Riverstone Resources Inc.

Riverstone Resources Inc.

February 01, 2012 14:29 ET

Riverstone Completes Acquisition of 90% Interest in Goulagou and Other Burkina Faso Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2012) - Riverstone Resources Inc. (TSX VENTURE:RVS)(OTCQX:RVREF)(FRANKFURT:3RV) ("Riverstone" or the "Company") is pleased to announce that its acquisition of an indirect 90% interest in the Goulagou, Rounga, Tougou and Youba permits located in Burkina Faso, West Africa (collectively, the "Properties") from Golden Star Resources Ltd. ("Golden Star") is now complete. US$6.6 million of the US$18.6 million purchase price was paid in cash, and 21,676,301 Riverstone common shares were issued at a price of Cdn$0.5694 per share in satisfaction of the remaining US$12 million. The Riverstone shares issued in partial satisfaction of the purchase price are subject to resale restrictions under applicable securities laws and an Exchange hold period expiring four months and one day following closing. The Properties form part of the Company's flagship Karma Project which comprises six contiguous permits, the remaining two of which, Kao and Rambo, are 100% held by Riverstone.

"Acquisition of these Properties which are key to the Karma project and our future development plans represents a major milestone for Riverstone," commented Dwayne L. Melrose, President and COO of Riverstone. "The Goulagou permit alone contains in excess of 1.5 million estimated ounces of gold resources. At an acquisition cost of approximately $12 per ounce this represents incredible value for our shareholders. The current working capital of $11 million plus the additional 16 million Roxgold Inc. common shares valued at $30.2 million gives the Company a solid financial position going forward to further develop this flagship project."

The 21,676,301 Riverstone common shares issued as consideration represents 15.3% of the Company's common shares on a fully-diluted basis. Further details of the transaction can be obtained from the Company's news release dated December 23, 2011.

A recently updated NI 43-101 compliant resource estimate prepared by P&E Mining Consultants Ltd. ("P&E") of Brampton, Ontario, increased by 42% the overall global mineral inventory (approximately 800,000 Oz Au) on the Karma Project (see News Release dated January 9, 2012). The estimate was completed on the Goulagou I, Goulagou II, Kao, Rambo and Nami deposits which are all in close proximity to each other.

HIGHLIGHTS (resources are contained within five Whittle open pit shells)

  • Global Mineral Inventory (inside and outside of Whittle pit shells) consists of Indicated gold mineralization totaling 1,773,000 ounces of gold in 54.1 Mt at an average grade of 1.02 g/t Au and Inferred gold mineralization totaling 959,000 ounces of gold in 37.4 Mt at an average grade of 0.8 g/t Au.
  • Total Indicated gold resources within five Whittle pits are 1,634,000 ounces of gold in 47.34 Mt at an average grade of 1.07 g/t Au.
  • Total Inferred gold resources within five Whittle pits are 566,000 ounces of gold in 18.93 Mt at an average grade of 0.93 g/t Au.
  • 74% of the resources within the Whittle pit shells are classified as Indicated gold resources.
  • This resource will be used as the basis for proceeding with a Preliminary Economic Assessment (PEA) commencing in Q1, 2012.

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category.


Michael D. McInnis, P. Eng., Chairman & CEO

Giles R. Peatfield, Ph.D., P. Eng. is a Qualified Person for Riverstone and has reviewed and approved the technical contents of this release.

Certain statements made and information contained in this news release and elsewhere constitutes "forward-looking information" within the meaning of Canadian securities legislation. Forward-looking statements are based on certain assumptions and are subject to risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, with respect to statements regarding the updated resources estimate, the assumptions set forth in the Company's news release of January 9, 2012, and risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development results will not be consistent with the Company's expectations, accidents, equipment breakdowns, risk of undiscovered, title defects and surface access, labour disputes, the potential for delays in exploration activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, and other risks and uncertainties, including those described under Risk Factors in each management discussion and analysis and in the Company's annual information form which are available under the Company's profile at www.sedar.com. Forward-looking information is based on various assumptions including, without limitation, the expectations and beliefs of management, the assumed long term price of gold, that the Company will receive required permits and access to surface rights, that the Company can access financing, appropriate equipment and sufficient labour and that the political environment within Burkina Faso will continue to support the development of environmentally safe mining projects. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Riverstone Resources Inc. - Vancouver Office
    Dwayne L. Melrose

    Riverstone Resources Inc.
    Don Mosher
    Corporate Development

    Riverstone Resources Inc.
    Raju Wani
    Investor Relations

    Riverstone Resources Inc.
    Ron Cooper
    Investor Relations