CORPORATE PRESENTATION - January 2020 - Riverside ...
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Disclaimer Forward-Looking Statements This document contains forward-looking statements and factual information that are current as of the date the document was originally created. Riverside Resources Inc. (“the Company”) disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of estimated future exploration, success of exploration activities, expenditures, permitting, and requirements for additional capital and access to data. Forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; the ability to enter into joint ventures or to acquire or dispose of properties; future prices of mineral resources; accidents, labor disputes and other risks of the mining industry; ability to obtain financing; and delays in obtaining governmental approvals of financing Any statements, opinions, projections, forecasts or other material contained in this presentation do not constitute a commitment, representation or warranty by the company or its directors, officers, agents or employees. The directors, officers, agents and employees of the company shall in no way be liable to any person or body for any loss, claim, demand, damages, costs or expenses of whatsoever nature arising in any way out of, or in connection with, the information contained in this presentation. This presentation does not constitute an offer to sell securities and is not a solicitation of an offer to buy securities. It is not to be distributed to third parties without the consent of the company. An investment in the company is considered to be speculative in nature. Each individual should rely solely upon its own investigations and inquiries with respect to the company and agrees it will not in any way rely upon this presentation. The company recommends that you consult your own professional advisor(s). Qualified Person The scientific and technical data contained in this presentation relating Riverside’s mineral properties was reviewed by Freeman Smith, P.Geo., a non-independent qualified person to Riverside Resources, who acts as a "qualified person" under National Instrument 43-101 Standards of Disclosure for Mineral Projects. 2
Investment Highlights • Highly experienced & focused exploration team • 75,000 Location Database ($20M+ in past investment) • +$2.5M in cash and +$1.5M in other junior resource equities • Less than 63M shares outstanding • New partnerships in 2020 – Exploration Funding Agreement with BHP (focus on copper) • Canadian Project Acquisitions • Mexico Project Transactions • Gold-Silver resource Partner-funded Exploration in Sonora, Mexico project + new discovery drilling in 2020 3
Experienced and Balanced Management Team Management • John-Mark Staude, President & CEO • Alberto Orozco, VP Corporate Development • Freeman Smith, VP Exploration • Pedro Herrera, Country Manager (Mexico) • Robert Scott, CFO Board of Directors & Advisors • John-Mark Staude, Director • Brian Groves, Director • Carol Ellis, Director • James Clare, Director • Walter Henry, Director Riverside in the Field with Directors • Ron Burk, Advisor For full bios please visit Riverside’s • Joness Lang, Advisor website at www.rivres.com 4
