the granite has coarser portions, in some cases approaching pegmatite. Subtle
compositional layering is formed by 1-10 cm layers relatively richer in mafic minerals, which in some
places traces folds in the granite; compositional layering gives a foliated appearance to the rock,
although true mineral-parallel foliation was not observed. Westerfield (1988) reports “many dikes”
cutting the granite; to date, a very fine-grained dark green to brown gabbro has been noted that
contains ≤0.5 mm plagioclase phenocrysts and ≤20 cm angular to subrounded xenoliths of granite.
El Arpa Formation
Although a thicker formation in other places in the area, the El Arpa Formation is largely absent in
the project area. It is a pale yellow to whitish sequence of thin-bedded quartzite, sandstone, and
siltstone sandwiched by a basal sandstone and upper thin-bedded sandy dolomite. It lies
unconformably on the metamorphic basement.
Caborca Formation
The Proterozoic Caborca Formation is the other principal host rock for mineralization on the
Clemente project. The Caborca Formation unconformably overlies the Bamori granite; Westerfield
(1988) mapped the contact as an unconformable depositional contact whereas Maytorena and
Durazo (1982) interpret the contact as a thrust fault. In all three target areas—Mundo, Nuevo
Mundo, and Santa Elena—mineralization occurs in dolomite of the Caborca formation.
Westerfield (1988) reports the formation as a 106-m-thick sequence of gray to brown dolomite with
thin beds of fine-grained sandstone. It is a relatively resistant unit, and forms hills and steep slopes; it
may also have been a more brittle unit in the stratigraphic sequence in which fracturing and therefore
veining may have occurred preferentially. Westerfield (1988) divides the formation into four units,
from bottom to top: 1) 58 meters of basal gray thin-bedded dolomite with minor sandy dolomite and
fine-grained brown sandstone; 2) 12 m of interbedded gray to brown dolomite and thin-bedded finegrained sandstone; 3) 24 meters of dark gray thick-bedded dolomite interbedded with thin-bedded
brown sandstone and containing white chert layers; 4) 12 meters of brownish-red thick-bedded
dolomite.
Clemente Formation
Conformably overlying the Caborca Formation, the Proterozoic Clemente Formation consists of a
~180 m coarsening-upward sequence of interbedded siltstone, sandstone, conglomerate, and
dolomite. Distinguishing features include a 60-m-thick basal grayish-red siltstone containing detrital
15
mica, and beds of distinctive red to orange quartz-clast conglomerates. The dolomite in this section
has an orange cast not found in the underlying Caborca Fm.
Pitiquito Quartzite
This Proterozoic formation is a ledge former and crops out noticeably in the hills on the project. It
forms an excellent marker bed for mapping and drilling. About 48 m thick, it consists of dark brown
sandstone and massive white to pink clean arenaceous quartzite.
Other Proterozoic Strata
Overlying the Pitiquito Formation are another ~660 m of Proterozoic sediments. According to
Westerfield (1988), they consist of the following formations, from bottom to top:
•
•
•
Gazuma Fm: brown-gray resistant dolomite; 140 m
Papalote Fm: light gray ridge-forming dolomite; 390 m
Tecolote Quartzite: white to light pink quartzite interbedded with brown sandstone; 130 m
Cambrian Strata
Overlying the Proterozoic sediments are just under 1,200 m of Cambrian sediments. From bottom to
top, they are:
•
•
•
•
•
La Cienega Fm: interbedded dolomite, sandstone, and quartzite; 143 m
Puerto Blanco Fm: various rocks, including volcanics, volcaniclastics, conglomerate, sandstone,
quartzite, siltstone, and limestone; overall a recessive unit; 625 m
Proveedora Quartzite: massive white to pink ridge-forming quartzite; 225 m
Buelna Formation: recessive limestone, sandstone, and quartzite; 80 m
Cerro Prieto Fm: massive cliff-forming gray limestone; >100 m
Penjamo Porphyry
Westerfield (1988) mapped an intrusive diorite porphyry just over 1 km west of the Santa Elena
target area, reporting it as a coarse-grained plagioclase-biotite-diopside diorite porphyry dated at
423 Ma.
7.2.2 Structure
Structure on the project consists of two phases of thrust faulting, and one phase each of folding and
extensional faulting, as outlined by Westerfield (1988). Compression resulting in thrust faults and
folds appears to be Laramide in age (late Cretaceous to early Tertiary) and extensional faulting is
Tertiary. Mineralization is intimately tied to faults on the project, occurring within fault zones, and
showing evidence of post-mineral faulting along many veins (see Mineralization, below). The outline
of structure below is taken from Westerfield (1988).
Phase 1 Thrusts
The first phase of thrusting consists of bedding-plane faults that repeat the stratigraphic section,
particularly near the Santa Elena and Mundo target areas. Phase 1 bedding-plane thrusts are now
generally steeply dipping, but apparently were originally low-angle, having been rotated by subsequent
faulting. A Phase 1 thrust appears to host mineralization in the Santa Elena target area, suggesting
other Phase 1 thrusts—especially in the Mundo area—as exploration targets. Maytorena and Durazo
(1982) mapped the contact between the Bamori crystalline basement and the overlying sediments as a
thrust fault; if this is so, it is as yet unclear whether this is a Phase 1 or Phase 2 thrust fault (see
below).
16
Folds
Large, open, upright folds are present on the project, most visibly at the Mundo mine, which lies in
the hinge of a large southwest-plunging anticline. SGM (2007), Westerfield (1988), and Maytorena
and Durazo (1982) also mapped a large southwest-plunging syncline easily visible on maps and
airphotos between the Neuvo Mundo and Santa Elena target areas. Other smaller, open, upright
folds are present. Although folds on the project are relatively simple, they may be important features
in locating hidden mineralization, since they post-date Phase 1 thrusting and have folded Phase 1
thrusts.
Phase 2 Thrusts
Phase 2 thrusting occurs as strata-cutting thrust faults that are generally low-angle structures
offsetting Phase 1 faults and folds. Westerfield (1988) notes similar faults mapped by others in the
region, and favors a west-verging motion.
Extensional Faults
Tertiary normal faults cut host rocks and all older structures on the project. Westerfield (1988)
mapped several, including a complex set northeast of the Mundo target that dip northeast and offset
strata by up to 700 m. Some of these may be low-angle detachment or listric normal faults. Many
faults occurring next to or within veins on the project appear to be young, certainly post-vein, and
may be extensional re-activation of older Phase 1 thrusts and/or veins. Extensional faults strike both
northwest and northeast.
