BHP joins forces with prospect generator to explore Mexican copper project
Dr. John-Mark Staude, president and CEO of Riverside Resources, sits down with Maurice Jackson of Proven and Probable to discuss his company’s just-announced exploration funding agreement with BHP.
Maurice Jackson: Joining us for a conversation is Dr. John-Mark Staude, the president and CEO of Riverside Resources, Where Knowledge is Golden.
Riverside Resources Inc. (RRI:TSX.V; RVSDF:OTCQB has some breaking news coming from its corporate offices in Vancouver that shareholders should note. In the last interview, Dr. Staude, you addressed the five C’s that will be catalysts in 2019 for Riverside, and one of them was copper, which will be germane for today’s discussion. Dr. Staude, you have some groundbreaking news. What would you like to tell shareholders?
Dr. Staude: Riverside is so excited! We’ve now completed an exploration funding agreement with BHP. This agreement is at least two years long, with funding of at least a million dollars a year, for grassroots exploration, with additional funding by BHP to develop porphyry copper in Sonora, Mexico. It’s exactly the type of business that we like to do, getting majors to fund the work, having the prospect generator model in action, and into a great commodity like copper. Fabulous news for Riverside. We’re right on track. 2019–2020, a great year ahead.
Maurice Jackson: This is fantastic news! Today’s press release is a true testament on the business and geological acumen of Riverside. I’m confident shareholders, as well as myself, are celebrating on the company’s monumental accomplishment. Let’s delve into the details of the agreement with BHP. BHP has a market cap close to $125 billion. Why did it commit on a two-year, $2 million agreement with Riverside?
Dr. Staude: I think the key thing is Riverside has the capacity, the expertise in Mexico to go and find growth projects. The world doesn’t have enough growth, good new exploration opportunities. And this way, we expose BHP to Mexico, where our knowledge, our team on the ground can be rapidly working in a turnkey process that is a win-win for Riverside and BHP. We’ve been in Mexico for a decade. We’ve been able to develop projects. So this is a perfect fit of our expertise with BHP’s capital and its knowledge and put it together to make the program successful.
Maurice Jackson: Dr. Staude, provide us with an overview of the program.
Dr. Staude: The program is three stages. 1) The first stage is generative. That’s where BHP puts up the money, and we go about identifying good projects. Two types, one that we acquire, the other is that we stake. 2) Then there’s an add-on capital that comes in that adds additional work, and we go to a defined project stage. That is a stage where there will be drilling and spending of up to $5 million, and BHP needs to spend $5 million. 3) After $5 million has been spent on any defined project, it goes to the third stage as a joint venture.
Riverside has a chance to participate as a partner or to just be carried along on the deal. We have those choices along the way, with an option to sell our interest if we have participated on the joint venture, and further along, even having a royalty. So it’s a really good way for Riverside to use our knowledge, to get into projects, all the projects are in our name, and to help BHP rapidly build out a portfolio in Mexico. It’s a real win-win.
Maurice Jackson: Let’s talk about location. The program is designed for generative exploration. Have the areas of interest been identified?
Dr. Staude: The areas of interest have been identified. It’s actually in northwest Mexico in the state of Sonora, in northeast Sonora. We have our offices in Hermosillo, and so to be able to work from the U.S. border down through so many different copper mines. The mine of Cananea, the mine in Milpillas, well-known areas of mining. La Caridad Mine, one of the large mines of the world, a major mining district here with many starts. And then, all the way down here to Sahuaripa, to this other area down here of another cluster, this whole belt here of over 300 km is one of the prolific belts in Mexico. It’s one of the prolific belts of the world for copper. And we’re delighted now to work in this region with BHP.
Maurice Jackson: Mark, what are we looking at here?
Dr. Staude: Here is the La Caridad Mine. That’s a picture of the large copper open pit. This is the type of thing that we have as a goal. It’s the type of exploration that BHP sees. And if we can find another one of these large deposits, that would make just a tremendous value for Riverside. It would be great for BHP. This is the goal. La Caridad is one of a number of mines that is in this belt, where we’re doing the exploration funding with BHP. So, we’re very excited. The reds and yellows are the leach. The gray is the mineralization that’s been enriched. This is the tier one type of discovery that we’d literally like to make now in the next couple of years.
Maurice Jackson: Dr. Staude, when does the program begin?
Dr. Staude: The program begins right away. The agreement, we are fully funded, and I’m actually on my way to Mexico this week. We have trucks and everything ready to go. And, we’ll be looking forward to having a news flow coming out with our goal of acquisition and our goal of having results on projects. And this will all be focused on new properties. This is all new stuff that we’re going explore so, we’re very excited about the next quarter and our relationship with BHP.
Maurice Jackson: Dr. Staude, I want to thank for allowing Proven and Probable to be the first to share the great news with Riverside shareholders. More importantly, I want to congratulate you. Last year, you and I were in Mexico, and we spent a considerable amount of time together. And I could sense that Riverside was onto something, and it was just a matter of time before your efforts would be rewarded. And again, I just want to thank you for all of your hard work, as a shareholder myself.
And as a reminder, today’s interview only addressed one of five C’s from our last interview. To find out what the five C’s are on Riverside for 2019, we encourage you to visit that discussion here. In closing, John-Mark, what is the next unanswered question for Riverside? When can we expect an answer? And what determines success?
Dr. Staude: The next answer is another C. That is on Cecilia, what the next news will be about, our drill program and drill targets there. We’re working on that right now. And what determines success? Improving and coming up with real solid drill targets that we’re positive about and anticipate being released in the coming weeks.
Maurice Jackson: Dr. Staude, for someone listening that wants to get more information on Riverside Resources, please share the contact details.
Dr. Staude: Please visit our website www.rivres.com. Also, you can phone us at (778) 327-6671. We really look forward to speaking with you.
Maurice Jackson: And as a reminder, Riverside Resources trades on the TSX.V, symbol RRI, and on the OTCQB, symbol RVSDF. Riverside Resources is a sponsor of Proven and Probable, and we are proud shareholders for the virtues conveyed in today’s message.
Finally, we invite you to visit Provenandprobable.com, where we deliver mining insights and bullion sales. Dr. John-Mark Staude of Riverside Resources, thank you for joining us today on Proven and Probable.
Maurice Jackson is the founder of Proven and Probable, a site that aims to enrich its subscribers through education in precious metals and junior mining companies that will enrich the world.
This article first appeared onStreetwise Reports on May 16, 2019