Riverstone Resources Inc.

Riverstone Resources Inc.

July 16, 2012 08:30 ET

Riverstone Extends Kao Deposit-Intersects New Zone to South

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2012) - Riverstone Resources Inc. (TSX VENTURE:RVS)(OTCQX:RVREF)(FRANKFURT:3RV) ("Riverstone" or the "Company") is pleased to report results from 17 drill holes (seven diamond core ("DD") and ten reverse circulation ("RC")) on the 100%-owned Kao Deposit, which forms part of the Company's flagship Karma Gold Project in Burkina Faso, West Africa (the "Karma Project"). These holes are part of a drill program designed to explore a newly developing southern zone of mineralization at Kao (see map on the Riverstone website for the location of the holes: www.riverstoneresources.com/i/maps/120713-120711_Kao_Localplan.jpg).

Significant assay intervals in these drill holes include:

  • 17.10 g/t Au over 4 m in DD-12-084
  • 4.81 g/t Au over 6 m in 11-RC-266
  • 2.00 g/t Au over 14 m and 1.87 over 12 m in DD-12-081
  • 3.61 g/t Au over 4 m and 1.03 m g/t Au over 14 m in 11-RC-268

Mineralization at the Kao Deposit now extends over 1,400 metres northeast-southwest and at least 900 metres down-dip to the east. These latest drill holes demonstrate the presence of zones of good grade in near surface oxide material, as well as some deeper intersections. This drilling has extended the known zone by at least 100 metres based on assay data, and by an additional 200 metres based on visual interpretation. The mineralization remains open along strike in both directions as well as down-dip.

The developing southern Kao zone has a large number of holes that have been drilled and intersected abundant sulphides and local quartz veining. Visible gold grains have been noted in three of the holes, with the most abundant visible gold occurring in a drill hole on the southern-most section drilled to date. Drilling continues on this section and further drilling is planned for one or more sections to the south. Assays are pending for numerous holes, and will be released when they are received.

"We are very encouraged by these assays and the visible gold within the strongly altered and mineralized drill holes at the southern Kao zone, especially as they appear to demonstrate the presence of a new zone open to the south," commented Dwayne L. Melrose, President and CEO of Riverstone. "We still have not found the limits of the Kao Deposit and it continues to grow in size in all directions. The presence of shallow mineralization in this area has important implications for any potential future mining operation. We continue to expand the Kao Deposit, and the results will be included in the upcoming resource estimate scheduled for completion in September 2012. The Preliminary Economic Assessment for the Karma Project is progressing on schedule and is expected to be released in August 2012."

A more complete summary of significant results in these drill holes is presented in the following table:

Hole number Interval (metres) Intercept Average
From To (metres) Grade (g/t Au)
KAO-DD-12-078 230 234 4 1.11
KAO-DD-12-079 60 66 6 0.63
KAO-DD-12-080 24 30 6 1.11
and 78 82 4 1.10
KAO-DD-12-081 18 34 16 1.10
and 130 142 12 1.87
and 146 156 10 1.47
and 166 176 10 1.53
and 198 212 14 2.00
KAO-DD-12-082 190 192 2 1.19
KAO-DD-12-083 4 10 6 0.44
KAO-DD-12-084 18 22 4 1.12
and 224 228 4 17.10
KAO-11-RC-263 194 198 4 0.67
KAO-11-RC-266 36 42 6 4.81
and 94 102 8 0.98
KAO-11-RC-267 26 28 2 1.06
KAO-11-RC-268 18 22 4 3.61
and 190 204 14 1.03
KAO-11-RC-278 74 76 2 1.71
KAO-11-RC-281 88 90 2 1.04
KAO-11-RC-283 94 96 2 0.55
KAO-11-RC-288 12 14 2 4.18
KAO-11-RC-289 no significant intersections
KAO-11-RC-291 80 84 4 0.70

Notes: Interpreted true thicknesses for these intercepts are between 90 and 100 percent.

The 100%-owned Kao Deposit is part of the Company's Karma Project, which comprises a NI 43-101 compliant in-pit Whittle indicated resource of 1.6 million ounces of gold in 47.3 million tonnes grading 1.1 g/t gold and an inferred resource of 0.6 million ounces of gold in 18.9 million tonnes grading 0.93 g/t gold (see news release dated January 9. 2012 and NI 43-101 Technical Report titled "Technical Report and Resource Estimate on the Karma Project, Burkina Faso, West Africa" filed on SEDAR (www.sedar.com) February 23, 201.). Since the data cut-off for the resource estimation, the Company has already completed +85,000 metres of drilling on the Karma Project, including approximately 54,000 metres at the Kao Deposit. It is expected that the results of this drilling will add to the overall resources of the Karma Project deposits.

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 samples were prepared at the independent Abilab Burkina SARL laboratory in Ouagadougou, Burkina Faso, West Africa (part of the ALS Chemex Group), and assayed using standard fire assay with an atomic absorption finish, with samples grading over one gram per tonne gold re-assayed with a gravimetric finish, either in Burkina Faso or at the ALS Chemex facility in North Vancouver, British Columbia, Canada.

Riverstone is active in Burkina Faso, West Africa, where it holds a portfolio of four high quality exploration projects covering in excess of 2,000 square kilometres. Additional information about the Company and its activities may be found on the Company's website at www.riverstoneresources.com and under the Company's profile at www.sedar.com.


Dwayne L. Melrose, President & CEO

Giles R. Peatfield, Ph. D., P.Eng. 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 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 this news release and 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
    President & CEO

    Riverstone Resources Inc.
    Don Mosher
    Corporate Development

    Riverstone Resources Inc.
    Raju Wani
    Investor Relations

    Riverstone Resources Inc.
    Ron Cooper
    Investor Relations