Airphoto Lineaments
A number of unmapped lineaments are visible on airphotos of the project. Many of these trend
northwest, along a general trend leading to the Cerro Colorado mine about 5 km southeast of the
project. It is not known whether these lineaments are important controls on mineralization, but they
fit the general northwest trend of many extensional faults and veins, and parallel the northwesttrending belt of mineralization exhibited by Cerro Colorado and the three target areas on the
Clemente project.
7.3 Mineralization
7.3.1 Mineralization
Mineralization on the project consists of hematite-specularite-quartz veins and breccia, and quartzsulfide veins. High-grade silver mineralization occurs with both types of veins and is accompanied by
elevated levels of gold, copper, lead, and zinc.
Hematite-Specularite-Quartz Veins and Breccia
The dominant style of mineralization on the project is sub-millimeter to 2-cm-wide veins filled with
variable amounts of red hematite, specular hematite, and quartz (Figure 7-3). In outcrop the
dominant mineral is earthy red hematite, which is ubiquitous in these veins, but remnant patches and
veins of specularite can be found (Figure 7-3), indicating that the red hematite is likely a weathering
product of hypogene specularite. Larger veins include higher amounts of quartz. Many veins contain
vugs and open-space-filling textures of euhedral quartz and calcite. The majority of hematitespecularite-quartz veins observed to date occur as sub-millimeter fractures, either as individual
veinlets, zones of parallel sheeted veinlets, or networks of cross-cutting veinlets in some places
forming stockwork zones. Thicker individual veins, up to 2 cm, are rare.
17
These veins have a variety of attitudes, which generally group into a northwest strike and a northeast
strike. Dips are dominantly steep in all directions—60-80°—but have been observed as low as 13°. In
all cases these veins are surrounded by some degree of hematite alteration in granite and dolomite
wall rock, ranging from 1-2 mm vein envelopes around individual veins (Figure 7-4) to bulk hematite
alteration in 1-3 meter zones of stockwork. In some places hematite-altered wall rock contains up to
30% remnant disseminated sulfide minerals, at Nuevo Mundo observed to be cubic vugs after pyrite.
Hematite-specularite veins occur in both Bamori granite and dolomite of the Caborca Formation, and
they cut quartz-sulfide veins.
Hematite-specularite breccia (Figure 7-5) has not been observed in outcrop, but many samples can be
found on mine dumps and the former leach pad. It is composed of 0.1-3-cm angular fragments of
white quartz in a red hematite and specularite matrix, accompanied by many vugs filled with euhedral
and botryoidal quartz and calcite. To date, this breccia has been observed only in quartz-sulfide vein
material.
The observations that hematite-specularite-quartz veins cut quartz-sulfide veins, and that hematitespecularite breccia contains fragments of white quartz vein clearly indicate that specularite-dominant
veins post-date quartz-sulfide veins. Whether this is a separate mineralizing event or a late stage
within one event is not yet clear.
Quartz-Sulfide Veins
Milky to grayish white banded quartz veins are the most obvious mineralizing structures on the
project (Figures 7-6, 7-7). They are up to 1 meter thick and contain bands and clots of sulfide
minerals, dominantly galena. At the Santa Elena showings, particularly the site of sample RRI-10396
(347 ppb Au, 2933 ppm Ag), this vein type includes coarse-grained dolomite in clots surrounding
euhedral quartz crystals, as large ≤10-cm anhedral crystals, and as millimeter-scale euhedral crystals in
vugs (Figure 7-8). Copper and zinc oxides are common in these veins, as is probable plattnerite, a
massive sooty black lead oxide mineral with a brown streak containing remnant embayed crystals of
galena (Figure 7-9).
Within these veins, internal bands appear to be healed fractures and are formed by different colors of
quartz, layers richer in disseminated very fine-grained sulfides (as yet unidentified), and layers of finegrained quartz-matrix breccia containing vugs filled with euhedral quartz, calcite, galena, and
dolomite. In almost all cases, these veins are accompanied and cut by hematite-specularite-quartz
veins.
There is a close relationship between quartz-sulfide veins and faults on the project. At the Santa
Elena target, quartz-sulfide veins clearly occupy a Phase 1 bedding-plane thrust fault as mapped by
Westerfield (1988). Other quartz-sulfide veins may occupy thrust faults, but clear observations of this
have not been made. In all veins observed, however, some degree of post-vein faulting has occurred
(motion unclear). A likely scenario—as yet unproven—is that quartz-sulfide veins followed preexisting thrust faults and then provided structural weaknesses for extensional re-activation.
18
Figure 7-3. Hematite-specularite-quartz vein in hematite-altered granite,
Nuevo Mundo target area.
Figure 7-4. Hematite-specularite-quartz veins and hematitic vein envelopes in dolomite,
19
Figure 7-5. Hematite-specularite-matrix breccia with fragments of quartz-sulfide vein,
Figure 7-6. Quartz-sulfide vein, Santa Elena target area.
Site of sample RRI-10396: 347 ppb Au, 2,933 ppm Ag.
20
Figure 7-7. Quartz-sulfide vein, Mundo target area.
Figure 7-8. Coarse-grained vein dolomite, Santa Elena target area.
21
Figure 7-9. Lead oxides, probably plattnerite, mixed with iron oxides and cut by
hematite-specularite-quartz vein, Nuevo Mundo target area.
7.3.2 Alteration
The dominant types of alteration on the project are hematite alteration and recrystalization of
dolomite. Minor silicification, and clay alteration of granite are also present.
Hematite alteration consists of hematite staining surrounding hematite-specularite-quartz veins,
ranging from 1-2 mm vein envelopes around individual veins (Figure 7-4) to bulk hematite alteration
in 1-3 meter zones of stockwork. Hematite alteration is accompanied in some places by silicification
and rare jasper.
Recrystallization of dolomite is widespread in the three target areas, and most prominent at the
Mundo target, particularly at sample site RRI-10400 (5440 ppb Au, 2108 ppm Ag), where the very
fine-grained dark gray host dolomite has been altered to a buff to red-brown fine-grained dolomite
with ≤0.5 mm dolomite crystals (Figure 7-10). This is typical, and is seen at the Nuevo Mundo and
Santa Elena target areas as well.
Minor clay alteration occurs in the Bamori granite at the Nuevo Mundo target area. At its most
intense (Figure 7-11), the fresh red-brown granite is altered to a pale buff color with light to moderate
clay alteration of all minerals. Clay alteration of granite is not widespread, and is generally weak to
moderate where present. This clay alteration requires the action of an acidic fluid. However, the
dominant dolomite alteration in carbonate host rocks on the project implies a neutral to basic fluid.
