Riverstone Resources Inc.

Riverstone Resources Inc.

November 28, 2011 09:15 ET

Riverstone Continues to Expand Gold Mineralization at Goulagou I on the Karma Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2011) - Riverstone Resources Inc. (TSX VENTURE:RVS)(OTCQX:RVREF)(PINK SHEETS:RVREF)(FRANKFURT:3RV) is pleased to report additional results from 19 Reverse Circulation ("RC") drill holes on the Goulagou I Zone, which forms part of the Company's flagship Karma Gold project in Burkina Faso, West Africa (see map on website: http://www.riverstoneresources.com/i/maps/111124_100504_GGI_PlanV2.jpg). The drilling was designed to infill the deposit at 50 metre spacing and also to expand the deposit along strike in both directions. These latest results have expanded the Goulagou I deposit by 50 metres east and by 100 metres west, and the deposit remains open in both directions and at depth. Mineralization has now been defined over a distance in excess of 2000 m on this deposit, and the width expands from 60 metres on the east end to in excess of 300 metres on the west.

Significant assay intervals are as follows:

  • 1.02 g/t Au over 12 m and 0.82 g/t Au over 14 m in RC-217
  • 0.61 g/t Au over 28 m in RC-222
  • 1.92 g/t Au over 12 m in RC-228

"We are impressed that the Goulagou I mineralization is so consistent and continuous along strike, particularly to the west where the zone becomes quite wide, and well beyond that included in the last resource estimate," commented M.D. McInnis, CEO of Riverstone. "With the now completed infill drilling, we are concentrating on continuing to expand the resources along strike, particularly to the west."

Significant results are presented in the following table:

Hole number Interval (m) Intercept Average
From To (metres) Grade (g/t Au)
GLG-11-RC-215 58 62 4 0.83
GLG-11-RC-216 136 152 16 0.57
GLG-11-RC-217 0 12 12 1.02
and 24 38 14 0.82
GLG-11-RC-219 130 134 4 0.84
GLG-11-RC-221 102 106 4 0.93
GLG-11-RC-222 82 110 28 0.61
and 196 204 8 0.68
GLG-11-RC-224 78 90 12 0.60
GLG-11-RC-225 92 96 4 0.62
and 188 204 16 0.53
GLG-11-RC-226 178 180 2 1.06
and 198 204 6 0.54
GLG-11-RC-227 90 106 16 0.59
and 160 168 8 0.75
GLG-11-RC-228 24 36 12 1.92
GLG-11-RC-231 58 60 2 1.27
GLG-11-RC-232 38 52 14 0.52

Note: Drill holes RC-218, RC-220, RC-223, RC-229, RC-230 and RC-233 reported either low grade values or no significant results. Interpreted true widths for holes RC-215 to RC-217 are between 60 and 75 percent of reported intervals; for the remaining holes with reported intersections, interpreted true widths range from 80 to 100 percent.

The Goulagou I deposit is part of the Karma Project which comprises six contiguous permits. The Company has a 100% interest in two of the permits and has an option to acquire an indirect 90% interest in the remaining four permits. The Karma Project has a NI 43-101 compliant gold resource of 810,600 ounces of gold in 22,845,000 tonnes grading 1.10 g/t gold in the indicated category and 1,119,100 ounces of gold in 44,100,000 tonnes grading 0.79 g/t gold in the inferred category (see news release dated February 28, 2011). Since the resource was calculated in February 2011, the Company has drilled in excess of an additional 40,000 metres, and it is expected that the results of this drilling will add to the resource. The Goulagou property is subject to an Option to Purchase agreement with Golden Star Resources Ltd.

The Company also announces that it has come to an agreement with Orex Ressources Sarl ("Orex") regarding the transfer of the Liguidi Malguem exploration permit (the "Liguidi Permit") in Burkina Faso, West Africa. Orex and Riverstone have signed a memorandum of agreement (the "Agreement"), pursuant to which Orex has agreed to file the necessary documents to transfer the Liguidi Permit to Riverstone, subject to Orex retaining 14% non-participating interest.

In consideration of the settlement of this matter, Riverstone has agreed to issue 100,000 common shares to Orex, which will be held in trust and released to Orex once the transfer of the Liguidi Permit has been completed. The issuance of the Shares has received conditional approval of the TSX Venture Exchange.

Riverstone maintains a quality control program involving the use of repeat assays, inserted blanks and the use of certified standards from an accredited Canadian laboratory. All RC samples were assayed using standard fire assay with atomic absorption techniques, with samples grading over one gram gold per tonne re-assayed with a gravimetric finish, at the independent Abilab Burkina SARL laboratories in Ouagadougou, Burkina Faso, which is part of the ALS Chemex group. Riverstone Resources Inc. is active in gold exploration in Burkina Faso, West Africa, where the Company holds an extensive portfolio of six high quality exploration projects covering 2,300 square kilometres. For further information about the Company and its activities, please refer to the Company's website at www.riverstoneresources.com and under the Company's profile at www.sedar.com.


Michael D. McInnis, P.Eng., CEO

Paul G. Anderson, P.Geo., is the Qualified Person for RVS and has reviewed and approved the contents of this release.

Certain statements made and information contained in this news release and elsewhere constitutes "forward-looking information" within the meaning of the Ontario Securities Act. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, 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, title matters and surface access, labour disputes, the potential for delays in exploration activities, the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties, including those described under Risk Factors in each management discussion and analysis. In addition, 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.

This news release contains forward-looking statements regarding the transfer to Riverstone of the Liguidi Permit. These statements are based on information currently available to the Company and there is no assurance that actual events or results will meet the expectations as expressed herein. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to the transfer of the Liguidi Permit could differ materially from those currently anticipated in such statements for many reasons such as: failure to satisfy the escrow release conditions in the Agreement, including delay in obtaining Ministry approval of the transfer or renewal of the Liguidi Permit. This list is not exhaustive of the factors that may affect the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by it or on its behalf, except in accordance with applicable securities laws.

This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding transfer of the Liguidi Permit are forward looking statements that involve various degrees of risk. The failure to satisfy the escrow release conditions in the Agreement, including delay in obtaining Ministry approval of the transfer or renewal of the Liguidi Permit, is an important factor that could cause the Company's actual results to differ materially from those expressed or implied by such 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.
    Raju Wani
    Investor Relations

    Riverstone Resources Inc.
    Ron Cooper
    Investor Relations

    Riverstone Resources Inc.
    Don Mosher
    Corporate Development