Highly Experienced Technical Team John-Mark Staude, President & CEO Companies our technical team Mr. Staude earned a Masters of Science from Harvard University in 1989 and a Ph.D. in economic geology have formerly worked with from the University of Arizona in 1995. Alberto Orozco, VP Corporate Development Mr. Orozco has 15 years of mining experience working with Linear Gold Corp., Pediment Gold and more recently, Argonaut Gold Freeman Smith, VP Exploration Mr. Smith has 19 years of professional experience in the resource industry working with Oro Gold, BCGold Corp and Goldplay Explorations. Pedro Herrera, Country Manager (Mexico) Mr. Herrera holds his MSc. and has more than 20 years of exploration experience throughout Mexico. Ron Burk, Advisor Mr. Burk has 30 years of work experience in the minerals industry and contributed in the discovery of the Pitarrilla Project in Durango, Mexico. 5
Share Structure and Key Shareholders Issued Major Shareholders own ~70% of (since IPO in 62,691,188 outstanding shares 2007) Options 3,941,000 Retail Investors European Warrants (0.22) 17,488,875 ~5% Investor Group* ~28% Fully Diluted 84,121,063 ~35% ~2% Cash +$2,500,000 ~15% Trimark ~15% Capital Ltd. 52 Week Hi-Lo $0.22 - $0.125 Market Cap ~C$10M *European Investor Group consists of high net worth investors and small resource funds *These amounts are estimated to the best of our knowledge as of January 1, 2020 6
Riverside’s Equity Portfolio Shares Held by Riverside +2.5M* 1M* ~15M** Other Private/Non-Public Companies *+$1.5M CAD deemed value as of January 1, 2020 **Shares held in illiquid private companies/shells 7
Partner Funded Exploration Partners For every $1 Riverside spends on exploration the Company has generated ~$2 in partner-funded exploration. *since inception 8
Past Strategic Partnerships Major companies Riverside has had Strategic Alliances with USA MEXICO mk 40 26 km 9
Exploration Funding Agreement with BHP • BHP to fund US$1M/year for a minimum of two-years for copper generative work • Focus on the central portion of the Laramide Copper Belt in Sonora, Mexico • Monthly management fees plus 10% for all work • Built in success fee payments to Riverside at each stage of development • Three Stages 1. Project Generation Phase (I) 2. Project Operation Phase (II) 3. Joint Venture Stage (III) Region of Copper Belt of Mexico and Riverside-BHP Generative program 10
Progressing the Portfolio PROJECT 2020 MILESTONE VALUE CREATION USA MEXICO GOLD SILVER Discovery re-rating of Drilling Program PROJECT Project mk 40 PEÑOLES SILVER-GOLD Expanded drilling Project spin-out PROJECT 26 km CANADIAN GOLD Funded drill program with Conserves RRI capital PROJECT partner ARIEL COPPER Expanding RRI’s Copper Joint Venture Partnership PROJECT exposure 11
Expanding into Canada
Why Canada? Why Ontario? • Ontario is the leading Gold Production % mining jurisdiction in Canada • Ontario’s mining belts 43% 57% are within mining friendly jurisdictions and host excellent infrastructure and Ontario numerous producing Rest of Canada mines • Riverside’s projects are located Northeast of Thunder bay Ontario within the Beardmore-Geraldton Greenstone Belt (BGGB)
Oakes Gold Project • Located in Ontario, Canada • Good access and close to necessary infrastructure USA • Historical high-grade gold MEXICO intercepts • Riverside’s 1st phase m exploration program found k 40 *high-grade gold samples of 19.7 g/t Au and 31.9 g/t Au *(see press release July 29, 2019) • 2nd phase exploration program 26 km found high-grade gold of up to 7 g/t Au *(see press release Dec 11, 2019) • High-grade gold discovery potential • Identifying and sampling targets for a proposed drill program at the Project • Available for option 14
Diverse High-Quality Mexico Portfolio 15
Los Cuarentas Gold-Silver Project • 100% Riverside owned • Located in NE Sonora, Mexico & 17 km NW of USA MEXICO SilverCrest Metals’ Las Chispas mine with similar geology • High-grade, low-sulphidation epithermal gold quartz vein system • Good access and close to 26 km necessary infrastructure • Drill permits approved • Identifying and sampling targets for a proposed drill program 16