Either the clay alteration in granite is a separate alteration event, or it is supergene weathering aided
by acid generated by the oxidation of sulfide minerals; given the light degree and limited areal extent
of clay alteration in granite, the latter explanation is currently preferred.
22
Figure 7-10. Dolomite alteration in dolomite, Mundo target area.
Figure 7-11. Hematite and clay alteration in granite,
23
7.3.3 Geochemistry of Mineralization and Alteration
In qualitative terms, mineralization shows generally elevated values of Ag, Au, Cu, Pb, Zn, As, Sb, Ba,
Cd, Cr, and Mg, and inconsistently high Bi, P, Sr, and W. A brief statistical evaluation shows
statistically significant correlations (correlation coefficient ≥0.60) between Ag and Sb, Cu, As, Cd, Bi,
Pb, and Au, in decreasing order.
The mineralogy and geochemistry of the veins (hematite-dominant) and surrounding alteration
(dolomite alteration with little acidic alteration) points to a neutral to basic, oxidized fluid especially
rich in Ag, with accompanying Au and base metals.
8 Deposit Types
The style of mineralization on the Clement project is not yet well defined nor definitively classified by
ore-deposit type, and will benefit from further work. Current known geologic features on the project
display characteristics of both orogenic gold deposits and low-sulfidation epithermal gold-silver
deposits.
8.1 Orogenic Gold Deposits
Orogenic gold deposits form near or soon after peak metamorphism in collisional metamorphic
terranes of all ages. Displaying strong structural control in 2nd- and 3rd-order brittle faults and ductile
shear zones as quartz-dominated stockworks, breccias, sheeted veins, vein arrays, replacements, and
disseminations, most deposits formed at greenschist facies (250-350°C, 1-3 kbar, 2-20 km deep) in
compressional-transpressional settings at convergent plate margins near 1st-order deep crustal fault
zones with complex structural histories, especially where these faults change direction (Goldfarb et al,
2005; Groves et al, 1998). Orogenic gold systems can be huge—with the largest up to 2-10 km long,
1 km wide, and 2-3 km deep—and contain some of the planet’s largest concentrations of gold, such
as deposits in the Kalgoorlie district, Australia (39M ounces), and the Timmins (64M oz) and
Kirkland Lake (24M oz) districts in the Canadian Shield.
Ore occurs in quartz veins and altered wall rock, with generally high gold:silver ratios and high
fineness, accompanied by 2-5% sulfides. Historically, high-grade veins were exploited (5-30 g/t), but
many deposits comprise large volumes of lower-grade, bulk-mineable ore. Alteration consistently
adds CO2, S, K, H2O, SiO2 to wall rocks in the form of carbonates (ankerite, calcite, dolomite),
sulfides (pyrite, arsenopyrite, pyrrhotite), and silicates (muscovite, biotite, K-feldspar, albite, and
chlorite); scheelite and tourmaline are common, and at higher metamorphic grades amphibole,
diopside, and other skarn-like replacement minerals occur. The typical geochemical signature is
elevated As, B, Bi, Hg, Sb, Te, and W, with generally low Cu, Pb, and Zn. Gold was transported as
sulfide complexes in reduced, near-neutral metamorphic fluids of high CO2 and low salinity and
deposited by pressure decreases during episodic seismic events (leading to the characteristic banded
quartz veins) or by desulfidation reactions with wall rocks.
Mineralization at Clemente shows a number of features characteristic of orogenic gold deposits.
These include banded quartz-dominant veins; elevated levels of the trace elements As, Bi, Sb, and W;
an apparently neutral to basic mineralizing fluid; and veins occurring along thrust faults. If Clemente
is an orogenic deposit, it is atypical in a two ways: it appears to lack the typical potassic alteration
(dominantly biotite) of orogenic deposits; and its geochemistry is relatively high in Ag and base
24
metals, which in most orogenic deposits are all low relative to gold. Further work is needed to fully
categorize the project’s mineralization.
The Clemente project is located in a mineral belt with other major orogenic gold deposits, including
La Herradura, El Chanate, La Choya, and San Francisco. These deposits show similarities with the
structural setting and mineralized features found at the Clemente project. In particular, Clemente
displays numerous similarities to El Chanate, which is located approximately 50 km north of the
project. As reported by Hester (2009), El Chanate is an orogenic gold deposit hosted in sedimentary
rocks cut by a low-angle fault (presumably a thrust). Mineralization consists of quartz-bearing veins
and veinlets, which attain economic grades where dense swarms of these structures occur at or near
intersections between the main low-angle and higher-angle W- and NW-striking faults. In 2009, El
Chanate held a 43-101 compliant resource of approximately 1.5M ounces gold (64M tonnes grading
0.653 g/t Au measured plus indicated; 6M tonnes grading 0.748 g/t Au inferred; Hester, 2009).
8.2 Low-Sulfidation Epithermal Gold-Silver Deposits
The Clemente project shows some characteristics of low-sulfidation epithermal gold-silver deposits.
Epithermal deposits in general form in volcanic arcs at convergent plate margins and in postcollisional rifts at relatively shallow depths (≤1.5 km) and low temperatures (<300°C; Simmons et al,
2005). They are generally rich in gold and silver, with variable amounts of base metals, commonly
forming as steeply dipping veins surrounded by often large areas of hydrothermal alteration and
disseminated mineralization, generally hosted in coeval volcanic host rocks. Most deposits are
Tertiary and younger, related to calc-alkaline to alkaline magmatism. Epithermal deposits are
subdivided into high- and low-sulfidation types (Einaudi et al, 2003).
Low-sulfidation epithermal deposits display characteristic quartz, adularia, and illite gangue and
alteration minerals, with ore minerals including electrum, acanthite, Ag sulfosalts and selenides, AuAg tellurides, and variable amounts of sphalerite, galena, chalcopyrite, and pyrite (Simmons et al,
2005). Low-sulfidation deposits commonly are enriched in Ag, As, Au, Hg, Sb, Se, Te; and Tl, V, W,
Sn, and Mo in some deposits. Vein features such as banded crustiform, colloform, lattice, and drusy
textures indicate a dominance of open fissures at the time of formation. Alteration tends to be zoned
from distal and deep propylitic through clay-carbonate-zeolite to proximal quartz-adularia-illite-pyrite.
Fluids were of low- to moderate salinity dominated by meteoric waters with little or no magmatic
contribution (Simmons et al, 2005; Heald et al, 1987). Precipitation of vein and ore minerals resulted
from changes in pH derived from varying degrees of boiling, fluid mixing, and cooling.
