Coatan is an early-stage gold prospect in Mexico (source: Riverside Resources)

Coatan is an early-stage gold prospect in Mexico (source: Riverside Resources)

Dr. John-Mark Staude's, prospect generator, Riverside Resources (RRI:TSXV) has announced they found a partner in Pembrook Mining (private) to option their Coatan gold project in Mexico.  Pembrook will have to pay Riverside $27,460 in cash and incur $1.8 million in expenditures on the project over the next four years to earn an initial 70% interest.  Then, to earn in their final 30% interest, Pembrook will have to pay an additional $1.5 million in cash within one year of electing the option.  Riverside will retain a 2% NSR royalty on the project.

Riverside President and CEO John-Mark Staude commented: "We are pleased to have the Coatan gold project move ahead with partner-funded exploration focused on delineating the highest-priority drill targets for future testing, and to carry the exploration and concession costs."

Riverside staked the Coatan project in 2011 and immediately completed a reconnaissance exploration program which encountered trace elements leading the technically savvy team at Riverside to believe it hosts a high-sulphidation epithermal precious metals system.  The three known areas of interest are: the Naranjo, Mirador and Vereda zones, which were identified by anomalous stream-sediment samples.  Float samples have encountered greater than 1g/t gold and up to 5.2g/t gold with textures found in high-sulphidation-style systems.

Pembrook is run by a few of the previous executives of Lake Shore Gold, as well as some former Newmont executives.  Kevin McArthur, the former president of Glamis Gold and Goldcorp and founder of Tahoe Resources (THO:TSX), sits on the board too.  The company has over $25 million in the treasury.  They have a number of projects across Peru and Mexico with their fingers in many different types of resources from gold to nickel.

Pembrook is planning to begin a community relations program in early 2014 as well as preliminary surface sampling and geological mapping on the Coatan project.

This transaction is wrapping up a busy year for Riverside who, with their project partners (including Hochschild Mining and Antofagasta), have been very active in their project portfolio.

While many others are divesting assets, the team at Riverside is picking them up and on the cheap.  Many of these include the currently out of favor 'early-stage exploration' projects.  However, because of Riverside's model, the costs for them to acquire and hold on to these projects are limited due to their ability to find joint venture partners, even in this environment.

Read: Riverside Resources Signs Agreement To Option The Coatan Gold Project To Paget Southern Resources For Payments And Work Program

Related: Riverside Resources is Being Proactive, Even in This Market

Riverside Resources is a client.  This is an opinion and not investment advice.  Due your own due diligence.