Cecilia Gold-Silver Project • Located in NE Sonora, Mexico, 40 km east of Cananea (Mexico’s largest USA copper city) MEXICO Agua Prieta • Good access and close to necessary infrastructure mk • Near-surface gold 40 Cananea – World-class mineralization amenable Porphyry Copper Deposit to open-pit mining • Riverside’s 1st phase 26 km exploration found *high-grade CECILIA gold and silver assays up to 113 g/t Au & 288 g/t Ag *(see press release June 6, 2017) • Drill permit approved with drill targets identified • Identifying and sampling targets for a proposed drill program 17
Cecilia Gold-Silver Project 611500 612000 612500 ¯ Riverside located 4 (four) new target areas 29m @ 1.64 g/t Au 19m @ 2.37 g/t Au at Cecilia and identified gold rich rock North Breccia Target 19m @ 2.11 gr/t Au intervals at Cerro Magallanes 26m @ 1.96 g/t Au 17m @ 2.88 g/t Au 22m @ 1.46 g/t Au t r ge 27m @ 9.20 g/t Au Ta ta 3437000 3437000 ie 8m @ 8.27 g/t Au East Target 47m @ 1.12 g/t Au Pr ua 11m @ 5.38 g/t Au Aq 16m @ 1.92 g/t Au 20m @ 2.44 g/t Au 12m @ 1.98 g/t Au Central Target 27m @ 1.31 g/t Au 8m @ 8.27 g/t Au 21m @ 2.44 g/t Au 25m @ 3.63 g/t Au 14m @ 2.44 g/t Au San Jose Target 8m @ 3.11 g/t Au 25m @ 1.32 g/t Au CECILIA PROJECT SSaa Central Target Area nn JJoo ssee Drilling Au Intercepts NNW Surface rock samples W Au Composites (m @ g/t) SStt rruu cctt Underground samples uurr ee Au Composites (m @ g/t) 3436500 3436500 *Grades are not true widths - Sampling along structures Structural Target Zone 0 100 200 m 300 ! Drilling Cerro Magallanes Target Zone 611500 612000 612500 18
Peñoles Gold-Silver Project • 100% Riverside owned • *500K Oz Au eq NI 43-101 Resource • 11,500 metres of drilling and open PEÑOLES PROJECT • All reported resources within 150 metres from surface • Open in multiple directions, >5 district targets • Initial Inferred *43-101 resource estimate: – 305,000oz Au @ 0.46 g/t & – 15,150,000oz + Ag @ 62.3 g/t *The El Capitan gold and Jesus Maria silver Inferred Mineral Resource estimates were done by Robert Sim, P.Geo of SIM Geological Inc. Mr. Sim is an Independent Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects and is a co-author of the 43-101 Technical Report on the Peñoles Gold-Silver Project, Durango State, Mexico that was made public on April 16, 2015. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence and economic viability. 19
Peñoles Gold-Silver Project – Jesus Maria Target • Past partner-funded drilling, underground sampling and trenching at the historical Jesus Maria silver mine discovered high-grade Ag. • Drill highlights included*: JM DDH 14-10: 4.25 m at 732.24 g/t Ag & 1.2 g/t Au JM DDH 14-24: 7.15 m at 988.43 g/t Ag & 1.24 g/t Au Riverside’s President and CEO, John-Mark Staude, visits historical workings at Jesus Maria JM DDH 14-26: 3.00 m at 573.8 g/t Ag & 0.29 g/t Au JM DDH 14-27: 18.7 m at 203.92 g/t Ag & 0.65 g/t Au *All intercepts above reported within first 150m from surface *See slide 19 for 43-101 mineral resource estimate statement. Updated in 2019 Exploration at Peñoles 20
La Silla Gold-Silver Project • Good access and Oxide Gold in Veins close to necessary infrastructure • 23 km2 land package with epithermal Au-Ag vein system • High-grade Au-Ag samples collected in June 2018* – 19.9 g/t Au – 200 g/t Ag *(see press release June 19, 2018) • Riverside’s previous exploration program expanded previous work refining targets for potential future drilling • Riverside has signed a Schematic Cross-Section Definitive Agreement* Looking West at the Ciruelos Vein with Sinaloa Resources Inc *(see press release Feb 19,2019) 21