Mineralization at Clemente displays some characteristics of low-sulfidation epithermal deposits:
addition of Ag, Au, Cu, Pb, Zn, As, Sb, and W, particularly the high Ag and base metals, which are
not characteristic of orogenic gold systems; open-space-filling textures and angular breccias
consistent with an epithermal origin; and a relatively neutral, oxidized mineralizing fluid rich in Ag
and base metals. Further work is needed to fully categorize the project’s mineralization.
The nearby Cerro Colorado deposit, located about 5 km to the southeast, shares a strong structural
similarity to Clemente. Cerro Colorado appears to be a high-sulfidation epithermal deposit displaying
strong hematite and clay alteration with reported alunite, hosted in Tertiary rhyolite breccia and
rhyolite, Paleozoic limestone, and Proterozoic granite (Stone, 2011). The highest-grade mineralization
occurs at the intersection of ENE-striking south-dipping structures (the La Cienega fault, rhyolitelimestone contact, and rhyolite-granite contact) with NW-striking high-angle faults. The total deposit
size at Cerro Colorado is reported as approximately 337,000 ounces gold (9.7M tonnes grading
25
0.55 g/t Au measured and indicated, 5.6M tonnes grading 0.41 g/t Au inferred, ~43,000 ounces
modern production, ~50,0000 ounces historical production; Stone, 2011).
8.3 Exploration Model
The exploration model for the Clemente project is that of the Cerro Colorado and El Chanate
deposits. In both of these deposits, ore-grade mineralization is concentrated at the intersections of
relatively lower-angle and higher-angle structures. In the case of Cerro Colorado, ore shoots formed
where shallow to moderately dipping lithologic contacts and ENE-striking faults intersect higherangle NW-striking faults (Figure 8-1). These faults are a component of a strong northwest lineament
in the project area: the three Clemente target areas occur along strike to the northwest of Cerro
Colorado; both Clemente and Cerro Colorado contain NW-trending mineralized structures; and
airphotos show several unmapped lineaments trending northwest between the two projects.
The Clemente project contains the same structural components as both of these deposits: moderate
to low-angle structures (the granite-sediment contact and two generations of thrust faults) cut by
steeply dipping NW-striking veins that show evidence of fault movement. Both types of structure are
mineralized at Clemente: mineralization concentrates along the granite-dolomite contact at the Nuevo
Mundo contact, and a Phase 1 thrust fault hosts the high-grade vein in the Santa Elena target area.
High-angle vein/faults are mineralized throughout the project area. It is notable that the two highest
Ag assays are separated by almost 10 km along the northwest structural trend leading to the Cerro
Colorado mine, indicating the size of the mineralizing system on the project.
Exploration at Clemente, then, should focus on identifying intersections between these structural
elements. A combination of geologic mapping, sampling, and geophysics should be employed.
Geologic mapping should focus on structure (mapping faults and folds), stratigraphy (understanding
the sedimentary units and marker beds for drilling), hydrothermal alteration (as an indicator of
proximity to mineralized structures), and veins (attitudes, mineralogy, crosscutting relations). Soil
sampling (along with additional stream-sediment sampling as needed) may help to identify
mineralized intersections in recessively weathered areas where outcrop is poor, particularly between
the Mundo and Nuevo Mundo targets. Ground magnetics should be reviewed for indications of
structural intersections. Following mapping and sampling, IP lines should be run over know target
areas and suspected structural intersections.
Overall, the strong similarities between Clemente and the El Chanate and Cerro Colorado projects,
coupled with the extremely high Ag assays on the project, the favorable structural components of the
project, and the ~10-km strike length of known mineralization give the Clemente project good
exploration and discovery potential.
26
Figure 8-1. Structural model for mineralization at the Cerro Colorado mine, 5 km southeast of Clemente.
From Stone, 2011.
9 Exploration
Riverside geologists completed a multi-phase exploration program on the Clemente property. This
included mapping, sampling, ground magnetics, and ASTER data analysis in order to define zones of
anomalous gold and trace element geochemistry as well as areas showing textural and vein
characteristics of epithermal systems. All exploration to date has been conducted by the Riverside
geological team and their consultants over a 3-month period in 2010.
27
9.1 Extent of Sampling
Geochemical sampling completed at the Clemente property consists of the collection of a total of
543 rock samples and 103 stream sediment samples. Rock chip samples were collected as continuous
chip, grab, and select samples. The continuous chip samples were designed to define mineral
distribution and approximate overall grades within areas of known mineralization. They were
collected perpendicular to the structure where possible and were cut across the full width of
observable mineralization. Within the mine working exposures, samples were generally cut vertically
to cross the stratigraphy. Grab samples were collected to help define background geochemical levels
within the various rock units and to evaluate metallic ion distribution and chemical zonation across
the property. Select samples were collected to determine if there were any specific geochemical
signatures and to characterize the ability of the system to generate high-grade ore. This type of firstpass sampling is typical in early-stage exploration projects. This sampling provides a good overall
representation of the mineralization and is designed to develop targets for follow-up investigation.
The quality of the sampling appears to be good, with results from different rounds of sampling
showing good consistency within similar geologic settings. Selected samples were taken to determine
if there was high-grade gold mineralization; all such samples were noted and described as “select” in
the database in order to avoid any confusion. Due to the early stage status of the current project, I am
satisfied with the sample density and believe that it is representative in defining anomalies within this
early-stage exploration program.
9.2 Mapping, Sampling, and ASTER Results
Results of the mapping, sampling, and ASTER data analysis are as follows. A multi-phase ASTER
study was completed with property-wide alteration analysis using VNIR, SWIR, and TIR spectral
wavelengths. A follow-up site visit by remote sensing specialist Telluris Consulting and Riverside
geologists was then completed in order to determine the validity of the ASTER anomalies. The visit
focused on detailed zonal studies of variably altered outcrops which led to subsequent reprocessing
of the ASTER data with incorporation of these new field observations. Field mapping of anomalous
areas and field hand sample collection of highly, moderate, and weakly altered and fresh rock was
then completed to test samples using Terraspec spectral analysis.
A total of 543 rock samples were collected in the delineation of the main target zones (see below).
The results of geochemical sampling and geologic mapping have identified potentially ore-grade AgPb and lower-grade Au. Silver shows extremely high values, with peaks of 2,933 g/t Ag (sample RRI10396 in the Santa Elena area) and 2,108 g/t Ag (RRI-10400 at Mundo), and 36 samples greater than
50 g/t Ag. Gold attains values up to 5.2 g/t Au, with 36 samples above 200 ppb Au, and 28 assays
over 500 ppb Au. Lead values range between 0.1 to 8.82 % Pb, and Zn results are between 0.1 to
8.52 % Zn. The geochemical results from the Clemente project indicate a silver- and base metal-rich
property with a high potential for continued exploration.
