David Stadnyk, President and CEO of Guerrero Exploration Inc., stated,
"We are very pleased to sign the definitive option agreement with
Riverside. The drilling program at the Leona Target is progressing very
well and additional holes are now underway. Guerrero will continue to
follow the progression of the drilling results with great
anticipation."
John-Mark Staude, President and CEO of Riverside Resources Inc., added,
"Core drilling is an exciting step for the Leona Target at the Chapalota
project. The surface gold assays combined with IP conductivity and
resistivity at the Leona target makes this one of five primary target
areas on the 90 square kilometer property. Previous small scale
mining in the region is an indication that mineralization may be found at
depth."
Riverside and Guerrero commenced an anticipated 2,000m core drilling
program earlier this month with the aim of drill-testing several
geochemical and geophysical anomalies that were generated from a
multi-stage generative exploration program. The geochemical anomaly
discovered through soil and rock chip sampling defined a broad target area
of 5 kilometers by 3 kilometers. Recent exploration work included 31.5
line kilometers of Induced Polarity-Resistivity geophysics, which shows a
coincident anomaly that is now being drilled.
The first drill hole has now been completed and crossed the intrusive
contact and picked up sulphide, chlorite, and quartz veining. The hole had
an upper zone of granodiorite porphyry diking and silicified breccia with
disseminated arsenopyrite and quartz veining. The second drill hole at the
Leona target is now underway and again finding sulphides with dikes and
metamorphic rocks. Trench samples have been sent to the laboratory and
results are anticipated to be released during July, meanwhile drill core
from the first drill hole is being logged, split, and sampled. The drill
program at Chapalota is scheduled to complete eight to ten holes. Each
hole is planned to range from 200 to 250 meters in depth and with many at
a 50 degree angle the true depth will be roughly 160 meters and well
within open pit target depth.
Additional Agreement Terms:
Upon the exercise of the Initial Option, Riverside will grant Guerrero
an irrevocable option to acquire an additional 10% interest in the
Chapalota Property (the "Additional Option"). Guerrero can exercise the
Additional Option by paying Riverside $500,000 and incurring an additional
$1,500,000 in exploration expenditures on the Chapalota Property on or
before the date that is 12 months from the Initial Option Exercise Date.
Upon the exercise of the Initial Option, provided that Guerrero surrenders
its right to the Additional Option, Riverside and Guerrero shall be deemed
to have formed a joint venture (the "Joint Venture") with both company's
holding 40% and 60% interest respectively.
Assaying and Qualified Person:
The scientific and technical data contained in this news release were
prepared under the supervision of Mark J Pryor, Pr.Sci.Nat., an
independent qualified person to Riverside Resources, who is responsible
for ensuring that the geologic information provided in this news release
is accurate and acts as a "qualified person" under National Instrument
43-101 Standards of Disclosure for Mineral Projects.
Samples were taken to Hermosillo, Mexico where ALS Laboratory Group's
mineral division ALS Chemex crushed and pulverized each sample. The
rejects remained with ALS Chemex while the pulps were transported to ALS
Chemex's ISO 9001-2008 certified laboratory in North Vancouver, BC, Canada
for analysis. A QA/QC program was implemented as part of the sampling
procedures for the exploration program. Duplicate, standard and blank
samples were randomly inserted into the sample stream prior to being sent
to the laboratory.
About Riverside Resources Inc.:
Riverside is a well-funded prospect generation team of focused,
proactive gold discoverers with the breadth of knowledge to dig much
deeper. The Company currently has approximately $10,000,000 in the
treasury and fewer than 35,000,000 shares issued. Riverside`s model
of growth through partnerships and exploration looks to use the prospect
generation business approach to own resources, while partners share in
de-risking projects on route to discovery. Additional property information
on the Company's projects can be found on the Riverside Resources Inc.
website at www.rivres.com.
About Guerrero Exploration Inc.:
Guerrero Exploration Inc. is committed to a long term business strategy
designed to achieve optimal levels of profitability and shareholder value.
Guerrero Exploration Inc. is a Canadian based exploration mining company
with a focus on the high yielding Mexican copper, gold and silver mining
area known as the Southern Mexican Gold Belt and the Sierra Madre
Occidental Belt. The Corporation's common shares trade on the TSX Venture
Exchange under the symbol "GEX".