Riverstone Resources Inc.

Riverstone Resources Inc.

June 26, 2012 08:30 ET

Riverstone Intersects 52 m Averaging 1.78 g/t Gold at Kao Deposit

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 26, 2012) - Riverstone Resources Inc. (TSX VENTURE:RVS)(OTCQX:RVREF)(FRANKFURT:3RV) ("Riverstone" or the "Company") is pleased to report results from nineteen diamond core drill holes on the 100% owned KAO Deposit, which forms part of the company's flagship Karma Gold Project in Burkina Faso, West Africa. These holes are part of an overall program of drilling designed to expand the gold mineralization in all dimensions and to upgrade the resource quality of the central portion of the deposit (see Map on the Riverstone Website for the location of holes: http://www.riverstoneresources.com/i/maps/120622NR-091112_Kao_Plan.jpg).

Significant assay intervals in these core holes include:

  • 1.78 g/t Au over 52 m and 2.20 g/t over 12 m in DD-12-092
  • 2.08 g/t Au over 38 m in DD-12-088
  • 2.13 g/t Au over 32 m in DD-12-089
  • 2.27 g/t Au over 20 m including 4.04 g/t over 8 m in DD-11-071
  • 2.51 g/t Au over 10 m in DD-12-103
  • 2.10 g/t Au over 22 m in DD-12-093
  • 2.97 g/t Au over 8 m in DD-12-085

"The Kao deposit continues to expand in size as the deposit remains open in both strike directions and down-dip," commented Dwayne L. Melrose, President and CEO of Riverstone. "We have not found the limits of the Kao deposit to date and we have consistently continued to intersect gold results which are twice the average grade of the overall deposit."

Mineralization at Kao now extends over 1,100 metres north-south and at least 900 metres down-dip to the east. These results indicate that the deposit remains open to the north and south, as well as down-dip. The holes detailed in this release were designed to extend the down-dip gold mineralization to the east and to upgrade the higher grade gold zone in the central part of the deposit (an interpretive cross-section on the Website shows the geometry of the east-ward dipping mineralized body: http://www.riverstoneresources.com/i/maps/120622NR-120621-KaoXS1497925N.jpg).

Since the data cut-off point for the previous resource estimation (released January 9, 2012), the Company has completed +85,000 metres of drilling on the Karma Project, including approximately 54,000 metres of drilling which have been completed at the Kao deposit. It is expected that the results of this drilling will add to the overall resources of the Karma Project deposits.

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-11-070 32 38 6 1.83
and 74 78 4 1.40
and 180 182 2 4.97
KAO-DD-11-071 152 172 20 2.27
including 164 172 8 4.04
KAO-DD-11-073 88 94 6 1.80
KAO-DD-12-075 110 122 12 1.08
KAO-DD-12-076 54 64 10 1.92
and 70 74 4 1.36
and 88 94 6 1.01
and 110 112 2 1.49
and 132 146 14 0.61
KAO-DD-12-077 28 38 10 0.63
and 38 46 8 1.16
and 100 108 8 1.18
and 136 144 8 0.79
KAO-DD-12-085 0 6 6 1.15
and 10 16 6 1.22
and 20 24 4 1.52
and 32 40 8 2.97
KAO-DD-12-086 34 50 16 1.28
and 50 62 12 0.63
and 230 234 4 1.35
KAO-DD-12-087 244 250.5 6.5 1.52
KAO-DD-12-088 28 66 38 2.08
and 92 102 10 1.19
and 182 186 4 1.28
KAO-DD-12-089 68 100 32 2.13
and 116 126 10 1.57
and 130 142 12 1.01
KAO-DD-12-090 58 60 2 2.69
and 86 116 30 1.18
and 188 190 2 1.92
and 208 218 10 1.61
KAO-DD-12-091 78 100 22 1.24
and 100 114 14 0.61
KAO-DD-12-092 122 174 52 1.78
including 144 154 10 2.58
and including 164 174 10 2.04
and 182 194 12 2.20
KAO-DD-12-093 36 56 30 0.69
and 184 206 22 2.10
KAO-DD-12-094 72 78 6 0.85
and 124 130 6 2.10
KAO-DD-12-103 140 144 4 1.51
and 148 158 10 2.51
KAO-DD-12-104 164 172 8 0.92

Notes: Interpreted true thicknesses for these intercepts are between 90 and 100 percent. Hole 074 returned no significant intersections.

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, 2012).

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 (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.

Further to the Company's news release of January 13, 2012, the Company is pleased to announce that it has now repaid in full the $5 million secured credit facility, which it received from Sprott Resource Lending Partnership.

Further to the Company's news release of April 4, 2012, the Company is also pleased to announce that with the expiry of the applicable lock-up period thereon, it has completed the sale of its remaining 11,500,000 common shares of Roxgold Inc. through the facilities of the TSX Venture Exchange, receiving gross proceeds of approximately $8.14 million.

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

    Riverstone Resources Inc.
    Don Mosher
    Corporate Development

    Riverstone Resources Inc.
    Raju Wani
    Investor Relations

    Riverstone Resources Inc.
    Ron Cooper
    Investor Relations