The principle targets that have been currently defined and are summarised below.
28
Table 12-1: Rock sample summary
Sample From
Sample To
# of
Samples
Sampler
Date
Inspectorate
Lab Certificate
RRI-10390
RRI-10400
11
J.Cirett/R. Ramonett
27-28 Mar 2010
10-338-00760-01
RRI-10551
RRI-10556
6
J.Cirett/R. Ramonett
27-28 Mar 2010
10-338-00760-01
RRI-10557
RRI-10562
6
Andrew Daniels
14 Apr 2010
10-338-00892-01
RRI-13908
RRI-13914
7
Locke Goldsmith
Mar 2010
10-338-00764-01
RRI-14220
RRI-14267
48
Aristeo Nunez
May 2010
10-338-01256-01
RRI-14268
RRI-14317
50
Aristeo Nunez
May 2010
10-338-01445-01
RRI-14318
RRI-14353
36
Aristeo Nunez
May 2010
10-338-01493-01
RRI-19801
RRI-19814
13
David Smith
16-21 Nov 2011
11-338-10053-01
RRI-39751
RRI-39904
106
Juan Pablo del Toro
Feb 2013
13-338-00604-01
13-338-00783
RRI-40501
RRI-40683
183
David Brown
Sep 2013
HMS13000194
HOC-45101
HOC-45177
77
Shelley Oliver
Nov-Dec 2013
HMS13000384
Total samples
543
Table 12-2: Stream-sediment sample summary
Sample From
RRI-10601
Sample To
RRI-10708
# of
Samples
108
QC samples
5
Field samples
103
Sampler
Guillermo Contreras
Merardo Mata
Date
7-20 May 2010
Inspectorate
Lab Certificate
09-338-01271-01
29
Figure 9-1. Map of reduced-to-pole magnetic field strength.
Regional data from the Mexican Geological Survey.
30
Figure 9-2. Target map. Principal targets are Santa Elena North and South, Central Thrust,
South of DK-1 (Dos Kilos South), Intrusive Working, Mundo, and Nuevo Mundo.
9.3 Exploration Targets
9.3.1 Santa Elena North and South Targets
The Santa Elena mineralized area is located in the southwestern portion of the Clemente property,
specifically in the hills El Llano Verde. The lithology of this area comprises upper Proterozic
sediments consisting of dolomite and quartzite conformably overlain by Cambrian quartzite and
dolomite. The above rocks are largely covered by recent continental terrigenous sediments and
Quaternary silt, sand, and gravel.
31
Mineralization at the Santa Elena target consists dominantly of quartz-sulfide veins occupying a
Phase 1 bedding-plane thrust fault as mapped by Westerfield (1988). These are white banded quartz
veins are up to 1 meter thick containing bands and clots of sulfide minerals, dominantly galena. The
vein sampled in RRI-10396 (347 ppb Au, 2933 ppm Ag) includes coarse-grained dolomite in clots
surrounding euhedral quartz crystals, as large ≤10-cm anhedral crystals, and as millimeter-scale
euhedral crystals in vugs (Figure 7-8). Copper and zinc oxides are also present at the Santa Elena
showings, as is probable plattnerite, a lead oxide mineral. The very high silver values—up to 2.9 kg
per ton Ag—over a strike length of 1.4 km make this an attractive exploration target.
The high-priority Santa Elena targets show evidence for being larger, more complex mineralizing
systems and have potential for larger bulk tonnage. The workings located in both the Santa Elena
North and South areas carry consistent, high silver grades (e.g. 2933 ppm Ag, 2354 ppm Ag,
5 samples over 450 ppm and 11 more samples well over 100 ppm Ag).
The Santa Elena North area is the most interesting target owing to several notable gold values
accompanying the silver mineralization, including 1660 ppb Au, 1301 ppb Au, 3 samples over
450 ppb, and seven more with values over 300 ppb Au. The Santa Elena North area is a complex
series of three stacked mineralized thrust zones accompanied by intervening brecciated damage zones
and cross-cut by several steep, east-west faults. All of the structural components have been
permeated with hematizing and silicifying fluids that resulted in the quartz-sulphide vein
mineralization in the thrust planes and the workings. The stacked mineralized thrust planes repeat
stratigraphy, indicating potential for a larger system, up to 700 m thick and over a 1km2 area, that has
significant bulk-tonnage potential.
Santa Elena South is also a high-grade silver target and as noted above, and includes silver grades at
514 ppm, 286 ppm, 211 ppm, and several more over 100 ppm Ag. The Santa Elena South
mineralized system comprises a wide mineralized shallow thrust zone, intercepted by multiple
mineralized, steep east-west faults over a 700x500 m wide area. The faults themselves host
continuous high-grade silver mineralization. As well, the intersections of the high-grade faults have
wide, mineralized breccia zones that are highly prospective, with several workings targeting these
intersections. The mineralization in this area is open down-dip and in all directions on the fault planes
and as well within the fault intersection zones.
9.3.2 Nuevo Mundo Target
In the Nuevo Mundo area, significant silver-lead-zinc mineralization has been defined by sampling in
an area measuring approximately 575 m x 1400 m (Figure 9-2, 9-4, 9-5). The Nuevo Mundo area
consists of a series of prospects and abandoned mines containing veins and stockwork zones with at
least two directions: 1) N20-60° W, dipping 45-60° SW; 2) N35- 45° E, dipping variably SE-NW 6080°. The dimensions of the mineralized structures are up to 10-100 m long, 1 m thick, and have been
exposed to a depth of 80 m. These structures are hosted in the Proterozoic Bamori granite and
Caborca Formation dolomite, and occur near the granite-dolomite contact. The values presented in
this area are low in Au with variations of 14 to 1,399 ppb Au, moderate Ag with a range of 1 to
1,317 g/t, and low Cu and Zn.
The mineralized zone is exposed over a vertical thickness of approximately 80 m. Mineralization is
thought to extend beyond the Nuevo Mundo old workings, and could extend laterally beneath the
granite-dolomite contact. Initial mapping suggests that the mineralized zone is open in all directions
under alluvial gravels (north area) or within down-dropped structural blocks. The result of the
32
geochemical sampling conducted to date at the Clemente property has outlined a large area of
potentially ore-grade mineralization.