Tajitos Gold Project • Located in NW Sonora, Mexico in the heart of the Sonora Megashear Gold Belt • Large 61 km2 land package with orogenic gold system and open pit potential • High-grade gold previously mined 100% Riverside owned • Tajitos Project is surrounded by two advanced projects: Red Areas = Riverside Concessions – Fresnillo PLC’s Tajitos Project – Agnico Eagle’s Pitaya Project 22
RRI Copper Portfolio – Available for Partnership ! 500000 550000 600000 ! 650000 700000 ! Turicachi ¯ Magdalena Bacoachi ! Bacamuchi ! ! Riverside has two ! El Batamote Los ! Bavispe Ejido ! Chinapa ! ( Ì Alisos ! La Galera Florida Agua ! ( Ì ARIEL ArielPROJECT Fria Barrigon ! ( Ì ! Nacozari ! Bacerac ! Arizpe ! ( Copper Assets ! ! Ì ! ( _ ^ 3350000 3350000 Pilares Ì ! ( Ì ! Huachinera Bella La Caridad ! Esperanza ! Oputo Tuape Los Hovos ! ! Rodeo Querobabi ! ! ! Banamichi Cumpas ! Opodepe ARIEL Huepac ! ! Washington ! Huasabas ! ( Ì ! Santa Margarita ! ( Ì ! ( Cumobabi 3300000 3300000 El Creston Ì ! San Rafael ! Aconchi ! Moctezuma Rayon ! ! Carbo ! Baviacora ! ! Aurora Mazocahui Tepache ! ! ! Horcasitas Ures ! 3250000 3250000 TECO ! Pesqueira Alamos ! Matape HERMOSILLO ! ! ! Nacori ! Sahuaripa Las ! Mazatan Calaveras ! Bacanora ! Guadalupe 3200000 3200000 ! Tacupeto Tarachi ! La Colorada ! ! ! Torres Luz del Cobre ! Pimas San Javier / San Antonio ! Mulatos de la Huerta ! Guisamopa ! Tecoripa ! (Ì ! ( Ì ! Tonichi ! La Igesia Major Mexico Copper Mines TECO PROJECT Tres 3150000 Los Verdes 3150000 Suaqui Teco Piedras _ ^ (San ! ( Ì Major Cu Mines ! (Ì Nicolas) Cieneguita ! Suaqui ! ( Ì ! ( Ì Yecora ! ! Cu_district ! La Misa ! ( Ì Cuatro ! Suaqui Hermanos Curea Oritz ! Roads ! Verde ! Chalate 0 25 50 km ! El Potrero Aguq Caliente Agua Rancho Caliente ! ! 3100000 3100000 ! Empalme Guaymas ! Guasimas ! 500000 550000 600000 650000 ! 700000 ! 23 ! ! !
Asset Value Drivers Riverside’s Portfolio & Partnerships Partner-Funded Projects Funded Exploration 100% Owned Projects USA Program m CANADA MEXICO k 40 Oakes Gold Los Cuarentas La Silla Gold-Silver BHP Exploration Project Gold-Silver Project Project Partnership Program 26for kmcopper discovery in Longrose Cecilia Gold-Silver Sugarloaf Peak Sonora, Mexico Gold Project Project Gold Project Pichette Peñoles Gold-Silver Gold Project Project Tajitos Gold Project Ariel Copper Project 24
• Riverside commences Exploration Funding Agreement with BHP • Lead generation à Copper Discovery • Riverside expects to deliver partner-funded drill program at Oakes Gold Project • Continued exploration at Riverside owned projects: • Cecilia Project: Targets identified & permitted for drilling Upcoming • Los Cuarentas Project: Drill permitted 2020 Catalysts • New strategic partnerships to & Value Drivers advance existing 100%-owned Riverside projects • New project acquisitions and portfolio growth: • Mexico Expansion (Advancing the Los Cuarentas Project) • Canadian Acquisitions (Sampling programs and working up targets) 25
• Riverside has more than $2.5M in the treasury, no debt & a strong shareholder base with less than 63M shares outstanding • The Company has a strong portfolio of gold-silver and copper assets in stable jurisdictions and is actively adding new quality projects to Summary & the portfolio Key Takeaways • Partners consistently de-risking the portfolio and advancing projects towards discovery and resource development with valuation catalysts of new deals, exploration results and upcoming drill programs 26
Riverside Resources Inc. +1 778.327.6671 x 312 Suite 550 – 800 West Pender Street Vancouver, BC, Canada V6C 2V6 info@rivres.com
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