9.3.3 Mundo Target
The Mundo area consists of an abandoned mine with very high silver values. A fault-vein system
could be related to thrust faulting and development of high- and low-angle faults that hold elevated
gold and silver values. This high-potential area is at least 600 x 600 m in extent and has the best gold
values in the Clemente claim with a high of 5.55 g/t Au. The nature of mineralization is a vein-fault
striking 355° and dipping 65° SW. This mineralized structure and 3.5 m thick, is exposed over a strike
length of 70 m, and is hosted in Proterozoic dolomite and quartzite. The emerging view is of goldsilver mineralization accompanied by iron and copper sulfides in a gangue of limonite, goethite, and
copper carbonates in recrystallized dolomite. The samples reported returned high values of 5554 ppb
Au, 2108 g/t Ag, 0.22% Cu and 2.7% Pb, and 2.7% Zn.
9.3.4 Dos Kilos South Target
Two settings on the Dos Kilos target have high-grade structures that have been shown to have good
continuity potential and fault intersection potential. The southern extensions of the south-striking,
steep normal faults on the DK-1 license are a priority undercover target. This target has structurallycontrolled, high-grade silver vein potential in two different fault sets. Silver values include 2000 ppm
Ag, 510 ppm Ag, and four other samples above 100 ppm Ag, with notable gold values including one
sample at 563 ppb Au and three samples between 250 and 350 ppb Au.
The two Dos Kilos mineralized fault sets are as follows. First, on the west side of the DK-1
concession is a steep, N-S- striking mineralized fault in the Clemente workings. As this fault traces to
the south, it is quickly covered by thick alluvium, giving good potential under alluvial cover. Second,
on the east side of the DK-1 property is located the steeply dipping San Antonio mineralized normal
fault. The southern extension of this fault is highly prospective as well: the structure continues south
onto Riverside’s property and appears to be intersected by a poorly exposed E-W thrust. Because
both faults are major faults with significant displacement, well-formed breccia zones and evidence of
fluid flow within the planes, the potential intersection point is highly prospective.
9.3.5 Intrusive Working Target
The Intrusive Working target is located in the south-west corner of the Clemente license. The
intrusive working is a newly identified high-potential area that has a mineralized steep, cross-cutting
north-south fault and a previously unknown porphyry host rock. Since copper is always elevated in
the high-grade silver and gold mineralization on the Clemente property (including Santa Elena,
Mundo, Nuevo Mundo and the DK-1 workings), the high copper values (35.2% and 14% Cu) are a
good indication of the potential silver and gold grades that were being targeted in the Intrusive
workings. More sampling is needed to define the mineralization. The fault that controls
mineralization at the Intrusive Working target is a newly identified and well-mineralized structure.
The fault hosts an extensive and deep historic mine working that targets down dip in the fault plane
for over 30 m. Further work is needed to establish the fault’s continuity to the north and south and
assess the potential of intersections with the mineralized thrusts to the north, including the structures
of the Mundo target and of the Nuevo Mundo target. As well, there is high potential for
mineralization being localized along the contact between the overlying Proterozoic sediments and the
newly identified intrusion below that needs to be assessed.
33
9.3.6 Central Thrust Zone Target
A lower priority target that is worth investigating is the Central Thrust target. The target is major
east-west striking thrust fault that has a thick, 5-m-wide damage zone and a 20+m wide alteration
halo. Both of these zones have seen significant amount of fluid flow, with the damage zone having a
strongly silicified, manganese-iron black oxide matrix and the alteration halo being strongly hematized
and silicified. The effects of the fluids can be traced over a 700m+ length and suggests a thrust zone
with excellent ground preparation for mineralizing fluids down dip, along the shallow thrust plane.
This mineralization is similar to the manganese-iron-silica veins located on the periphery of the highgrade Santa Elena North and South zones. The Santa Elena veins are located from 300 to 500 m
outside of known high-grade silver and gold mineralization (a +1000 ppm Ag sample, several over
500 ppm Ag samples and several +500 ppb Au samples). The Central Thrust Zone target is the basal
thrust to the lowermost plane in the stacked thrust fault zone that includes the high-grade silver and
gold bearing Nuevo Mundo target 2 km east of this area. Therefore, it is already proven that this
package of thrusts has been infiltrated by mineralizing fluids at the Nuevo Mundo target. This leaves
open a 2 km zone between gold and silver mineralization at the Nuevo Mundo target and the
manganese-iron-silica deposits with hematized halos in the Central Thrust Zone.
10 Drilling
No drilling has been conducted on the Clemente project.
11 Sample Preparation, Analysis, and Security
No aspect of sample preparation was carried out by Riverside personnel. Samples were taken by
Riverside personnel and shipped by them to the laboratory. In the author’s opinion, the samples were
handled in a proper manner and are reasonably secure from tampering.
No sample preparation was done before sample shipment to the lab. Laboratory sample preparation
procedures are as follows. Samples delivered to the Inspectorate America Corporation facility in
Hermosillo, Sonora, Mexico are assigned a bar code, dried, weighed and crushed until 70% of the
sample passes through a 2-mm screen. From this portion of the sample, a 250-gram portion is
pulverized until 85% passes through a 75-µm screen. This pulp is then shipped by bonded carrier to
the Inspectorate analytical laboratory in Sparks, NV, USA. In Sparks a 30-gram portion of the sample
is assayed for gold using a standard fire assay method with the final gold determination made by AAS
(atomic absorption spectrometry). Some of the sample pulps were also analyzed for a suite of
30 elements including Ag, Pb, Zn and Cu by ICP-AES (inductively coupled plasma atomic emission
spectroscopy), a standard recognized analytical method. Any samples that were found to contain in
excess of their maximum detection limits were re-assayed using standard “ore-grade” analytical
techniques to determine the more precise metal content.
The Inspectorate America Corporation Laboratories are ISO 17025 accredited. They employ a
rigorous quality control system in their laboratory methodology as well as a system of analytical
blanks, standards, and duplicates. Details of their accreditation, analytical procedures, and QA/QC
34
program can be found on their website at http://www.inspectorate.com/. Inspectorate has no
relationship to Riverside Resources.
Independent consulting geologist Mark Pryor visited Inspectorate’s prep lab in Hermosillo and
discussed procedures with the manager of this facility. Based Mr. Pryor’s assessment of the prep lab,
my own experience with Inspectorate, my observations of sampling on the project, and check
sampling by other independent geologists, it is my opinion that the sample preparation, security, and
analytical procedures used on the Clemente property samples are sufficient for the purposes of this
report.
11.1 Quality Control
A total of 38 quality-control samples were included with the 543 rock-chip and stream-sediment
samples, including 22 standards, 15 field blanks, and one field duplicate. Standards for gold were
purchased from Rocklabs, of Auckland, New Zealand (OxA71, OxA89, OxE56 OxD73, OxD87,
OxJ36, OxJ68) and from CDN Resource Labs in Vancouver, BC (STD-ME12). These quality-control
samples make up 7% of the total number of samples. They do not meet the industry standards of 5%
for each of standards, blanks, and duplicates. However, for this early-stage exploration project they
are sufficient to detect possible laboratory errors and therefore for the purposes of this report are
deemed adequate.
In addition to the quality-control samples submitted by Riverside, the analytical laboratory conducted
internal quality control and quality assurance procedures including the insertion of duplicate assaying
of every tenth sample.
Results of standards analysis all fall within ±3 standard deviations from the accepted standard value.
Field blanks were prepared from a bedrock exposure of unmineralized granitic material and from
previously tested rhyolite collected by Riverside and stored in its office in Hermosillo. All of the
blank analyses fall within a range of <5 ppb Au to 8 ppb Au. Blanks and the single duplicate
submitted returned acceptable results for gold analyses. As the Qualified Person, it is my opinion that
the sample-preparation, security, analysis, and quality control of sampling and analyses on the project
are sufficient for the purposes of this report.
12 Data Verification
Assay data received from the laboratory was closely monitored by Riverside personnel and
independent consultant Mark Pryor. Any concerns related to missing samples, assay results,
duplicates, standards, and blanks or analytical technique were immediately discussed and addressed by
the laboratory. There were no batches of re-assayed samples. Examination of standards and duplicate
results demonstrated satisfactory accuracy of assaying (see above).
I examined sample sites in the field and compared mineralization with sample results; in all cases,
observed mineralization was consistent with the sample results returned. I also examined the sites of
and results from several sets of duplicate samples taken by independent consultant Andrew Daniels,
all of which agreed closely with the original samples taken. In addition, I took samples at new
locations, all of which were consistent with results and mineralization at past sample locations. I did
no verification of stream-sediment samples results.
35
As the Qualified Person for this report, it is my opinion that the data generated to date on the project
is adequate for the purposes of this report and the early-stage exploration Clemente project.
13 Adjacent Properties
There are no adjacent properties as defined by National Instrument 43-101.
14 Mineral Processing and Metallurgical Testing
No mineral processing or metallurgical testing has been done on the Clemente property to date.
15 Mineral Resource & Mineral Reserve Estimates
No mineral resource and mineral reserve estimates have been completed for this property to date.
16 Other Relevant Data and Information
There is no additional information or explanation necessary to make the technical report
understandable and not misleading.
17 Interpretation and Conclusions
17.1 Interpretation and Conclusions
The Clemente project shows good exploration potential over a 10-km strike length along a structural
trend in line with a producing gold mine, within a corridor of major, structurally controlled, orogenicstyle gold deposits. The property has numerous prospects indicating mineralized bodies with the
potential to host orogenic, or low-suilfidation epithermal styles of mineralization with multiple
samples returning values over 500 ppm Ag (up to 2,900 g/t Ag). Seven target zones have been
identified with multiple mineralized veins and structures hosted in Proterozoic igneous and
sedimentary rocks, with potential to host bulk tonnage mineralization. The primary metallic resource
is silver-lead with portions of the area returning gold values up to 5 ppm. Based on the exploration
work completed on the property to date and the encouraging anomalous surface results, the
Clemente silver-gold property is of sufficient merit to warrant further exploration work.
36
17.2 Significant Risks and Uncertainties
The risks of the Clemente project are those that accompany all early-stage exploration projects: a
geologically continuous, economically viable metal resource has not yet been outlined. The project
presents no other unique, significant risks. Mexico is generally regarded as a favorable nation in which
to conduct mineral exploration: the government allows foreign ownership of mineral concessions
through Mexican subsidiary or partner companies, and the country’s mining law is well established
and, in general, fairly administered to foreign corporations.
One minor uncertainty is the 100-ha inlier claim under third-party ownership that lies between the
Santa Elena and Nuevo Mundo targets. This claim is not currently in the area of Riverside’s target
areas and therefore the company is not anticipating acquiring the concession. Depending on future
exploration results, it may be necessary or desirable to acquire this concession from the current
owners. Otherwise, the project’s uncertainties are those that attend all early-stage exploration
projects, namely, a limited amount of technical information. The work program described below is
intended to gather information that would reduce uncertainty and establish the basis for further
decisions on valuation and additional exploration.
18 Recommendations
The Clemente project shows sufficient promise to warrant additional exploration, which should
consist of mapping, additional sampling, geophysics, permitting, and Stage 1 diamond drilling, as
detailed below.
18.1 Exploration Program
The project would benefit from the following exploration program, which could be done before or
during a Stage 1 drill program.
1. Detailed geologic mapping and rock-chip sampling in order to better define the mineralization,
alteration, controlling structures, and deposit types on the project.
2. Soil sampling to determine the extent of geochemically anomalous zones and locate “blind”
mineralized structures.
3. Ground IP/resistivity survey to determine the existence of conductive bodies potentially
controlling mineralization under cover in the three target areas, as well as the Potential Target
Under Cover.
4. Trenching in selected areas to expose buried targets (e.g., Dos Kilos South) or vein extensions
(e.g., Intrusive Working).
5. Terraspec alteration determination, thin sections, and petrographic reports for selected samples
in order to determine vein and alteration mineralogy and mineral relations.
6. Permitting and enacting the proposed diamond drilling program (see below).
37
18.2 Drill Program
I recommend the following drill program of 16 diamond drill holes for a total of 3,900 meters of
drilling. These holes are intended to test the currently known targets on the project, and could be
modified by the results of the exploration program above. The drill program is outlined in Table 18-1
and Figures 18-1 through 18-4, below.
Table 18-1. Proposed drill program
Hole ID
UTM E
WGS 84
UTM N
WGS 84
Az
Dip
Depth
(m)
Target Area
Target
CL-11-01
404910
3354820
90
-60
150
Mundo
Mundo vein @ 50 m depth below workings and
sample 10400 (5440 ppb Au, 2108 ppm Ag)
CL-11-02
404780
3354820
90
-60
300
Mundo
Mundo vein @ 150 m depth below workings and
sample 10400
CL-11-03
404910
3354970
90
-60
150
Mundo
Mundo vein strike potential 150 m north of
workings
CL-11-04
404910
3354670
90
-60
150
Mundo
Mundo vein strike potential 150 m south of
workings
CL-11-05
405930
3353610
90
-45
200
Nuevo Mundo
Vein @ 100 m depth below sample 14263 (130
ppb Au, 716 ppm Ag) + granite/dolomite
thrust/contact
CL-11-06
406520
3353790
65
-45
150
Nuevo Mundo
Veins @ 60 m depth below source of sample
13909 (876 ppb Au, 376 ppm Ag) + intersection
with vein at sample 14223-14224 ( 0.25% Pb,
0.48% Zn)
CL-11-07
406665
3353710
145
-60
200
Nuevo Mundo
Vein/fault @ 50 m depth below sample 1431814320 (375 ppb Au, 38 ppm Ag)
CL-11-08
406775
3353480
335
-60
300
Nuevo Mundo
Veins @ 30-75 m depth below sample 13912
(812 ppb Au, 1007 ppm Ag) + granite/dolomite
thrust/contact
CL-11-09
406900
3353530
335
-60
200
Nuevo Mundo
Veins @ 50-100 m depth below sample 10555
(430 ppb Au, 418 ppm Ag) + grantie/dolomite
thrust/contact
CL-11-10
413415
3350345
80
-60
150
Santa Elena N
ppb Au, 2933 ppm Ag)
CL-11-11
413240
3350310
80
-60
250
Santa Elena N
ppb Au, 2933 ppm Ag)
CL-11-12
413415
3349720
80
-45
250
Santa Elena S
Strike potential of veins 650 m south of holes 10,
11
CL-11-13
413690
3349080
50
-60
150
Santa Elena S
Vein @ 50 m depth below workings hosting
sample 10559 (124 ppb Au, 514 ppm Ag)
CL-11-14
413300
3350500
90
-60
500
Santa Elena N
Thrust plane and breccia damage zone
CL-11-15
413600
3350500
90
-60
500
Santa Elena N
CL-11-16
414000
3350500
90
-60
300
Santa Elena N
38
Figure 18-1. Proposed drill holes at the Mundo target.
Figure 18-2. Proposed drill holes at the Nuevo Mundo target.
39
Figure 18-3. Proposed drill holes at the Nuevo Mundo target.
Figure 18-4. Proposed drill holes at the Santa Elena North target.
40
19 References
Anderson, T.H., and Silver, L.T., 2005, The Mojave-Sonora Megashear—Field and analytical studies leading to the
conception and evolution of the hypothesis: Geological Society of America Special Paper 393, p. 1-50.
Brown, D, 2013, Target Evaluation Geological Mapping of the Clemente Project, Sonora, Mexico: report prepared for
Riverside Resources, Nov. 2, 2013, 23 p.
Einaudi, M.T., Hedenquist, J.W., and Inan, E., 2003, Sulfidation state of fluids in active and extinct hydrothermal systems:
Transitions from porphyry to epithermal environments: Society of Economic Geologists Special Publication 10,
p. 285-314.
Goldfarb, R., Baker, T., Dube, B., Groves, D.I., Hart, C.J.R., and Gosselin, P., 2005, Distribution, character and genesis
of gold deposits in metamorphic terranes: Economic Geology 100th Anniversary Volume, pp. 407-450.
Groves, D.I., Goldfarb, R.J., Gebre-Mariam, M., Hagemann, S.G., and Robert, F., 1998, Orogenic gold deposits: A
proposed classification in the context of their crustal distribution and relationship to other gold deposit types: Ore
Geology Reviews v. 13, p. 7–27.
Heald, P., Foley, N.K., and Hayba, D.O., 1987, Comparative anatomy of volcanic-hosted epithermal deposits: Acidsulfate and adularia-sericite types: Economic Geology, v. 82, p. 1-26.
Hester, M.G., 2009, El Chanate Project Sonora, Mexico, Technical Report: 43-101 technical report prepared for Capital
Gold Corporation by Independent Mining Consultants Inc., June 12, 2009, 82 p.
Longoria, J,F., 1981, Geologic features of northwest Sonora: in Longoria, Jose, ed., Regional geology of northwest
Sonora: Geological Society of America, Cordilleran Section Annual Meeting, Hermosillo, Sonora, Mexico, 1981, field
guide, p. 49-64.
Oliver, S., 2014, The Clemente Silver-Gold Project, Sonora, Mexico: report prepared for Riverside Resources, January
2014, 34 p.
SGM (Servicio Geológico Mexicano), 2007, Carta Geologico-Minera El Prieto H12-A77, Sonora.
Simmons, S.F, White, N.C., and John, D.A., 2005, Geological characteristics of epithermal precious and base metal
deposits: Economic Geology 100th Anniversary Volume, p. 485-522.
Stone, M., 2011, Independent technical report, Cerro Colorado gold mine, Sonora, Mexico: 43-101 technical report
prepared for Goldgroup Mining Inc. by Caracle Creek International Consulting Inc., Feb 28, 2011, 115 p.
Westerfield, M.J., 1988, Geology and magnetics of the Cerros Clemente-Llano Verde, northwestern Sonora, Mexico: MS
thesis, University of Cincinnati, Cincinatti, Ohio, 205 p.
41
20 Certificate of Qualified Person
I, David S. Smith, MS, MBA, CPG, do hereby certify that:
7. I am a consulting exploration geologist with Highlands Geoscience LLC, located at
3803 NE 120th St., Seattle, Washington, 98125, USA.
8. This certificate applies to “43-101 Technical Report on the Clemente Silver-Gold Project,
Municipality of Pitiquito, Sonora, Mexico,” effective date February 28, 2014.
9. I am a Qualified Person as defined by and for the purposes of National Instrument 43-101 by
virtue of my education, experience, and certification as Certified Professional Geologist
No. 11405 with the American Institute of Professional Geologists. I have B.Sc. and M.Sc.
degrees in geology with M.Sc. studies and published research on gold deposits, and I have
21 years of experience in minerals exploration focused on gold and precious metals in the
southwestern United States and Mexico.
10. My most recent personal inspection of the Clemente project was November 27, 2014.
11. I am responsible for the entire report “43-101 Technical Report on the Clemente Silver-Gold
Project, Municipality of Pitiquito, Sonora, Mexico,” effective date February 28, 2014.
12. I am not independent of Riverside Resources Inc., and hold stock options in the company.
13. I have had prior involvement with the Clemente project beginning in 2011.
14. I have read National Instrument 43-101 and the entire report “43-101 Technical Report on the
Clemente Silver-Gold Project, Municipality of Pitiquito, Sonora, Mexico,” which has been
prepared in compliance with NI 43-101.
15. As of the effective date of the report, February 28, 2014, to the best of my knowledge,
information, and belief, the Technical Report contains all scientific and technical information
that is required to be disclosed to make the technical report not misleading.
Dated February 28, 2014, Seattle, Washington
David S. Smith, MS, MBA, CPG
42

NI 43-101 Technical Report

Transcription

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